The share price of call recording software developer Dubber Corp Ltd (ASX: DUB) has been on an absolute tear recently. Since the beginning of April, shares in the junior tech company have soared over 50%, from $1.77 to $2.67 as at the time of writing – and that’s despite an almost 10% slump on Thursday.

So, what has got the share price skyrocketing?

Company background

First, let’s take a quick look at what Dubber does.

Dubber operates a software-as-a-service (SaaS) business model. This basically means it sells licenses to companies so that they can access and use Dubber’s cloud-based software.

These sorts of business models can be quite attractive to investors (if successful) as they can provide dependable revenue streams in the form of recurring subscription payments from clients.

Many emerging ASX tech companies employ similar models, including Bigtincan Holdings Ltd (ASX: BTH), ELMO Software Ltd (ASX: ELO) and Megaport Ltd (ASX: MP1).

Dubber specialises in call recording software. The technology can help its clients manage and analyse large volumes of calls, which can help with sales optimisation, customer retention, staff training and can even help to ensure companies meet compliance targets.

The software even uses artificial intelligence to measure customer sentiment, providing emotional insights into a company’s performance.

Recent news

What really got the Dubber share price skyrocketing was the news on 14 April that it is set to partner with US-based telecommunications company Zoom Video Communications Inc (NASDAQ: ZM). Businesses will now be able to record their Zoom conversations and use Dubber’s software to analyse these calls.

Zoom became a globally recognised brand during the COVID-19 pandemic, as it has supported companies who have had to adapt to remote working arrangements.

Following this announcement was Dubber’s March 2021 quarterly activities update, in which the company reported strong growth across just about all of its key metrics.

Revenues increased by a whopping 54% quarter on quarter (to $2.3 million), driven by record growth in customer numbers. Annualised recurring revenues from its subscription-based licenses reached $34 million, a jump of $5.6 million (or 20%) over the previous quarter. Dubber also ended the quarter with almost $38 million in cash on its balance sheet.

Commenting on the results, company CEO Steve McGovern stated that, “The company is very well positioned to continue to take advantage of the major shift towards cloud-based and ‘work from anywhere’ communications we are seeing in all geographies.”

What next for the Dubber share price?

The fact that Dubber is quickly growing its customer base and inking deals with internationally recognised telecommunications companies like Zoom seems to be resonating with investors.

However, Dubber is still a junior company and a speculative investment. On Thursday alone its share price slumped almost 10% after one of its major investors (Regal Funds Management) ceased being a substantial holder, showing that the Dubber share price can still be incredibly volatile.

But, for those of you who can stomach those sorts of price swings, Dubber is arguably turning into an exciting ASX tech company. It will be interesting to watch how its share price performs over the next few months.

More reading

• Why Dubber, PointsBet, Starpharma, & Westpac shares are storming higher
• Dubber (ASX:DUB) share price surges 16% on triple-digit growth
• Why Dubber, Mesoblast, PointsBet, & Sezzle shares are storming higher
• Why the Dubber (ASX:DUB) share price just smashed its all-time high
• Westpac (ASX:WBC) and these ASX shares have just hit 52-week highs

Rhys Brock owns shares of BIGTINCAN FPO, Dubber, Elmo Software, and MEGAPORT FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends BIGTINCAN FPO, Elmo Software, MEGAPORT FPO, and Zoom Video Communications. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Dubber. The Motley Fool Australia has recommended BIGTINCAN FPO, Elmo Software, MEGAPORT FPO, and Zoom Video Communications. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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When I wrote on Wednesday about being wrong, I was pleasantly surprised by the response.

Most of you empathised with me getting my Challenger Ltd (ASX: CGF) recommendation wrong.

One of you — no names, no pack drill — decided to also bring up my Domino’s Pizza Enterprises Ltd (ASX: DMP) stuff-up. 

I choose to believe it was in sympathetic jest!

Still, the responses reminded me of something important: we’re all in this together.

Yes, we’re all trying to ‘beat the market’, and in that sense, we’re trying to beat each other, but the reality is that you and I — the humble individual investor — will always be in the minority in this caper.

So there’s no reason we can’t all beat the big guys at their own game.

Because that’s the other side of the ‘being wrong’ bit.

Thus far, at Motley Fool Share Advisor — and as we find ourselves only 6 months away from our 10th birthday — we’re beating the market.

Despite the mistakes, (negative) surprises, and disappointments, the average Share Advisor recommendation has a higher return than if we’d invested in the All Ordinaries Index (ASX: XAO) on that date, instead. (Both including dividends, by the way, and excluding any fees you’d pay for an ETF that tracked the index.)

Now, I make that point not just to rescue my ego (though we’re all human), but to put my mistake in context.

Because I want to show you that mistakes, far from defining an investor, should be accepted as one of the costs of investing in the first place.

Oh sure, you can buy an index-tracking ETF, get the market return (less a little in fees) and go fishing, shopping, back to work, or whatever else you want to fill your time with.

Indeed, many people should do just that.

But I think it’s possible to beat the market if you have the time, interest, support and stomach for volatility.

Indeed, I think that’s what Share Advisor has shown. And most other Motley Fool services.

Now, past performance is no guarantee. I’m the first to say that (and have done so regularly).

But I think it’s important to remember that we’ve done it despite making some mistakes, having bad luck and everything in between.

Not in the absence of those things.

Despite them.

We’ve had big winners. Smaller winners. And big and small losers.

No sugar-coating it.

To use an imperfect analogy, a golf tournament isn’t decided on the number of birdies. Or bogeys.

But, instead, by the sum total of the strokes taken over 72 holes.

A football match isn’t determined by the number of line breaks. Or missed tackles. 

But, instead, by the net difference of points scored and points conceded.

You don’t win the game by making no mistakes.

You win it by making fewer than the opposition and scoring more points than them.

Perfection — or at least continuous improvement — might be the goal, but it’s not the prerequisite for success.

Thing is, those analogies are imperfect.

A ‘winning’ hole of a birdie and a ‘losing’ hole of a bogey are symmetrical: -1 and +1 respectively.

A line break might result in a 4 point try, and a missed tackle might cost you a 4 point try.

But if you invest well, your losers can only cost you 100%. That’s pretty tough to take.

But your winners? They can gain more. A lot more.

You know the examples: Warren Buffett’s long term performance at Berkshire Hathaway. Amazon’s stunning success over more than two decades (I own shares in both… unfortunately I haven’t had either since the beginning!).

You could have bought 31 companies — Amazon and 30 others that subsequently went broke — on the day of Amazon’s IPO, and you’d still have made a fortune.

Now, Amazon is clearly an outlier. You won’t see many Amazons in an investing lifetime.

But there are lots of long-term 2- 5- and 8-baggers on the market.

And the good news is that the longer you hold quality companies, the greater the odds of achieving those sorts of results.

Woolworths Group Ltd (ASX: WOW), today selling for over $39, originally listed at under $3. And that’s not including the dividends paid in the interim.

Only this morning, I noticed my Berkshire Hathaway shares had tripled (on average) since I bought them.

That’s not hypergrowth. And helped by me buying some during the depths of the GFC more than a decade ago.

But it’s an example of the power of long term compounding. And buying quality.

So, thanks to those of you who empathised with my recent mea culpa.

I really appreciate it.

The bad news is that I’ll make more.

The good news is that as long as I can continue to find companies that more than make up for those mistakes, they won’t be fatal… and the mistakes will hopefully be the exceptions that prove the rule.

Fool on!

More reading

• 2 fantastic blue chip ASX 200 shares rated as buys
• Why Afterpay, ANZ, Domino’s, & Flight Centre shares are tumbling lower
• Vicinity (ASX:VCX) sees improvements as it struggles back to COVID-normal
• ASX 200 Weekly Wrap: Shares have average week but a great month
• These were the worst performing ASX 200 shares in April

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Scott Phillips owns shares of Amazon and Berkshire Hathaway (B shares). The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon and Berkshire Hathaway (B shares) and recommends the following options: long January 2022 $1920 calls on Amazon, short January 2023 $200 puts on Berkshire Hathaway (B shares), short June 2021 $240 calls on Berkshire Hathaway (B shares), short January 2022 $1940 calls on Amazon, and long January 2023 $200 calls on Berkshire Hathaway (B shares). The Motley Fool Australia owns shares of and has recommended Challenger Limited. The Motley Fool Australia owns shares of Woolworths Limited. The Motley Fool Australia has recommended Amazon, Berkshire Hathaway (B shares), and Dominos Pizza Enterprises Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Tabcorp Holdings Limited (ASX: TAH) share price will be one to watch closely on Friday morning. This follows the gambling company’s announcement after market close yesterday of a revised takeover offer.

The Tabcorp share price was trading at $5.01 at Thursday’s closing bell after edging 0.2% higher for the day.

Details of the revised proposal

Tabcorp shares will be in focus this morning after the company revealed it has received an improved proposal.

According to its release, Apollo Management has put a revised offer on the table to acquire Tabcorp’s Wagering & Media and Gaming Services businesses.

Headquartered in New York, Apollo Management is an international private equity firm that manages capital for hundreds of fund investors. The company has offices in dozens of countries looking after pension funds, sovereign wealth funds, university endowments, charitable foundations, financial institutions, and family offices.

The revised unsolicited, non-binding and indicative proposal matches a prior bid by United Kingdom sports betting and gambling company Entain plc (LON: ENT).

Both companies have tabled an offer of $3.5 billion for Tabcorp’s Wagering & Media business. However, Apollo Management has put forward a further offer to also acquire Tabcorp’s Gaming Services assets for a combined value of $4 billion.

The revised proposal from Apollo Management is subject to a number of conditions. These include due diligence, finance arrangements, receipt of all regulatory approvals (including ACCC and FIRB), and third-party consents.

Tabcorp management noted that it has not yet decided on the revised proposal and will assess it in line with its strategic review.

The board is currently considering whether to sell its Wagering & Media business to a third party or demerge the asset from its lotteries arm.

How has the Tabcorp share price performed lately?

It has been a good 12 months for Tabcorp shareholders with the company’s share price up over 60%. Year-to-date performance has also been solid, with the Tabcorp share price posting gains of around 28%. It’s worth noting that Tabcorp shares reached a multi-year high of $5.06 on Wednesday.

Based on the current share price, Tabcorp commands a market capitalisation of about $11.1 billion, with 2.2 billion shares outstanding.

More reading

• Why Bingo, Life360, Tabcorp, & Vulcan shares are storming higher
• ASX 200 down 0.5%: Bingo & Tabcorp takeovers, BlueScope upgrades guidance
• Why the Tabcorp (ASX:TAH) share price is in the spotlight
• Leading brokers name 3 ASX shares to buy today

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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More reading

• 2 stellar ASX growth shares rated as buys
• 2 ASX dividend shares with 4%+ yields
• 5 things to watch on the ASX 200 on Friday
• ASX 200 drops, Nearmap plunges, Appen declines
• 2 explosive ASX growth shares rated as buys

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Kate O’Brien owns shares of Apple and Rio Tinto Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Alphabet (C shares), and Apple. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), and Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post LIVE COVERAGE: ASX expected to rise; Macquarie Group to report full year results appeared first on The Motley Fool Australia.

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If you’re interested in adding some growth shares to your portfolio, then you may want to take a look at the ones listed below.

Here’s why they have been rated as buys:

Breville Group Ltd (ASX: BRG)

The first growth share to look at is this appliance manufacturer.

Breville has been growing at a consistently solid rate for a number of years. This has led to the company’s shares providing investors with market-beating returns over the last five years.

The good news is that its growth doesn’t look likely to be ending any time soon. Thanks to a combination of growing demand, acquisitions, and its international expansion, Breville has been tipped as a company that could continue growing its sales for some time to come.

That is certainly the view of analysts at UBS. They appear confident in its long term growth story thanks to product launches and its expansion into new markets. The broker currently has a buy rating and $35.70 price target on its shares.

REA Group Limited (ASX: REA)

Another ASX growth share to consider is REA Group. It is the dominant player in real estate listings in the Australian market.

Over the last few years, the company has been battling tough trading conditions. But thanks to the strength and resilience of its business model, the company came out on top.

The good news is that the tide is now turning and trading conditions are becoming very favourable. So, after cutting costs materially and introducing new revenue streams, the company looks set to reap the rewards as demand for listings increases due to the thriving housing market.

This should be supported by its international operations, which have large opportunities of their own.

Morgan Stanley is very positive on REA Group. Its analysts currently have an outperform rating and $172.00 price target on its shares.

More reading

• Why AnteoTech, Domain, Flight Centre, & Nick Scali are sinking today
• 2 high quality blue chip ASX 200 shares rated as buys
• REA (ASX:REA) share price eyes new record highs after running 10% in April
• These ASX 200 shares are tracking the Aussie economy higher in 2021
• Why Zip (ASX:Z1P) and these ASX shares are rated as buys

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended REA Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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If you’re wanting to beat low interest rates in 2021, then you might want to look at the dividend shares listed below.

They offer investors attractive yields that are vastly superior to term deposits and savings accounts. Here’s what you need to know about them:

BWP Trust (ASX: BWP)

The first ASX dividend share to look at is BWP Trust. It is a commercial property company with a focus on Bunnings Warehouse sites. At the last count, it owned a total of 68 properties that were leased to the home improvement giant, making it the largest Bunnings landlord.

Thanks to the strong demand for home improvement products due to a redirection in consumer spending and government stimulus, Bunnings has proven to a fantastic tenant for BWP. It has enjoyed high occupancy rates and been able to collect its rent as normal this year.

This led to BWP reporting a 6% increase in profit during the first half, allowing the BWP board to reaffirm its plans to pay a full year distribution of ~18.3 cents per share. Based on the current BWP share price, this equates to a 4.35% dividend yield.

Rural Funds Group (ASX: RFF)

Another ASX dividend share to consider is Rural Funds. It is an Australian agricultural property company with a portfolio of high quality assets.

These properties are leased to some of the biggest players in the agricultural sector on long term agreements. And with these leases including periodic rental increases, the company is well-positioned to deliver on its target of 4% growth in its distribution each year.

In FY 2022, Rural Funds intends to reward its shareholders with a distribution of 11.73 cents per share. This will be up 4% on FY 2021’s distribution. Based on the current Rural Funds share price of $2.42, this will mean a yield of 4.8%.

More reading

• 2 excellent ASX dividend shares with generous yields
• 3 reasons why Rural Funds (ASX:RFF) is a strong ASX dividend share
• 2 ASX dividend shares that could be great alternatives to term deposits
• 2 ASX dividend shares with very generous yields
• 2 ASX dividend shares with generous yields

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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On Thursday the S&P/ASX 200 Index (ASX: XJO) was out of form and tumbled lower. The benchmark index fell 0.5% to 7,061.7 points.

Will the market be able to bounce back from this on Friday? Here are five things to watch:

ASX 200 expected to rise

The Australian share market looks set to end the week on a better note. According to the latest SPI futures, the ASX 200 is expected to open the day 23 points or 0.3% higher this morning. This follows a solid night on Wall Street, which saw the Dow Jones jump 0.9%, the S&P 500 climb 0.8%, and the Nasdaq rise 0.4%.

Oil prices fall

Energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could finish the week on a low note after oil prices fell overnight. According to Bloomberg, the WTI crude oil price is down 1.2% to US$64.86 a barrel and the Brent crude oil price is down 1.05% to US$68.24 a barrel. Concerns about rising COVID-19 cases in India is weighing on prices.

Macquarie full year results

The Macquarie Group Ltd (ASX: MQG) share price will be one to watch today when it hands in its full year results. In February, the investment bank revealed that it expects to deliver a profit result that is approximately 5% to 10% higher than FY 2020. All eyes will be on its guidance for FY 2021, with experts suggesting that it will have no choice but to guide to a decline in earnings in FY 2022.

Gold price jumps

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could finish the week strongly after the gold price jumped higher. According to CNBC, the spot gold price is up 1.7% to US$1,814.90 an ounce. Weakness in the US dollar and bond yields gave the precious metal a lift.

NAB rated as a buy

The National Australia Bank Ltd (ASX: NAB) share price is good value according to one leading broker. According to a note out of Goldman Sachs, its analysts have responded to NAB’s half year results by putting a conviction buy rating and $29.97 price target on its shares. This implies potential upside of ~13% over the next 12 months excluding dividends.

More reading

• ASX 200 drops, Nearmap plunges, Appen declines
• Australia’s trust in big banks up 19% in just 2 years: report
• Brokers say “buy” these 3 ASX shares even as they trade near 52-week highs
• 2 reliable ASX 200 shares offering good income
• Why the Afterpay (ASX:APT) share price is sliding 5%

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO) dropped by around 0.5% today to 7,062 points.

Here are some of the highlights from today:

Nearmap Ltd (ASX: NEA)

The Nearmap share price fell by 23% after investors responded to the legal case relating to patent infringement.

Nearmap said that it was made aware on the morning of 5 May 2021 of a complaint filed against its subsidiary, Nearmap US Inc, in the United States District Court (District of Utah, Northern Division).

The complaint alleges patent infringement relating to the plaintiffs’ roof-estimation technology. The allegations do not affect Nearmap’s core proprietary technology and do not affect the surveying of imagery or the delivery of premium content. The business remains unaffected, according to management.

This complaint has been filed on behalf of Eagle View Technologies Inc and Pictometry International Corp. The plaintiffs are seeking unspecified monetary damages and the prevention of alleged further infringement in relation to the plaintiffs’ roof-estimation technology.

Dr Rob Newman, CEO and managing director of Nearmap, said:

Nearmap has always taken the subject of intellectual property rights and patent protections seriously and believes the allegations are without merit. We will vigorously defend against the complaint. The business remains unaffected by the complaint.

It was the worst performer in the ASX 200.

Appen Ltd (ASX: APX)

The Appen share price dropped 21.1% after giving investors an update about operating conditions.

Appen said there’s a lot going on in its market and the AI market in general. In most regards, things are unchanged according to management. However, there were a couple of things that had changed.

The tech business said that its customers are developing new AI products in response to COVID-19’s impact on online advertising last year and regulatory pressures such as anti-trust and data privacy. Appen said this dictates the data they need for product development and impacts their engineering resource allocations and the volumes and types of data they need from Appen. The company said that machine learning is an iterative process, and its customers are switching resources between development projects as they pursue new break-out products. This in turn has impacted a handful of its larger programs.

There was another main element that Appen pointed to. Its competitors outside of relevance are maturing. This is unsurprising, according to management. Appen says the presence and funding demonstrate that it’s an attractive market. Management believe that it is maintaining its leadership position and that it has to maintain its flow of new product features and fight harder to stay ahead.

It was the second worst performer in the ASX 200.

National Australia Bank Ltd (ASX: NAB)

NAB announced its FY21 half-year result.

The big ASX 200 bank reported that it generated $3.2 billion of statutory net profit. Cash earnings were up 94.8% to $3.3 billion. Cash profit was up 35.1% excluding large notable items.

NAB finished the half-year with a group common equity tier 1 (CET1) ratio of 12.37%. This helped the board declare a dividend of $0.60 per share, double what it was a year ago.

NAB CEO Ross McEwan said:

The rebound in the Australia and New Zealand economies from COVID-19 has been better than expected. This, along with the vaccine rollout and continued strong health outcomes, make us optimistic about the outlook.

But risks do remain. The recovery is not even, and some customers such as those in international travel and hospitality, particularly in CBD areas, still face significant challenges. Longer term outcomes for these customers depend on a number of factors expected to become clearer in coming months. These include the impact of jobkeeper ending, timing of the vaccine rollout and the reopening of international borders. Supporting customers and keeping the bank sake through this period remain our priorities.

More reading

• Australia’s trust in big banks up 19% in just 2 years: report
• Brokers say “buy” these 3 ASX shares even as they trade near 52-week highs
• 2 reliable ASX 200 shares offering good income
• Here’s why the Appen (ASX:APX) share price is down 21% today
• Why Adore Beauty, Appen, Flight Centre, & Nearmap shares are sinking

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Appen Ltd and Nearmap Ltd. The Motley Fool Australia has recommended Nearmap Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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With so many growth shares to choose from on the Australian share market, it can be hard to decide which ones to buy over others.

To help narrow things down, I have picked out two ASX growth shares that could be top options for investors today. Here’s what you need to know about them:

NEXTDC Ltd (ASX: NXT)

The first ASX growth share to look at is NEXTDC.

It appears perfectly positioned to benefit from the cloud computing boom thanks to its position as one of the region’s leading data centre-as-a-service providers. From its 11 world class centres in key locations across Australia, NEXTDC provides colocation services to local and international organisations. 

Pleasingly, NEXTDC is now looking to expand into other potentially lucrative markets after opening up offices in Singapore and Tokyo. If the company makes a success of this, it could give it a long runway for growth over the 2020s.

UBS is a fan of the company. It currently has a buy rating and $15.40 price target on its shares. This compares to the latest NEXTDC share price of $11.05.

Temple & Webster Group Ltd (ASX: TPW)

Another ASX growth share to look at is Temple & Webster. It is Australia’s leading online furniture and homewares retailer.

It has been growing at a strong rate over the last few years and particularly during COVID-19. This was thanks to the shift to online shopping.

The good news is that this shift is still in its infancy for furniture and homewares. This gives the company a very long runway for growth, particularly given its leadership position.

Management is now investing heavily to take take advantage of the shift and cement its position as the market leader. While this will come at the expense of margins, the long term gains make it more than worthwhile.

Morgan Stanley certainly believes this will be the case. The broker currently has an overweight rating and $15.00 price target on its shares. This compares to the latest Temple & Webster share price of $10.06.

More reading

• 3 buy-rated ASX growth shares for investors in May
• 2 ASX tech shares to buy in May 2021
• These are the 10 most shorted shares on the ASX
• 2 ASX growth shares to buy in May 2021
• 2 excellent ASX growth shares rated as buys

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Temple & Webster Group Ltd. The Motley Fool Australia has recommended Temple & Webster Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Trust in Australia’s big banks, including Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB), and Westpac Banking Corp (ASX: WBC) is up 19% among consumers in just 2 years. That’s according to the latest results of comparison website Finder’s Consumer Sentiment Tracker.

The report also analysed consumer saving habits and pay rise expectations. Let’s take a closer look at the findings.

Trust in big banks at record highs

The level of trust in big Australian banks has been rising steadily since the end of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry (Banking Royal Commission) in early 2019. 

In May of that year, the metric sat at just 43%. As of April 2021, it sits at 62%. The survey does not specify what a big or small bank is. Finder only asked respondents about their levels of trust in ‘big’ or ‘small’ banks generally.

Graham Cooke, head of consumer research at Finder, said it was interesting to see this metric change in such a consistent way. 

Mr Cooke said, “The initial lockdown seemed to spur fears that smaller banks might fail and may have resulted in a jump in trust of the big banks.”

“Whether it was the compassionate measures taken for those in financial strife or the changes in operating procedures since the Royal Commission, it’s clear that a significant number of Aussies are ready to trust big banks again,” he added.

Despite the large increase in trust for big banks, smaller banks, such as Bank of Queensland Limited (ASX: BOQ), have managed to outpace them.

Trust in small banks currently sits at 68% in April, down from 71% in March. According to Mr Cooke, “Aussies report trusting the smaller players more than the big four – which is a great sign for all the neobanks entering the market.”

Mr Cooke added that “smaller banks tend to be more popular with younger consumers than older ones.”

Other findings

In positive signs for the Australian economy, consumer savings are up nearly $200 a month on average. Additionally, most respondents are expecting a pay rise within the next two years.

Despite an early dip in savings brought about by the COVID-19 pandemic, average savings balances have been able to recover and exceed their pre-coronavirus levels. This figure hovered between $600–$700 per month before the pandemic.

Economic uncertainty and working from home encouraged many Australians to increase their savings. The average amount of savings reportedly shot up to $989 in June 2020. It has since fallen, however, this figure is still significantly above pre-pandemic levels. Currently, it is sitting at $889.

Mr Cooke said this was an encouraging trend. He added that “Rates are low, but some accounts in the market are offering 20-30 times the interest of others.”

Low interest rates may lead investors to move their money into other places, like the share market. When Finder asked economic experts, however, most (86%) believed the increased savings would continue.

Stephen Halmarick of Commonwealth Bank told Finder that a large part of the savings came from government income, which will now disappear. Tony Makin of Griffith University agreed, saying the savings boost was triggered by uncertainty.

As well, a record 56% of Australians believe they will be receiving a pay rise sometime in the next two years.

“Having seemingly weathered the storm and with job ads at a 12-year high, employees are expecting to be paid for their loyalty,” Mr Cooke said.

63% of experts asked by Finder agreed wage growth would exceed 1.0% over the specified period.

Share price performance of the ASX big 4 banks

The Commonwealth Bank share price is up 0.24% today to $92.94 a share. Over the last 12 months, it’s increased 56%.

National Australia Bank shares are down 2.96% after the release of the bank’s Q3 results. They closed the day at $26.56. Since this time last year, the company’s value has appreciated 63%.

The Westpac share price finished the day up 0.23% to $26.02 a share. ASIC opened an investigation into the big bank yesterday for possible insider trading. In 52-weeks, investors have seen a 66% return on investment (ROI) from Westpac shares.

More reading

• Blue chip ASX 200 shares breaking out into 52-week highs
• How much is the NAB dividend worth now?
• ASX 200 down 0.35%; NAB half year results, Nearmap crashes on legal threat
• ANZ Bank (ASX:ANZ) share price hit by broker downgrade post results
• NAB (ASX:NAB) share price on watch after reporting $3.34bn cash profit

Motley Fool contributor Marc Sidarous has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Australia’s trust in big banks up 19% in just 2 years: report appeared first on The Motley Fool Australia.

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