Banks entering uncharted waters

The major bank reporting season kicks off in May. For the three banks reporting Morgans forecast 1H15 cash EPS growth of 3.0% on pcp, and DPS growth of 4.4%. On aggregate they expect margins to be off 4bps sequentially, and the bad debts/total loans ratio to edge up by 2bps (on 2H14). Morgan’s Chief Economist Michael Knox looks at the key industry drivers including volumes, margins, trading income, wealth, costs, bad debts and capital.

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