Market Commentary.

17 Feb, 2016

IAG – Half Year Results 2016

By |2021-09-24T09:50:29+10:00Feb 17, 2016|Market Commentary|

The regulatory environment has changed rapidly over the past twelve months and the regional banks are starting to benefit from these changes. Whilst Bendigo continues to be well positioned to increase loan growth over time, some competitors are not being rational and are still chasing growth over margin, Bendigo is not.   The group also been public about their ongoing [...]

17 Feb, 2016

Coca Cola Amatil – Full Year Results 2015

By |2021-09-24T09:50:29+10:00Feb 17, 2016|Market Commentary|

Coca Cola Amatil (CCL) has proven its ability to successfully restructure its operational profile through cost cutting and renewed investments in marketing and as a result has returned to earnings growth. Its major line of business has seemed to stablise and smaller segments are generating strong growth.   Although from a company perspective this news sounds promising, the same can't [...]

16 Feb, 2016

ANZ First Quarter Trading Update

By |2021-09-24T09:50:29+10:00Feb 16, 2016|Market Commentary|

In its first quarter trading update ANZ released quite modest results. As low interest and exchange rates support the transition to more balanced growth following the commodities boom, the Bank was able to continue earnings momentum with cash profit up 4% to $1.85 billion when compared to prior corresponding period. This result was driven by:   Disciplined expense management via [...]

16 Feb, 2016

Challenger – Half Year Results 2016

By |2021-09-24T09:50:29+10:00Feb 16, 2016|Market Commentary|

Challenger (CGF) has positioned itself well within the superannuation sector and more specifically the post retirement part of pool. Although we agree the size of this market is likely to increase with demographic changes, the group currently only provides annuities that service a portion of the market (the rest is in allocated pensions, SMSFs).   Our primary concern with CGF [...]

16 Feb, 2016

Bendigo & Adelaide Bank – Half Year Results 2016

By |2021-09-24T09:50:29+10:00Feb 16, 2016|Market Commentary|

The regulatory environment has changed rapidly over the past twelve months and the regional banks are starting to benefit from these changes. Whilst Bendigo continues to be well positioned to increase loan growth over time, some competitors are not being rational and are still chasing growth over margin, Bendigo is not.   The group also been public about their ongoing [...]

5 Feb, 2016

Genworth Mortgage Insurance Australia’s underlying profit falls but the outlook appears brighter

By |2021-09-24T09:50:29+10:00Feb 5, 2016|Market Commentary|

On 5 February 2016 Genworth Mortgage Insurance Australia Limited delivered its FY 2015 result delivering a gross written premium (GWP) of $507.6 million, down 20% on a pro forma basis to FY2014.   Genworth's business mix is improving, however as proportion of loans with an loan to value ratio (LVR) greater than 90% is falling as the banks re-balance their mortgage books in response to [...]

4 Feb, 2016

Macquarie Group operational update broadly credit neutral

By |2021-09-24T09:50:29+10:00Feb 4, 2016|Market Commentary|

Macquarie Group provided guidance that the 2016 net profit would be in excess of the $1.6 billion reported in FY 2015. The more stable annuity-style business continues to grow with $345 billion under management and is the single largest contributor to profit. The major drag on FY16 results is expected to come from the commodities and financial markets division due [...]

21 Jan, 2016

Huge Credit Margins – an investment opportunity or not?

By |2021-09-24T09:50:30+10:00Jan 21, 2016|Market Commentary|

Equity markets volatility over recent months has crossed into bond markets with a ‘blowout’ in credit margins and significantly higher yields in both ASX listed and unlisted interest rate securities. Is this an opportunity for investors or should they stay on the sidelines? The most recent Tier 1 hybrid issues by the four major banks are trading  at an average margin [...]

21 Jan, 2016

Retailing Hardware: A tale of two stories

By |2021-09-24T09:50:30+10:00Jan 21, 2016|Market Commentary|

 Buoyant trends in residential building investment, an improving outlook on household discretionary income and growth in the number of households have supported the growth in the Hardware and Building Supplies Retailing industry over the past five years. This growth is also a function of consumer choice for DIY home improvement renovations and repairs. Bunnings (as subsidiary of Wesfarmers) was an early entrant to [...]