(29 October 2018 – Australia) Three of the country’s big four banks are set to deliver full-year profits over the next fortnight with investors being told to expect softer growth ahead as banks become “more like utilities.”
As the Hayne royal commission and slower credit growth take their toll on the country’s majors, forecasts are predicting a 7 percent decline from last year in combined earnings for the big four.
ANZ, NAB and Westpac are forecast to report around $20 billion in combined profits when they deliver results, taking total earnings for 2018 to $29 billion after CBA announced a $9.2 billion profit in August.
Bell Potter analyst TS Lim said he did not expect any cuts in dividends at this half, but growth would be harder to come by for the big four – making them more like staid utility businesses.