Reporting season compounds poor outlook for big 4 banks

We provide our thoughts on the recent Big Four bank reporting season results.
Brad Potter

Tyndall AM

375 basis points worth of rate hikes from the Reserve Bank of Australia should have been the catalyst for a healthy period in Big Bank profitability. Instead, questions are being raised once again about the state of competition in the Australian banking space. As value investors, we naturally keep a very close eye on the numbers handed down by the Big Four and we are finding more challenges than opportunities in those outlook statements. 

For starters, none of the big four banks have net interest margins above 2%. Of the three that reported in this most recent cycle, two reported marginal increases while the NAB's decrease disappointed investors on the day of results.

And that's before mortgage rates are brought into the conversation. However, there was one piece of good news in that credit quality remains strong.

In this wire, I'll share our thoughts on the big four results in detail. I'll also share which of the big four banks we'd rather be holding onto right now.



Managed Fund
Tyndall Australian Share Wholesale Fund
Australian Shares

4 stocks mentioned

1 fund mentioned

Brad Potter
Head of Australian Equities
Tyndall AM

Brad joined the business in 2002. He has 28 years’ experience primarily in the funds management and stockbroking industry, and has overall responsibility for managing the Australian equities team, process and portfolios. Prior to joining, Brad was...

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