|
|
|
|
|
| Market capitalisation Dividend Yield and PE ratio
The market capitalisation of Australian retail banks was $296 billion as at the end of 2010. This represents around 25% of the market capitalisation of the S&P/ASX200. Six Australian Bankers’ Association member banks were amongst the top 20 companies in Australia as listed by market capitalisation, at the end of 2010. 
The chart below shows the performance of the S&P/ASX200 index and also for the financials component of the S&P/ASX200. Readers should be aware that the chart shows indexes only. That is, the financial sector is not bigger than all companies in the S&P/ASX200.
Source: Iress
Banks usually have a stronger dividend yield than the overall market. Readers should be aware that the dividend yield increased significantly over 2008. This has not been because dividend payouts have been increasing. It has been a result of falling share prices. Similarly, the increase in share prices in 2009 saw the dividend yield return to more normal levels. Higher dividend payout ratios in 2010 has seen the dividend yield increasing over 2010
Source: Iress
The price earnings ratio (PE) measures share price against earnings. Over 2008, falling share prices impacted on the ratio. Falling earnings over 2009 saw the PE rise significantly while improved earnings in 2010 has seen the PE ratio return to more usual levels.
Source: Iress
Updated march 2011 |
|
| |
| |
|
|
|
|
|
|
|
|
|
|