One of the most respected financial journals in the world, Motley Fool, has announced their top pick of banks listed on the ASX – with some surprising results.
Resimac were the big pick: they’ve priced over $2.5m in RMBS transactions already this year, as well as announcing 88% NPAT growth in February. Motley Fool called them “the crème de la crème in FY21” and it’s easy to see why, especially if the property market continues as it is at the moment.
“Our success in FY21 has largely been driven by our broker partners, who continue to recognise us as a lender of choice,” said Scott McWilliam, CEO of Resimac Group.
“The Australian and New Zealand home loan markets continue to grow driving an increased demand for our flexible home loan solutions.”
Of the Big Four, their best pick is ANZ, which has enjoyed strong financial results in the opening half of the year and have held their nerve on interest rates, generating confidence.
Brokers will certainly be interested in the tip of AFG, one of the biggest aggregators in the game. As brokers grow in market share and the property boom continues, more loans are written through aggregators like AFG – with a knock on effect on their stock price.
It has spiked 66% in the last year, and that was before the huge kick on in the market, so expect it to continue in this direction of travel.
Bendigo & Adelaide Bank are also picked out as a successful ASX option. Their strength in the mortgage and home loan sector is well-known, and they are now the biggest retail bank outside of the Big Four, meaning ever more traffic going through B&A.
That translated into huge jumps in revenue in 2020 and a commensurate rise in their ASX price, which shows no sign of slowing down.
