Big four back in favour for investors

Original article by Scott Murdoch
The Australian – Page: 17 & 20 : 11-Feb-19

Australia’s banking index gained six per cent in the week ended 8 February, with the rally being attributed to renewed interest in the sector among international equity investors. Rahoul Chowdry of law firm Minter Ellison notes that sovereign risk concerns regarding Australian banks have abated following the release of the financial services royal commission’s final report. Mike Evans from the Bank of America Merrill Lynch and Marianne Birch of Macquarie Capital agree that the final report has created greater certainty for investors.

CORPORATES
MINTER ELLISON, BANK OF AMERICA AUSTRALIA LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD, MACQUARIE CAPITAL PTY LTD, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, CITIGROUP PTY LTD

Banks get short shrift from investors

Original article by Chris Kohler
The Australian – Page: 20 : 4-Oct-16

Australian banks continued to be targeted by short sellers in September 2016. Data from Deutsche Bank shows that the ANZ Bank and Westpac are the most popular among short sellers, with short positions accounting for 1.9 per cent of their issued stock, compared with 1.5 per cent for the Commonwealth Bank and one per cent for National Australia Bank. Meanwhile, Credit Suisse recently suggested that the major banks’ elevated dividend yields may eventually face downward pressure.

CORPORATES
DEUTSCHE BANK AG, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WESTPAC BANKING CORPORATION – ASX WBC, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, CREDIT SUISSE (AUSTRALIA) LIMITED, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, BANK OF QUEENSLAND LIMITED – ASX BOQ, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, STANDARD AND POOR’S ASX 200 INDEX

Big four the cheapest in 20 years, says Regal

Original article by Vesna Poljak
The Australian Financial Review – Page: 17 : 17-Aug-16

Regal Funds Management’s Julian Babarczy says Australia’s four major banks offer good value at present, noting that their valuations are at or near their lowest in the last two decades. Meanwhile, Babarczy says the banks’ capital ratios and credit quality are sufficient at present so they do not need to undertake capital raisings. The proceeds of the ANZ Bank’s $A1bn hybrid securities issuance will be treated as additional tier-1 capital rather than common equity tier-1 capital.

CORPORATES
REGAL FUNDS MANAGEMENT PTY LTD, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NIKKO ASSET MANAGEMENT GROUP

Banks shares set to rise as investors focus on dividends

Original article by Vanessa Desloires
The Australian Financial Review – Page: 28 : 8-Oct-15

Australia’s S&P/ASX 200 Banks Index has shed 20 per cent since April 2015, and Macquarie says the downturn in bank share prices has created a buying opportunity for investors. Macquarie expects the forthcoming dividend payouts by National Australia Bank, Westpac and the ANZ Bank will drive investor activity in the banking sector, which in turn should boost the share prices of bank stocks.

CORPORATES
STANDARD AND POOR’S ASX 200 BANKS INDEX, MACQUARIE GROUP LIMITED – ASX MQG, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, BANK OF QUEENSLAND LIMITED – ASX BOQ, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Bank price bubble fear

Original article by Patrick Commins
The Australian Financial Review – Page: 23 : 27-Feb-15

Minack Advisors’ Gerard Minack says valuations in Australia’s banking sector would be severely affected by a sharp downturn in the nation’s economy. He also warns that bank stocks could face a major bubble as investors increasingly turn to equities in search of better yields than those available from cash investments such as term deposits. The shift to equities is likely to accelerate amid expectations of further official interest rate cuts

CORPORATES
MINACK ADVISORS PTY LTD, MAPLE-BROWN ABBOTT LIMITED

CBA shares forecast to push $100 within a year

Original article by Clancy Yeates, James Eyers
The Australian Financial Review – Page: 16 : 13-Feb-15

Commonwealth Bank of Australia (CBA) shares peaked at $A93.96 in early February 2015. While the stock has since retreated slightly, some analysts are bullish about it. Macquarie Group has lifted its 12-month share price target to $A99 in the wake of CBA’s 2014-15 interim profit result, while Credit Suisse has a target price of $A96. However, PM Capital’s Uday Cheruvu says CBA’s earnings growth outlook does not justify its high forward price-earnings multiple

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, MACQUARIE GROUP LIMITED – ASX MQG, CREDIT SUISSE (AUSTRALIA) LIMITED, PM CAPITAL LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, GOOGLE INCORPORATED