AUS
NZ
UK
CA
USA
IND
Summary
- The Australian markets took a tumble with the benchmark index S&P/ASX200 falling ~3% to hit a one month low.
- BHP’s FY20 Underlying EBITDA reported at US$22.1 billion dropped by 5%, revenue down by 3%.
- Cash NPAT of Commonwealth Banks dropped by 20%; customer deposits rose by 12%.
- Commonwealth Banks notified class action proceedings against Count Financial Limited.
- Westpac’s unaudited statutory earnings for FY20 third quarter was reported at A$1.12 billion; no dividend would be paid for 1H20.
The Australian stock exchange fell 3.06% led by a 5.59% drop in the technology sector. The impact was primarily due to a massive decline on Wall Street with Nasdaq posting its biggest fall since March. S&P/ASX 200 ended at 5,925.5 points, down 187.1 points at the end of the session. A significant number of ASX200 blue chips ended in the red zone.
Let us delve deep and discuss how four of these ASX 200 listed blue chips performed today and their latest updates - BHP, CSL, Commonwealth, Westpac.
ASX 200 listed global resources company BHP Group Limited has key operations as iron ore miner and oil player. The Group is also a producer of other commodities like copper & uranium while its major business divisions include Petroleum, Copper, and Iron Ore.
On 4 September 2020, the share price of BHP was noted at A$36.190 down by 3.776%. The market capitalisation of BHP stood at A$110.79 billion.
Non-executive Director Appointment
BHP Chair, Ken MacKenzie announced the appointment of Christine O’Reilly as an Independent Non-executive Director to the BHP Board, effective 12 October 2020. Ms O’Reilly has extensive experience from roles of executive & non-executive across diverse industries. With a wide range of skills, Ms O’Reilly will help to strengthen the BHP Board’s experience as well as expertise.
On 18 August 2020, BHP Group updated the market with its annual report for the fiscal year 2020 (period ended 30 June 2020).
Highlights from the financial front-
- BHP reported FY20 Underlying EBITDA of US$22.1 billion, down 5%.
- Revenue for FY20 from continuing operations reported at US$42.931 billion, dropping by 3%.
- Profit after tax of BHP from continuing operations fell 8% to US$7.956 billion.
ALSO READ: Why are ASX stocks BHP, Spark Infrastructure, and Ampol under pressure today?
Melbourne-headquartered ASX 200 listed leading biotech player CSL Limited is into development and delivery of innovative biotherapies and influenza vaccines for saving lives and providing support to patients who are experiencing life-threatening disorders. The Company operates by three key businesses CSL Behring, CSL Plasma and Seqirus.
On 4 September 2020, CSL share price was noted at A$279.050, down by 4.09%. With a market capitalisation of A$132.21 billion, CSL has nearly 454.39 million shares trading on the ASX.
On 4 September 2020, CSL updated its annual report for the financial year 2020 (period ended 30 June 2020) highlighting its performance in 2020.
Highlights from the financial front-
- Net profit after tax (NPAT) reported at US$2.1 billion for FY20, up 10%, or 17% on a constant currency (cc) basis.
- During the period, the revenue of CSL, at US$8.797 billion, climbed by 9% at cc.
- The balance sheet of the Company remains strong, with net assets of ~US$6.52 billion.
- Total influenza revenue rose by 11% at cc led by seasonal influenza vaccines.
- During the year, CSL achieved twenty-nine product registrations or new indications in several nations.
Outlook-
- In the medium term, CSL anticipates continuing to flourish through developing differentiated plasma-derived as well as recombinant products.
- The Company stated that the need for its plasma, recombinant including vaccine products remains strong.
- CSL’s NPAT for FY21 is expected to be in the range of ~$2.100-$2.265 billion at constant currency, indicating growth over the fiscal year 2020.
Commonwealth Bank of Australia (ASX:CBA)
ASX listed major banking & financial services related entity Commonwealth Bank of Australia provides integrated financial services. The Company provides services for retail, premium, insurance, funds management, business & institutional banking, superannuation, investment, and share-broking products as well as services.
On 4 September 2020, CBA share price was noted at A$66.730, down by 2.127%. The market cap of CBA stood at A$120.69 billion, with approximately 1.77 billion shares.
CBA notified class action proceedings against Count Financial Limited
On 4 September 2020, Commonwealth Bank notified of class action proceedings against Count Financial Limited by the Federal Court of Australia. The proceedings of class-action relate to commissions paid to Count Financial as well as its authorised representative financial advisers for financial products.
FY2020 highlights-
On 12 August 2020, Commonwealth Bank of Australia released its results for FY20. The highlights from the financials include:
- Cash NPAT, reported at A$967 million, dropped by 20% as compared to the pcp.
- Statutory NPAT reported at A$958 million dropped by 25%.
- Cash net interest margin during FY20 fell by 2.11%.
- Customer deposits rose by 12% to approximately A$74 billion.
- Funds management income rose 4% to A$143 million.
Westpac Banking Corporation (ASX:WBC)
ASX 200 listed financial sector company Westpac Banking Corporation provides in markets such as business banking, consumer banking, institutional banking, and wealth management services. BT Financial Group (BTFG), Westpac Institutional Bank (WIB) and Westpac New Zealand are segments of Westpac. The Group operates through Asia, Australia, New Zealand, and the Pacific region.
On 4 September 2020, WBC share price was quoted at A$17.060, down by 3.068%. With a market capitalisation of nearly A$63.57 billion, WBC has 3.61 billion outstanding shares trading on ASX.
On 18 August 2020, Westpac Banking Corporation disclosed its quarterly update for the three months to June 2020, highlights are-
- Unaudited statutory earnings for the third quarter of 2020 reported at A$1.12 billion.
- Statutory net profit (quarterly average) for 1H stood at A$595 million.
- Unaudited cash earnings reported at A$1.32 billion compared to the first half 2020 quarterly average of A$0.50 billion.
Moreover, Westpac declared that no dividend to be paid for the first half of 2020. The Group shall reassess dividend at the financial year 2020 results.
ALSO READ: Are Commonwealth Bank and Westpac Share prices worth a look post the changed dividend scenario?
