View from Wall Street: Fading attractions of Aussie bank stocks

For US investors in local banks the thrill is gone ...and it won't help 2016 share prices.

Summary: Analysts believe Australia’s big banks are facing the most challenging period for earnings growth, as the weakening dollar prompts foreign investors to sell stocks and capital ratio requirement changes loom. Dividend cuts are also on the table should earnings fall and current payout levels become unsustainable.

Key take out: If capital ratio requirements are raised, as expected, to 10.5 per cent, the big four will face a capital shortfall of $31 billion.

Key beneficiaries: General investors. Category: Shares.


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

If you didn't receive SMS code please

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

Related Articles