Q&A for Sat Weekend report – Banking Sector (ANZ, NAB, WBC,CBA)

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Question asked 12/05/2023

Q&A for Sat Weekend report – Banking Sector (ANZ, NAB, WBC,CBA)

Hi James and Team The big 4 banks have now reported, and NAB, WBC will be ex Div end of this week with ANZ following on 15th May. What is your current view on the Big 4 for holders of the 4 banks who have held for the dividend income. Where do you see the prices recovering to after going ex div? if one would like to lighten exposure to the Banks heading into the 2nd half of the year? and when - Of course May/Jun is usually not positive months. regards Debbie

Answer

Hi Debbie,

At current levels, our order of preference in the big 4 is….

1. ANZ Bank (ANZ)
2. National Bank (NAB)
3. Commonwealth Bank (CBA)
4. Westpac (WBC)

Making a bold call, we can see ANZ outperforming the sector by ~10% over the coming year, and we intend to weight portfolios accordingly. More broadly, we’re comfortable with our underweight call on the sector for now given we see limited upside in the next few months. If we were overweight, we’d be looking for 5-10% upside before trimming.

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ANZ Bank (ANZ)

LAST UPDATED 11/05/2023 13:58

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