Will Aussie banks rebound from here?
In recent weeks, the share prices of Australian banks have been heading south. The Commonwealth Bank of Australia (ASX:CBA) and Westpac (ASX:WBC) have been hit particularly hard, on the back of material falls in their net interest margins. Will margins start to expand soon as the interest rate on fixed rate loans starts to climb again?
Three of the four major banks have reported their FY21 results while CBA has released its quarterly update over the last couple of weeks. Between 27 October and 19 November, the ASX 300 Banks Accumulation Index has generated a loss of 4.87 per cent, 6.26 per cent weaker than the return generated by the broader market of +1.39 per cent.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
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