Westpac Banking Corporation provides various banking and financial services in Australia, New Zealand, Asia, the Pacific region, and internationally.
Flawless balance sheet and slightly overvalued.
Share Price & News
How has Westpac Banking's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: WBC's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: WBC underperformed the Australian Banks industry which returned -29.5% over the past year.
Return vs Market: WBC underperformed the Australian Market which returned -8.3% over the past year.
Price Volatility Vs. Market
How volatile is Westpac Banking's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall StHow Many Westpac Banking Corporation (ASX:WBC) Shares Did Insiders Buy, In The Last Year?
1 month ago | Simply Wall StIs It Time To Consider Buying Westpac Banking Corporation (ASX:WBC)?
2 months ago | Simply Wall StWhat Is Westpac Banking's (ASX:WBC) P/E Ratio After Its Share Price Tanked?
Is Westpac Banking undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: WBC (A$17.95) is trading above our estimate of fair value (A$10.4)
Significantly Below Fair Value: WBC is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: WBC is poor value based on its PE Ratio (13.2x) compared to the Banks industry average (9.8x).
PE vs Market: WBC is good value based on its PE Ratio (13.2x) compared to the Australian market (15.5x).
Price to Earnings Growth Ratio
PEG Ratio: WBC is good value based on its PEG Ratio (0.7x)
Price to Book Ratio
PB vs Industry: WBC is overvalued based on its PB Ratio (1x) compared to the AU Banks industry average (0.9x).
How is Westpac Banking forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: WBC's forecast earnings growth (18% per year) is above the savings rate (2.3%).
Earnings vs Market: WBC's earnings (18% per year) are forecast to grow faster than the Australian market (14.3% per year).
High Growth Earnings: WBC's earnings are forecast to grow, but not significantly.
Revenue vs Market: WBC's revenue (1.4% per year) is forecast to grow slower than the Australian market (4.2% per year).
High Growth Revenue: WBC's revenue (1.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: WBC's Return on Equity is forecast to be low in 3 years time (9.7%).
How has Westpac Banking performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: WBC has high quality earnings.
Growing Profit Margin: WBC's current net profit margins (25.8%) are lower than last year (34.9%).
Past Earnings Growth Analysis
Earnings Trend: WBC's earnings have declined by -4.4% per year over the past 5 years.
Accelerating Growth: WBC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: WBC had negative earnings growth (-32.1%) over the past year, making it difficult to compare to the Banks industry average (-13.6%).
Return on Equity
High ROE: WBC's Return on Equity (7.1%) is considered low.
How is Westpac Banking's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Financial Institutions Analysis
Asset Level: WBC's Assets to Equity ratio (14.3x) is moderate.
Allowance for Bad Loans: WBC has a sufficient allowance for bad loans (305%).
Low Risk Liabilities: 65% of WBC's liabilities are made up of primarily low risk sources of funding.
Loan Level: WBC has an appropriate level of Loans to Assets ratio (74%).
Low Risk Deposits: WBC's Loans to Deposits ratio (123%) is appropriate.
Level of Bad Loans: WBC has an appropriate level of bad loans (0.2%).
What is Westpac Banking's current dividend yield, its reliability and sustainability?
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate WBC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate WBC's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if WBC's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if WBC's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: WBC is not paying a notable dividend for the Australian market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of WBC's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Peter King (49yo)
Mr. Peter Francis King, BEc, FCA, has been the Chief Executive Officer of Westpac Banking Corporation since April 02, 2020 and served as its Acting Chief Executive Officer since December 2, 2019 until Apri ...
CEO Compensation Analysis
Compensation vs Market: Peter's total compensation ($USD1.82M) is below average for companies of similar size in the Australian market ($USD3.80M).
Compensation vs Earnings: Peter's compensation has been consistent with company performance over the past year.
|CEO, MD of Westpac Group & Director||0.50yr||AU$2.64m||0.0033% A$2.0m|
|Acting Chief Financial Officer||0.50yr||AU$1.98m||0.0030% A$1.9m|
|Group General Counsel||0.42yr||AU$1.95m||0.0013% A$775.3k|
|Group Executive of Human Resources||8.67yrs||AU$2.03m||0.00082% A$508.6k|
|Group Executive of Customer & Corporate Relations||no data||AU$1.60m||0.0016% A$1.0m|
|Chief Executive of Westpac Institutional Bank||4.75yrs||AU$2.52m||0.0031% A$1.9m|
|Chief Risk Officer||1.67yrs||AU$5.36m||0.0038% A$2.3m|
|Chief Executive Officer of Westpac New Zealand Limited||5.33yrs||AU$2.29m||0.00027% A$167.5k|
|Head of Investor Relations||no data||no data||no data|
|Group Executive of Financial Crime||0.083yr||no data||no data|
Experienced Management: WBC's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.
|CEO, MD of Westpac Group & Director||0.50yr||AU$2.64m||0.0033% A$2.0m|
|Independent Chairman of the Board||0.17yr||no data||0.00028% A$173.7k|
|Independent Non-Executive Director||7yrs||AU$323.06k||0.0012% A$725.6k|
|Independent Non-Executive Director||5yrs||AU$296.46k||0.00042% A$260.5k|
|Independent Non-Executive Director||6.17yrs||AU$296.86k||0.00043% A$266.7k|
|Independent Non-Executive Director||2.75yrs||AU$252.66k||0.00038% A$235.7k|
|Chairman of Westpac Foundation||7.42yrs||no data||no data|
|Independent Non-Executive Director||1.25yrs||AU$135.64k||0.00032% A$198.5k|
|Independent Non-Executive Director||2.25yrs||AU$264.66k||0.00042% A$260.5k|
|Independent Non-Executive Director||1.25yrs||AU$135.64k||0.00064% A$396.9k|
Experienced Board: WBC's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: WBC insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.8%.
Westpac Banking Corporation's company bio, employee growth, exchange listings and data sources
- Name: Westpac Banking Corporation
- Ticker: WBC
- Exchange: ASX
- Founded: 1817
- Industry: Diversified Banks
- Sector: Banks
- Market Cap: AU$62.020b
- Shares outstanding: 3.61b
- Website: https://www.westpac.com.au
Number of Employees
- Westpac Banking Corporation
- 275 Kent Street
- New South Wales
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|WBK||NYSE (New York Stock Exchange)||ADR(EACH REP 1 ORD NPV)||US||USD||Mar 1989|
|WBCC||DB (Deutsche Boerse AG)||ADR(EACH REP 1 ORD NPV)||DE||EUR||Mar 1989|
|0LVV||LSE (London Stock Exchange)||ADR(EACH REP 1 ORD NPV)||GB||USD||Mar 1989|
|WEBN.F||OTCPK (Pink Sheets LLC)||Yes||Ordinary Shares||US||USD||Jan 1992|
|WBC||DB (Deutsche Boerse AG)||Yes||Ordinary Shares||DE||EUR||Jan 1992|
|WBC||ASX (Australian Securities Exchange)||Yes||Ordinary Shares||AU||AUD||Jan 1992|
|WBC||NZSE (New Zealand Stock Exchange)||Yes||Ordinary Shares||NZ||NZD||Jan 1992|
|WBC||CHIA (Chi-X Australia)||Yes||Ordinary Shares||AU||AUD||Jan 1992|
|WBCPE||ASX (Australian Securities Exchange)||FRN CNV PERP AUD1000||AU||AUD||May 2014|
|WBCPH||ASX (Australian Securities Exchange)||FRN CNV SUB PERP AUD1000||AU||AUD||Mar 2018|
|WBCPI||ASX (Australian Securities Exchange)||FRN SUB MTN PERP AUD1000 '6'||AU||AUD||Dec 2018|
Westpac Banking Corporation provides various banking and financial services in Australia, New Zealand, Asia, the Pacific region, and internationally. The company operates through four divisions: Consumer, Business, Westpac Institutional Bank, and Westpac New Zealand. It offers everyday banking, savings, term deposit, moving to Australia, under 21 and student, business one, community solutions one, and foreign currency accounts; home, personal, and business loans; credit cards; international and travel services; and share trading services, and investment and insurance services. The company also provides merchant, corporate and institutional, transaction banking, financial market, corporate and structured finance, trade and supply chain financing, and industry specific banking and treasury services, as well as online banking services. It serves individuals; micro, small, and medium enterprises; and commercial, corporate, institutional, and government customers. The company was formerly known as Bank of New South Wales and changed its name to Westpac Banking Corporation in October 1982. The company was founded in 1817 and is headquartered in Sydney, Australia.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/06/03 10:35|
|End of Day Share Price||2020/06/03 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.