Pending vaccinations work and the globe slowly re-opens, the...

Pending vaccinations work and the globe slowly re-opens, the roll out of the volume of loans that all banks have done in the last 6 months with builder bonus stimulus would see a flood of new repayments to banks not to mention the annual package fee they charge all these lenders. Add to that LMI if the home owners didnt have the equity to fund the house, add to this further that macroeconomically if the economy really starts to go bullish interest rates will rise. This will leave a larger margin of profit for banks ie interest on home loans increasing relative to any savings people have with the same bank resulting in a greater net profit.

I think all banks are still significantly undervalued over the next 5-10 year period. Regardless of all the BNPL stuff. Residential and commercial loans in large amounts are not done under BNPL arrangements and any argument that "smaller banks" are taking these loans is hogwash as 1) Most of the bigger banks own the little banks or 2) The bigger bank buys out the little bank.....