It has been another disappointing day of trade for Australia's big four banks, with all four of them dropping into the red this afternoon.
While the Commonwealth Bank of Australia (ASX: CBA) share price has only edged ever so slightly lower, the rest of the big four haven't fared quite as well.
In fact, the Australia and New Zealand Banking Group (ASX: ANZ) share price, the National Australia Bank Ltd (ASX: NAB) share price, and the Westpac Banking Corp (ASX: WBC) share price were all trading at 52-week lows today.
Why are these banks trading at 52-week lows?
There are numerous reasons why these shares are trading at 52-week lows.
These include the negative impacts of the Royal Commission, the housing market downturn, rising rates in the United States, and news that the Reserve Bank of New Zealand is looking into increasing its current tier 1 minimum capital ratio.
In addition to this, all three of these banks suffered from "first strikes" against their remuneration reports at their recent annual general meetings. A first strike occurs if 25% of shareholders vote against the report.
Last week 64% of Westpac shareholders voted against its remuneration report. This was followed by 34% of ANZ Bank shareholders and a massive 88.4% of NAB shareholders voting against their respective remuneration reports yesterday.
If disgruntled shareholders do the same at next year's event, it will result in a board spill.
Should you buy bank shares?
While nothing seems to be going right for the banks right now, if you're willing to be patient and have limited exposure to the sector, then I think it could be well worth considering an investment.
After all, at current levels the big four banks are trading on significantly lower than normal multiples and offer some of the most generous dividends on the market.
My favourites are ANZ Bank and Westpac, but I wouldn't expect their shares to move notably higher until after the Royal Commission final report is released in February, providing there are no unexpected surprises included in it.
