|Bid||9.33 x 800|
|Ask||9.34 x 1400|
|Day's range||9.17 - 9.53|
|52-week range||7.98 - 20.56|
|Beta (5Y monthly)||0.55|
|PE ratio (TTM)||5.50|
|Forward dividend & yield||1.10 (11.21%)|
|Ex-dividend date||07 Nov 2019|
|1y target est||N/A|
To the annoyance of some shareholders, Westpac Banking (ASX:WBC) shares are down a considerable 30% in the last month...
Westpac Banking (ASX:WBC) is a large cap thatprovides a range of banking and financial services across consumer, business and institutional banking and wealth8230;
(Bloomberg) -- New Zealand’s central bank will offer term loans to banks in an attempt to ease tensions in credit markets, a tool it last employed during the global financial crisis.From today, the Reserve Bank will offer to lend funds to the banking system for terms of up to 12 months through the Term Auction Facility, or TAF, it said in a statement on its website Friday. It also announced other measures to support the functioning of the market, including increased provision of liquidity with foreign exchange swaps to ensure rates are near the official cash rate.“The Reserve Bank continues to monitor developments, and remains ready to act further to ensure markets and the financial system operate in a stable and efficient manner,” Assistant Governor Christian Hawkesby said in a statement. “The Reserve Bank has a number of tools to provide additional liquidity and the ability to increase the size of operations where needed. We are committed to using these to support smooth market functioning.”New Zealand bond yields and swap rates have surged this week as the coronavirus pandemic roils global markets, undermining transmission of the RBNZ’s monetary policy. On Monday, the central bank slashed its benchmark rate to 0.25% in an emergency move and said if more stimulus is required it will turn to large-scale asset purchases, or quantitative easing.Bond yields fell across the curve after the RBNZ’s announcement, while swap rates were little changed.Today’s moves will help to reduce rates, particularly short-term ones, but they may not settle jitters around long-term rates, said Dominick Stephens, chief New Zealand economist at Westpac Banking Corp. in Auckland.“We suspect the RBNZ is going to have to begin a Quantitative Easing program very soon, similar to the Reserve Bank of Australia’s move yesterday,” he said. “This would involve buying large quantities of government bonds, which would reduce long-term government bond rates.”The RBNZ conducted its first TAF auction this morning, offering NZ$2 billion ($1.1 billion) of three and six-month loans to banks. It received bids for only NZ$200 million.Among the measures announced Friday was the removal of credit tiers on the cash balances banks hold at the RBNZ, known as ESAS accounts.“That says to me they are going to flood the market with liquidity,” said Nick Smyth, rate strategist at Bank of New Zealand in Wellington. “They are obviously stepping up to the plate on the liquidity side, but I don’t think this is going to solve the issue at the longer end of the bond market, they’ve going to have to come back to that one.”(Updates with economist, strategist comments from seventh paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Unfortunately for some shareholders, the Westpac Banking (ASX:WBC) share price has dived 38% in the last thirty days...
(Bloomberg) -- The S&P/ASX 200 index erased an early loss and surged out of bear market territory amid hopes for government measures that will offset the economic impact of the spreading coronavirus.Australia’s benchmark index rose 3.1% to close at 5,939.6, its largest gain since Nov. 2016, after having earlier declined as much as 3.9%. The market flirted with a bear run, briefly falling more than 20% from its Feb. 20 record amid growing concerns over the virus and a sharp plunge in oil prices.The S&P/ASX 200 index followed U.S. stock futures higher after President Donald Trump promised “very substantial relief” for the economy as the coronavirus spreads. Contracts on the S&P 500 E-mini futures erased earlier losses as Trump said he’s considering payroll-tax cuts.Australia’s government is also finalizing a fiscal package aimed at keeping companies in business and protecting jobs, as the outbreak hits an economy already reeling from a prolonged drought and a brutal summer of wildfires.“Australia is on the front foot with an imminent announcement of sensible pre-budget stimulus,” said AMP Capital Investors Ltd. portfolio manager Dermot Ryan. “It’s always better to move early and keep economic momentum.”Expect erratic swings in the market amid heightened volatility and lower liquidity, said Eleanor Creagh, a strategist at Saxo Capital Markets.“Bear markets witness some of the fiercest upside rallies,” she said. “To have real confidence in buying into any relief rally, volatility needs to reset meaningfully lower -- that sentiment is flowing through to the Aussie market.”A price war for oil sent energy stocks tumbling on Monday, pushing the S&P/ASX 200 to its biggest one-day retreat since 2008. Energy shares were among the biggest gainers Tuesday, helping to offset sharp declines on Monday. Viva Energy Group Ltd. was the top performer on the benchmark with a 14% jump, while Cooper Energy Ltd. closed 12% higher.The nation’s big-four banks also soared on Tuesday. Westpac Banking Corp., National Australia Bank Ltd., Australia & New Zealand Banking Group Ltd. and Commonwealth Bank of Australia all posted their biggest advances since Prime Minister Scott Morrison’s shock election win last year.(Updates with charts, market close)To contact the reporter on this story: Jackie Edwards in Sydney at firstname.lastname@example.orgTo contact the editors responsible for this story: Lianting Tu at email@example.com, Tim Smith, Kurt SchusslerFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Australia’s economy will record its first recession since 1991 as the hit from China’s virus-induced slowdown is amplified by slumping confidence and domestic disruptions from the outbreak intensifying Down Under, according to Bloomberg Economics’s James McIntyre.Gross domestic product will fall 0.4 percentage point in the first three months of the year and 0.3 percentage point in the second quarter, ending a 28-1/2-year stretch of economic growth, he said in a report Monday.“Isolations and domestic disruptions to contain the spread of the virus will have a mounting economic impact, which is likely to result in a further GDP contraction in 2Q and potentially beyond,” McIntyre said. “Stimulus, both fiscal and monetary, will help to reduce the damage, but is unlikely to be enough to offset the impacts.”GDP will expand by just 0.4% in 2020, he forecasts, some 1.5 percentage points below his pre-coronavirus estimate.The Reserve Bank cut interest rates last week and money markets are pricing in a further reduction in April, which would bring it to the estimated lower bound of 0.25% and open the door to unconventional policy. The government is finalizing a fiscal “boost” that could amount to A$10 billion ($6.6 billion) to support firms struggling with cash flow and help them keep on employees.McIntyre predicts large budget deficits ahead as the automatic stabilizers -- increased welfare payments and reduced tax collection -- begin to take hold. That’s on top of the fiscal stimulus needed to boost demand and confidence.Alan Oster, chief economist at National Australia Bank Ltd., expects the RBA will deploy unconventional policy as early as May, after reducing the cash rate to its estimated lower bound of 0.25% in April.He sees the preferred option as yield-curve control -- setting a target level for government bond yields at a specific duration -- with the aim of flattening the yield curve and lowering the cost of debt funding.Panic SellingAn all-out price war between the world’s biggest oil producers is adding to the prospect of a recession as the coronavirus wreaks havoc across the world. Panic reigned in currency markets Monday as orders from traders and algorithmic machines snowballed.That saw the Australian dollar plunge almost 5% in less than 20 minutes, the biggest one-day decline since 2008. Australia’s benchmark S&P/ASX 200 stock index slumped 7.3%.The Treasury and RBA estimate the impact on tourism and education from China’s shutdown and other virus fallout will cut 0.5 percentage point from GDP in the first quarter. That doesn’t include supply chain disruptions and is in addition to a 0.2 point cut from wildfires over summer.Bill Evans, chief economist at Westpac Banking Corp., revised his economic growth forecasts Monday and predicts contractions in the first and second quarters of 0.3% respectively, before a sharp rebound in the second half. McIntyre said the comparison with the 2003 SARS epidemic is problematic because of the massive increase of China’s importance to both the Australian and global economies. He notes that in the Australian Dollar Trade-Weighted Index of the exchange rate, the weighting of the renminbi rose to 30%, higher than any other currency in the 36-year history of the gauge.The channels through which the reduction in domestic activity transmits during a pandemic were laid out in a 2006 Treasury paper whose author is Steven Kennedy, the current secretary to the Australian Treasury. That analysis saw the economy contracting 5% in the first year.Transmission of the virus in Australia is now occurring, meaning disruptions and shutdowns of aged-care facilities, child-care centers and schools. Health authorities anticipate several months of disruptions from the virus.The economy will bounce back, McIntyre said, noting that fourth-quarter GDP released last week showed several segments turning around, including housing and mining investment. China is also set to stimulate its economy, which traditionally benefits Australia.Property prices Down Under have surged since late last year when the RBA resumed easing.“How Australia’s housing market weathers the virus outbreak will be a key area of interest given the earlier downturn in construction activity,” he said. “Australia’s resources sector also stands well placed to benefit from a resumption of activity in China’s construction sector and stimulus measures.”(Updates with Westpac’s Evans revising growth forecast in 12th paragraph.)To contact the reporter on this story: Michael Heath in Sydney at firstname.lastname@example.orgTo contact the editors responsible for this story: Paul Jackson at email@example.com, Alexandra Veroude, Victoria BatchelorFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Today, we'll introduce the concept of the P/E ratio for those who are learning about investing. We'll show how you can...
Westpac was sued by Australia's financial crime watchdog AUSTRAC in November for 23 million alleged breaches of anti-money laundering laws, including payments between known child exploiters. The latest suit, filed by investor rights law firm Bernstein Liebhard in a U.S. court, comes just days after six U.S.-based law firms announced similar class-action lawsuits against the lender.
The lender said the lawsuit represented purchasers of Westpac's shares on the New York Stock Exchange between Nov. 11, 2015 to Nov. 19 and sought to recover damages related to disclosure issues with its financial crime monitoring and a recent money laundering scandal.
Commonwealth Bank of Australia grew its home lending business in the second half of last year, the only one to do so of the four major banks, data showed on Friday, as offshore lenders lured customers with quick approvals and cheap money. The loss of market share for the Big Four points to a challenging revenue growth environment at a time when their dependency on home loans has increased after selling scandal-hit businesses such as insurance and financial advice. A string of scandals in the last two years has seen regulators pressuring the major banks to tighten their conduct and lending processes, thereby slowing down credit approvals.
SYDNEY/HONG KONG (Reuters) - Australia's Westpac Banking Corp named a former Barclays boss as chairman on Thursday, entrusting veteran banker John McFarlane with the task of steering it through the country's biggest money-laundering scandal. The bank, Australia's second largest by market capitalisation, said the 72-year-old would become a non executive director in February before taking the chairman's role in April. McFarlane stepped down as chairman of Barclays in May after four years.
Maxsted, who served as Westpac's chairman for eight years, said in November he would retire in the first half of 2020 after the bank was embroiled in a money laundering scandal involving child exploitation. Financial crime watchdog AUSTRAC filed a lawsuit against Westpac in November, accusing the country's No. 2 lender of enabling 23 million payments in breach of money laundering laws.
For many investors, the main point of stock picking is to generate higher returns than the overall market. But if you...
The lender named Ziggy Switkowski and Kerry Schott as panel members while a third panelist would be announced at a later date, it said in a statement. Switkowski has held senior management positions in various companies including Suncorp Group Ltd and Telstra Corp Ltd, whereas Schott has served as the managing director of Deutsche Bank AG and executive vice president of Bankers Trust Australia.
Why are major Australian banks in trouble? Australian banks are still feeling the fallout from a year long government-led inquiry into the sector, which wrapped up in February. The nation's four largest banks - Commonwealth Bank of Australia, Westpac Banking Corp, Australia and New Zealand Banking Group and National Australia Bank - have set aside over A$8 billion ($5.4 billion) to refund customers for overcharged fees, miss-sold products and non-compliant financial advice stemming from the probe.
Australia's banking regulator will use its increased investigative powers for the first time to examine whether Westpac Banking Corp directors and executives broke the law as part of the bank's money laundering scandal. Westpac will be required to hold an extra A$500 million ($339 million) in capital after the Australian Prudential Regulatory Authority (APRA) announced an investigation into the bank's alleged money laundering breaches. Westpac shares were down 1.2% in early afternoon trade on Tuesday, while the broader ASX200 was 0.1% higher.