CBA Gets Green-Light To Divest BoComm Life
The Commonwealth Bank says it will receive $886 million for the sale of its equity interest in the BoCommLife Insurance Company after the divestment got the go-ahead from Chinese regulators.
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Growing signs that the worst is over for income investors
Global dividends dropped 11% in Q3; Australian dividends among hardest hit in the world, worst in at least 11 years.
Read MoreAPRA Flags End To Clamp On Bank Dividends
Old favourites, bank shares returned to the fore on the ASX yesterday after the key regulator APRA revealed that its clamp-on dividends would be eased.
Read MoreCBA – Morgans rates the stock as Downgrade to Reduce from Hold
Following a trading update, Morgans downgrades earnings forecasts for Commonwealth Bank and lowers the rating to Reduce from Hold.
Read MoreCBA Profit Slips 16% But Investors Back Lending Recovery
The Commonwealth Bank of Australia has joined its peers in reporting weak returns in its latest report. The country’s biggest bank said on Wednesday that its September quarter cash profit was down 16% on the same quarter of 2019-20, thanks to the continuing impact of COVID.
Read MoreBank Reporting Evokes Mixed Reaction From Analysts
As expected the COVID-19 pandemic, lockdowns, and the surge in unemployment and business problems whacked every measure at Australia’s big four banks in the year to September 30.
Read MoreRBA Issues Banks Clean Bill Of Health Despite “Elevated Risks”
Buried in the Reserve Bank’s latest Financial Stability Review is the best news the country (and the governments) have had since the COVID-19 pandemic started ravaging the economy in February – Australia’s banks are healthy and have more than enough capital to support the economy during the slowdown without getting into trouble.
Read MoreCBA Progresses With CommInsure Sale To AIA
The Commonwealth Bank says it has received another $450 million in progress payments from the sale of its insurance business, ComnInsure to AIA.
Read MoreCBA Cash Earnings Down 11.3%, Dividend Chopped 50%
The Commonwealth Bank has slashed final dividend for the 2019-20 financial year by more than 50% in the wake of the impact of COVID-19 pandemic and lockdowns.
Read MoreHas APRA Clarified The Outlook For Banks?
The dividend outlook for banks has weighed heavily on valuations since the onset of the pandemic and the resultant economic slump. Has the prudential regulator, APRA, set minds at rest?
Read MoreAPRA “Strikes A Balance” On Bank Dividends
APRA has eased restrictions around paying dividends in time for the June 30 and September 30 reporting season but told the banks and insurers they should seek “to retain at least half their earnings” when considering payouts.
Read More“Flexibility”: APRA Opens Door On Bank Dividends
The chances of banks resuming paying dividends have risen sharply after the key regulator, the Australian Prudential Regulation Authority (APRA) indicated a change of mind.
Read MoreMoody’s Finds Silver Lining In Shutdown For Local Banks
Global ratings group has found a silver lining in the recession and lockdowns generated by the COVID-19 pandemic – it has made the Australian financial system and the banks, safer.
Read MoreA Look At Dividends In The Current Market Environment
As the outlook for earnings has significantly deteriorated and companies conservatively manage balance sheets, the outlook for dividends has been materially impacted. Since the middle of February, over 30% of companies in the ASX200 have deferred, cancelled, suspended, or revised dividends.
Read MoreCBA Joins Peers Flagging $1.5b Coronavirus Cost
Commonwealth Bank has set aside $1.5 billion for potential defaults on account of COVID-19-related shutdowns.
Read MoreCBA Sells CFS Stake, Flags $1.5b COVID Charge
The CBA has ridden out the third quarter in style. The bank Wednesday posted a small rise in unaudited third-quarter profit and sold a 55% stake in fund manager Colonial First State to US investor, KKR for a return of around $1.7 billion to the bank.
Read MoreCBA To Temporarily Close 114 Branches
The Commonwealth Bank has joined the rush and will temporarily close 114 branches from Thursday across the country as customer traffic continues to fall because of social distancing and the impact of the COVID-19 crisis.
Read MoreBanks Well Placed To Weather The COVID Storm
Both KPMG and Deloitte have examined the interim reports from the big four and see them better placed for the immediate future than it might seem from the results which all saw a surge in bad debt provisioning, loan impairments and provisions for compensation.
Read MoreCBA – Morgans rates the stock as Hold
APRA has written to the banks and insurers, advising them to “seriously consider deferring decisions on the appropriate level of dividends until the outlook is clearer”.
Read MoreAPRA Pressures Banks On “Prudent Reductions” To Dividends
APRA, the financial regulator, has told banks, insurers, and other financial groups to think carefully about deciding whether dividends can be paid to shareholders over the rest of this year and into 2021.
Read MoreCBA – Credit Suisse rates the stock as Neutral
Credit Suisse, again, reduces earnings estimates and allows for a further increase in bad debts for the banks.
Read MoreCBA – Citi rates the stock as Buy
Citi does not expect APRA to follow the RBNZ’s lead in suspending bank dividend payments, as too many self-funded retirees rely on that income with the cash rate at 0.25%. The regulator has indeed flagged an opposite capital approach — easing the timing on “unquestionably strong” levels in the face of the crisis.
Read MoreRBNZ Ratchets Up Pressure On Bank Dividends
It’s getting harder for Australian financial regulators to avoid joining their peers in New Zealand, the UK and EU in ordering banks to suspend their dividends and other capital management moves such as share buybacks.
Read MoreUK Banks Told To Scrap Dividends, Could APRA Follow Suit?
Barclays, RBS, Lloyds, Standard Chartered, Santander and HSBC have all agreed to not proceed with dividends. Will Australian financial regulators follow their peers in the EU and UK and tell major banks to suspend dividends and planned buybacks?
Read MoreBanks In Better Shape For Virus Than For GFC
Analysts argue Australia’s banks are in a much better position to weather this storm than they were in 2008, and have been oversold on that basis.
Read MoreBank Shares Come Under More Selling Pressure
Bank shares took their second pounding of the week so far yesterday after Monday’s thumping and its clear investors were quite blinkered in their approach yesterday.
Read MoreCBA – Credit Suisse rates the stock as Upgrade to Neutral from Underperform
Credit Suisse downgrades earnings estimates on the back of the reduction in official cash rates but also taking note of an increase in bad debt provisions derived from economic stress.
Read More“A Material Hit”: Bank Margins Squeezed By Lower Rates
The RBA’s rate cut and bets that another will follow in the next month or so have seen questions again raised over the share prices and sustainability of bank dividends at their current levels.
Read MoreCBA – Macquarie rates the stock as Underperform
The broker has responded to the Commonwealth bank result with a series of charts. It is unclear how the result stacked up against forecasts.
Read MoreCBA Holds Dividend As H1 Cash Profit Dips To $4.47bn
CBA has left its interim dividend unchanged after revealing a small dip in December half-year profits. The result will please the market with no funny figures or hidden black holes in the wake of the banking royal commission and the crackdown on money laundering by AUSTRAC.
Read MoreBanks Underperform As Afterpay Soars In 2019
If you exclude the likes of Afterpay Touch, then the financial sector did not help the wider market in 2019.
Read MoreBank Shares Rally After NZ Regulators Lower Capital Hurdles
The shares of Australia’s big four banks rose strongly yesterday after the Reserve Bank of New Zealand watered down its new capital requirements.
Read MoreWhere Do The Banks Sit In The Switch From Growth To Value?
Jamie Nicol, Portfolio Manager for DNR Capital’s Australian Equities High Conviction Fund and SMA, spoke with Informed Investor about the rotation from growth to value.
Read MoreCBA Pleads Guilty To Insurance ‘Hawking’ Charge
The Commonwealth Bank faces potential fines up to about $1.85 million after pleading guilty to selling life insurance to customers through unsolicited phone calls.
Read MoreCBA Holds Ground In Q1 Despite “Headwinds”
CBA has issued a cunningly structured Q1 trading update that flagged further “headwinds” for its net interest margin but importantly the update contained no new charges for customer remediation.
Read MoreBank Earnings Review: Is The Worst Behind Us?
KPMG’s Major Australian Banks Year-End Analysis Report 2018-19 finds that the four majors reported a combined cash profit after tax from continuing operations of $26.9 billion, down 7.8% on FY2018.
Read More“Premium”: RBA Warns On Bank Earnings
In its second and final stability review for 2019, the RBA has warned on a combination of factors that will depress bank earnings, starting with the continuing rise in customer remediation over abuses exposed by the Hayne Royal Commission.
Read MoreCBA Concludes Count Financial Deal, Suncorp Sells Smash Repairs Arm
Two deals from two financial groups yesterday have again confirmed the push to sell non-relevant assets continues in the wake of the Hayne royal commission.
Read MoreCBA – Morgans rates the stock as Hold
FY19 net profit was -2% below Morgans’ forecasts. The broker considers the result bodes well for the outlook for major bank earnings in terms of home lending and residential mortgage asset quality.
Read MoreCBA Emerges From Horror Year Intact
A desperate CBA board has been able to keep shareholders happy after a year that was full tumult, board and senior executive change, a restructure, disciplinary action from regulators, not to mention being criticised in the Hayne Royal Commission.
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