The Big Picture for the Major Banks Is Playing Out as Expected, but CBD Apartment Risk Is Increasing

Major Bank Retail Customer Satisfaction Declines, but Still a Remarkably High 79.5%

Challenges Mount for the Wide Moat-Rated Australian Banks

Leading Independent Investment Research, Morningstar, Inc.

Morningstar

Leading Independent Investment Research

Morningstar, Inc.

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. We offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors. 

Morningstar provides data on more than 500,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 16 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries, with more than $180 billion in assets under advisement or management as of June 30, 2015. We have operations in 27 countries.

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Equity Bottom-Up

Commonwealth Bank of Australia / Equity Bottom-Up

Commonwealth Bank of Australia’s record fiscal 2016 cash profit of AUD 9.45 billion was up a modest 3.4% on the prior year and broadly in line with our forecast and consensus. Statutory profit increased 1.8% to AUD 9.2 billion. Despite facing increasing operating challenges, Commonwealth Bank delivered an impressive overall performance.Commonwealth Bank of Australia, or CBA, is a lower-risk bank trading on an attractive dividend yield of about 5.5%. This is not a stock where the attractive dividend yield signals high financial risk; in CBA's case, the yield signals moderate earnings growth because of slow system credit growth and pressure on funding costs. Some market participants consider CBA's strong emphasis on home loans a weakness, but we argue it is a key strength. Concerns centred on a housing crash in Australia are overdoneAnalyst: David Ellis

Commonwealth Bank of Australia’s record fiscal 2016 cash profit of AUD 9.45 billion was up a modest 3.4% on the prior year and broadly in line with our forecast and consensus. Statutory profit increased 1.8% to AUD 9.2 billion. Despite facing increasing operating challenges, Commonwealth Bank delivered an impressive overall performance.Commonwealth Bank of Australia, or CBA, is a lower-risk bank trading on an attractive dividend yield of about 5.5%. This is not a stock where the attractive dividend yield signals high financial risk; in CBA's case, the yield signals moderate earnings growth because of slow system credit growth and pressure on funding costs. Some market participants consider CBA's strong emphasis on home loans a weakness, but we argue it is a key strength. Concerns centred on a housing crash in Australia are overdoneAnalyst: David Ellis

Australia's Lowest-Risk Major Bank Stock with Leading Market Shares Across Key Consumer Products