CBA – Morgans rates the stock as Hold
FY19 net profit was -2% below Morgans’ forecasts. The broker considers the result bodes well for the outlook for major bank earnings in terms of home lending and residential mortgage asset quality.
Read MoreFY19 net profit was -2% below Morgans’ forecasts. The broker considers the result bodes well for the outlook for major bank earnings in terms of home lending and residential mortgage asset quality.
Read MoreA desperate CBA board has been able to keep shareholders happy after a year that was full tumult, board and senior executive change, a restructure, disciplinary action from regulators, not to mention being criticised in the Hayne Royal Commission.
Read MoreCBA shareholders will get an unchanged full-year dividend of $4.31 a share despite earnings falling for the year to June 30 under the twin weight of the fallout from the royal commission and weaker lending, especially in housing.
Read MoreMorgans believes stimulus initiatives announced by APRA (Australian Prudential Regulatory Authority), for an additional capital add-on of $500m for operational risk, to be applied until the banks have completed their planned remediation, will de-risk the earnings outlook for the sector.
Read MoreThe chances of the banks paying higher dividends in the coming years look to have diminished after APRA ordered Westpac, NAB and ANZ to set a total of $1.5 billion in extra capital aside.
Read MoreWeaker bank shares helped take the wider market lower for another session, but the day’s loss was nowhere near as damaging as Monday’s 1.2% slump.
Read MoreThe RBA’s second 0.25% rate in two months had a predictable impact on bank share prices – down they went, taking the ASX 200 with them.
Read MoreRedemption? Sort of; but the way the share prices of Australian banks rebounded in the June half year was extremely helpful to super funds and self-managed funds and investors generally.
Read MoreCommonwealth Bank shares have hit a new 21-month high of $83 after the bank revealed another deal with another regulator to resolve slack internal processes – this time customer privacy.
Read MoreScott Kelly, Portfolio Manager for the DNR Capital Australian Equities Income SMA, gives Informed Investor his thoughts about which are the best income stocks on the ASX at the moment.
Read MoreANZ and Westpac failed to pass on the full 0.25% cut from the Reserve Bank to its mortgage customers and immediately faced pressure from the central bank.
Read MoreBank shares had a second good day on the ASX yesterday after their post-election surge on Monday. Monday it was Prime Minister Morrison’s surprise win, yesterday it was APRA as the financial prudential regulator revealed plans to relax a key restriction on home loans.
Read MoreCiti observes Commonwealth Bank has utilised the March quarter to accelerate the recognition of customer remediation across wealth management advice & products and has now dealt with key issues, so a top up in future looks less likely.
Read MoreCommonwealth Bank’s third-quarter profit slumped 28% to $1.7 billion for the three months to March, as it was hit by hefty costs from compensating customers.
Read MoreSome brokers have started to upgrade their recommendations to “BUY” on the banks and believe that they represent value in and around these levels. I still strongly disagree.
Read MoreWith three big banks reporting interim results in early May, it will pay investors to look at the first Financial Stability Review of 2019 from the Reserve Bank and remarks on the profits and earnings.
Read MoreWe got a sign of those pressures on the big banks again yesterday when Westpac joined the Commonwealth in cutting interest rates on some of its fixed-rate home mortgages – with some of the cuts aimed directly at the weak investor sector.
Read MoreFollowing a broader market re-rating, Macquarie finds the bank sector looking increasingly attractive on a relative basis. The sector is offering healthy dividend yields and supportive relative valuations.
Read MoreWhile the CBA has reiterated that it is still committed to “ultimately” exiting its wealth management and mortgage broking businesses, that exit now appears quite a while off, years in fact.
Read MoreIt’s only been a month since Hayne’s final report has been released, but far from driving a stake through the financial hearts of the Big Four Banks – Commonwealth, Westpac, ANZ and NAB – their position is returning to being as dominant as ever.
Read MoreMore than $20 billion was added to the value of listed financials – lead by the big four banks yesterday after investors concluded the outcome from the Hayne banking and finance royal commission would not damage their business models our futures.
Read MoreThe Commonwealth Bank will pay an unchanged interim dividend of $2 a share after reporting a small improvement in net earnings for the half year to the end of December.
Read MoreThe National Australia Bank is in the gun following the release of the final report from the royal commission which contained very sharp criticism of the bank’s chairman and CEO.
Read MoreThe long-awaited final report from the finance and banking Royal Commission will be released this afternoon at 4.10 pm (there is a media lock up this afternoon ahead of the release) and while there will be a lot of heat and light and promises from the Morrison government, there will be nothing concrete.
Read MoreAustralia’s big four banks, already reeling from a stagnant home loan market and revenues, the fallout from the Hayne Royal Commission and censure from upset shareholders, now face more financial problems in their most profitable offshore market – New Zealand.
Read MoreMore red ink for the banks from the royal commission disclosures and associated scandals with the CBA revealing a new $350 million impact to its December 31 half-year earnings from a series of new costs.
Read MoreMore hybrids and other issues to come from our slimming banks? That could be the outcome of a new move by APRA, the banking regulator to force banks to hold more loss-absorbing capital by 2023.
Read MoreInvestors have taken CBA’s first-half trading update in their stride with nothing in the limited announcement to cause alarm.
Read MoreThe big four banks have survived a tough year financially unscathed, but with their reputations sullied what does 2019 look like?
Read MoreAmerica’s third-quarter earnings season is nearing the end while in Australia, the September 30 results continue with Westpac revealing its full-year figures this morning, along with a first-quarter update from the Commonwealth Bank midweek.
Read MoreThe Commonwealth Bank has called off a stock market float of its funds management arm and will sell it to a big Japanese insurance group for $4.13 billion.
Read MoreThe Commonwealth Bank is selling its 80% stake in an Indonesian life insurance business for $426 million and will use the profit from the sale to boost capital reserves ahead of the start of tougher new rules from 2020.
Read MoreBanking analysts at Morgan Stanley have lifted their estimate for customer remediation costs for the banks to $3 billion over the next two years, up from an earlier forecast of just $500 million.
Read MoreCBA has promised, “further action to improve its wealth businesses” including the rebating of grandfathered commissions which will cost the bank around $20 million.
Read MoreSo much for any lasting damage to the Commonwealth Bank from the Hayne Royal Commission or the Austrac debacle.
Read MoreSo much for all the hype about how the banking royal commission and the Austrac money laundering claims would hurt the Commonwealth Bank and threaten shareholders returns.
Read MoreIn this video DNR Capital Portfolio Manager Scott Kelly examines the dividend outlook for the major banks.
Read MoreThe new management and board at the Commonwealth Bank is blowing up the corporate structure that David Murray built as CEO decades ago and is now defending as the new chair of the struggling AMP. In an announcement to the ASX yesterday the CBA said it was stripping itself back to being a bank.
Read MoreThe Commonwealth Bank now has the dubious distinction of having the two largest penalties ever imposed on an Australian company after it did a deal to end the embarrassing Austrac money laundering case by agreeing to a $700 million fine (and legal costs of $2.5 million) and making a new set of admissions over the breaches.
Read MoreThe Commonwealth Bank has raised more cash to bolster its capital base after agreeing to sell its stake in Chinese life insurer BoComm Life for $668 million.
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