Big 4 Banks | Which 1 is the Best to Invest | ANZ vs CBA vs NAB vs WBC | Comparative Analysis
3 Important dates:
GFC
Royal commission
COVID-19
If remuneration is too high then it tells the culture of the company.
Australia and New Zealand Banking Group (ASX: ANZ)
20 year chart: share price movement and dividend
ANZ has been consistently paying dividends in the past 20 years
COVID 19 Impact - notes from management
The Board has decided that making a decision on the 2020 interim dividend at this time would be not be prudent or appropriate and has deferred that decision until later in the year.
The crisis has already impacted results, after taking a prudent approach to bolster credit reserves by a further $1.4B and recognising the impact on 2 associate investments.
As a result, statutory profit is down 44%, while cash profit excluding large and notable items is down 26%.
Tier 1 capital is $56B, which is 3 times larger than when entering the GFC, and supports lending assets only 2 times larger.
CET1 Ratio = not too bad, regional banks are in the range of 9-9.2%
Commonwealth Bank (ASX: CBA)
Updates on COVID 19, funding & stake sale
New $1.5B overlay provision for potential impacts of COVID19
Announced divestment of 55% stake in Colonial First State for $1.7B to KKR
Post-tax gain on sale of approximately $1.5B
Hence, net impact of COVID19 is zero for shareholders
National Australia Bank (ASX: NAB)
NAB is heavily dependent upon business lending (larger hit from Big 4 due to COVID19)
Still paying 2020 Interim Dividend
COVID 19 Impact on Financials & Capital raising
Underwritten $3B institutional placement and non-underwritten share purchase plan targeting to raise approximately $500M
Westpac Banking Corp (ASX: WBC)
Ongoing money laundering case
19/09/2020
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