Getting back on topic: -Who's eating market share in home lending? Non-Bank Lenders like RMC? -Anyone got the comparables for insto bank, was the 16% drop in profit just compared to a strong prior due to COVID raises and corp. activities etc?
Interesting to see NAB be the first to outright say they're going to go for buybacks rather than increased dividends. I was personally expecting a target payout ratio of 70-75% so no surprises there for me. The days of 90% payouts are long gone and frankly some of the commentary in here is flat out ignorant. The next 5 years for the Big Four are going to see lower revenue growth past the current boom, continued pressure from low rates and worse funding if people start reducing their deposits once they have travel back etc. Meanwhile all four are going to have to continue to invest heavily in finally getting with the times. Perfect storm for a drag on efficiency and shareholder returns - and that's if they don't see more expensive regulation anyway.
I doubt the big four, or even CSL for that matter, will see anything like the last 20 years again.
NAB or ANZ still my pick. Made money on Westpac but it's a dogs breakfast and CBA is simply overvalued. Price/book based on typical multiples for NAB puts it around $26 for me. If they announce a buyback I'd consider buying again.
NAB Price at posting:
$26.68 Sentiment: Hold Disclosure: Held
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