Westpac: Is the bank boom over?

CEO Gail Kelly has set out a clear target for the bank’s return on equity, and it’s much lower than in the past. Greg Hoffman examines whether she’s playing it down, or speaking sense.

‘BANK BOOM OVER’ proclaimed the cover of BRW magazine on 19 June 2003, accompanied by a close-cropped image of a po-faced David Murray, then chief executive officer (CEO) of Commonwealth Bank. In the nine and a half years since, CBA's share price and dividends per share more than doubled.

If that’s what the end of a bank boom looks like, deal us in for the next one.

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