The Banks - What a Pack of Losers?

[Bill M]

Sound, if the divi stays the same. But is it possible in a credit crunched environment that divies may be reduced for a time? Something to think about.

Maybe in the US but not here in Australia. They have very sound businesses with sound lending practices. When I first became a self funded retiree not a bank in the Country would issue me with a Gold Credit Card. No financial security they said. Even with all my assets they wouldn't come to the party. That is what I call prudent (somewhat stupid) lending. Eventually I had to go through a lot of hoops and loops but I got my card. I don't think there is rampant idiotic lending by the banks, they are not about to go no doc loan to the any dim wit in the street.

Second point, "credit crunch". Perls IV by the CBA was calling for funds, it was over subscribed. Bank of Queensland last Month calling for PEPS money, over subscribed, it seems as though there no problem at all in the banks getting people to invest in them. I reiterate, long term you won't find better run companies in Australia than the big 4 Banks, divi time next Month from the CBA.:bananasmi

 

[BSD]

Dont worry theyll just raise borrowing rates, oh hang on a minute I beleive they already have

The fact they can so easily raise rates without fear of losing huge amounts of business is another positive for investing in the majors.

They are raising rates to account for higher wholesale funding costs. Their competitors, non bank lenders, are totally at the mercy of the wholesale markets (having no deposits) and are set to be uncompetitive.

Banks are set to take large amounts of clients and business from the non-bank competitors.

As for CNP loans - there are plently of equity investors set to get skinned before the banks lose a dime. Last I looked, CBA had well in excess of $1bn of provisions.


As always, panic and BS is providing great opportunity.

 

[wayneL]

The fact they can so easily raise rates without fear of losing huge amounts of business is another positive for investing in the majors.

They are raising rates to account for higher wholesale funding costs. Their competitors, non bank lenders, are totally at the mercy of the wholesale markets (having no deposits) and are set to be uncompetitive.

Banks are set to take large amounts of clients and business from the non-bank competitors.

As for CNP loans - there are plently of equity investors set to get skinned before the banks lose a dime. Last I looked, CBA had well in excess of $1bn of provisions.


As always, panic and BS is providing great opportunity.

There is the presumption that the volume of business will continue unabated. This might not be so. Could a lower volume of lending business affect profits?

If the rest of the world is suffereing this fate, why not the big four?

Again, just enquiring.

 

[BSD]

The majority of 'business' is already in the sack (eg 30 yr mortages) and maintaining profitability (increasing rates) on such business is a large % of profit for the coming year.

New business is always a guess - but the Aussie economy is still growing strong.

Our economy is far more linked to the growth engines of Asia than the US (internally focussed) and the UK with the overpriced GBP.

Australia (thankfully) is not the US or UK, despite our stupid property fetish.

 

[ithatheekret]

I agree the banks here are an entirely different species to those in the US and UK , but their financial investment wings can be worrisome , they are more risque .

Does it matter how well a bank is managed right now ?

Unless it's being bought by another bank presently or in the immediate future ....... not on this planet .

Even if they did , do you think investors would believe them ?


Wait till they all realise that recessions don't stick up a sign saying " here I come ready or not " , that's what's happening . The S&P which is a financial glorybox has ..... just in case noone noticed ....... dropped through 14425/20 in one night it dropped 30 odd points .

If it sees 1400 in you'll see panic . I'm inclined to think it will have a little bounce , last bull in the ring stuff , before the variations get the better of the Pharohs underlings , State of the Union around the corner , 1400 go away stuff . Could get worse if 1600 gets a new look , 1400 could well be a hurdle ..............

By the way recessions don't have a sign or megaphone blaring " here I come ready or not " , they don't give out semaphores , I think the smart money has finally cottoned on , that it must mean something else then ..... huh .

One question I will pose .

What do you think would happen if an Islamic made it into the Pharohs flying seat ?

 

[wayneL]

What do you think would happen if an Islamic made it into the Pharohs flying seat ?

The potential Pharoah is not Muslim, he's a Christian.

 

[Captain_Chaza]

The potential Pharoah is not Muslim, he's a Christian.

As a retired Mossad agent I don't think he would ever be allowed to give his maiden speech if he was an Islamic/Mulsim

Having the right Religion is important at times

NB: 911 has burnt that religion for all time


Salute and Gods' speed

 

[sam76]

As a retired Mossad agent I don't think he would ever be allowed to give his maiden speech if he was an Islamic/Mulsim

Having the right Religion is important at times

NB: 911 has burnt that religion for all time


Salute and Gods' speed

So do you still keep up with your Krav Maga, Captain Chaza?

 

[ithatheekret]

The potential Pharoah is not Muslim, he's a Christian.

I think your referring to that Obama chap , I'm not .


Thinking of the colour green .........

 

[Captain_Chaza]

So do you still keep up with your Krav Maga, Captain Chaza?

I only keep up-to-date with the Self Defence tactics
I am too old/retired to do any more

It's a young man's world nowadays
Salute and Shalom
Peace be with you

 

[wayneL]

I think your referring to that Obama chap , I'm not .


Thinking of the colour green .........

Ah apologies. It's a common bit of misinfo floating around at the moment.

You've lost me with the "green" thing though.