Australian Banks Look Pricey Whatever Happens to Rates -- Market Talk

Dow Jones

Dec 02, 2024

0236 GMT - Australian banks' historically high price-to-earnings ratios and downside earnings risks keep Citi analysts bearish on all four major lenders heading into 2025. They tell clients in a note that this year's total investor returns from banks were the highest since 2009, outperforming the ASX 200 benchmark index by 26%. The analysts cite excess inflation driving incremental cash into what investors perceive as low-risk equities, rather than fundamentals. They warn that major bank stocks are now trading at an unprecedented 18.6 times earnings, while risks appear to be stacked to the downside whatever happens to local interest rates. Citi keeps a sell rating on ANZ, Commonwealth, NAB, and Westpac. (stuart.condie@wsj.com)

(END) Dow Jones Newswires

December 01, 2024 21:36 ET (02:36 GMT)

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They tell clients in a note that this year's total investor returns from banks were the highest since 2009, outperforming the ASX 200 benchmark index by 26%. The analysts cite excess inflation driving incremental cash into what investors perceive as low-risk equities, rather than fundamentals. They warn that major bank stocks are now trading at an unprecedented 18.6 times earnings, while risks appear to be stacked to the downside whatever happens to local interest rates. Citi keeps a sell rating on ANZ, Commonwealth, NAB, and Westpac. (stuart.condie@wsj.com) \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  December 01, 2024 21:36 ET (02:36 GMT)\n</p>\n<p>\n  Copyright (c) 2024 Dow Jones &amp; Company, Inc.\n</p>\n</font>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Australian Banks Look Pricey Whatever Happens to Rates -- Market Talk</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAustralian Banks Look Pricey Whatever Happens to Rates -- Market Talk\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2024-12-02 10:36</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<font class=\"NormalMinus1\" face=\"Arial\">\n<p>\n     0236 GMT - Australian banks' historically high price-to-earnings ratios and downside earnings risks keep Citi analysts bearish on all four major lenders heading into 2025. They tell clients in a note that this year's total investor returns from banks were the highest since 2009, outperforming the ASX 200 benchmark index by 26%. The analysts cite excess inflation driving incremental cash into what investors perceive as low-risk equities, rather than fundamentals. They warn that major bank stocks are now trading at an unprecedented 18.6 times earnings, while risks appear to be stacked to the downside whatever happens to local interest rates. Citi keeps a sell rating on ANZ, Commonwealth, NAB, and Westpac. 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(Victoria, Australia)","BK7135":"综合性银行","BK4207":"综合性银行","CBA.AU":"COMMONWEALTH BANK OF AUSTRALIA","ANZ.AU":"ANZ GROUP HOLDINGS LTD"},"translate_title":"无论利率发生什么变化，澳大利亚银行看起来都很昂贵——市场讨论","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ANZ.AU":0.9,"CBA.AU":0.9,"WBC.AU":0.9,"NAB.AU":0.9,"NABZY":0.9},"content_text":"0236 GMT - Australian banks' historically high price-to-earnings ratios and downside earnings risks keep Citi analysts bearish on all four major lenders heading into 2025. They tell clients in a note that this year's total investor returns from banks were the highest since 2009, outperforming the ASX 200 benchmark index by 26%. The analysts cite excess inflation driving incremental cash into what investors perceive as low-risk equities, rather than fundamentals. They warn that major bank stocks are now trading at an unprecedented 18.6 times earnings, while risks appear to be stacked to the downside whatever happens to local interest rates. Citi keeps a sell rating on ANZ, Commonwealth, NAB, and Westpac. (stuart.condie@wsj.com) \n\n\n \n\n\n  (END) Dow Jones Newswires\n\n\n  December 01, 2024 21:36 ET (02:36 GMT)\n\n\n  Copyright (c) 2024 Dow Jones & Company, Inc.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":true,"code":"91000000","status":"200"}}}