Citi assesses in-line FY21 cash earnings and feels
In a post-FY21 results review for the overall sector, Citi expects rising US10-year yields to provide strong relative support for the Bank sector versus the broader market. The multi-year contraction in core earnings (ex-notables) is expected to abate, and the broker forecasts 2% growth in FY22.
More negatively, strong mortgage competition and stubborn cost growth are causing a lack of near-term earnings leverage to a steepening yield curve, explains Citi. Of the big four,
Sector: Banks.
Target price is
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