Financial inquiry poses risks to big four banks

Financial inquiry poses risks to big four banks. Matt Williams, the Head of Equities at Perpetual says you've got to be careful of the banks (talking on Sky Business). They've really squeezed that lemon hard. Bad and doubtful debt charges are quite low. The price-earnings ratio's that you're buying the banks on looks about 12 times right now. If you look over an economic cycle you're paying more like 15-16 times. So you've got to be cognizant of that. Regarding the upcoming financial system inquiry and its impact on the big four, Williams says The Banks collectively make almost $30BN in profits this financial year. That's a fairly hefty number in an economy of 24 million people. I think there's probably more risk (to the Big Banks) in the inquiry than opportunity, on balance.


2 topics

The Livewire Equities feed brings you a range of insights that relate to Australian equities

Expertise

No areas of expertise

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.