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General Information

Westpac Banking Corporation
WBC
http://www.westpac.com.au
Diversified Banks
101,375
3,120

Current Price Data+

Current Price Open High Low Last Close Volume Price Movement
$32.49 $32.33 $32.66 $32.01 $32.49 4188959 - ( No change )
  • +Security prices are delayed by least 20 minutes and are indicative only.

Current Broker Consensus Recommendation

Buy
03/07/2015
5

Company Overview

Business Description
Westpac Banking Corporation (WBC) is Australia's oldest banking and financial services group, with branches and operations throughout Australia, New Zealand and the near Pacific region as well as offices in key financial centres around the world including London, New York, Hong Kong and Singapore. Westpac has 3 key customer facing divisions comprising Australian Financial Services (Westpac RBB, St George Bank and BTFG), Westpac Institution Bank and Westpac New Zealand.
Strategy Analysis
Group strategy is anchored in the commitment to conservatively manage risk across all areas of business, following the near-death experience in the early 1990s. WBC’s customer-focused strategy aims to capture an increasing share of business from its Australian and New Zealand banking and wealth management customer base leveraging multi-brands. WBC established itself as an integrated financial services group in the early 2000s with the successful expansion into wealth management, acquiring Rothschild, BT Financial Services and Hastings. WBC diversified domestically by acquiring St George Bank in 2008, activating its regional banking strategy and providing access to a broader customer base and more exciting growth options. WBC’s strong operational discipline, quality assets and diversified funding base provide a good platform to leverage market share gains achieved in the midst of a global financial crisis. Credit market uncertainty stifled competition from smaller banks, foreign banks and non-bank lenders, allowing WBC to press its scale advantage over weaker competitors and capture market share. The acquisition of St George Bank increased scale and the re-launch of the Bank of Melbourne brand in July 2011 further strengthened the multi-brand approach. Westpac Banking Corporation reported NPAT down 15% to $5.97bn for the year ended 30 September 2012. Statutory net profit was lower over the year principally as a result of a large one-off tax benefit from St.George tax consolidation. Revenues from ordinary activities were $17.98bn, up 6% from last year. Diluted EPS was 190.5 cents compared to 223.6 cents last year. The net operating cash inflow was $18.48bn compared to an outflow of $12.01bn in the pcp. The final dividend declared was 84 cents, taking the full year dividend to 166 cents compared with 156 cents last year. Looking ahead, the Company expects continued modest credit growth and strong saving levels. The Company reported volatility in global markets is likely to continue and as a result of the structural changes that are now occurring, both overseas and domestically, the operating environment will remain challenging.

Financial Summary

Year to Sep NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2016 F 8,476.9 265.2 8.1% 12.3 196.0 6.0% 100.0%
2015 F 7,765.1 245.3 0.0% 13.2 188.0 5.8% 100.0%
2014 A 7,628.0 245.4 7.7% 13.6 182.0 5.4% 100.0%

Peer Comparison

Company Mkt Cap EPS Growth (%) P/E (%) Dividend Yield (%)
2014 A 2015 F 2016 F 2014 A 2015 F 2016 F 2014 A 2015 F 2016 F
ANZ Bank (ANZ) $89,784M 0.2133 0.0112 0.0372 12.3681 12.2311 11.7925 5.48% 5.69% 5.96%
Commonwealth Bank (CBA) $141,047M 0.1201 0.0533 0.0429 16.3528 15.5252 14.8859 4.63% 4.86% 5.03%
National Aust. Bank (NAB) $88,156M -0.1381 0.2814 -0.0186 16.0112 12.4954 12.7328 5.79% 5.87% 5.89%
Westpac (WBC) $102,217M 0.0976 -0.0083 0.0550 13.3014 13.4130 12.7139 5.56% 5.72% 5.96%

Financial Summary

Earnings P/E Ratio P/B Ratio P/E Growth
Company 0.80 13.30 2.08 5.81
Market 0.90 15.60 1.33 1.24
Sector 0.80 13.40 1.46 1.68

Directors

Name Position Start Date
Mr Brian Hartzer Chief Executive Officer, Non Executive Director 02/02/2015
Mr Lindsay Philip Maxsted Non-Executive Chairman 01/03/2008
Ms Elizabeth Bloomfield Bryan Non-Executive Director 06/11/2006
Mr Craig Dunn Non-Executive Director 01/06/2015
Ms Catriona Alison Deans Non-Executive Director 01/04/2014
Mr Robert George Elstone Non-Executive Director 01/02/2012
Mr Peter John Oswin Hawkins Non-Executive Director 01/12/2008
Mr Peter Ralph Marriott Non-Executive Director 01/06/2013
Mr Ewen Graham Wolseley Crouch Non-Executive Director 01/02/2013

Management

Name Position
Brad Cooper Chief Executive Officer, BT Financial Group
George Frazis Chief Executive Officer, St.George Banking Group
Peter Clare Chief Executive Officer, Westpac New Zealand Limited
Brian Hartzer Chief Executive, Australian Financial Services
Peter King Chief Financial Officer
David Curran Chief Information Officer
John Arthur Chief Operating Officer
Greg Targett Chief Risk Officer
Alexandra Holcomb Chief Risk Officer
John Lindsay Arthur Company Secretary
Timothy (Tim) Hartin Company Secretary
Philip Coffey Deputy Chief Executive Officer
Christine Parker Group Executive, Human Resources & Corporate Affairs
Rob Whitfield Group Executive, Westpac Institutional Bank
Jason Yetton Group Executive, Westpac Retail & Business Banking

Calendar of Events

Date Event
09 May 2016 Report (Interim)
05 May 2016 Report (Interim)
02 May 2016 Report (Interim)
24 March 2016 Report (Annual)
12 November 2015 Report (Annual)
11 November 2015 Report (Annual)
02 November 2015 Report (Prelim)
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