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The S&P/ASX 200 index is one of the major benchmarks in the country, and the companies discussed in this article have the largest weights in the S&P/ASX 200 index. These five businesses include the largest banks, miner and healthcare company.
Commonwealth Bank of Australia Limited (ASX:CBA)
As of 1 January 2020, CBA has a weightage of 7.27 per cent in the S&P/ASX 200 index. As of 20 February 2020, the market capitalisation of the bank was approximately $155.48 billion.
Commonwealth Bank commands a leading position in the domestic banking industry. Recently, CBA released its six months results for the period closed 31 December 2019. Its statutory NPAT, which include discontinuing operations, came at $6.16 billion, driven by the gain on sale of global asset management business.
Its cash NPAT was $4,477 million down by 4.3 per cent with an operating income of $12.41 billion. Overall net interest margin was 2.11 per cent, improving by 1 basis points sequentially.
It declared an interim dividend of $2 per share. CBA is committed to divesting non-core business in an effort to become a simpler bank, and a few transactions are underway along with strategic reviews.
On outlook front, it has been said that the strong domestic fundamentals remain in place, and the bank is focused on core business and innovation.
On 20 February 2020, CBA last traded at $87.85, up by 0.023 per cent from the previous close.
CSL Limited (ASX:CSL)
As of 1 January 2020, CSL has a weightage of 6.44 per cent in the S&P/ASX 200 index. As of 20 February 2020, the market capitalisation of the bank was approximately $154.77 billion.
Recently, the company reported its six-month results closed 31 December 2019. It recorded a net profit after tax of USD 1.25 billion, up by 11 per cent on constant currency (cc) basis.
During the period, the company witnessed strong growth in immunoglobulin products, it continued the evolution of the haemophilia therapies portfolio. Also, the transition to its own distribution in China was progressing well, and its seqirus influenza vaccines business delivered another strong performance.
EPS for the period was USD 2.75 and the company declared an unfranked dividend of USD 0.95 per share (~$1.42 in AUD). On cc basis, revenues were USD 4.98 billion, while on a reported basis, revenues were USD 4.91 billion as against USD 4.5 billion in the previous corresponding period.
The FY20 outlook was upgraded with net profit after tax now expected in the range of USD 2.11 billion to USD 2.17 billion.
On 20 February 2020, CSL last traded at $338.68, down by 0.68 per cent from the previous close.
BHP Group Limited (ASX:BHP)
As of 1 January 2020, BHP has a weightage of 5.9 per cent in the S&P/ASX 200 index. As of 20 February 2020, the market capitalisation of the bank was approximately $113.42 billion.
In the half-year ended 31 December 2019, the company recorded revenues of USD 22.3 billion, which increased 7% when compared to continuing operations. Its profit after tax from continuing and discontinued operations was USD 5.19 billion.
It has declared a fully franked dividend of USD 0.65 per share to the shareholders in records on 6 March 2020, payable on 24 March 2020.
BHP noted that its net debt was USD 12.8 billion, which was in the lower end of its target range between USD 12 billion to USD 17 billion.
The company believes that it has world class assets across the best commodities. In iron ore, it is a low-cost iron ore producer with Fe ~62%, and no new hub required for at least a decade.
In Copper, BHP said it has pipeline of growth options with Increased optionality through interests in exploration and is among top 3 copper producers with high-quality deposits.
In metallurgical coal, BHP said that it is the largest seaborne supplier of premium hard coking coal with a strong seaborne cost curve position and a pipeline of opportunities to reduce costs and steadily grow volume.
In petroleum, the company noted that it had depicted consistent high margins and strong returns and it has a strong pipeline of competitive growth options.
On 20 February 2020, BHP last traded at $38.52, up by 0.052 per cent from the previous close.
Westpac Banking Corporation (ASX:WBC)
As of 1 January 2020, WBC has a weightage of 4.5 per cent in the S&P/ASX 200 index. As of 20 February 2020, the market capitalisation of the bank was approximately $92.53 billion.
Recently, the bank has provided the first quarter update for the period ended 31 December 2020. Its level 2 CET1 capital ratio was 10.8 per cent at the end of the period as against 10.7 per cent on 30 September 2019.
Level 1 CET1 ratio was 11.1 per cent at the end of the period compared to 11.0% at 30 September 2019. WBC noted that credit quality was sound with impaired assets of $1.8bn at the end of first quarter, flat on a sequential basis.
WBC said that Australian unsecured 90+ day delinquencies increased by 5bps to 1.82%, which was mostly due to the $0.3bn decline in the portfolio. Its total provision balances were up 1.7% and total provisions to gross loans were up 1bps.
It was said that the bushfires had a small impact in credit quality, and until 14 February 2020, the cost of insurance claims for severe weather events was estimated at 140 million (pre-tax).
The bank has raised $12.4 billion in the FY20 YTD period as at 31 January 2020. It was noted that the constructive market conditions at the start of calendar 2020 provided good opportunities to issue across a number of products and markets, including senior unsecured bonds, covered bonds, RMBS and Tier 2 capital securities
New Issuances (Source: WBC Update)
On 20 February 2020, WBC last traded at $25.69, up by 0.273 per cent from the previous close.
National Australia Bank Limited (ASX:NAB)
As of 1 January 2020, NAB has a weightage of 3.73 per cent in the S&P/ASX 200 index. As of 20 February 2020, the market capitalisation of the bank was approximately $80.49 billion.
Recently, the bank has released first quarter trading update for the period ended 31 December 2019. On an unaudited basis, the bank has recorded statutory net profit of $1.70 billion with cash earnings of $1.65 billion.
It was noted that credit impairment charges fell 21 per cent to $185 million when compared to second half quarterly average of FY19, driven by non-repeat of NZ dairy impairments and the impact of house price movements in 2H19.
The noted that asset quality was broadly sound, and the ratio of 90+ days delinquencies, gross impaired assets to gross loans and acceptances, both stable at 0.94 per cent. Its ratio of collective provisions to credit risk weighted assets was steady at 96 basis points during the first quarter.
On 20 February 2020, NAB last traded at $27.4, up by 0.33 per cent from the previous close.
