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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.
By Michael McCarthy (chief market strategist, CMC Markets) 19/12/2014 |
Traders and investors caught short heading into the FOMC scrambled for cover in Europe and the US, in many cases driving indices to their best one day performance for 2015.
By Betty Lam (Sales Trader, CMC Markets) 18/12/2014 |
Lead by the Fed-fervour offshore, Australians shares jumped on the Yellen cheer wagon. The material and energy stocks were back in vogue as both sectors gained over 3% in morning trade.
By Michael McCarthy (chief market strategist, CMC Markets) 18/12/2014 |
In spite of a frenzied pre-mortem, a benign statement from the US Federal Reserve‚Äôs Open Market Committee and steadying commodity markets drove investors back into share markets overnight. A calmer, stronger ruble helped offset European growth fears, highlighted in the overnight session by further declines in inflation.
By Betty Lam (Sales Trader, CMC Markets) 11/12/2014 |
Offshore jitters sent ripples through to Australian stocks. The open saw the local equities take 65 points off the index, catalysed by a mass-exit in energy stocks, yet again.
By Ric Spooner (Chief Market Analyst, CMC Markets) 10/12/2014 |
Yesterday‚Äôs news on Greek politics and China‚Äôs bond market came at a time when US and European stock markets have extended rallies and pushed valuations higher. This makes those markets vulnerable to downward corrections as profit takers act to avoid missing out.
BR Securities Australia Pty Ltd 2/12/2014 |
December 2014 could go down as a nasty moment in Australian finance. MYEFO will reveal a deteriorating budget deficit and the UNFCCC meeting in Lima, Peru will provide the agreement, to be ratified in Paris in 2015, on how much (or little) CO2 is to be allowed into the atmosphere from 2020.
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