Dive said he will be watching CBA’s net interest margin and credit losses closely. He predicted margins wouldn’t expand as much as others have predicted, and bad debt losses would be lower.
“Historically, banks have done very well in a rising interest rate environment and have seen headwinds from lower interest rates for a decade. he said.
“Previous cycles have seen much higher unemployment and more severe corporate collapse. will.”
Morgan Stanley equity analyst Richard Wiles said in a note that he expects CBA to perform well in the second half of the year and “further improve its near-term earnings outlook,” but margin tailwinds, loan growth He pointed out comments on the outlook and the economic outlook as important issues. .
Analysts at Goldman Sachs said they expected the market to pay attention to the latest comments about the impact of banks’ net interest margins on rising cash rates. They expect CBA to pay his fully deducted final dividend of 205 cents per share.
“A key focus for us will be on how the CBA frames its downside and severe scenarios as part of its expected credit loss model, which shifts from a covid-lockdown based scenario to I think we need to focus more on stagflation,” they said.
“Given the rate hike, all eyes are on the outlook for net interest margins,” JP Morgan analyst Andrew Triggs said.
He said he expects mixed results from the CBA, with higher loan growth and insignificant loan losses. He expected net interest margins to come down slightly in the second half, but the early benefit of higher interest rates helped improve margins in the fourth quarter.
The main focus will be on comments on the outlook for net interest margins, and the CBA may provide more specific guidance on interest rate leverage, he said. He also said he is looking for early signs of stress on the books from rising interest rates.
All Eyes On CBA As Market Focuses On Prospects
Source link All Eyes On CBA As Market Focuses On Prospects