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In the face of changing market dynamics, #GoldmanSachs has issued a downgrade for #Westpac Banking Corp, reflecting broader sector challenges and considerations for investors. Key Takeaways: - Westpac's share price saw a near 1% dip, closing at $26.87. - Analysts highlight overstretch in bank valuations, with P/E ratios hitting the 99th percentile. - Concerns include Westpac's tech overhaul risks, a housing-heavy balance sheet, and limited NIM benefits. Goldman Sachs' assessment prompts us to question the sustainability of current valuations in a fluctuating market. The downgrade is a stark reminder that banking sector growth prospects are interlinked with economic trends and investor sentiment. As professionals in the finance industry, how should we adjust our strategies in light of such analytical downgrades? Join the discussion and share your thoughts. For a deeper dive into the downgrade's rationale and its implications for Westpac and the banking sector, read the full article: https://lnkd.in/ghXbuuMc #BankingSector #InvestmentAnalysis #StockMarket #FinancialServices #MarketDynamics #Valuation

In today's Taking Stock, we discuss how Australia's Westpac Banking Corp reported a solid Q3 profit, driven by strong capital gains. The bank's net interest margin (NIM) improved to 1.82%, reflecting a 2-basis point increase over the first half of 2024. Despite a 2% rise in quarterly expenses due to increased technological investments, effective cost management kept expenses below market expectations. As a result, Westpac's shares rose to their highest level since March 2018. For more on this and other market updates, click here: https://lnkd.in/dexNp8Qe #SasfinWealth2024 #TakingStock #Markets

Let the pricing wars begin! ⚔️ As some economists were predicting, the Official Cash Rate (OCR) dropped 0.50% today to 4.75%. The question now is, will it drop a further 0.50% in November as some are predicting and the market is anticipating? The banks have been making huge profit margins over the past 12 months+ as they have chosen to offset a slower market with more margin. The question was when would the market turn and when would lead banks become more competitive with their rates? Well, that appeared to happen yesterday with ANZ offering a 5.59% fixed for 12 months (behind the scenes) down from 6.19%. When one bank moves, the others tend to follow... so it looks like we will finally be getting the rates that reflect the market. Enjoy! 😊 And as always, if you have any questions around how the OCR or interest rate decrease might affect you, just get in touch! #queenstown #centralotago #reservebank #interestrates

To quote the Goons, in the latest #bank reporting season suddenly, nothing happened. But it happened suddenly. Results were a la consensus but the consensus is shares are currently well overpriced. So what's going on? Shayne Elliott, for one, reckons banks should take more risk. Here's the Capital Brief rundown. ANZ NAB Westpac Group Commonwealth Bank Macquarie Group Judo Bank So, what do you reckon? are the banks too expensive? + how dangerous to your financial health is #bnpl? Is the volume data on #stablecoins dodgy? Visa Have Australians moved on from the Royal Commission? Publicis Sapient https://lnkd.in/gFhAG7nQ And you can sign up for this newsletter for free https://lnkd.in/gC65-jXq

Curious about potential interest rate shifts in 2024? Experts foresee various scenarios, with major banks predicting cash rate reductions by the end of the year. Read the blog to know more about… Bank Predictions: Commonwealth Bank, Westpac, NAB, and ANZ share expectations, projecting potential rates as the year progresses. Economic Factors: Unforeseen events could sway these forecasts, impacting cash rate decisions. Stay updated to understand the evolving financial landscape. Future Planning: Discover how these potential adjustments might influence your borrowing capacity for future property investments. Click Here to read more: https://loom.ly/SSx0zzQ Let us know in the comments if you have any questions. #InterestRates #FinancialPredictions #EconomicOutlook #BorrowingCapacity

🏡💬 Let's Talk Interest Rates and Property Impact! 💼📈 Recent predictions from Westpac's CEO and senior economists suggest that the Reserve Bank's next move could be a cut to the cash rate. 📉💰 This potential shift has sparked discussions about its accuracy and the potential impact on the property market. 🏠💡 Will lower interest rates stimulate property demand and affordability, or are there other factors at play? 🤔💬 We want to hear from you! Share your thoughts on these predictions and how you believe they could affect the property landscape. Join the conversation and let's explore the implications together! 🗣🌟 #InterestRates #PropertyMarket #Predictions #DiscussionTime 🏘📊 https://lnkd.in/g-mgG_yg Your insights matter – let's dive into this topic! 💬✨

Despite Citigroup's third-quarter results surpassing predictions, the bank faced a challenging week due to several factors: Increased Loan Loss Provisions: Citigroup set aside more money to cover potential loan defaults, particularly on credit cards. This increase in provisions led to a 9% drop in net income compared to the previous year. Regulatory Issues: Citigroup continues to deal with regulatory penalties and ongoing issues related to risk management and data governance. These persistent regulatory challenges have weighed on investor sentiment. Market Expectations: While the bank's earnings exceeded estimates, the market had high expectations, and any slight miss or concern can lead to a negative reaction from investors. Comparison with Peers: Citigroup's performance was overshadowed by strong results from its competitors like JPMorgan Chase and Goldman Sachs, which reported even better-than-expected earnings. Stock Performance: Despite the positive earnings report, Citigroup's stock price fell due to the factors mentioned above, reflecting investor concerns about the bank's future profitability and regulatory compliance. These factors combined to create a tough week for Citigroup, even though their third-quarter results were better than expected. Citi #banks #market #wallstreet #USA JPMorganChase Goldman Sachs

https://lnkd.in/gfucu_JB Big banks like JPMorgan Chase and Bank of America saw their profits fall following their reports in the fourth quarter. And this disappointing result has impacted equity trading last week. JPMorgan Chase and Bank of America are just two prime examples of this disappointing fourth quarter in the banking industry. But they are not the only banks that have seen their earnings nosediving. Many other banks have experienced the same fate as well. The banking industry is perhaps the industry that desperately needs the Federal Reserve to cut interest rates since its entire industry relies on interest income to make a profit. Cutting interest rates will certainly lead to a wider net interest margin. And this is because cutting interest rates leads to an increased demand for loans. Despite these challenges, many banks remain profitable and optimistic about the overall economic outlook. They expect modest loan growth in 2024, which could partially offset the decline in net interest income. Additionally, the strong consumer balance sheet and resilient job market suggest that the risks of a major financial crisis are low. Link in bio to read the full article and subscribe for free and subscribe to our weekly newsletter to stay updated on market trends #financialmarkets #business #politics #economics #thelakestreetreview #Americannews #Africannews #americanmarkets #africanmarkets #mediacompany #newscompany #LSR

With the much anticipated first rate cut by the BoC last week now in the rear view mirror, I took a moment to check-in on the Big 5 banks' economics websites to see where they have the overnight rate landing at year end. For reference, the current BoC overnight rate just dropped from 5% to 4.75%. 1) RBC: 4.25% 2) BMO: 4.25% 3) TD: 4.25% 4) Scotia: 4.25% 5) CIBC: 4:00% References: (https://lnkd.in/dah_hQjK) (https://lnkd.in/dpAnbzA9) (https://lnkd.in/dSaVJWBu) (https://lnkd.in/dZei29JC) (https://lnkd.in/dahKqB2K *I saw that this report was as of April 24, 2024, however, a more recent written analysis by CIBC (https://lnkd.in/depWV-ep) re-affirms their 4% forecast.

The big Australian banks have enjoyed a good run-up in share prices in recent months. In his latest missive Dougal Maple-Brown, Head of Australian Value Equities, explains why we have favoured some of the Big Four, the drivers behind recent share price rises and what comes next. #bigfourbanks #valueinvesting #australianequities