Big banks bounce back

The global financial crisis has enhanced the standings of the big four Australian banks globally whilst having only temporary effect on their market capitalisation. Investors have sent the value of Commonwealth bank and ANZ back above their peak valuations before the sub-prime meltdown began in mid-2007.

Westpac is also worth more than now than before the crisis after issuing $12 billion of stock to buy St George. Only NAB has yet to reach its maximum pre-GFC valuation of $71 billion, currently being valued at about $54 billion.

The big four Australian banks are all now well entrenched in the top 30 banks in the world. Research by Boston Consulting Group placed Commonwealth Bank at number 14 bank in the world by market capitalisation, up 13 places. Westpac is at number 15, NAB at 23 and ANZ at 26.

Source: The Australian

Advertisement