There's no doubt that the heady days of ever increasing credit...

There's no doubt that the heady days of ever increasing credit expansion and ever increasing profits have passed for the Banks. The tide has turned and customers are now much more hesitant to take on debt and more price conscious. Fee income is being squeezed, interest margins are declining, credit card debt is declining rapidly and the banks have copped an absolute shellacking in the Royal Commission.

That all said, the big 4 Banks remain amongst Australia's best businesses. They remain tremendously profitable, are generally well run (Aussie banks rate as some of the best run banks globally) and are very strong financially. They came into COVID19 much stronger than they were pre GFC.

Whilst I would not buy them at their highs (the Banks were always going to experience severe headwinds as credit expansion (and the Bank's heady growth) could not go on indefinitely, I think all 4 majors are now good medium/long term buys. It would not surprise me if their share prices drop a bit further over the next 3-6 months, however it's always hard to pick the absolute bottom.

Today I bought a few of the Banks and will buy some more if the price weakens further.

I'm hoping for a bit of a double whammy - some dividend income (the dividend should recover over time, at the moment the Banks are struggling to pay much divi at all) and also some capital growth. I don't expect the shares to recover to their previous highs, however in the case of WBC for example if the share recover to say $24 over time and I receive some dividends along the way I think it will be a very worthwhile investment.

GLTA & DYOR