Westpac

Self-funded retirees understand the capital risk in holding the ‘big four’. It’s one they’re prepared to take knowing their effective grossed-up yields are much higher than the nominal figure.

Outgoing CEO Peter King used his valedictory full-year earnings address to predict a brighter economic future for 2025, citing the expectation of lower interest rates, a resilient labour market and improving consumer sentiment as the reasons for his optimism.

For the past year, the banks have delivered to shareholders with income and capital gain. In the run-up to their next results, it might be time to consider taking some scrip off the table and pocketing a tidy profit.

It was a mixed bag for self-funded retirees this reporting season. The big banks continued to deliver those precious franked dividends, Charter Hall gave the office sector a much-needed fillip, while Dexus reminded everyone just how much financial pain some property groups are still experiencing.

A one-day conference will offer some concrete steps for those heading into or in retirement already about how they can enjoy their golden years – whether it be their health, well-being, relationships or social engagement.

With deteriorating economic conditions dampening the banking outlook, some trading momentum may be leaving the sector after a strong two-month run. Six in 10 trades of big-four banks on the Selfwealth platform in July were sell orders, and headwinds are only picking up from here.

The regulator said it wasn’t satisfied the deal would not substantially lessen competition in Australian banking, particularly in home loans and small-business banking. ANZ and Suncorp plan to challenge the decision.

Fronting a House economics committee inquiry into competition in the banking industry, the heads of CBA, ANZ, Westpac and NAB insisted they weren’t unfairly setting interest rates and that competition and customer engagement in the sector have never been stronger.

Bill Evans, who will step down next year after three decades as Westpac’s chief economist, says “deeply pessimistic” consumer sentiment despite the RBA’s recent pause is a sign of further hikes ahead.

Higher net interest margins helped drive a nearly 17 per cent increase in the banks’ combined cash profits from a year ago. But a 400 per cent increase in their interest expenses and stiffer lending competition are contributing to a weaker outlook going forward, analysts say.