ANZ Banking Group deputy chief Graham Hodges has sought to downplay talk of a bank stocks bubble, saying the sharp rise in bank share values are justified, according to The Australian Financial Review.
Fresh records set by the shares of Australia's big four banks have sparked talk of a bubble.
But Mr Hodges said the robust share growth is justified by strong bank profits.
“We have had a pretty solid run. We are at the higher end of historically where we have been,” he told the AFR.
“It doesn't mean it is going to suddenly fall away quickly, because there is solid earnings and I don't think there is any shock for earnings in the near-term horizon.
“That is why I would say it is reasonably sustainable and I don't think it is a bubble.”