EARNINGS PREVIEW
*CBA shall report their FY2002 result on 21 August (next Wednesday). Expect Cash NPAT of $2,480m (reflecting EPSg of 10.2%) and a final dividend of 82c f.f.
*Positive earnings drivers are expected to be net interest margins, transaction fees and some cost cutting. Negative drivers include investment returns from life insurance operations and wealth management profits.
*Investors shall focus on the outlook for wealth management and double digit forecasts (including investment market caveats).
*CBA, is a good counter cyclical bank play given its large retail register and retail earnings characteristics. It offers large productivity upside.
But it is still early days.
*Key long term success drivers are cross sell (CRM, First State and CommSec), customisation (to the premium retail segment) and cost constraint.
*CBA enjoys a productivity lag versus its peers. The $300m targeted savings from BCG review accompanied by the shift from 15 to 7 reporting lines should assist in
reducing this lag.
*Management restructure should re-ignite organic focus, with the recent hiring of Mr Stuart Grimshaw as CFO a positive.
*CBA is well capitalised, with strong excess cashflow generation supporting good levels of organic growth, despite a capital intensive life insurance franchise.
*Near term pressure offered by falling investment markets may hurt the near term earnings picture, particularly given that bank investors do not generally differentiate between a $ of earnings from this source versus annuity earnings streams.
- Forums
- ASX - By Stock
- CBA
- Harrystaff What do you think?
Harrystaff What do you think?, page-8
-
-
- There are more pages in this discussion • 3 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add CBA (ASX) to my watchlist
(20min delay)
|
|||||
Last
$142.14 |
Change
-0.820(0.57%) |
Mkt cap ! $238.9B |
Open | High | Low | Value | Volume |
$143.40 | $143.58 | $141.72 | $100.2M | 715.7K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 50 | $142.14 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$142.15 | 189 | 2 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
2 | 75 | 141.950 |
4 | 135 | 141.940 |
2 | 61 | 141.930 |
3 | 112 | 141.920 |
2 | 58 | 141.910 |
Price($) | Vol. | No. |
---|---|---|
141.990 | 50 | 1 |
142.000 | 102 | 2 |
142.010 | 223 | 4 |
142.020 | 56 | 3 |
142.030 | 88 | 4 |
Last trade - 11.28am 13/09/2024 (20 minute delay) ? |
Featured News
CBA (ASX) Chart |