Australian banks are *this big* (click to enlarge)
Market capitalization refers to the value of all the bank’s shares added up, and is a rough measure of the value of a company. Australia’s banks are nearly half as valuable as America’s.
Investment bank UBS thinks that’s too big, and there’s little reason to justify the rapid gains in Australian bank stocks that led to it:
We view the Aussie banks as a strong, well capitalised sector… Howeveri, given the global chase for yield we believe it has rallied too far too fast. Since September the banking sector has rallied 35% while EPS (earnings per share) forecasts are almost unchanged and the sector has delivered -1.5% EPS growth”
Via Macrobusiness
