The banking industry in Australia has been operating in a challenging environment. In the light of the recently released Royal Commission report, let’s take a closer look at two popular banking sector stocks-
Commonwealth Bank of Australia’s (ASX: CBA)
One of Australia’s Leading banks, Commonwealth Bank of Australia’s (ASX: CBA) stock plunged 2.891% on 13 February 2019 as its stock traded at ex-dividend date. Recently, the bank has delivered a decent performance during 1HFY19 wherein Statutory NPAT including discontinued operations increased by 4.0 % to $ 4,599 Mn in 1HFY19 as compared to 2HFY18. Earnings per share (EPS) stood at 265.2 cps in 1HFY19. For the half-year period, the banking group maintained the Net Stable Funding Ratio (NSFR) of 112%, Liquidity Coverage Ratio (LCR) of 131% and Leverage Ratio was 5.6% in 1H FY19. Based on half-year performance, the Board of Directors declared an interim dividend of 2.0 cents per share and it will be paid on March 28, 2019. It represents a dividend payout ratio of 74.3% of cash NPAT.
In the past one year, CBA’s shares decreased by 3.36% as on 12 February 2019, however in the last three months, the share price increased by 2.17 percent. CBA’s shared traded at PE Multiple of 14.290x with the dividend yield of 5.88 percent. CBA’s shares last traded at $71.210 with a market capitalization of circa $129.81 billion as on 13 February 2019. It is having 52 weeks high of $77.66 and 52 weeks low of $65.23.
Australia and New Zealand Banking Group Limited (ASX: ANZ)
Australia and New Zealand Banking Group Limited (ASX: ANZ) is a leading banking group in Australia which has recorded a statutory profit of $6.4 billion in FY 2018.
Recently on 12 February 2019, the bank released a daily share buy-back notice regarding an On-market buy-back. As on 12 February 2019, the total number of shares/units bought back were 88,736,248 for which the bank has paid $2454.16 million. The highest price paid till date was $30.26 per share which was paid on 17 August 2018 and the lowest price paid till date was $24.44 per share, paid on 8-Jan-19.
For FY 2018, the bank paid a fully franked dividend of $1.60 per share and distributed $4.6 bn to its shareholders through dividends.
Now, let us have a quick look at ANZ’s stock performance and the return it has posted over the last few months. ANZ’s shares traded at $26.630 (+0.642% intraday) with a market capitalization of ~$75.6 Billion. The counter opened the day at $26.80, reached a day’s high of $26.89 & touched a day’s low of $26.49 with a daily volume of ~ 4,917,567. Meanwhile, the stock has generated a positive YTD return of 10.90% but posted negative returns of 9.29% in the last six months (as at February 12, 2019). It had a 52-week high price of $30.390 and touched 52 weeks low of $22.980, with an average volume of 6,166,654.
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