Westpac To Exit Financial Advice
Westpac investors yawned yesterday at the news the bank was quitting the financial advice sector while overhauling its management structure that will two of its most senior executives leaving the bank.
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Banks Emerge From The Royal Commission Blues
It’s only been a month since Hayne’s final report has been released, but far from driving a stake through the financial hearts of the Big Four Banks – Commonwealth, Westpac, ANZ and NAB – their position is returning to being as dominant as ever.
Read MoreWestpac, BoQ Diverge On Outlook
Westpac has slipped out a Q1 update revealing a 6.8% rise in cash earnings, BoQ however expects its earnings for the half-year to be down 6% to 9% when it releases them in April.
Read MoreRoyal Commission Triggers Relief Rally In Financials
More than $20 billion was added to the value of listed financials – lead by the big four banks yesterday after investors concluded the outcome from the Hayne banking and finance royal commission would not damage their business models our futures.
Read MoreRoyal Commission Singles Out NAB CEO & Chair
The National Australia Bank is in the gun following the release of the final report from the royal commission which contained very sharp criticism of the bank’s chairman and CEO.
Read MoreBanks, Regulators Brace For Royal Commission Fallout
The long-awaited final report from the finance and banking Royal Commission will be released this afternoon at 4.10 pm (there is a media lock up this afternoon ahead of the release) and while there will be a lot of heat and light and promises from the Morrison government, there will be nothing concrete.
Read MoreKiwi Central Bank Set Force Big Four Banks To Boost Capital Reserves
Australia’s big four banks, already reeling from a stagnant home loan market and revenues, the fallout from the Hayne Royal Commission and censure from upset shareholders, now face more financial problems in their most profitable offshore market – New Zealand.
Read MoreShareholders Whack Down Westpac Over Bonuses
Westpac has suffered a stunning vote of no confidence in the bank board and management at a level we have seldom seen in Australia.
Read MoreFederal Court Throws Out Westpac, ASIC Settlement
ASIC and Westpac now have to start a court case all over again after the Federal Court rejected the bank’s offer to pay a $35 million settlement for contravening responsible lending laws.
Read MoreAPRA Eyes Higher Bank Capital Requirements
More hybrids and other issues to come from our slimming banks? That could be the outcome of a new move by APRA, the banking regulator to force banks to hold more loss-absorbing capital by 2023.
Read MoreSubdued Outlook For Westpac
Another difficult year looms for Westpac and, while mortgage re-pricing should boost first half performance, slower wealth revenues and further customer remediation are likely to weigh.
Read MoreWhat’s Next For The Big Four Banks?
The big four banks have survived a tough year financially unscathed, but with their reputations sullied what does 2019 look like?
Read MoreWestpac Shares Rise After Flat Result
Investors liked the flat annual result from Westpac yesterday and didn’t take too much notice of the mixed outlook (while many commentators and business media focused on it).
Read MoreWestpac Dividend Unchanged On Flat Result
Westpac has joined rivals ANZ and NAB in not inflicting direct financial pain on shareholders as a result of the impact from the banking and finance royal commission.
Read MoreCBA, Westpac Highlight Earnings Week
America’s third-quarter earnings season is nearing the end while in Australia, the September 30 results continue with Westpac revealing its full-year figures this morning, along with a first-quarter update from the Commonwealth Bank midweek.
Read MoreAnalysts Raise Royal Commission Damage Bill
Banking analysts at Morgan Stanley have lifted their estimate for customer remediation costs for the banks to $3 billion over the next two years, up from an earlier forecast of just $500 million.
Read MoreWBC – Morgan Stanley rates the stock as Equal-weight
Morgan Stanley observes conduct-related provisions are weighing on the earnings outlook and reinforcing the view that a reduction in profitability may be required in the next few years to win back support from major stakeholders.
Read MoreWestpac Flags Surprise Earnings Hit
Three days before the end of its 2017-18 financial year, Westpac has flagged a $235 million cut in full-year cash earnings.
Read MoreWestpac Takes On The Wealth Management Upstarts
What happens when pesky, disruptive upstarts take on the big incumbents in an industry? More often than not, they find themselves in a battle royale over market share. And that’s just what’s happening in the wealth management industry, where Westpac is fighting back against the likes of Netwealth, HUB24 and Praemium.
This battle provides a very interesting example of competitive forces at work and things to look out for when considering an investment in very fast-growing companies.
Read MoreWestpac Dividend Steady As H1 Profit Rises 6%
Like rivals NAB and ANZ, Westpac is leaving its interim dividend unchanged after a modest rise in earnings for the six months to March 31.
Read MoreUBS Westpac Downgrade Adds Pressure To Bank Stocks
Investors will be hoping bank stocks steady today after a solid session on Wall Street on Thursday has our market poised to rise when ASX trading resumes shortly.
Read MoreWBC – Morgan Stanley rates the stock as Overweight
Morgan Stanley believes the bank offers less uncertainty and execution risk versus its peers, as it has a settled strategy, good margin management and a consistency on costs.
Read MoreWestpac Profit Up 3% To $8.06 Billion
Westpac has joined its peers in leaving dividends unchanged for the year to September 30 after reporting a 3% rise in cash earnings for the year to $8.062 billion.
Read MoreWestpac Fights Lone Battle On Rate-Rigging Case
It seems Westpac is now on its own to fight the corporate regulator over claims it rigged the key Australian money market interest rate. The news didn’t startle the market and Westpac shares rose 0.6%, Nab shares were also ip 0.6%, as well as ANZ shares while Commonwealth Bank shares eased by 0.15%.
Read MoreWBC – Deutsche Bank rates the stock as Buy
The third quarter update was in line with expectations. The CET1 ratio of 10.0% indicates the bank is on track to reach the broker’s forecast of 10.4%.
Read MoreWBC – Morgans rates the stock as Add
The bank has reported that margins in the institutional term lending space remain under pressure as a result of intensive competition from offshore banks, particularly Asian banks.
Read MoreWBC – Morgans rates the stock as Equal-weight
Morgan Stanley believes a fundamental change in the mortgage market will weigh on the bank’s growth prospects and returns. Downside risks to the share price are rising but the broker retains a Equal-weight rating, given a 5.5% yield, more focus on costs and stable credit quality.
Read MoreWBC – UBS rates the stock as Downgrade to Neutral
Westpac’s result was slightly ahead of UBS but subdued. As has been the case with the other banks, trading income provided a boost when revenue growth was flat. Capital was strong at 9.97% but the broker questions whether it’s wise to offer a discounted DRP when "unquestionably strong" is yet to be defined.
Read MoreWestpac H1 Cash Profit Up 3%, Dividend Unchanged
Westpac (WBC) has joined rivals NAB and ANZ in reporting a modest rise in cash earnings for the six months to March 31, and left interim dividend on hold as the bank assesses the need for more capital over the next year.
Read MoreWestpac Lowers ROE Target
Westpac Banking Corporation’s (WBC) full year result boosted the wider market yesterday, helping add to the FBI boost for Hillary Clinton’s campaign in tonight’s US Presidential elections.
Read MoreWestpac Profit Flat, Maintains Payout
An unimpressive full year result from Westpac (WBC) as it suffered a blow out in dud loans in the year to September 30.
Read MoreWestpac Spooks Markets As Bad Debts Rise
Investors ignored the blow out in Tuesday’s ANZ’s impaired loans and tut tutted over the rise in the CBA’s figures on Wednesday, but then Westpac (WBC) reported yesterday a small rise in its bad debts and pointed to soft non-interest income (which the others had also experienced in some areas) and whooska, down went the bank sector and the wider market.
Read MoreWestpac Fails To Convince Investors
Investors were not fooled by Westpac’s improvement in yesterday’s half year report as it reported small rises in revenue, earnings and dividend.
Read MoreWestpac Lifts H1 Profit 3%
Westpac (WBC) has lifted interim dividend 1%, or one cent, to 94 cents after reporting a modest 3% rise in cash earnings for the half year to March 31.
Read MoreWestpac Shares Hit By ‘Rigged Rates’ Allegations
Westpac shares trailed the wider markets and its three peers – ANZ, NAB and Commonwealth – yesterday in the wake of the moves by ASIC to take the bank to court over claims it rigged a key money market interest rate from 2010 to 2012.
Read MoreWBC – Credit Suisse rates the stock as Outperform
Westpac’s FY15 results revealed the strongest underlying profit of the three majors reporting, Credit Suisse observes. The broker liked the improving cost-to-income ratio but not the softer composition of second half non-interest income.
Read MoreWestpac Sees ‘Lower-For-Longer’ Environment
Westpac (WBC) yesterday confirmed its 3% rise in full-year cash profit of $7.82 billion, first announced last month with the bank’s lift in mortgage rates and capital raising, but the news did nothing to end the slide in bank shares and therefore the wider market.
Read MoreWBC – Macquarie rates the stock as Outperform
All of the other three majors have now followed Commonwealth Bank ((CBA)) in repricing mortgage rates, in order to offset the cost of stricter risk weighting requirements. The broker has adjusted earnings forecasts as a result, by 1-3% across the three.
Read MoreWBC – Macquarie rates the stock as Outperform
Westpac’s $3.5bn rights issue implies a 13.6% discount to the last closing price (ex-div) and 4.3% dilution, the broker suggests. The bank has bitten the bullet, the broker suggests, in joining its peers. Westpac’s tier one capital ratio will rise to 9.3%.
Read MoreWestpac Lifts Profit, Rates, Raising
Westpac (WBC) will sting its home loan customers by raising home mortgage rates to help build up its capital base, rather than forcing shareholders to accept no increase, or a reduction in their dividends to achieve the same end.
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