Global Bank Equity Specialist, Creative Portfolios

Paul Hollingworth

Global Bank Equity Specialist

Creative Portfolios

Thematic (Sector/Industry)

Macau Financials / Thematic (Sector/Industry)

It surely makes sense to scrutinise the income merits of global banks given the still low yield backdrop. Income, if sufficient, can compensate for myriad risks related to the sector or the macro backdrop- for instance the build-up of toxic assets within a system. Excessive yields can be a real warning signal of problems ahead while very low yields may not price in enough risk. Dividend Yield thus fits the bill to assess relative valuation of utility-like banks.We take a regional approach though admit there is a great deal of variation within markets.

It surely makes sense to scrutinise the income merits of global banks given the still low yield backdrop. Income, if sufficient, can compensate for myriad risks related to the sector or the macro backdrop- for instance the build-up of toxic assets within a system. Excessive yields can be a real warning signal of problems ahead while very low yields may not price in enough risk. Dividend Yield thus fits the bill to assess relative valuation of utility-like banks.We take a regional approach though admit there is a great deal of variation within markets.

Global Banks: Where Is the Yield?