The bank reporting season, which delivered annual results for three major banks and a brief quarterly update from the CBA, can only be described as underwhelming. For ANZ, NAB and Westpac, the market took an immediate dislike to their full year results and shaved off around 2% from the share price on the day of release. Since the season kicked off on 25 October, the major banks have underperformed in the market by around 3%.
Why the disappointment?
Well, it is not a function of missing the headline profit number, because they largely met analysts’ forecasts. ANZ with a cash profit of $6.94bn, NAB with $6.64bn and Westpac with $8.06bn. CBA’s quarterly result of $2.65bn did better, largely on the back of a huge fall in loan impairment expenses. No beats, but not misses either.