STOCK REPURCHASING – AUSTRALIA

Buybacks boom but investors see a downside

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Original article by Cecile Lefort
The Australian Financial Review – Page: 27 : 24-Sep-25

Recent data from MST Marquee showed that a record 47 companies in the benchmark S&P/ASX 200 have announced plans for share buybacks this year; this compares with just 10 in 2020. However, analysis shows that there has been a decline in the share prices of seven out of 12 companies that undertook buybacks in late 2024. Luke McMillan from Ophir Asset Management says buybacks can be a better option than dividends for returning excess cash to shareholders, given that they expect dividends to increase each year.

CORPORATES
MST MARQUEE, STANDARD AND POOR’S ASX 200 INDEX, OPHIR ASSET MANAGEMENT PTY LTD

Boards woo investors with ASX buybacks

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Original article by Alex Gluyas
The Australian Financial Review – Page: 29 : 20-Aug-25

Analysis by MST Marquee shows that most Australian-listed companies that announce buybacks tend to outperform the broader sharemarket by an average of 10 per cent in the following 12 months. Twelve listed companies have revealed plans to repurchase some $5bn worth of their shares so far in the current reporting season; this compares with the 10 companies that announced just $2.8bn worth of buybacks during the August 2024 reporting season. The growing trend towards buybacks has coincided with an overall decline in the dividend payouts of listed companies.

CORPORATES
MST MARQUEE

CBA unveils $2bn share buyback

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Original article by Joyce Moullakis
The Australian – Page: 13 & 24 : 10-Feb-22

The Commonwealth Bank of Australia has posted a 2021-22 interim cash profit of $4.75bn, which is 23 per cent higher than previously. The result was boosted by strong growth in mortgage and business loans and a decline in bad debts. However, the bank’s net interest margin fell by 17 basis points to 1.92 per cent. Shareholders will receive a fully franked interim dividend of $1.75 per share, while CBA will repurchase $2bn worth of its shares. CEO Matt Comyn has flagged the possibility of returning more capital to shareholders.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Investors rewarded with bumper dividends, buybacks

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Original article by John Collett
Brisbane Times – Page: Online : 1-Sep-21

CommSec’s chief economist Craig James is cautious about the outlook for the Australian sharemarket in the wake of the August reporting season. He notes that the recent strong performance of many listed companies has already been priced into sharemarket valuations. Capital management was a key feature of the reporting season, with listed companies announcing some $20bn worth of share buybacks, while investors will receive more than $34bn worth of dividend payments. Peter Warnes of Morningstar says investors should expect lower dividend payouts in 2022.

CORPORATES
COMMONWEALTH SECURITIES LIMITED, MORNINGSTAR PTY LTD

Seven closes in on control of Boral

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Original article by Nick Evans
The Australian – Page: 13 & 16 : 9-Jul-21

Seven Group’s stake in Boral has risen to 40.95 per cent after the takeover target repurchased an additional $131m worth of its own shares on 8 July. Boral has now bought some $772.2m of its issued shares since launching a buyback program in April. The building materials group paid an average of $7.402 apiece for its latest tranche of shares, which is in line with Seven’s offer of $7.40 per share. An independent expert’s report has valued Boral’s shares at between $8.25 and $9.13. Seven’s takeover bid is scheduled to close on 15 July.

CORPORATES
BORAL LIMITED – ASX BLD, SEVEN GROUP HOLDINGS LIMITED – ASX SVW

Buyback bonanza for bank investors

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Original article by Richard Gluyas
The Australian – Page: 16 : 7-Jun-21

Richard Wiles of Morgan Stanley estimates that the combined surplus capital of Australia’s four major banks is within the range of $19.5bn to $28bn. He says the banks could potentially return about $15bn to investors via share buybacks over the next year, with the Commonwealth Bank tipped to repurchase $5bn worth of shares when its 2021 financial results are announced. Buybacks of this magnitude would reduce the number of bank shares on issue by 3-5 per cent.

CORPORATES
MORGAN STANLEY AUSTRALIA LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Earnings jump sees CBA eye buybacks

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Original article by Joyce Moullakis
The Australian – Page: 17 : 13-May-21

The Commonwealth Bank of Australia has posted unaudited cash earnings from continuing operations of $2.4bn for the March quarter, compared with about $1.3bn for the same period in 2020. CBA’s common equity tier one ratio was 12.7 per cent at the end of the quarter, well above the regulatory requirement of 10.5 per cent. CBA has more than $10bn of excess capital, and CEO Matt Comyn says its capital management plans are likely to be a key focus for investors when its full-year earnings are released in August. Brett Le Mesurier of Velocity Trade expects CBA to return up to $12bn to investors in the 2022 and 2023 fiscal years via a share buyback

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, VELOCITY TRADE LIMITED

Rio Tinto eyes cash returns, record tonnage

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Original article by Melissa Yeo
The Australian – Page: 16 : 22-Jan-19

Glyn Lawcock of UBS says Rio Tinto could potentially expand its share buyback program and pay a special dividend in 2019 using the proceeds of asset sales. He estimates that the resources group still has about $U4.4bn on hand from asset sales that could be returned to shareholders. Meanwhile, UBS forecasts that Rio Tinto will produce 353 million tonnes of iron ore in 2019, compared with the miner’s own guidance of 338 million to 350 million tonnes.

CORPORATES
RIO TINTO LIMITED – ASX RIO, UBS HOLDINGS PTY LTD, JP MORGAN AUSTRALIA LIMITED

BHP rewards investors with extra dividend

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Original article by Nick Toscano
The Age – Page: 24 : 18-Dec-18

BHP has completed an off-market buyback of its shares at $27.64 each. The buyback was funded by BHP’s sale of its US onshore oil and gas assets to BP for $US10.4 billion ($14.7 billion) earlier in 2018. Proceeds from the sale will also go towards the payment of a special dividend of $1.42 per share, which shareholders will receive on 30 January. Those who took part in the share buyback will be paid on 24 December. Macquarie Wealth Management believes that BHP could return another $US3 billion to shareholders in the 2019 financial year.

CORPORATES
BHP GROUP LIMITED – ASX BHP, BP PLC, MACQUARIE WEALTH MANAGEMENT, ELLIOTT MANAGEMENT CORPORATION

Investors cheer BHP for buyback, dividend

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Original article by Matt Chambers
The Australian – Page: 27 : 2-Nov-18

BHP Billiton has advised that it will distribute $US5.2bn of the proceeds from the sale of its US shale assets to shareholders via a special dividend. Another $5.2bn has been earmarked for an off-market buyback of its Australian-listed shares. Macquarie says BHP will return cash to investors faster than the firm had expected; it had anticipated that BHP would complete an off-market buyback of its Australian shares and an on-market buyback of its London-listed shares by mid-2019. BHP shares rose 2.79 per cent to $33.11 on 1 November.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, MACQUARIE GROUP LIMITED – ASX MQG, RIO TINTO LIMITED – ASX RIO