This exclusive annual scorecard checks bank results in a difficult year, and looks ahead at the hurdles and opportunities for the sector that many Australians rely on for their income.
Tag Archives | [ASX:ANZ]
The history of the Big Four banks is littered with bad strategies by overpaid executives, taxpayer-funded rescues and a lack of competition. As the banks clean up the Royal Commission mess, Macquarie has overall done better.
Round 5 of the Royal Commission focused on superannuation. Conflicts of interest, trustee responsibilities and delays in meeting the legal obligation to transfer default clients to MySuper products featured.
The Royal Commission heard how the sale of OnePath by ANZ to IOOF is at risk of being stranded in a minefield of internal and external conflicts, and commissions to financial advisers were again in the spotlight.
Our regular check on the ‘star’ performances from the Australian banks’ May 2018 reporting season in the face of low credit growth, increased regulatory scrutiny and the sales of insurance and wealth management divisions.
The Australian banks are on firm ground with strong capital ratios, few bad loan problems and sustainable dividends, but lower demand for credit, tighter margins and the bank levy give no room for complacency.
A look at the ‘star’ performances from the Australian banks’ financial results for 2017 and how they have handled non-bank competition, government levies and business divestments.
Australia has enjoyed a remarkable 25 year run without a ’recession’, but our stockmarket has badly lagged the US in recent years, and company earnings are still some 30% below the level of 10 years ago. Will it improve soon?
Stock markets overall had a good year in FY 2016/2017 while bonds and defensives like listed property struggled. Looking to the future, what are the three most-asked questions facing investors?
Understanding the difference between first- and second-level thinking can make for more informed investment decisions, finding things others miss or bringing insights others don’t possess.
There is popular and political support for a bank royal commission, but what can it really achieve? Two years of bank bashing for doubtful results in an already heavily-regulated and monitored industry.
The wealth management businesses of major banks may be efficient uses of their capital, but it comes with scrutiny of the vertical integration model and culture risks. There’s increasing focus on whether it’s worth having.
Hedge funds have been short selling Australian banks for a while now, mainly due to perceptions about the property market. However, it is not house prices but unemployment that matters most for bank prosperity.
The Big 4 banks make up nearly 30% of the ASX, and Australian shares make up a significant proportion of most multi-asset portfolios. Even if you can’t resist the bank dividends, you should review your level of exposure.
The implications for hybrids, bank margins and bank fees from the increase in the risk-weighting of residential mortgages and learning our banks are not top quartile among the capital levels of global banks.
Other sharemarket opportunities than banks are likely to be more resilient in the event of a market correction. Banks have large exposures to residential property which is doubling up on risk for many Australians.