The bank has announced second half cash earnings will be affected by $1.22bn in “notable items”. Credit Suisse believes this will clean up a range of items around specialist buisness which should mean “cleaner” results going forward.
The broker suggests Westpac could feasibly pay a second half dividend that incorporates up to 50% of first half statutory profit.
Credit Suisse retains an Outperform rating and $20.60 target.
Target price is $20.60.Current Price is $18.64. Difference: $1.96 – (brackets indicate current price is over target). If WBC meets the Credit Suisse target it will return approximately 10% (excluding dividends, fees and charges – negative figures indicate an expected loss).