What’s in Store for the Big Four Banks


2019 was not great for
the banking industry. Three out of the big four
banks had very average years. NAB cut its dividends and had very little growth in their share value. Westpac cut also their dividends, and even dropped in share value. ANZ didn’t cut dividends, but they did cut franking credits. CBA had a pretty good year. Didn’t cut dividends,
didn’t cut franking credits, and with a growth of
12.6% of the share value, they had a pretty good year, after 2018. So what’s in store for
the big four in 2020? I think we’re definitely going
to see a good improvement. Global trading outlook is good, and typically, when that’s the case, the banking industry do well. And if CBA is anything to go by, they had a lot of issues in
2018 and had a strong 2019. After we saw a terrible 2019
for the banking industry, I think we’re going to see
a good 2020, except for CBA. CBA is currently being valued
at 17 times their earnings, which is already very high. So I think the rest will outperform them.

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