Muted Response by Market to CBA Interim
Irrespective of investors’ mixed response to it, Commonwealth Bank’s interim result has set the tone for the rest of the sector over the next two months.
Read MoreIrrespective of investors’ mixed response to it, Commonwealth Bank’s interim result has set the tone for the rest of the sector over the next two months.
Read MoreThe Commonwealth Bank met investor expectations with a lower profit than a year ago, a lower dividend but it was also higher than the final for 2019-20 and that’s what the market had been wanting.
Read MoreIn more good news for investors, APRA has eased its dividend guidance for the banks and, from the start of 2021, will no longer be holding lenders to a minimum level of earnings retention.
Read MoreThe Commonwealth Bank says it will receive $886 million for the sale of its equity interest in the BoCommLife Insurance Company after the divestment got the go-ahead from Chinese regulators.
Read MoreGlobal dividends dropped 11% in Q3; Australian dividends among hardest hit in the world, worst in at least 11 years.
Read MoreOld favourites, bank shares returned to the fore on the ASX yesterday after the key regulator APRA revealed that its clamp-on dividends would be eased.
Read MoreFollowing a trading update, Morgans downgrades earnings forecasts for Commonwealth Bank and lowers the rating to Reduce from Hold.
Read MoreThe Commonwealth Bank of Australia has joined its peers in reporting weak returns in its latest report. The country’s biggest bank said on Wednesday that its September quarter cash profit was down 16% on the same quarter of 2019-20, thanks to the continuing impact of COVID.
Read MoreAs expected the COVID-19 pandemic, lockdowns, and the surge in unemployment and business problems whacked every measure at Australia’s big four banks in the year to September 30.
Read MoreBuried in the Reserve Bank’s latest Financial Stability Review is the best news the country (and the governments) have had since the COVID-19 pandemic started ravaging the economy in February – Australia’s banks are healthy and have more than enough capital to support the economy during the slowdown without getting into trouble.
Read MoreThe Commonwealth Bank says it has received another $450 million in progress payments from the sale of its insurance business, ComnInsure to AIA.
Read MoreThe Commonwealth Bank has slashed final dividend for the 2019-20 financial year by more than 50% in the wake of the impact of COVID-19 pandemic and lockdowns.
Read MoreThe dividend outlook for banks has weighed heavily on valuations since the onset of the pandemic and the resultant economic slump. Has the prudential regulator, APRA, set minds at rest?
Read MoreAPRA has eased restrictions around paying dividends in time for the June 30 and September 30 reporting season but told the banks and insurers they should seek “to retain at least half their earnings” when considering payouts.
Read MoreThe chances of banks resuming paying dividends have risen sharply after the key regulator, the Australian Prudential Regulation Authority (APRA) indicated a change of mind.
Read MoreGlobal ratings group has found a silver lining in the recession and lockdowns generated by the COVID-19 pandemic – it has made the Australian financial system and the banks, safer.
Read MoreAs the outlook for earnings has significantly deteriorated and companies conservatively manage balance sheets, the outlook for dividends has been materially impacted. Since the middle of February, over 30% of companies in the ASX200 have deferred, cancelled, suspended, or revised dividends.
Read MoreCommonwealth Bank has set aside $1.5 billion for potential defaults on account of COVID-19-related shutdowns.
Read MoreThe CBA has ridden out the third quarter in style. The bank Wednesday posted a small rise in unaudited third-quarter profit and sold a 55% stake in fund manager Colonial First State to US investor, KKR for a return of around $1.7 billion to the bank.
Read MoreThe Commonwealth Bank has joined the rush and will temporarily close 114 branches from Thursday across the country as customer traffic continues to fall because of social distancing and the impact of the COVID-19 crisis.
Read MoreBoth KPMG and Deloitte have examined the interim reports from the big four and see them better placed for the immediate future than it might seem from the results which all saw a surge in bad debt provisioning, loan impairments and provisions for compensation.
Read MoreAPRA has written to the banks and insurers, advising them to “seriously consider deferring decisions on the appropriate level of dividends until the outlook is clearer”.
Read MoreAPRA, the financial regulator, has told banks, insurers, and other financial groups to think carefully about deciding whether dividends can be paid to shareholders over the rest of this year and into 2021.
Read MoreCredit Suisse, again, reduces earnings estimates and allows for a further increase in bad debts for the banks.
Read MoreCiti does not expect APRA to follow the RBNZ’s lead in suspending bank dividend payments, as too many self-funded retirees rely on that income with the cash rate at 0.25%. The regulator has indeed flagged an opposite capital approach — easing the timing on “unquestionably strong” levels in the face of the crisis.
Read MoreIt’s getting harder for Australian financial regulators to avoid joining their peers in New Zealand, the UK and EU in ordering banks to suspend their dividends and other capital management moves such as share buybacks.
Read MoreBarclays, RBS, Lloyds, Standard Chartered, Santander and HSBC have all agreed to not proceed with dividends. Will Australian financial regulators follow their peers in the EU and UK and tell major banks to suspend dividends and planned buybacks?
Read MoreAnalysts argue Australia’s banks are in a much better position to weather this storm than they were in 2008, and have been oversold on that basis.
Read MoreBank shares took their second pounding of the week so far yesterday after Monday’s thumping and its clear investors were quite blinkered in their approach yesterday.
Read MoreCredit Suisse downgrades earnings estimates on the back of the reduction in official cash rates but also taking note of an increase in bad debt provisions derived from economic stress.
Read MoreThe RBA’s rate cut and bets that another will follow in the next month or so have seen questions again raised over the share prices and sustainability of bank dividends at their current levels.
Read MoreThe broker has responded to the Commonwealth bank result with a series of charts. It is unclear how the result stacked up against forecasts.
Read MoreCBA has left its interim dividend unchanged after revealing a small dip in December half-year profits. The result will please the market with no funny figures or hidden black holes in the wake of the banking royal commission and the crackdown on money laundering by AUSTRAC.
Read MoreIf you exclude the likes of Afterpay Touch, then the financial sector did not help the wider market in 2019.
Read MoreThe shares of Australia’s big four banks rose strongly yesterday after the Reserve Bank of New Zealand watered down its new capital requirements.
Read MoreJamie Nicol, Portfolio Manager for DNR Capital’s Australian Equities High Conviction Fund and SMA, spoke with Informed Investor about the rotation from growth to value.
Read MoreThe Commonwealth Bank faces potential fines up to about $1.85 million after pleading guilty to selling life insurance to customers through unsolicited phone calls.
Read MoreCBA has issued a cunningly structured Q1 trading update that flagged further “headwinds” for its net interest margin but importantly the update contained no new charges for customer remediation.
Read MoreKPMG’s Major Australian Banks Year-End Analysis Report 2018-19 finds that the four majors reported a combined cash profit after tax from continuing operations of $26.9 billion, down 7.8% on FY2018.
Read MoreIn its second and final stability review for 2019, the RBA has warned on a combination of factors that will depress bank earnings, starting with the continuing rise in customer remediation over abuses exposed by the Hayne Royal Commission.
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