reporting season wrap_bourse

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DIRECTORS : CHRIS BURRELL ROGER BURREL ( Acting Chairman ) IAN DAVEY ROBERT CHAN ELAINE ANDERSON ALICIA KENDALL MICHAEL BURRELL
ASSOCIATE DIRECTORS : JAMIE ELGAR
ASSOCIATES : DYLAN KATZER BRUCE McLEARY SHAUN MINAHAN
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THE BURRELL BOURSE

The 2020 / 21 reporting season has come and gone . However , with New South Wales and Victoria , in lockdown , and economic and pandemic visibility limited , it is not surprising that management guidance for the new financial year has been guarded .
The iron ore mining stocks ( BHP , Rio Tinto , Fortescue Metals and Mineral Resources ) continued their earnings bonanza on into the second half . FY21 results came as no surprise , the product of a relatively simple equation , price x volume , driving record earnings and operating and free cash flow . Shareholders were showered with record payouts . The near-term outlook entering into the 1 st quarter of FY22 looked positive as the average iron ore price looked likely to be exceeded in 1H22 , however , in recent weeks the outlook has been tarnished with the spot price of iron ore heading south , back towards $ 120 per tonne .
The Commonwealth Bank was the only major bank reporting results , while ANZ Banking Group , National Australia Bank and Westpac reported June quarter trading updates . Earnings were supported by significant cuts in loan loss provisions and were generally in line with expectations . NIMs remained under pressure . Dividends continued to recover from the FY20 hiatus . To return surplus capital , share buybacks were announced by ANZ , CBA and NAB , while WBC will release details when FY21 results are released early November . Macquarie Group refrained from providing full-year earnings guidance in its 1Q22 update given the current elevated uncertainty .
REPORTING SEASON WRAP
MyState Limited announced NPAT grew 20.9 % to $ 36.3 million underpinned by , above system lending growth , significant deposit growth , active cost management and an improved cost of funding . In terms of outlook , MyState did not provide specific guidance , but the CEO commented that “ Following our recent capital raise , increasing the number of shares on issue , we expect earnings per share to reduce in the short term , however , the business momentum we have seen in the first half of this calendar year is expected to increase into the second half . We expect the improvement in operating efficiencies to continue , further supporting our growth ambitions ”. The market is expecting EPS to decline to 36 cents per share in FY22 , putting MyState on a FY22PE of 13.9 times . FY21 was a successful year for Auswide Bank , with strong improvement across all key financial metrics including NPAT of $ 24.1 million , up 30.5 %. Auswide continues to build momentum , increasing its market share and achieving other financial targets including above system loan book growth ( 3.2x ) and further reduction of cost to income ratio .
General insurers Insurance Australia Group , QBE and Suncorp all reported solid performances as premium increases lifted the top line and lower natural hazard claims and motor vehicle claims due to lockdowns helped underwriting results . Medibank Private and NIB Holdings benefited from an increase in private health cover with good growth in policy holder numbers . Claims were checked by coronavirus and investment income was also higher .
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