Podcast: Major banks – Damage priced in is overdone By Azib Khan 22 June 2020, 12:00 PM We have a positive view on the major banks at current share prices, with the exception of CBA. We upgrade our ANZ recommendation to Add. WBC is our preferred major bank and CBA is least preferred. Read more...
Podcast: Will the banks keep lending? By Azib Khan 26 March 2020, 12:00 AM Morgans Senior Analyst Azib Khan discusses the crucial role banks will play as part of 'Team Australia'. Read more...
Banks sector update: COVID-19 impact By Azib Khan 19 March 2020, 11:45 AM The spread of COVID-19 is posing a significant threat to the earnings outlook of the banks. Consequently, there is now significant earnings uncertainty over our forecast period. We have downgraded our cash EPS forecasts and dividend forecasts for all four major banks as a result of forecasting lower net interest margins, lower credit growth and more pronounced deterioration in asset quality. Read more...
Commonwealth Bank: Spotlight on capital management By Azib Khan 20 January 2020, 11:50 AM We have reduced our FY20F cash EPS by 0.8% as we expect a rise in general insurance claims due to the bushfires. We retain a Hold recommendation. Read more...
Westpac Banking Corp: Still expecting no further capital raisings By Azib Khan 14 January 2020, 2:31 PM Our base case remains one of no further capital raisings by WBC over our forecast period. We believe this damage to the share price is overdone, and WBC remains our preferred major bank. Read more...
Commonwealth Bank: Enough to please in trading update By Azib Khan 13 November 2019, 2:56 PM Despite our view that CBA is a relatively good quality business, we continue to view CBA’s current share price as expensive relative to the other major banks. Read more...
ANZ Banking Group: The partial franking Halloween spook By Azib Khan 01 November 2019, 3:45 PM ANZ has reported FY19 cash earnings from continuing operations of $6,470m, 1% better than we expected. Read more...
Major Banks: Outlook better than results will suggest By Azib Khan 28 October 2019, 3:10 PM I detail what to expect when major banks NAB, ANZ and WBC report their results in the coming days. Read more...
Bank of Queensland: Hamstrung By Azib Khan 22 October 2019, 2:02 PM BOQ’s return on tangible equity (ROTE) has now declined to 10.2% in 2H19. With such a low ROTE, the Company is not creating shareholder value from our perspective. If the decline in ROTE is not stemmed, then soon we may view the Company as diminishing shareholder value. We retain a Reduce recommendation. Read more...
ANZ Banking Group: Additional remediation changes By Azib Khan 15 October 2019, 1:43 PM ANZ today announced that it expects customer-related remediation charges of $559m after-tax in 2H19. This is greater than our expectation of $250m after-tax. We retain our Add recommendation. Read more...