Australasian Equities

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Australasian Equities

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Core

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Less Ore, and still More Money For the first full year in BHP’s history, copper is the biggest earner. The copper segment delivered US$18.2 billion of underlying EBITDA in FY26, up 48%, and accounted for 54% of group earnings, ahead of iron ore. It managed that while producing 3% less metal than the year before. That is the investment case we outlined in our prior note. The price is doing the work that volume didn’t, and we think the copper

National Australia Bank

Core

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The market priced the provisions, not the profit National Australia Bank’s (ASX: NAB) June-quarter update showed cash earnings of $1.83 billion for the three months to June, up 2% on the average quarterly result from the prior six months, excluding a prior software-related charge. Business lending rose 2% in the quarter and 9% over the year, helping revenue and offsetting softer housing demand. However, lower credit impairment charges contributed to the profit increase, while mortgage applications fell 15% from the March

QBE Insurance

Core

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Underwriting and yields support growth QBE’s (ASX: QBE) 1H26 result shows a better underlying insurance business than the flat headline profit suggests. The global insurer reported higher premiums, kept its claims-and-expenses ratio within target and earned more from its bond portfolio, but slower price increases mean future growth will rely more on selective customer growth and investment income. QBE earns money in two ways: it aims to collect more in premiums than it pays in claims and expenses, then invests the premiums

ANZ Banking Group

Core

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Delivering on the Controllables ANZ (ASX: ANZ) is beginning to show the benefits of its simplification programme, with business lending, core margins and underlying earnings all improving in the June quarter. The bank is still working through the Suncorp integration and a softer mortgage market. A strong capital position and cost-saving progress support the case for a gradual improvement in returns rather than a rapid turnaround. Overall, management is executing well on the items inside its control. Operating expenses fell, and the

Suncorp

Core

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Weather costs testing the core business Suncorp earlier sold its banking division, so the group now earns from two places. Underwriting, which weather impacts, and an investment portfolio that higher bond yields have quietly improved and we believe a structural tailwind will be in place over the coming quarters. FY26 tested the first and rewarded the second. Reported net profit fell 44% to $1.03 billion, yet the underlying insurance business improved: the insurance trading ratio held at 11.8%, the top of

SGH

Core

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Cash flow buys time for growth SGH has delivered a sound FY26 result, highlighting that this is a well-managed, family-aligned business that was able to convert modest earnings growth into cash, reduce debt and still fund investment and a share buy-back. The result supports our current bullish view, although the lower end of FY27 earnings guidance means the next catalyst puts more emphasis on Boral’s margin gains, a recovery in equipment-hire demand, and/or an accretive acquisition. That aside, the Stokes family’s

Westpac

Core

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Mortgage applications slide, though we think the market’s mispricing what comes after that. Westpac’s own disclosures point to a harder FY27 than FY26, and Westpac shares dropped sharply earlier in the week after the Q3 report dropped, dragging peers lower. The market focused on a mortgage application run rate diving 20% post-budget, while we ourselves note a core margin holding only because trading income filled the gap. There was also a modestly larger provisioning established for a consumer base that has

St Barbara

Speculative

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The rotation: ‘Cheap’, Cashed-Up, and Now De-Risked The deep value in St Barbara has been there for some time. The stock has not moved north as much as we would have liked, but a share price that has yet to respond fully is not evidence that the value isn’t there. Views on the gold price outlook always vary across a spectrum, and bullion has been volatile in 2026, with a substantial correction since late January/early February. Management has quietly been toiling away

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