Australian banks

Time for a bank short squeeze?

David Llewellyn-Smith
Tuesday 30 October 2018
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It’s hard to miss the hopeful action in Aussie bank stocks over the past few days. Despite major US falls the local banks have gone up, including this morning:

ANZ, WBC and NAB all report market updates this week. Bloomie has more:
  • Morgan Stanley (Oct. 10): Looking for guidance on margins, expense growth with focus on lower absolute costs rather than targeting jaws; Unlikely to see dividend growth until FY20
  • UBS (Oct. 23): Result expected to be messy as ANZ continues to simplify operations; Will be hit by remediation charges, which are expected to carry over into FY19; Rev. weakness likely a factor as bank continues to de-risk; Unlikely to see benefits of mortgage repricing until 1H FY19

National Australia Bank (Due Nov. 1)

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.