To The Moon

Concerns Ahead for Aus Big 4 Banks 🙈🙊🙉 All Eyes on Commonwealth Bank Tomorrow🔍 $COMMONWEALTH BANK OF AUSTRAL(CBA.AU)$$AUST AND NZ BANKING GROUP(ANZ.AU)$$WESTPAC BANKING CORPORATION(WBC.AU)$$NATIONAL AUSTRALIA BANK LIMITED(NAB.AU)$$Suncorp(SUN.AU)$

Suncorp was the 1st bank to release it’s earning results on 8/8 (Mon). As per my concerns in an earlier post on ANZ’s deal to buy Suncorp’s banking arm, Suncorp performed below expectations reporting a net profit after tax of AUD 681 million instead of 699 million, causing its share price to drop by 4.64%. However, it has recovered 2.92% today.

Today (9/8, Tue), National Australia Bank (NAB) released it’s 3rd quarter update which:

(1) missed revenue expectations;

(2) had profits of $1.8 billion (6% increase in cash earnings over the prior corresponding period); &

(3) increased its cost growth guidance for a 2nd time in FY 2022 to 3-4% from 2-3%.

(4) had a lower net interest margin (NIM), dragged down by markets & treasury performance.

Commonwealth Bank (CBA), Australia’s largest bank is forecasted to deliver good full-year results tomorrow, but investors would be more focussed & concerned about the bank’s forecasts for the year ahead as the full impact of interest rate rises will unfold in the next 6-12 months. ⚠️ Of major interest will be the NMI & the loan losses. CBA’s results is a 🔑 indicator this earnings season because CBA will be providing insight about the broader Australian economy 🇦🇺

The big 4 banks said net interest margins were lower than expected, weighing down all their share prices today:

➡️ CBA (-1.29%)

➡️ ANZ (-0.92%)

➡️ Westpac (-0.77%)

➡️ NAB (-2.93%)

🤔💭 My Thoughts:

(1) If CBA drops further tomorrow, then the outlook for other banks will be bleak as well…This would be a warning sign to me to stay away from bank stocks unless I am buying them for dividends.

(2) A bank with higher NIM would be a safer hold but has to be balanced with the risk of their mortgage holdings due to possible defaults.

(3) I would also stay away temporarily from insurance companies covering homes, businesses, & vehicles due to the substantial payouts for FY22 & possible future payouts.

Fellow 🐯🐯🐯, which ASX bank stocks are you bullish & bearish for moving forwards❓

Do share your thoughts with me in the comments section & please help to like my posts, many thanks 🤗

As usual-🤔💭 Consider POV & Actions of investors + 👩🏻‍💻👨🏻‍💻 Research + 🗑FOMO & Greed = Investing Wisely 🤓🤗 + Accumulating Wealth 💵💰

Source websites: Sydney morning herald, australian financial review. 

@Daily_Discussion(9/8) @TigerStars@CaptainTiger@MillionaireTiger@ASX_Stars@Tiger_AU