Research Feb 2010

Commercial Banks

Australia & New Zealand Banking Group Limited
Trading update

Brett Le Mesurier & Azib Khan   26-Feb-2010

ANZ has announced an impairment charge of $670m for the 4 months ending 31/1/10, compared with $1.6b in 2H09 and $1.4b in 1H09.

 

National Australia Bank Limited
Can’t grow? Then buy something and reorganise

Brett Le Mesurier & Azib Khan   19-Feb-2010

The revenue run rate in 1Q10 was unchanged from 1H09 and 2H09.

 

Westpac Banking Corporation
1Q10 trading update

Brett Le Mesurier & Azib Khan   16-Feb-2010

We have upgraded our FY10 cash EPS forecast by 18%, FY11 by 5% and FY12 by 1%. This is the result of lower bad debt charge forecasts and higher NIM forecasts.

 

Bendigo and Adelaide Bank Limited
1H10 result

Brett Le Mesurier & Azib Khan   15-Feb-2010

BEN’s 1H10 result is characterised by:

 

Major Banks
Outlook for net interest margins

Brett Le Mesurier & Azib Khan   04-Feb-2010

Net interest margins (NIMs) of the banks increased during FY09 as a result of treasury gains and from loan spreads increasing faster than deposit spreads. That has now changed.

 

 

Investment Banks

Macquarie Group Limited
Real estate platform sold

Brett Le Mesurier & Anthony Vogel   11-Feb-2010

MQG today announced the sale of the management companies and the majority of its equity interests in its real estate platform to Charter Hall (CHC.ASX).

 

 

Commonwealth Bank of Australia
1H10 result

Brett Le Mesurier & Azib Khan   10-Feb-2010

CBA’s result is characterised by:

 

Macquarie Group Limited
What’s special about MQG? Nothing

Brett Le Mesurier & Anthony Vogel   08-Feb-2010

The problem with an investment in MQG is the share price. MQG can be expected to produce $3.06 EPS in FY10 and the share price is $47.28, being a multiple of 15.5 times.

 

Insurance

QBE Insurance Limited
2009 result: still on the slippery slope

Brett Le Mesurier & Anthony Vogel   26-Feb-2010

has not been able to grow organically since 2005, according to the CEO, because of the low ROE offered on new business. So it has made acquisitions. This reliance on acquisitions creates 2 risks:

 

 

Insurance Australia Group Limited
No surprise: Not enough growth

Brett Le Mesurier & Anthony Vogel   25-Feb-2010

Now that the insurance margin has been restored and the capital position is strong, there is only one thing to consider:

 

Suncorp-Metway Ltd
Chaos, Calamity, Catastrophe – the commander takes control

Brett Le Mesurier & Anthony Vogel   24-Feb-2010

Legend has it that the CEO, Patrick Snowball, used to have 3 tanks under his command: Chaos, Calamity and Catastrophe. Sadly, these names provide a fair description of the 1H10 SUN result.

 

AMP Limited
FY09 result

Brett Le Mesurier & Anthony Vogel   18-Feb-2010

AMP Limited produced an 11% increase in operating margins from 1H09 to 2H09, which is less than half the 24% increase in the average XAO over the same period.

 

AXA APH Limited
Couldn’t tell there’s a bid on the table

Brett Le Mesurier & Anthony Vogel   17-Feb-2010

AXA APH reported its 2009 full year result and lived up to its promise that 2H09 would be much better than 1H09.

 

Diversified Financials

Challenger Financial Services Group Limited
Does this make sense?

Brett Le Mesurier & Azib Khan   22-Feb-2010

How sustainable is $325M in cash operating earnings?

 

ASX Limited
1H10 result

Brett Le Mesurier & Anthony Vogel   18-Feb-2010

Things we like about the ASX