Powered by MOMENTUM MEDIA
subscribe to our newsletter

‘Noisy’ bank reporting season ahead: UBS

Australia’s major banks are set to unveil a “relatively weak” set of numbers when they announce their 2015-16 first-half results early next month, according to UBS.

In an Australian banking sector update titled 1H16 Result Preview – Under pressure, UBS said the banks have a condensed reporting season in 2016, with results likely to be “noisy”.

UBS said the major factors contributing to the noise will be ANZ’s continuing restructure of its international and institutional business; NAB’s reporting of pro forma numbers for the Clydesdale demerger; and Westpac’s provision of new divisional disclosures.

Overall results for the banking sector will be “relatively weak”, according to UBS, with earnings per share expected to be down 4.1 per cent sequentially.

Of key interest to analysts will be the expansion of net interest margins, which have been impacted by mortgage repricing and will be offset by funding costs, lower rates and front-book competition, UBS said.

Advertisement
Advertisement

PROMOTED CONTENT


Credit growth could be one ray of light for the banks, while fee income is likely to be restrained by lower interchange fees and markets revenue.

Bad and doubtful debts in high-profile exposures such as Arrium, Slater & Gordon and Dick Smith should be conservatively provided for, UBS added.

“Banks which are perceived to have inadequately provided for these well-known positions are unlikely to be rewarded by the market,” the report said.

Westpac will be the first bank to release its result on Monday 2 May, followed by ANZ on Tuesday 3 May, NAB on Thursday 5 May and CBA on Monday 9 May.

[Related: ANZ names new chief for Indonesia]

‘Noisy’ bank reporting season ahead: UBS
mortgagebusiness

Latest News

The chairman of the financial services regulator has resigned from his position, effective immediately. ...

Refinancing settlements for the first nine months of the calendar year 2020 are up 27 per cent on last year’s volumes, having peaked in Ju...

The Tasmanian-based lender has seen a 43 per cent rise in settlements in the first quarter of the financial year, driven by strong demand fr...

FROM THE WEB

Join a group of highly informed brokers.

Broker Pulse, a community-driven knowledge base of lender performance Reveal exactly which lenders are making life easiest for brokers and their clients by taking this monthly survey and joining a group of highly informed brokers who leverage these insights every month.

JOIN NOW
podcast

LATEST PODCAST: Victoria’s surprising appetite for new homes

Do you expect to see strong uptake of the HomeBuilder scheme?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.