future maintainable earnings and pes, page-2

Our banks have much better quality earnings than banks overseas.
Much less competition, due to 4 pillars
Greater ability to charge fees
Full recourse lending on residential mortgages
wider spreads on loans/deposits

(On the flip side, this means that as customers of banks here, we're getting ripped off, big time!)

That all explains the higher multiples, they're quite justified. The actual $$ earnings are massive, and primarily domestic/NZ, even for NAB. The US and UK exposures, even for NAB are just a drop in the bucket.

On any rational analysis, all banks, but NAB in particular is severely oversold.

Nevertheless, I don't doubt that sentiment will drive it even lower.