WBC Chart, page-264

And you have to think, how much inflation has there been since then?

If we assume there has been 25% inflation since the pandemic, then a $15 share price is really equivalent to a $18.75 share price currently.

So on an inflation adjusted basis we are barely above where people were massively panicking.

Meanwhile the banks have doubled or more their equity capital over the last 15 years since the GFC and significantly strengthened their positions. While this has hit earnings over the last decade, these reforms are largely coming to an end now with spare equity capital being used for buybacks and dividends once again which should boost returns.

This could turn out to be one of the best buying opportunities for banks in quite a long time as the headwinds of non-bank competition, higher equity capital, royal commission, turn into tailwinds of less competition from non-bank (as they are finding it harder to get capital), excess equity capital which can be used for buybacks/divis, and simplification and rectification of business issues arising from the royal commission.