CBA – Commonwealth Bank of Australia


I think that the banking sector will find it hard to maintain its’ profit growth. However, the yields are good and profit and dividends will still rise albeit at a slower rate, so unless interest rates have a significant rise they still seem to be excellent to hold. That is you receive a good fully franked dividend and a steady capital gain.

It is interesting to follow the paper reports. Not long ago it was all about the banking sector has had its day and it was time to sell. The bank share prices are up about 7% since then and now I read in the Financial Review to-day that bank shares may rise because as the weight of NCP reduces in the S&P the banks weights will increase and therefore the institutions will need to buy the banks to maintain their weights. This is obiously true of any sector other than NCP.

All in all I am holding and will continue to do so.

I hold ANZ,CBA,STG and WBC. I also hold the unlisted IMB (Illawarra Bld Soc).


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