BDD

Here is the Australian Banking Sector Update from sharemarket analyst Macquarie Research Equities.

Australian Banking Sector Update

Post WBC: to CP or to SP?

1H08E Sector EPS g -5.7% seq. Core earnings solid up 5% seq.:

With NAB & SGB due to report next week, Sector Cash EPS is on track to be -5.7% seq. Core earnings appear more solid up 5% seq. Key drivers seq: (1) mgns -10bp, (2) strong vol growth 9.5%, (3) weaker fee income 2.9%, (4) BDD up 17bp to 37bp of loans, (5) lower tax rate 27.9%.

Mixed messages on provisions, expect further capital raisings: