“We maintained our overweight on the major banks sector,” Raymond said.
“We continue to like major banks, due to:
- Balance sheet strength.
- Attractive dividend yields.
- Potential for further capital management.
- Long term cost cutting strategy.
“The key risk is significant slowdown in Australian economy, which may result in rising bad debts and bank losses.
“However, if that happens, then we shall see government stimulus,” Raymond said.
Commonwealth Bank of Australia (CBA)
ANZ Banking Group (ANZ)
National Australia Bank Limited (NAB)
Westpac Banking Corporation (WBC)
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