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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‚Äôs 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‚Äôs 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.
The Age 12/12/2013 |
Westpac will next year allow customers to make payments at credit card terminals through their smartphones, the latest sign of banks competing through investments in technology. From early 2014, customers with certain Android handsets will be able to access funds from debit or credit card accounts by waving their phones at merchant terminals.
The Age 12/12/2013 |
Senior National Party figure Peter Walsh has repeated criticism that the government's rejection of the GrainCorp takeover was a decision made "on the hop", and one that it might regret.
The Age 12/12/2013 |
A total of 2900 jobs to go at Holden, multiples of that likely to go in Australian supplier companies. Tony Abbott called last May's announcement by Ford that it would stop making cars in Australia in 2016 at a cost of 1200 jobs "a black day for Australian manufacturing". Holden's decision to stop making vehicles in 2017 could turn the car-making industry's lights out for good.
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