Shorting banks ????? more pain next month and next quarter ? I’m guessing so. Poor performance with no sign of Improvement in sight. The crystal ball appears to be broken, because that’s all the picks these days seem to be !
From Macquarie….
Macquarie on Australia banks:“Banks are set to deliver record results in 1H23, underpinned by ~10-20bps of margin expansion.”“We expect the market to focus on the outlook for margins, expenses, and credit quality.” “While banks have successfully managed to optimise deposit margins until earlier this year, competition has recently stepped up, and coupled with mortgage pricing headwinds, we expect banks to guide to lower margins in 2H23.”“However, on a medium-term view, we continue to see risks from margin headwinds and potential credit quality concerns, which forms the basis for our Underweight sector view.”The order of preference for the Big 4 is: ANZ, NAB, Westpac and CBA.
Underweight ? Sure ! But shorting them ? Time will tell !
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