Two positives about Australian banks: 1) Their overseas borrowings are huge and majority I presume are in US$. Therefore when they go to repay, with the way the US$ is looking, it will take much less in Aussie $'s to come up with the wherewithal.This could mean a 20% gain at least over and above that which they have calculated.In fact it may well be the lenders will not want to repatriate but reinvest in Aus. 2) They ( the big 4 ) are rated in the top twenty world wide and their domestic margins are not under any pressure; in fact I think they will continue to improve.
I know the big issue is the bad debts that have to be washed thru' the system - maybe another 12/15 mths (September 2010).
There are a number of negatives but overall I think they are a plus.( and if things get much worse, what about a merger between ANZ & nab? - never say never )
NAB Price at posting:
$23.11 Sentiment: LT Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)