The banking sector in Australia has faced strong headwinds in the recent past due to number of reasons. Let’s take a look at three popular banking stocks which are under investor’s radar.
Australia And New Zealand Banking Group Limited (ASX: ANZ)
One of Australia’s Leading banks, Australia And New Zealand Banking Group Limited (ASX: ANZ) has been focusing on strong balance sheet and capital efficiency in recent years. Since 2016, the bank has built the Group’s CET1 from 9.4 percent to 11.3 percent which is well in excess of APRA’s capital requirement of 10.5 percent. Recently it completed its $3 billion on-market share buy-back and its currently in the middle of sale of the Australian Life Insurance business to Zurich which is expected to be completed in 2019 May. The bank’s stock price increased by 3.37% in the past six months. The stock traded at $26.720 (+1.174% intraday) with a market capitalization of circa $74.82 billion as on 17 April 2019. The stock traded at a PE ratio of 11.920x.
Commonwealth Bank of Australia (ASX: CBA)
Australia’s leading banking group, Commonwealth Bank of Australia (ASX: CBA) reported Cash NPAT of $4,676 million for the six months ended 31 December 2018, up 1.7% on the previous corresponding period (pcp). Further, the bank reported an operating income of $12,408 million and Operating expenses of $5,289 million. During the six months period, the bank served 16.1 million customers, and maintained its strong positions in home lending, household deposits and digital banking despite of facing strong headwinds from Royal Commission which highlighted the impact of the Bank’s past failings on its customers. For the six months period, the bank reported earnings per share of 265.2 cents and Common Equity Tier 1 Capital Ratio of 10.8%.
The bank’s stock price increased by 10.52% in the past six months. The stock traded at $73.290 (+0.825% intraday) with a market capitalization of circa $128.68 billion as on 17 April 2019. The stock traded at a PE ratio of 14.160x.
National Australia Bank Limited (ASX: NAB)
National Australia Bank Limited (ASX: NAB) is among the leading banks of Australia which is having its operations in around 900 locations in Australia, New Zealand and around the world. Recently the bank became a substantial holder Bravura Solutions Limited by holding 10,777,109 fully paid ordinary shares with a voting power of 5.025%. The bank also became a substantial shareholder of MYOB Group Limited and now holds 30,060,317 fully paid ordinary shares with 5.088% voting power. For the first quarter of FY 2019, the bank reported 2% growth in its cash earnings compared to the quarterly average of 2H18 with broadly stable revenue with good volume growth.
The bank’s stock price decreased by 10.52% in the past six months. The stock traded at $25.240 (+0.92% intraday) with a market capitalization of circa $70.31 billion as on 17 April 2019. The stock traded at a PE ratio of 12.420x.
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