Beware of banking stocks

TuTanKaman · 1 Beware of banking stocks Sun Dec 10, 2017 7:10 am

TuTanKaman

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Profits of banks are expected to decrease drastically due to tax on banking trx. Further implementation of slfrs 9 will have at least 30% increase in loan loss provisions

dsam · 2 Re: Beware of banking stocks Mon Dec 11, 2017 11:12 pm

dsam

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according this share moving pattern banking shares should go down.

prasa2004 · 3 Re: Beware of banking stocks Tue Dec 12, 2017 5:40 pm

prasa2004

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Today foreigners have purchased many banking counters COMB/SAMP/NDB
I believe with interest rate coming down, banks who have more Fixed term Loans than FDs, will give good returns. DFCC/NDB will be more benefited as their project loans generally longer tenor

EquityChamp · 4 Re: Beware of banking stocks Thu Dec 28, 2017 10:22 pm

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TuTanKaman wrote:Profits of banks are expected to decrease drastically due to tax on banking trx. Further implementation of slfrs 9 will have at least 30% increase in loan loss provisions

This particular tax can easily be recovered through a simple interest rate margin adjustment. This fear has been there for many years after different budget proposals but every year banks have been able to record strong growth in earnings. This time too the story will be the same.