Australian Banks Stock Discussion

[stevier95]

Don't think i've seen a thread about this anywhere.
How about we have a thread for us to discuss the major banks as well as the others (SUN, BEN etc).
We can discuss what we're all holding, why and maybe where we think the banks are heading, as well as a bit of analysis/comparisons between them..

 

[salesjim]

Re: Banks Discussion

great idea, love to hear thoughts on the rest in the forum. i have stock with commbank, have been holding it for some years now.

 

[barnso]

Good idea. I'm keen to see everyone's opinions. From a noob perspective, I'm wanting to diversify my portfolio by adding a bank stock... however to me they all seem a bit over-priced at the moment.

What is everyone holding? Why do you invest in a particular bank over the other big players? Are smaller banks worth the risk in the current climate?

 

[stevier95]

Im currently invested in nab and have been for about 4 years. It isn't the strongest bank at the moment in my opinion given its uk operations, but I'm confident it will perform will in the future. And anyway I can't really complain with a 7% fully franked dividend.

 

[Julia]

. It isn't the strongest bank at the moment in my opinion given its uk operations, but I'm confident it will perform will in the future.

Can you tell us the basis of your confidence?

 

[stevier95]

Can you tell us the basis of your confidence?

I'm no expert investor or anything like that, but i believe that the EU crisis wont last indefinitely and it should pick up. I have no idea when and to be honest i dont think anyone knows when it will, but im in for the long run so i dont mind if it takes 1 year or 10 years. As i said, im no expert and i dont claim to be for one minute, just voicing my opinion.

 

[Muschu]

Don't think i've seen a thread about this anywhere.
How about we have a thread for us to discuss the major banks as well as the others (SUN, BEN etc).
We can discuss what we're all holding, why and maybe where we think the banks are heading, as well as a bit of analysis/comparisons between them..

The big 4 appear to have become a refuge for investors atm. Whether that's a good thing is another matter but many are seeking more than bank interest.
I hold very few bank shares right now. However the recent trend has certainly been up.

 

[stevier95]

Thoughts of buying nab now that's its ex div?

 

[joea]

Thoughts of buying nab now that's its ex div?

http://www.afr.com/p/business/companies/nab_settles_class_action_for_TUjzSORvI0Y15xpvYO14BO

joea

 

[tinhat]

They've wheeled out the pointy heads over at the SMH this morning.

A technical analyst has commented that there are three possibilities for WBC - it might trend up, down or sideways.

http://www.smh.com.au/business/mark...scillator-to-exhilaration-20121112-298cu.html

 

[basilio]

Westpac To Pay $1.3 Billion Money Laundering Fine Using Unmarked 100 dollar Notes




Outgoing Westpac chief Peter King has asked regulators if it would be ok to settle their impending $1.3 billion fine for money laundering and child exploitation with a half dozen briefcases filled with $100 notes.

A spokesperson for the bank said they were willing to cooperate with the regulator’s demands, and were looking to get this all cleared up as soon as possible.

“Jimmy from accounts can get this all sorted out very quickly. Meet us at the bus stop near Martin Place at 9pm tomorrow night. No weapons”.

The spokesperson – who ‘works in construction’ – told regulators the notes would be untraceable. “They’re clean mate. Everything’s there. This is the quickest way to get the cash to you”.

Westpac has also announced it will phase out the ‘briefcase of unmarked bills’ option on its ATMs next year, due to ‘changing consumer expectations’.

Westpac To Pay $1.3 Billion Money Laundering Fine Using Unmarked 100 dollar Notes

"Meet us at the bus stop near Martin Place at 9pm tomorrow night. No weapons”.

www.theshovel.com.au

 

[SyBoo]

Some love for the Banks

'Responsible' lending laws to be axed

"Responsible lending laws that fueled a bitter court fight between the corporate regulator and Westpac will be scrapped for banks, which will be subject to less onerous credit rules to encourage the flow of loans and boost the economic recovery from the COVID-19 recession."

 

[Telamelo]

Australian Big4 Banks have been the biggest criminals these past couple of decades imo in getting away with so much wrong doing in the name of greed. Whether it's taking money from deceased estates, caught out in siphoning extra fees/charges from customer accounts/ATM transactions etc. money laundering and other misdemeanours/misconduct behaviour etc.

Just can't believe what these banks continually get away with and with only minimal consequences/penalties!? It's a joke as us poor customers are the ones victimised/taken to the cleaner's. Fed up about it as simply no justice whatsoever.

Probably get moderated for speaking the truth/my mind but it needs to be shouted out loud as we are in a democracy (am told).

 

[Telamelo]

Australian Big4 Banks have been the biggest criminals these past couple of decades imo in getting away with so much wrong doing in the name of greed. Whether it's taking money from deceased estates, caught out in siphoning extra fees/charges from customer accounts/ATM transactions etc. money laundering and other misdemeanours/misconduct behaviour etc.

Just can't believe what these banks continually get away with and with only minimal consequences/penalties!? It's a joke as us poor customers are the ones victimised/taken to the cleaner's. Fed up about it as simply no justice whatsoever.

Probably get moderated for speaking the truth/my mind but it needs to be shouted out loud as we are in a democracy (am told).

and forgot to add another dilemma.. having my super invested in the banks have now also been burnt badly with not receiving any dividends either to make matters worse - mind you Big4 banks are all still very profitable (despite blaming covid-19 for suspension of dividends so another bullsh_t excuse)

So no dividends, got burnt by capital raises (excuse by Govt. re: avoiding another GFC scenario) all the while banks continue to milk client's/customers in rorting the system in their favour to make big profits. We the customer get nothing back in return.

If I was government, I'd regulate the Big4 banks as wouldn't let them get away with any of this - shareholders & customers would instead be compensated.

 

[JohnDe]

I have been thinking about banks these past few weeks. How will high interest rates affect them?

History has shown that increasing interest rates also cause bank profits to increase, even though some mortgagees are unable to keep up with payments the majority do.

Those were simpler times that we really haven’t seen since the early 1990’s. A lot has changed since then, and now we’re into a third year of global Covid, a war in Eastern Europe, food shortages, fuel shortages, increasing prices, low wages….

All that started me thinking, do I keep my bank shares or sell. Will they grow or shrink.

The ABC finance News must have the same idea, tonight I watched this -

 

[divs4ever]

I have been thinking about banks these past few weeks. How will high interest rates affect them?

History has shown that increasing interest rates also cause bank profits to increase, even though some mortgagees are unable to keep up with payments the majority do.

Those were simpler times that we really haven’t seen since the early 1990’s. A lot has changed since then, and now we’re into a third year of global Covid, a war in Eastern Europe, food shortages, fuel shortages, increasing prices, low wages….

All that started me thinking, do I keep my bank shares or sell. Will they grow or shrink.

The ABC finance News must have the same idea, tonight I watched this -

my caution on the BIG 4 is ( and has been since 2011 ) was the lack of sensible paths of growth ( the ACCC is all over the big ones )

because i NEEDED growth ( along with divs. ) i went heavy on MQG ( and have had a wonderful ride ) and bought some of all the 'lesser ' banks ( including ABA and MYS ) and also hold some VUK and KSL for a bit of international exposure

PLEASE NOTE ... MQG must be classed as higher risk , it does all sorts of complicated stuff ( including boring stuff like home mortgages )

stuff like leasing aircraft , hedging contracts on gold miners , and all sorts of investment funds

i bought some WBC but sold down to a trivial amount ( a mistimed exit while DRPing ) after they went on the 'virtue-signalling path .

where i disagree with the commentator is i think in the long run the $A will stay solid , we sell a LOT of dirt ( minerals ) and energy , and we still have underdeveloped projects ( like Olympic Dam )

the main danger with the normal banks is contagion several BIG international banks are already zombies and once a big one tumbles say Deutsche or Credit Suisse all sorts of ripples are going to be felt

 

[qldfrog]

my caution on the BIG 4 is ( and has been since 2011 ) was the lack of sensible paths of growth ( the ACCC is all over the big ones )

because i NEEDED growth ( along with divs. ) i went heavy on MQG ( and have had a wonderful ride ) and bought some of all the 'lesser ' banks ( including ABA and MYS ) and also hold some VUK and KSL for a bit of international exposure

PLEASE NOTE ... MQG must be classed as higher risk , it does all sorts of complicated stuff ( including boring stuff like home mortgages )

stuff like leasing aircraft , hedging contracts on gold miners , and all sorts of investment funds

i bought some WBC but sold down to a trivial amount ( a mistimed exit while DRPing ) after they went on the 'virtue-signalling path .

where i disagree with the commentator is i think in the long run the $A will stay solid , we sell a LOT of dirt ( minerals ) and energy , and we still have underdeveloped projects ( like Olympic Dam )

the main danger with the normal banks is contagion several BIG international banks are already zombies and once a big one tumbles say Deutsche or Credit Suisse all sorts of ripples are going to be felt

While MQG is seen as risky, i am far more scared by the RE exposure of the big 4. You only bet on the domestic RE market....and this is seen as safer..might not be that wise.
But even MQG would get affected if the big 4 fall plus yey might get burn in any of the exotic exposures..
Overall MQG is my preference..sadly i tried to reenter too early last month and SL forced my exit.at a loss...

 

[divs4ever]

While MQG is seen as risky, i am far more scared by the RE exposure of the big 4. You only bet on the domestic RE market....and this is seen as safer..might not be that wise.
But even MQG would get affected if the big 4 fall plus yey might get burn in any of the exotic exposures..
Overall MQG is my preference..sadly i tried to reenter too early last month and SL forced my exit.at a loss...

i managed a very comfy position in MQG , but the big 4 banks are another question all that RE exposure is that still 'on the books ' or has it been packaged up into financial sausage meat like the US did with the CDOs leading up to the GFC , and while the banks 'control ' the mortgages ( much like a real estate agent ) the real debt is hiding in a Mortgage-Banked Security in some superannuation fund

the Hayne Royal Commission barely scratched the surface of our banks financial machinations , and MQG came out virtually untarnished , i assume that was because it was all just too complicated for the investigators ( commodity trading desks , aircraft leasing , infrastructure JVs , , commercial loans , etc etc etc ) .

BUT in the last 12 years my assessment that the big 4 banks had no SENSIBLE path to growth , seems to be correct , in fact some have visibly shrunk ,( branches , products offered , etc etc ) so the question that investors must ask is 'are ( the big 4 ) banks still dividend machines , and will the ACCC let the big 4 swallow up distressed minors if the economy tumbles badly ( or make the minnows amalgamate )

 

[JohnDe]

my caution on the BIG 4 is ( and has been since 2011 ) was the lack of sensible paths of growth ( the ACCC is all over the big ones )

because i NEEDED growth ( along with divs. ) i went heavy on MQG ( and have had a wonderful ride ) and bought some of all the 'lesser ' banks ( including ABA and MYS ) and also hold some VUK and KSL for a bit of international exposure

PLEASE NOTE ... MQG must be classed as higher risk , it does all sorts of complicated stuff ( including boring stuff like home mortgages )

stuff like leasing aircraft , hedging contracts on gold miners , and all sorts of investment funds

i bought some WBC but sold down to a trivial amount ( a mistimed exit while DRPing ) after they went on the 'virtue-signalling path .

where i disagree with the commentator is i think in the long run the $A will stay solid , we sell a LOT of dirt ( minerals ) and energy , and we still have underdeveloped projects ( like Olympic Dam )

the main danger with the normal banks is contagion several BIG international banks are already zombies and once a big one tumbles say Deutsche or Credit Suisse all sorts of ripples are going to be felt

I think that MQG’s portfolio is very diversified, and is better placed to ride out any world recession and capitalise on projects such as energy.

One issue with the other big banks is that some have got lazy and concentrated only on domestic home loans, not wanting to take any risk in good times they forget about business loans.

 

[divs4ever]

I think that MQG’s portfolio is very diversified, and is better placed to ride out any world recession and capitalise on projects such as energy.

One issue with the other big banks is that some have got lazy and concentrated only on domestic home loans, not wanting to take any risk in good times they forget about business loans.

yes , but how many will understand that , and not just react to a falling share price .. in 2011 MQG dropped to $20 a share just 10c more than WBC at the same time ( WBC has managed lower since then a couple of times , MQG topped $200 not that long back )

one bank is 'too big to fail ' ( despite it's history ) and the other takes a multitude of big-ass risks , but so far has managed to balance them AND profit

take for example NAB and it's UK adventure ( i bought into Clydesdale , now VUK after the spin-off ) it tried to expand that bridge too far

another to watch is SUN which is the focus of several muttering ( will they split the insurance arm from the banking one ) ( i hold SUN )

don't get me wrong on MQG it is my largest holding , currently despite selling down 66% of the holding after the SYD demerger , but there are risks ( especially to the share price ) as i would guess the Federal Government won't rush to throw a life-line like it would for CBA , WBC , ANZ and NAB ( and maybe BEN )

( PS i am still willing to consider extra MQG should it come down to near $20 again )