Reporting season compounds poor outlook for big 4 banks

375 basis points worth of rate hikes from the Reserve Bank of Australia should have been the catalyst for a healthy period in Big Bank profitability. Instead, questions are being raised once again about the state of competition in the Australian banking space. As value investors, we naturally keep a very close eye on the numbers handed down by the Big Four and we are finding more challenges than opportunities in those outlook statements. 

For starters, none of the big four banks have net interest margins above 2%. Of the three that reported in this most recent cycle, two reported marginal increases while the NAB's decrease disappointed investors on the day of results.

And that's before mortgage rates are brought into the conversation. However, there was one piece of good news in that credit quality remains strong.

In this wire, I'll share our thoughts on the big four results in detail. I'll also share which of the big four banks we'd rather be holding onto right now.

Managed Fund

Tyndall Australian Share Wholesale Fund

Australian Shares

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