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Westpac Banking Corp ADR WBK

Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Westpac’s Third-Quarter Update Prepares the Market for Margin Pressure, but the Fix Is Underway

Nathan Zaia Equity Analyst

Analyst Note

| Nathan Zaia |

It may not sound like much of an achievement, but Westpac maintaining its market share of home and business loans in the third quarter supports our thesis. As the nation’s second largest lender, we expect funding and operating cost advantages, which underpin our wide moat rating, arms the bank with the resources necessary to profitably grow its loan book over the medium term. Investments to make loan approval times faster, have a leading mobile offering, and even pulling the lever on price, will all contribute. Sharp pricing is being used to get brokers back on side now, and while it hurts margins, we are encouraged volumes in the retail and broker channels have both turned a corner.

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Company Profile

Business Description

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.

Contact
275 Kent Street
Sydney, NSW, 2000, Australia
T +61 291557713
Sector Financial Services
Industry Banks - Diversified
Most Recent Earnings Sep 30, 2008
Fiscal Year End Sep 30, 2021
Stock Type
Employees 38,747

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