Brokers have their say. The bad from Deutsche:
Benign outcome for all of the banks under our coverage
We view today’s announcement from APRA on capital requirements as a benign, yet very sensible outcome which recognises that only small amounts of additional capital from the current solid starting point are required to achieve “unquestionably strong” positioning for the major banks. While this outcome is close to our base case scenario, we note capital raising fears in the lead up to today’s announcement had impacted share prices and we were not surprised to see a relief rally in the sector today. With the sector now likely to enjoy a little “clear air” on capital, we think the majors look reasonable value despite modest growth prospects. Top picks remain WBC and NAB.
