Are the banks a good buy?

If you’re an income-seeking investor, George Boubouras from Contango Asset Management thinks the big banks are worth owning. “If you’re not an institutional fund manager, and you’ve got a self-managed super fund, yes you should have the big four banks. The total return comes mainly from the income contribution - they spin off lots of cash. They are limited on their earnings growth versus where they’ve come from over the last 25 years, so if you’re getting most of your total return from income and a bit of franking, you should be happy with that.” It’s not just the big banks though, he likes the regionals too. “Outside of the major banks, look at the regional banks - Suncorp, Bank of Queensland, and Bendigo. Partly because, since the capital raising in the second half of last year for regulatory capital and the way the regulator, ASIC, is working through the issue, it’s a bit of a level playing field.” Watch the full interview here: (VIEW LINK)


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