Banks

The outlook for leasing and vehicle finance business, EclipX, is promising and brokers consider its growth ambitions remain well supported.

Brokers suspect Macquarie Group’s earnings are peaking as the diversified financial business has increased the levels of asset sales in its first half.

Earnings declines, rising bad debts, potential dividend cuts, potential capital raisings – it’s not shaping up as a great reporting season for the Big Banks.

Challenger Financial Services is benefitting from new distribution agreements and strong annuity sales. That said, several broker consider the valuation stretched.

Brokers like the diversity in BT Investment Management but several remain cautious about the outlook, given lingering risks surrounding Brexit.

Bank of Queensland’s result failed to impress brokers given margin pressure and subdued volumes but the outlook has not deteriorated.

Are Australian bank returns on equity really too high? What lies ahead for the banking sector?

Bendigo & Adelaide Bank will acquire the Keystart home loan portfolio but brokers are lukewarm, given the increased risk this Western Australian book entails.

Unforgiving market continues; infrastructure sells off; flat outlook for construction; Canaccord Genuity covers receivables; Bell Potter initiates on TPI Enterprises.

Macquarie Group has signalled FY17 earnings are likely to be broadly in line with FY16. Brokers are concerned about investors anticipating that guidance will be upgraded.