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Westpac Banking Corp WBC

Morningstar Rating
A$26.87 −0.20 (0.74%)
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Company Report

Westpac Earnings: Growing the Right Way Again

Westpac’s first-half fiscal 2024 cash profit of AUD 3.5 billion is largely as we expected, flat on second-half fiscal 2023 and down 8% on the previous corresponding period. Westpac is finally showing it can compete effectively across all key segments, increasing its home loans, business loans, and deposits, in line or faster than market, and without resorting to undercutting peers on price. Home and business lending approval times have reduced, and more consistent service is supported by the bank’s net promoter score in the mortgage broker channel.

Price vs Fair Value

WBC is trading at a 846% premium.
Price
A$27.07
Fair Value
A$83.00
Uncertainty
Medium
1-Star Price
A$18.80
5-Star Price
A$48.70
Economic Moat
Bqwq
Capital Allocation
Yfslylff

Bulls Say, Bears Say

Bulls

A higher cash rate environment gives customer deposit funding banks an opportunity to expand margins and drive higher return on equity.

Bears

Slow core earnings growth resurfaces because of low loan growth, margin compression, subdued wealth and markets income, lower banking fee income.

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News

Trading Information

Previous Close Price
A$27.07
Day Range
A$26.7126.91
52-Week Range
A$20.0328.05
Bid/Ask
A$26.80 / A$26.88
Market Cap
A$93.21 Bil
Volume/Avg
7.3 Mil / 6.8 Mil

Key Statistics

Price/Earnings (Normalized)
14.81
Price/Sales
4.93
Dividend Yield (Trailing)
5.47%
Dividend Yield (Forward)
5.58%
Total Yield
6.39%

Company Profile

Westpac is Australia's oldest bank and financial services group, with a significant franchise in Australia and New Zealand in the consumer, small business, corporate, and institutional sectors, in addition to its major presence in wealth management. Westpac is among a handful of banks around the globe currently retaining very high credit ratings. The bank benefits from a large national branch network and significant market share, particularly in home loans and retail deposits.
Sector
Financial Services
Industry
Banks - Diversified
Stock Style Box
Large Value
Total Number of Employees
35,348

Competitors

Valuation

Metric
WBC
CBA
ANZ
Price/Earnings (Normalized)
14.8121.4512.23
Price/Book Value
1.292.771.21
Price/Sales
4.937.944.55
Price/Cash Flow
13.4912.04
Price/Earnings
WBC
CBA
ANZ

Financial Strength

Metric
WBC
CBA
ANZ
Quick Ratio
Current Ratio
Interest Coverage
Quick Ratio
No chart available

Profitability

Metric
WBC
CBA
ANZ
Return on Assets (Normalized)
0.68%0.80%0.65%
Return on Equity (Normalized)
9.72%13.77%10.25%
Return on Invested Capital (Normalized)
Return on Assets
WBC
CBA
ANZ
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Banks - Diversified Industry Comparables

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Economic Moat
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C
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TD
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