Australia Banks Impress with Strong Rebound in Profits
- Westpac shares surged 5 per cent on 189 per cent increase in net profits.
- ANZ Shares fall on 3.23 per cent on 45 per cent increase in Statutory NPAT.
- NAB shares fall 3.5 per cent on 34.8 per cent increase in cash earnings.
National Australia Bank (ASX: NAB), Australia and New Zealand Banking Group (ASX: ANZ) and Westpac Banking Corporation (ASX: WBC) have all reported their half-year results to the ASX this week. The general census of three of the big four Australian Retail Banks has been positive with the reinstatement of dividends and a surge in profits being modest gains across the banks.
The first of the Big Four Banks Westpac, reported Monday the 3rd of April 2021, causing shares in the company to surge 5 per cent. Westpac recording a 189 per cent increase in Statutory net profits to $3.5 billion. Likewise, earnings per share tripled to 97 cents, and Cash earnings surged 256 per cent. Westpac’s performance exemplified the strong performance of the Australian Banking sector and lifted it’s the other big Banks also, Commonwealth Banks, ANZ, and NAB shares rose 0.74, 1.25 per cent and 2/14 per cent respectively. As of the 6th of April 2021, shares in Westpac are changing hands at $25.98 ever so slightly above their pre-pandemic highs.
On Wednesday, the 5th of May, Shares in ANZ slumped 3.23 per cent following their results release, where the company recorded a 45 per cent increase in statutory net profits after Tax (NPAT) to $2.943 billion. This figure was lifted due to net credit provision being release in order of $491 million. The Banks Cash profits, however, slid 10 per cent, underwhelming investors. Chief Executive Officer Shayne Elliot commented how “lower revenues in institutional business were largely expected fi the impact of falling interest rates,” which went on to impact their bottom line significantly.
Today National Australia Bank recorded a $3.208 Billion statutory net profit and $3.343 billion in cash earnings, a 94.8 per cent increase in against the corresponding prior period. The Chief Executive officer attributed the better-than-expected recovery in the Australian and New Zealand economies from COVId-19 and strong management of the pandemic to this performance. A 60 cent per share dividend will be paid at a payout ratio of 59 per cent. Despite this, already heightened expectation from ANZ and Westpac’s performance saw shares slump 3.5 per cent at 1pm.
Commonwealth Bank of Australia (ASX: CBA) reports within the regular Australian Financial Year reporting period later this. The Commonwealth Bank of Australia is the largest of the Big Four Banks with a market capitalization of $164 Billion. Currently, the Bank is trading at $92.58 as of 1:00 pm currently just 3.8 per cent from the company’s all-time highs.
Outside the Big four retail Banks, Macquarie Group (ASX: MQG), another behemoth in the sector, provides its first-half results tomorrow, Friday the 7th of April 2021. Macquarie has outperformed the big four over the past 12 months, surging to all-time highs above $159 per share, though not reacting to movements in other banks this week.