'Sharing the Pain': Aussie Banks are no longer the cash cows in the COVID-19 era
Investors have viewed Australian banks, particularly the Big Four, as resilient and a reliable source of income given their consistent dividend's.
Now, the banks are finding that they are not immune to the effects of COVID-19. With interest rates at record lows, rising unemployment, and balance sheet's exposed to property, we've seen the first of the 'Big Four', NAB, forced to slash its dividend and raise capital. NAB's announcement was during a week that also saw ANZ 'defer' its dividend and Westpac increase its impairment charges.
In this week's From the Bunker, we were joined by special guest, Nathan Bell, Head of Research and Portfolio Management at Intelligent Investor. Nathan has researched and written extensively about Australian banks, and this is a prime opportunity to see where he thinks banks are heading.
You can read Nathan's recommendations at Intelligent Investor here. Get 15 days free if you don't already have a subscription.
As expected, the banking topic proved popular, and we received more questions than the time allowed us to answer. So Join Evan, Tom, and Nathan this Friday 8 May at 9:30 am AEST for Part Two of From the Bunker: 'Sharing the Pain' Aussie Banks no longer cash cows in the COVID-19 era.
Watch Part One below:
Frequently Asked Questions about this Article…
COVID-19 has significantly impacted Australian banks, leading to actions like NAB slashing its dividend and ANZ deferring its dividend. This reflects the broader challenges banks face with low interest rates and rising unemployment.
Australian banks are no longer seen as cash cows due to the economic pressures from COVID-19, including low interest rates and increased unemployment, which have affected their profitability and ability to consistently pay high dividends.
In response to COVID-19, Australian banks like NAB have been forced to slash dividends and raise capital, while others like ANZ have deferred dividends and Westpac has increased impairment charges to manage financial risks.
Nathan Bell, Head of Research and Portfolio Management at Intelligent Investor, suggests that Australian banks are facing significant challenges and investors should be cautious. His detailed insights can be accessed through Intelligent Investor.
For more insights on Australian banks during COVID-19, you can join the 'From the Bunker' series featuring experts like Nathan Bell. Part Two of the series is scheduled for Friday, 8 May at 9:30 am AEST.
Nathan Bell's research on Australian banks is available through Intelligent Investor. You can access his recommendations and analysis with a 15-day free subscription if you're not already a member.
Key challenges facing Australian banks in the COVID-19 era include record-low interest rates, rising unemployment, and exposure to the property market, all of which impact their financial stability and dividend policies.
To stay updated on the latest developments in Australian banking, consider following investment news platforms like InvestSmart and participating in webinars such as 'From the Bunker' for expert insights.
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