Anyone buying banks yet?

[sptrawler]

judge tore up WBC & ASIC's agreement.

claims WBC can assess income in all manner of ways.

going to be interesting to watch the outcome of the court cases from the RC etc and the bank shares prices over next 6months

Yes, it could be another one of them once in a lifetime events, yet again.

 

[MarketMatters]

CEO's and Execs front the RC today. 'No more apologies' says Rowena Orr. She's after solutions!

 

[sptrawler]

CEO's and Execs front the RC today. 'No more apologies' says Rowena Orr. She's after solutions!

Yes they do have a bit of a problem, they don't want the banks to lend recklessly, they want the banks to make heaps of money to underpin our financial stability and be too strong to fail.
They also want them to do it, without charging excessively for services.
It will certainly be an interesting outcome.
I don't think it has ever been pondered, that they really want the Banks to be a public not for profit service, maybe they shouldn't have privatised CBA?

 

[PZ99]

Where the banks sit in your portfolio... it's a long article so charge your coffee cup

https://www.news.com.au/finance/mon...o/news-story/7d47b387394e6e03285b9ef899907dfb

I skipped to the divvy paragraph

DIVIDEND PRESSURE

It’s pretty clear the stock gurus aren’t overly impressed with the investment potential of the major banks in the immediate term despite attractive fully franked dividend yields of between 8 and 11 per cent. Those grossed up yields have been inflated by the falling share prices but the big question is whether, given falling profits, current dividend payouts can be maintained.

“At the moment, banks would be able to maintain dividends,” says Lee. “I wouldn’t expect any growth in dividends over the next three years and there is a risk that there could be a cut to dividends given the soft outlook for Australian banks.”

D’Amato agrees, and sees Westpac and NAB as the most likely of all the banks to cut dividends in the future because of their current payout ratios.

Both D’Amato and Lee agree that, of the Big Four banks, ANZ is their preferred choice in terms of dividend yield and potential.

It’s important to point out no-one is suggesting any of our Big Four banks are in any sort of trouble. Far from it. In fact, despite their poor investment performance and falling profits of late, they are still among the strongest, safest financial institutions in the world. With balance sheets that are still rock solid.

 

[sptrawler]

I would definitely expect a hiccup in dividends, however at the end of the day, they still have to fund people's wants and that doesn't seem to be diminishing.

 

[MarketMatters]

Well it appears CBA definitely haven't given up hope on chasing down the high commissions paid to mortgage brokers (based on loan size) to replenish their coffers following today's Banking RC. Going it alone is a treacherous zone in which they are hoping for Hayne to deliver what the industry can not uniformly agree nor achieve. This will be seen as a compensation strategy to affected customers and buying back some degree of trust...again! Someone has to pay for CBA's (and other bank's) mistakes.

 

[Toyota Lexcen]

yes MM,

have CBA/banks just played counsel Orr, Hayne etc and the commission "recommends" customers to pay a mortgage broker an upfront fee

a fairfax journalist believes this will benefit CBA by 137ml/year?

 

[willy1111]

yes MM,

have CBA/banks just played counsel Orr, Hayne etc and the commission "recommends" customers to pay a mortgage broker an upfront fee

a fairfax journalist believes this will benefit CBA by 137ml/year?

Comyn also recommended customers be charged the same upfront fee if they got their loan from the branch.

I hope Hayne and co are smart enough to see that the customer will be worse off, it may see a significant drop in the number of mortgage brokers which will stifle competition and possibly see interest rate margins increase.

Good for shareholders...not for the customer as Hayne is supposedly advocating for.

 

[Toyota Lexcen]

not good for shareholders at the moment, maybe customers pay more too

a few analysts believe its going to be a lost decade for bank shares, it all commenced when the bank levy was introduced, then Wayne from APRA and now the RC which is due to end Feb 2019.

 

[notting]

Bootloads!! NOW
That's car boots not boot boots

 

[kid hustlr]

For what it's worth the banks are holding up quite well over the past several days given the environment

 

[sptrawler]

For what it's worth the banks are holding up quite well over the past several days given the environment

Your right, I suppose they will track sideways untill the next bit of news, good or bad will dictate the movement.
Reporting season is over, so the next news will be from the RC, I guess.

 

[PZ99]

IMO they seem to have bottomed out and unlikely to go much lower. Oil and futures are up slightly. Monster Santa rally required

 

[BoNeZ]

In answer to the original question yes.

I want the income and brought bank shares recently to get the dividend. I had sold them earlier and brought more for the same investment increasing my holdings and income even when the dividend remained the same.

They might drop even further and I might buy more but at present I own more shares than I did six months ago and have increased my income.

 

[PZ99]

In answer to the original question yes.

I want the income and brought bank shares recently to get the dividend. I had sold them earlier and brought more for the same investment increasing my holdings and income even when the dividend remained the same.

They might drop even further and I might buy more but at present I own more shares than I did six months ago and have increased my income.

I do much the same. Whenever they fall to ridiculous levels I just tip a few more into my retirement fund. In the case of NAB I usually offload the excess stock at $30+

 

[MarketMatters]

An interesting view for your reading https://www.businessinsider.com.au/australian-bank-stock-valuations-2018-11

 

[notting]

Lending conditions have tightened, credit growth is slowing, margin pressures have intensified and house prices are in a sustained decline. Not to mention the ongoing uncertainty from the banking royal commission.

All of which is overcome by one simple action which is in the control of the banks - Pop the rates up a fraction as required and everything is just fine. is that too hard for these geniuses to get their heads around?

 

[MrChow]

I wouldn't touch banks until their bad debts approach prior peaks.

 

[PZ99]

I'm very happy my last parcel of bank shares have gone up 2.5% this week

A term deposit would take an entire year to match that.

 

[Toyota Lexcen]

Can't see the banks having any share price growth ever again.

The government's around the globe need to allow takeovers. And they won't