Home Sports Here’s how ASX 200 banks could benefit from the budget

Here’s how ASX 200 banks could benefit from the budget

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S&P/ASX 200 Index (ASX: XJO) all banks outperformed the benchmark index over the past month.

The ASX 200 is up an expected 5.28% since the opening call on September 26.

As for ASX 200 Banks:

  • Australia and New Zealand Banking Group Ltd (ASX: ANZ) shares rose by 12.15%
  • Commonwealth Bank of Australia (ASX: CBA) shares rose 8.96%
  • Westpac Banking Corp (ASX: WBC) shares rose by 13.36%
  • National Australia Bank Ltd (ASX: NAB) shares rose 9.27%

And this does not include dividends. All the big four banks pay in full franked dividends, offering investors some tax friendly earnings along with potential share price appreciation.

While the past month has been good for ASX 200 banks, they can expect further threats thanks to Australia’s latest Federal Budget.

A million new homes light up ASX 200 banks

The Budget Treasurer Jim Chalmers presented to Parliament largely lived up to the campaign promises that helped Labor to victory.

Among the keystones was the introduction of a National Housing Agreement with state governments and industry to build one million new homes over five years starting in 2024.

Saxo Markets strategist Jessica Amir said this could provide some support for ASX 200 banks.

According to Amir:

The Government will launch a $10 billion Australia’s Housing Future Fund with the aim of providing 20,000 new social housing units. $350 million will be spent over 5 years to build 10,000 affordable homes, with state governments delivering another 10,000 homes. The government has also pledged to deliver on its election promise to introduce a shared equity scheme that will allow eligible people to buy a home with a smaller deposit.

Apart from the major infrastructure and construction companies that could benefit, Amir pointed to the ASX 200 banks. “Eyes will also be on the banks that could benefit from the housing policy, so CBA, ANZ Bank, NAB and also Westpac,” among other major financial institutions, she said.

https://www.fool.com.au/2022/10/26/heres-how-asx-200-banks-stand-to-benefit-from-the-budget/

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