Can Lloyds TSB Be As Good As CBA?

Talk to any foreign fund manager and they’ll raise their eyes at the stocks prices for Australian banks. A housing bubble waiting to pop, they’ll tell you, and you’re paying three times book value! Wells Fargo, one of the US’s best run and most profitable banks, trades at 1.4 times book and the US housing market has already corrected. I have some sympathy for the argument. Most Australians don’t realise how risky their bank shares are. But I also think many foreigners don’t understand how much a big four banking franchise is worth. It was already a concentrated sector....

Talk to any foreign fund manager and they’ll raise their eyes at the stocks prices for Australian banks. A housing bubble waiting to pop, they’ll tell you, and you’re paying three times book value! Wells Fargo, one of the US’s best run and most profitable banks, trades at 1.4 times book and the US housing market has already corrected.

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