The view from Wall Street: Australian bank stocks

Shares have been depressed by capital raisings and dividend worries but valuations look cheap.

Summary: Macquarie says Australian bank stocks are trading at earnings multiples not seen “in years” and predicts stock-pickers will be drawn to the banks over the next few weeks for the dividends. UBS also remains upbeat, with the caveat that Australia doesn’t slip into a deep recession. But Morgan Stanley warns of the prospect of rising loan losses, higher funding costs and dividend cuts.

Key take-out: Through Australia’s good times the country’s banks were market darlings. They now need to show they’ve got what it takes to muscle through the bad times.

Key beneficiaries: General investors. Category: Bank shares.


{{ twilioFailed ? 'SMS Code Failed to Send…' : 'SMS Code Sent…' }}

Hi {{ user.FirstName }}

Looks like you've already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to activate your membership

We cannot send you a code via SMS to {{user.DayPhone}}

If you didn't receive SMS code please

SMS code cannot be sent due to: {{ twilioStatus }}

Please select one of the options below:

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device

Verify your mobile number to unlock a FREE trial

Please sign up for full access

Updating information

Please wait ...

  • Mastercard
  • Visa

The email address you entered is registered with InvestSMART.

Please login or select "Don't know password"

Please untick this box when using a public or shared device

Register as a new member

(using a different email)

Related Articles