The monthly home lending data is out. It is useful to reflect on just how strong home lending is, how far above trend, it is.
And yet NIMs are going down, and forward guidance is even lower, and bank share prices are well down from not-that-long-ago highs.
If the sector can’t make hay when the sun is shining, how will performance look when it is not?
As such, we continue to see the banks as marginal value plays, with some latent value emerging (e.g. SUN, WBC, ANZ).
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