Mentioned: Australia and New Zealand Banking Group Ltd (ANZ) , Commonwealth Bank of Australia (CBA) , National Australia Bank Ltd (NAB) , China Merchants Bank Co Ltd (600036) , Industrial And Commercial Bank Of China Ltd (601398) , Bank Of China Ltd (601988) , Hang Seng Bank Ltd (00011) , Bank Of China Ltd (03988) , DBS Group Holdings Ltd (D05) , Oversea-Chinese Banking Corp Ltd (O39)
- We assess the global financial-services sector as approximately fairly valued. It has recently traded at a market-cap-weighted price/fair value estimate ratio of 0.94--a 6% discount to what our analysts believe the sector is worth.
- While the economy remains relatively strong, increased competition among banks shown in rising funding costs are slowing net interest margin growth, and uncertainty regarding credit costs is increasing.
- There is a general easing of financial regulation in the United States, but some tightening in China and Europe.
Americas Financials Update
By Brett Horn, Eric Compton, Greggory Warren, and Michael Wong
To view this article, become a Morningstar Basic member.
Already a member? Sign in.
Michael Wong does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.