nicely put. Yes, even with interest rate hikes mist households...

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27/05/22

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Post #: 61649846
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Originally posted by Gindaldan: ↑

I agree on the stupidity of raising equity 2 years ago at $14 odd (can’t remember exact figure) only to buy back shares $30. Especially when they were the only bank who raised equity at fire sale prices.

However, you’d need a severe housing meltdown to see the banks in trouble. The banks have the equity to absorb a material fall in house prices, they are required so by the capital adequacy ratios which are good in this county. However, on top of this we have minimum, a 20% buffer or more on a net basis for equity on top of bad debts. It’s not all doom, not to say it can’t happen. House prices are in a massive bubble, but again a major correction would only take the froth away from the last 2 years. A large portion of mortgages are pre this period, thus insulated.

I still see house prices going down 15%, but I don’t think it’s a negative impact to banks at this point.

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nicely put. Yes, even with interest rate hikes mist households have much more unspent cash now due to inability to spend on travel etc. I do not see major defaults and the restarting of immigration will feed into maintaining house prices.

NAB Price at posting: $31.57 Sentiment: Buy Disclosure: Held
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(20min delay)
Last $38.71		Change -0.090(0.23%)		Mkt cap ! $118.5B

Open	High	Low	Value	Volume
$38.78	$38.96	$38.58	$113.7M	2.934M

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No.	Vol.	Price($)
1	9339	$38.67

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Price($)	Vol.	No.
$38.76	12254	1

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No.	Vol.	Price($)
1	9339	38.670
2	10925	38.650
2	5224	38.640
2	10984	38.630
1	3914	38.610

Price($)	Vol.	No.
38.760	12254	1
38.770	5224	3
38.800	36707	4
38.810	7264	1
38.840	16521	2

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nicely put. Yes, even with interest rate hikes mist households...

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nicely put. Yes, even with interest rate hikes mist households...

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