Aitken: Time to buy the banks

Charlie Aitken says the recent market correction and capital raisings has prompted him to start buying back into Australian Bank shares. “I bought some NAB today, I bought some Westpac today and I think it’s time. I think you had to wait for the Commonwealth Bank capital raising – that has happened.” Aitken says valuations now justify the risk to own Bank stocks and that with the capital raisings completed the Banks are stronger companies. “ANZ’s capital raising was a schmozzle which didn’t help the sector but there is always a schmozzle at the bottom. I suspect the ANZ CEO will leave and things like that – but that always happens at the bottom.” At current prices Aitken expects to generate a return of 6% just from dividends and believes the possibility of 10% capital growth is not out of the question. “Is there the possibility of making 16% total return in Australian Banks over the next 12 months? In my view, absolutely.” Watch the full interview here: (VIEW LINK)