Clime Investment's Walker Sees Low Single-Digit Growth for Australia Banks

The video discusses the ongoing changes in banks, focusing on governance and remediation costs. It highlights the impact of the Royal Commission on shareholders, with increased legal and compliance costs. The interim report showed no penalties, yet bank shares rallied. The future of bank earnings is expected to be flat, with a gradual recovery as banks adjust to new market conditions. Investors should anticipate low growth and derating from previous high valuations.

What are some of the issues banks are facing despite their rally?

• Increased customer satisfaction

• Decreased competition

• Governance and remuneration failures

• Higher interest rates

What has been a significant consequence of the Royal Commission for banks?

• Decreased legal costs

• Lower regulatory scrutiny

• Increased compliance and remediation costs

• Higher dividends

What is the expected trend for bank earnings and dividends in the upcoming year?

• Flat earnings and dividends

• Unpredictable fluctuations

• Sharp decline

• Significant growth

What is the anticipated growth rate for banks in the future?

• High double-digit growth

• Moderate growth

• Low single-digit growth

• Negative growth

What should investors keep in mind regarding the future of banks?

• Banks will increase dividends significantly

• Banks will eliminate all compliance costs

• Banks will face low single-digit growth

• Banks will achieve high growth rates