Moody’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 MoreTag: NAB
Banks Surge As NAB Pumps Up Capital Raising
Led by NAB which has doubled the size of its capital raising for retail shareholders to $1.25 billion, citing strong demand from small investors, bank shares have staged a remarkable rally on the ASX.
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 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 MoreNAB Steers A Hazardous Course
Business loan growth at National Australia Bank is likely over coming months but of greater concern to brokers is the potential for a surge in bad debts.
Read More“Final Deck Clearing”: Analysts Back NAB Action
NAB’s big announcements on Monday, especially the cut to the interim dividend and the decision to raise new capital has largely gone down well.
Read MoreNAB Slashes Dividend As Cash Earnings Crash 51%
So will the other big banks follow the National Australia Bank which is looking for up to $3.5 billion in new capital after cash earnings plunged 51% to just $1.41 billion and the bank slashed its interim dividend 60% to just 30 cents a share?
Read MoreNAB Joins Westpac Flagging $1.1b Earnings Hit
The National Australia Bank has joined Westpac in announcing some balance sheet and earnings tidying up ahead of the release of their interim reports in a couple of week’s time.
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 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 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 MoreNAB – Morgans rates the stock as Hold
National Bank’s quarterly update highlighted some positive themes, the broker notes, continuing on from Commonwealth Bank’s ((CBA)) result earlier in the week. Net interest margin increased slightly on mortgage repricing, although the broker sees offsetting actions required ahead to counter a lower cash rate. Asset quality is sound and capital has increased.
Read MoreNAB Lifts Cash Earnings, Cools On MLC Sale
The National Australia Bank kept its end up in the three months to December with a slightly better than expected cash result.
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 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 MoreNAB Cuts Dividend As Cash Earnings Slip 10.6%
As expected the NAB has followed its rivals in Westpac and the ANZ in cutting returns to shareholders after a slide in earnings and revenue for the year to September 30.
Read MoreNAB Next In The Firing Line As Westpac Disappoints
NAB shares slid yesterday in the wake of Westpac’s surprise $2.5 billion capital raising and dividend cut as investors said the Melbourne-based lender would be the next major to cut its payout or even approach shareholders for more money.
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 MoreNAB – UBS rates the stock as Sell
The bank will take $1.19bn in additional remediation charges in the second half in its results. This top-up is driven by the inclusion of provisions for customer refunds for self-employed advisers.
Read More“Significant”: NAB Unveils Billion-Dollar Remediation Hit
National Australia Bank shares lost 2.3% yesterday after the bank revealed another massive provision to cover the cost of remediating customer complaints.
Read MoreCould APRA’s New Capital Requirements Crimp Bank Dividends?
The chances of the banks paying higher dividends in the coming years look to have diminished after APRA ordered Westpac, NAB and ANZ to set a total of $1.5 billion in extra capital aside.
Read MoreBanks Respond To Revised Capital Buffers
Weaker bank shares helped take the wider market lower for another session, but the day’s loss was nowhere near as damaging as Monday’s 1.2% slump.
Read MoreHow The Banks Responded To The RBA Decision
The RBA’s second 0.25% rate in two months had a predictable impact on bank share prices – down they went, taking the ASX 200 with them.
Read MoreCBA Leads Bank Rebound In June Half
Redemption? Sort of; but the way the share prices of Australian banks rebounded in the June half year was extremely helpful to super funds and self-managed funds and investors generally.
Read MoreTalking Income – Banks, Telstra, Woolworths & New Opportunities
Scott Kelly, Portfolio Manager for the DNR Capital Australian Equities Income SMA, gives Informed Investor his thoughts about which are the best income stocks on the ASX at the moment.
Read MoreRBA Boss Warns Banks On Undermining The Economy
ANZ and Westpac failed to pass on the full 0.25% cut from the Reserve Bank to its mortgage customers and immediately faced pressure from the central bank.
Read MoreBanks Bounce As APRA Loosens Lending Reins
Bank shares had a second good day on the ASX yesterday after their post-election surge on Monday. Monday it was Prime Minister Morrison’s surprise win, yesterday it was APRA as the financial prudential regulator revealed plans to relax a key restriction on home loans.
Read MoreBanks – Is The Worst Over? No.
Some brokers have started to upgrade their recommendations to “BUY” on the banks and believe that they represent value in and around these levels. I still strongly disagree.
Read MoreNAB Cuts Dividend As Remediation Costs Hit Bottom Line
NAB has sliced its interim dividend by 16 cents a share – from 99 cents to 83 cents for the six months to March 31 after earnings took a hit from the costs of customer remediation payments.
Read MoreNAB – Credit Suisse rates the stock as Neutral
The bank has announced additional remediation charges of $525m after tax. This is expected to reduce first-half cash earnings by an estimated -$325m.
Read MoreRBA Downbeat On Outlook For Major Banks
With three big banks reporting interim results in early May, it will pay investors to look at the first Financial Stability Review of 2019 from the Reserve Bank and remarks on the profits and earnings.
Read MoreNAB Cans Mortgage Introducer Referral Payments
While Westpac was revealing more remediation costs for its customers, the NAB was cutting one of the more controversial fees financial groups pay – so-called introducer fees.
Read MoreNAB Issues New Mea Culpa After “Extremely Challenging” Period
National Australia Bank’s incoming chair Phil Chronican has vowed the bank will step up the pace of compensating customers, as he reiterated the need to revamp executive pay after last year’s investor backlash.
Read MoreNAB Unveils New Chair To Replace Ken Henry
The National Australia has named former Westpac and ANZ executive, Phil Cronican as its new chair, to replace Ken Henry who leaves shortly.
Read MoreBanks Emerge From The Royal Commission Blues
It’s only been a month since Hayne’s final report has been released, but far from driving a stake through the financial hearts of the Big Four Banks – Commonwealth, Westpac, ANZ and NAB – their position is returning to being as dominant as ever.
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