Index has a lot of miners so RoE I imagine swings with commodity price - but still tells a story.

CBA at 2.7x book, pretty high for banks but not as bad as pre GFC.

Around 23 per cent of all Aussie home loans – worth almost $500 billion – are currently on fixed rates and will switch to variable rates by the end of 2023. These borrowers will experience significant interest rate increases which will further squeeze household disposable incomes” Steve Johnston, CEO, Suncorp Group Ltd

Are the higher net interest margins going to offset bad debt and provisions if they (when they) arise.

Good overview of the majors - Bank reporting season scorecard (firstlinks.com.au)

The below graph is a bit scary being so low - good but gets worse/normalises? Been a really good few years for the banks in terms of bad debts and now reaping higher NIMs at the moment. Do bad debts come back to bite with higher rates?

The major 4 banks face relativley slow growth prospects so I think you can for the most part expect the future returns is likley to come from dividends.

What doesn't make much sense is that you can get a similar and in some cases better income return from major bank hybrids as the equity - see below. (the yield to reset uses the futures curve which may or may not be what does occur - but the running yield is the forward 12 month return). From what I've heard you can even get Tier 2 bank notes nearing yields on hybrids.

There's some interesting (risk/return) mispricing going on in bank capital stacks at the moment.