Major banks, ANZ, NAB and Macquarie Group report their March 30 results this week – ANZ and NAB are interims for 2017-18 while Macquarie reveals its full year figures for the 12 months to March 31.
Westpac is due to report its interim next Monday.
Both the NAB and the ANZ have already told the market there will be impairments and other losses on asset sales and other areas (restructuring for example) of more than $1.3 billion between the two.
For that reason an accurate forecast of the results is hard to make, especially with with the provisions for impaired loans being a very changeable figure.
The NAB has said its dividend is safe for this year, the ANZ hasn’t.
The ANZ reports tomorrow, May 1, the NAB on Thursday, May 3 and Macquarie on Friday, May 4.
ANZ shares fell 0.3% last week to close at $26.63, NAB shares rose 0.8% to end at $28.59 on Friday while Macquarie shares ended up 3.1% at $108.10.
So far in 2018 NAB shares are down 3,3%. ANZ shares have lost 7.3%,but Macquarie shares are up 8% and are the best performed of the major financial stocks.
Macquarie is expected to report a record result of more than $2.2 billion for the full year.
The ANZ has already revealed an early cost estimate of the banking Royal Commission legal costs of around $50 million. Watch for the NAB to reveal an estimate of its own, perhaps a touch smaller in size.
The National Australia Bank has confirmed it will report $755 million of pre-tax restructuring costs which will be close to the upper end of its first-half guidance. The NAB said more details on just where the costs were incurred will be reported with the profit result next week.
NAB previously outlined a cost of between $500 million and $800 million, largely related to redundancies.
The after tax impact will be $530 million, the NAB told the ASX a week ago last Friday.
The ANZ joined the National Australian Bank in preparing investors for a big write down and multi-million dollar series of one off losses in its interim profit announcement.
The ANZ said last week that it would book a loss of $632 million on the divestment of two of its wealth businesses last year, which will be reflected in its half-year results.
The bank sold its OnePath pensions and investments business to IOOF Holdings in October and its life insurance business to Zurich Insurance Group in December.
The bank also revealed it will be making a further $80 million provision for restructuring costs in the interim result. And it also said there would be a net gain of $168 million from divestments in the half.
The net loss on one offs looks like being $593 million for the half year with the estimated legal costs relating to banking Royal Commission inquiry into the banking sector. Those costs are expected to be around $16 million for the March half and $50 million for the full year.
