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.
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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 MoreASIC 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.
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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.
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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.
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The big four banks have survived a tough year financially unscathed, but with their reputations sullied what does 2019 look like?
Read MoreInvestors 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 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 MoreAmerica’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.
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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 MoreMorgan 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 MoreThree days before the end of its 2017-18 financial year, Westpac has flagged a $235 million cut in full-year cash earnings.
Read MoreThis 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 MoreLike 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 MoreInvestors 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 MoreMorgan 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 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 MoreIt 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 MoreThe 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 MoreThe 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 MoreMorgan 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 MoreWestpac’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 (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 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 MoreAn unimpressive full year result from Westpac (WBC) as it suffered a blow out in dud loans in the year to September 30.
Read MoreInvestors 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 MoreInvestors 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 (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 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 MoreWestpac’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 (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 MoreAll 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 MoreWestpac’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 (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.
Read MoreWestpac (WBC) seems to be softening up investors ahead of reporting its 2014-15 profit on November 2.
Read MoreLet’s just say the broker’s bank analysts walked away from yesterday’ strategy briefing shaking their heads in disbelief at the audacity of what Westpac believes it can achieve. There’s no point in rattling off the long list of "You’re kidding aren’t you" assessments of each of the bank’s goals.
Read MoreWestpac’s (WBC) new strategy under CEO Brian Hartzer left investors underwhelmed yesterday with the bank’s shares slipping 0.4% to $29.80.
Read MoreWestpac (WBC) has added its bit to the current round of updates and profit reports, and in doing so has sort of calmed investor concerns about bad debts.
Read MoreWestpac (WBC) shares were left all but unmoved by the release yesterday of the long mooted reorganisation of the bank by the new CEO, Brian Hartzer who took the top job in February, replacing Gail Kelly.
Read MoreWestpac (WBC) has reported a flat profit in the six months to the end of March, but lifted interim payout to keep shareholders happy.
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