Predictions from UBS that Banks will continue EPS growth

Analysts are predicting that earnings by Australia's big banks will continue to grow in 2007. Earnings per share (EPS) growth of 12.4 per cent occurred in the 2006 financial year and UBS Investment Research forecasts the big four banks - Commonwealth Bank Austrlaia Ltd (ASX:CBA), National Australia Bank Ltd (ASX:NAB), Westpac Banking Ltd (ASX:WBC) and ANZ Bank Ltd (ASX:ANZ)- will continue to increase EPS. It predicts EPS growth of 11.1 per cent in 2007 and 9.3 per cent in 2008. UBS expects the strongest EPS growth to be among the big investment banks, Macquarie Bank Ltd (ASX:MBL) and Babcock & Brown. (ASX: BNB).

The banking sector will be doing well out of the recent acquisitions occuring as they will be jumping in for management and financing. Macquaire should be doing espeically well out of it all.

Good Luck investing