Geldzug: AUSTRALIA’S BANKS ARE ON THE ROAD TO RECOVERY
13 November 2020 The ANZ, NAB and WBC results for the September half-year suggest that their bad loan problems will be smaller than expected, because loan deferrals are falling faster than feared. NAB had the best underlying result. Banking sector profits are likely to bottom in FY21, then recover at 10% to 15% pa for the next two years, taking dividends to about 4.5% fully franked. Risks to this scenario include more outbreaks in Australia and renewed economic downturns in the US and Europe. We continue to believe that, although the banks will recover over the next two years, they [...]