Looking at the recent results of BOQ, Westpac and NAB, there is a lot of interesting information on how differently these institutions behave.
BOQ
The junior player goes its own way: around $295m is being returned to its owners through a special dividend and share buyback, and its fully franked yield is over 6%. And the migration of the
ME Bank is complete; another big stone falls down from the integration of BOQ.
Westpac
The performance of Westpac is looking relatively stable: profit is growing, capital is strong, but slow growth in mortgages is expected due to changes in housing. Besides that, the bank wants to attract new, young clients and first-time homebuyers by developing its savings offerings.
NAB
In my opinion, NAB is the most exciting one of these players this quarter: profit has increased by more than 30%, but not because of the growth in home lending; on the contrary, applications have been reduced. Instead, business banking seems to do all the work; besides, the bank expects additional cost reduction.
So, three banks and three completely different pictures:
BOQ → shareholder returns
Westpac → housing and customers
NAB → business banking and efficiency
What do you think about this? Which of these three players has the most exciting outlook over the next year?
This is not financial advice – just a comparison of the latest numbers and the main information that was interesting to me.