Banks and capital levels – are we there yet?

Morgans Financial Limited

Morgans Financial Limited

Overall we saw the recent bank reporting season as delivering relatively solid results with bad debts generally contained. It should be remembered that even ANZ, which saw a pick-up in its bad debt charge to 26bps of average gross loans, still has bad debts running comfortably below longer term levels. On capital raisings, we feel the large rights issues or placements in the sector are likely finished for the time being although we do believe underwriting of future dividends will occur. Our view, until recently, has been that the Australian banks were relatively expensive, trading at full valuations. The recent market correction is pulling them back to more average valuation levels, with further falls potentially creating some buying opportunities. However at present only one of the big four banks is trading below its longer term PE average level, that being ANZ, which remains our preferred pick on valuation grounds.


2 topics

Morgans Financial Limited
Stockbroker
Morgans Financial Limited

Morgans is Australia's largest national full-service retail stockbroking and wealth management network with over 240,000 client accounts, 500 authorised representatives and 950 employees operating from offices in all states and territories.

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.