Yet another very strong update out of ANZ.

Asset quality is strong, loan loss / provisioning experience remains highly favourable.

We are quite long ANZ, and WBC, as the obvious “value” trades within the banks. CBA, to our mind, remains the most expensive bank in the world, and as such we are pleased to see ANZ performing well, ahead of the SUN banking acquisition.

The housing calamity will be felt first in the retailers (downgrades) before it shows up here in the banking sector impairments. So if JBH (JB HiFi) is still selling everything they can, you can feel relaxed here, even as a long running housing bear.

You could reasonably point to NCK’s (Nick Scali) trading update, in which Jan was down markedly on the prior year (and down 12% was better than they expected!). But until it’s awful and not “heaps better than pre-pandemic” levels, it’s not quite the same…

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