Australian Banks Stock Discussion

[Smurf1976]

don't get me wrong on MQG it is my largest holding , currently despite selling down 66% of the holding after the SYD demerger , but there are risks ( especially to the share price ) as i would guess the Federal Government won't rush to throw a life-line like it would for CBA , WBC , ANZ and NAB ( and maybe BEN )

Government might bail out depositors and keep a bank alive as such but I'd be less confident about shareholders if any of them ran into serious trouble.

Owning shares in a bank isn't a safe as having money deposited in the same bank. In general more profitable yes but less likely to be bailed out if it goes to crap.

 

[Dona Ferentes]

It's still operating

Australian Government guarantee on deposits - Moneysmart.gov.au

Refers to the Financial Claims Scheme (FCS) which provides protection to depositors of up to $250,000 per account-holder per authorised deposit-taking institution (ADI) (bank, building society or credit union) in the event of the ADI failing. For joint accounts, each account holder is entitled...

moneysmart.gov.au

 

[Belli]

Government might bail out depositors and keep a bank alive as such but I'd be less confident about shareholders if any of them ran into serious trouble.

Close to Buckley's as with other companies. As a shareholder you accept the risks and a company collapse is one of those. However, the Government is unlikely to allow a major bank to collapse.

You may remember when WBC was close to bankruptcy. Paul Keating was then Prime Minister. WBC told the Government it was going to repair it's balance sheet no matter what the impact. And it did and the then PM quietly conceded because it was an issue for the entire financial system.

I'd expect a similar thing to occur if a bank, especially one of the majors, got into serious difficulties.

 

[Garpal Gumnut]

My SMSF is a bit light on Australian banking stocks holding low in percentage terms MQG and NAB. The former has far outperformed the latter. I’m looking at adding some more banks over the next month or so.

I suppose I’ve been waiting for a retracement in the banks but apart from CBA which appears overpriced this doesn’t seem to have happened. I’m not a close follower of this sector and have large holdings in SUN which have sold their banking assets.

How do others approach buying bank stocks on the ASX, do they for example look at divvies, percentage mortgage holdings, technical analysis or just throw a dart?

gg

 

[Tyre Kicker]

Obviously not the most opportune time to buy in to most atm. However, divvies for me.

ANZ and WBC look the best atm.

I’m still flabbergasted at the experts telling punters to stay away from the banks the past few years as their share prices have run up approx. 50%.

 

[Dona Ferentes]

I’m still flabbergasted at the experts telling punters to stay away from the banks the past few years as their share prices have run up approx. 50%.

then they are not experts

 

[Dona Ferentes]

How do others approach buying bank stocks on the ASX, do they for example look at divvies, percentage mortgage holdings, technical analysis or just throw a dart?

gg

they reckon net interest margin is the most closely watched.

As I already hold a couple of banks directly, and also have exposure to them via LICs, I leave it at that, these days. ... keep those dividends flowing.

 

[Dona Ferentes]

I did top up my ARG holding by $50k recently. With the top 10 in this LIC having a significant exposure to the 5 Pillars, as below, I guess it's an endorsement to buying banks.
.
MQG .. 7.8
BHP ... 6.0
CSL ... 5.0
CBA .. 4.4
WES .. 4.0
RIO ... 3.7
WBC .. 3.6
ANZ ... 3.2
ALL ... 3.0
NAB .. 2.8

 

[houtman]

I don't follow the big 4 at all, but an interesting comment from a podcast was "62% of immigrants to this country are now CBA customers"

There wasn't any clarity regarding time frames used with this or how the other 3 had fared, but it seems an impressive stat for CBA.

 

[divs4ever]

Obviously not the most opportune time to buy in to most atm. However, divvies for me.

ANZ and WBC look the best atm.

I’m still flabbergasted at the experts telling punters to stay away from the banks the past few years as their share prices have run up approx. 50%.

yes , dividends and the prospect the Government would find a 'secret squirrel sauce ' to prop up the BIG ones ( how many times has WBC ( as The Wales and Bank of NSW faced serious problems ?)

that said in 2011 i was chasing future sensible growth , so stayed lightly exposed to the BIG 4

these days for divs. and the ability to survive ( with Government help if needed ) i went for TLS and BHP

it all depends on what your outcome aims are , sixty plus and a nice nest egg in 2020, the big 4 would have been very tempting

in 2011 you could buy both WBC and MQG for as low as $20