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Westpac Banking

ASX:WBC
Snowflake Description

Excellent balance sheet average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
WBC
ASX
A$96B
Market Cap
  1. Home
  2. AU
  3. Banks
Company description

Westpac Banking Corporation provides various banking and financial services in Australia, New Zealand, Asia, the Pacific region, and internationally. The last earnings update was 71 days ago. More info.


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WBC Share Price and Events
7 Day Returns
-0.7%
ASX:WBC
-1.1%
AU Banks
-0.6%
AU Market
1 Year Returns
-5.6%
ASX:WBC
-0.4%
AU Banks
5.1%
AU Market
WBC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Westpac Banking (WBC) -0.7% -0.3% 5.3% -5.6% -8.2% -18%
AU Banks -1.1% 0.5% 9.2% -0.4% 3.4% -12.7%
AU Market -0.6% 2.3% 6.8% 5.1% 21.2% 13.1%
1 Year Return vs Industry and Market
  • WBC underperformed the Banks industry which returned -0.4% over the past year.
  • WBC underperformed the Market in Australia which returned 5.1% over the past year.
Price Volatility
WBC
Industry
5yr Volatility vs Market

WBC Value

 Is Westpac Banking undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Westpac Banking to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Westpac Banking.

ASX:WBC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 10 analysts.
= Stable Book Value * Return on Equity
= A$19.39 * 11.8%
A$2.29
Book Value of Equity per Share Weighted future Book Value estimates from 7 analysts. A$19.39
Discount Rate (Cost of Equity) See below 10.6%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:WBC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.6
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.597 (1 + (1- 30%) (237.4%))
1.394
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.39
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (1.394 * 5.96%)
10.62%

Discounted Cash Flow Calculation for ASX:WBC using Excess Returns Model Model

The calculations below outline how an intrinsic value for Westpac Banking is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

ASX:WBC Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (11.8% – 10.62%) * A$19.39)
A$0.23
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= A$0.23 / (10.62% - 2.31%)
A$2.76
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= A$19.39 + A$2.76
A$22.15
ASX:WBC Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$22.15
Current discount Discount to share price of A$27.81
= -1 x (A$27.81 - A$22.15) / A$22.15
-25.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Westpac Banking is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Westpac Banking's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Westpac Banking's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:WBC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in AUD A$2.06
ASX:WBC Share Price ** ASX (2019-07-15) in AUD A$27.81
Australia Banks Industry PE Ratio Median Figure of 7 Publicly-Listed Banks Companies 13.6x
Australia Market PE Ratio Median Figure of 546 Publicly-Listed Companies 16.29x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Westpac Banking.

ASX:WBC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:WBC Share Price ÷ EPS (both in AUD)

= 27.81 ÷ 2.06

13.49x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Westpac Banking is good value based on earnings compared to the AU Banks industry average.
  • Westpac Banking is good value based on earnings compared to the Australia market.
Price based on expected Growth
Does Westpac Banking's expected growth come at a high price?
Raw Data
ASX:WBC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 13.49x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts
8.1%per year
Australia Banks Industry PEG Ratio Median Figure of 7 Publicly-Listed Banks Companies 3.9x
Australia Market PEG Ratio Median Figure of 361 Publicly-Listed Companies 1.37x

*Line of best fit is calculated by linear regression .

ASX:WBC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 13.49x ÷ 8.1%

1.66x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Westpac Banking is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Westpac Banking's assets?
Raw Data
ASX:WBC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in AUD A$18.57
ASX:WBC Share Price * ASX (2019-07-15) in AUD A$27.81
Australia Banks Industry PB Ratio Median Figure of 7 Publicly-Listed Banks Companies 1.3x
Australia Market PB Ratio Median Figure of 1,693 Publicly-Listed Companies 1.68x
ASX:WBC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:WBC Share Price ÷ Book Value per Share (both in AUD)

= 27.81 ÷ 18.57

1.5x

* Primary Listing of Westpac Banking.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Westpac Banking is overvalued based on assets compared to the AU Banks industry average.
X
Value checks
We assess Westpac Banking's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. Westpac Banking has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

WBC Future Performance

 How is Westpac Banking expected to perform in the next 1 to 3 years based on estimates from 13 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
8.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Westpac Banking expected to grow at an attractive rate?
  • Westpac Banking's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Westpac Banking's earnings growth is expected to exceed the Australia market average.
  • Westpac Banking's revenue growth is expected to exceed the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:WBC Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:WBC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts 8.1%
ASX:WBC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 13 Analysts 3.7%
Australia Banks Industry Earnings Growth Rate Market Cap Weighted Average 5.8%
Australia Banks Industry Revenue Growth Rate Market Cap Weighted Average 2.2%
Australia Market Earnings Growth Rate Market Cap Weighted Average 7.3%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:WBC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:WBC Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-09-30 23,915 1
2021-09-30 22,514 8,574 11
2020-09-30 22,099 8,298 12
2019-09-30 21,017 7,317 12
ASX:WBC Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2019-03-31 20,379 -1,490 7,065
2018-12-31 20,901 -2,808 7,578
2018-09-30 21,423 -4,126 8,090
2018-06-30 21,358 -8,285 8,182
2018-03-31 21,363 -12,401 8,274
2017-12-31 21,156 -16,322 8,129
2017-09-30 20,949 -20,242 7,984
2017-06-30 20,640 -24,013 7,816
2017-03-31 20,331 -27,783 7,647
2016-12-31 20,096 -30,529 7,544
2016-09-30 19,861 -33,274 7,440
2016-06-30 20,450 -24,709 7,769

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Westpac Banking's earnings are expected to grow by 8.1% yearly, however this is not considered high growth (20% yearly).
  • Westpac Banking's revenue is expected to grow by 3.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:WBC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below

All data from Westpac Banking Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:WBC Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-09-30
2021-09-30 2.41 2.74 2.26 6.00
2020-09-30 2.34 2.58 2.24 7.00
2019-09-30 2.02 2.10 1.95 4.00
ASX:WBC Past Financials Data
Date (Data in AUD Millions) EPS *
2019-03-31 2.06
2018-12-31 2.22
2018-09-30 2.38
2018-06-30 2.41
2018-03-31 2.45
2017-12-31 2.41
2017-09-30 2.38
2017-06-30 2.34
2017-03-31 2.29
2016-12-31 2.27
2016-09-30 2.25
2016-06-30 2.38

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Westpac Banking is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Westpac Banking's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Westpac Banking has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

WBC Past Performance

  How has Westpac Banking performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Westpac Banking's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Westpac Banking's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • Westpac Banking's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Westpac Banking's 1-year earnings growth is negative, it can't be compared to the AU Banks industry average.
Earnings and Revenue History
Westpac Banking's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Westpac Banking Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:WBC Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 20,379.00 7,065.00 8,768.00
2018-12-31 20,901.00 7,577.50 8,621.50
2018-09-30 21,423.00 8,090.00 8,475.00
2018-06-30 21,358.00 8,182.00 8,429.50
2018-03-31 21,363.00 8,274.00 8,384.00
2017-12-31 21,156.00 8,129.00 8,295.00
2017-09-30 20,949.00 7,984.00 8,206.00
2017-06-30 20,640.00 7,815.50 8,134.50
2017-03-31 20,331.00 7,647.00 8,063.00
2016-12-31 20,096.00 7,543.50 8,038.00
2016-09-30 19,861.00 7,440.00 8,013.00
2016-06-30 20,450.00 7,769.00 7,960.00
2016-03-31 21,039.00 8,098.00 7,907.00
2015-12-31 20,964.00 8,052.00 7,848.50
2015-09-30 20,889.00 8,006.00 7,790.00
2015-06-30 20,191.50 7,773.00 7,714.00
2015-03-31 19,494.00 7,540.00 7,638.00
2014-12-31 19,390.50 7,545.50 7,538.50
2014-09-30 19,287.00 7,551.00 7,439.00
2014-06-30 18,876.00 7,313.00 7,661.50
2014-03-31 18,465.00 7,075.00 7,840.00
2013-12-31 18,106.50 6,907.00 7,423.50
2013-09-30 17,748.00 6,739.00 7,029.00
2013-06-30 17,513.50 6,474.50 7,043.00
2013-03-31 17,279.00 6,278.00 6,565.00
2012-12-31 17,025.00 6,118.50 6,547.50
2012-09-30 16,771.00 5,925.00 6,787.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Westpac Banking has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Westpac Banking used its assets more efficiently than the AU Banks industry average last year based on Return on Assets.
  • Unable to establish if Westpac Banking improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Westpac Banking's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Westpac Banking has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

WBC Health

 How is Westpac Banking's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of Westpac Banking's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Westpac Banking Company Filings, last reported 3 months ago.

ASX:WBC Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 63,935.00 228,879.00 70,558.00
2018-12-31 63,935.00 228,879.00 70,558.00
2018-09-30 64,573.00 232,525.00 69,690.00
2018-06-30 64,573.00 232,525.00 69,690.00
2018-03-31 62,665.00 235,610.00 69,111.00
2017-12-31 62,665.00 235,610.00 69,111.00
2017-09-30 61,342.00 233,733.00 65,177.00
2017-06-30 61,342.00 233,733.00 65,177.00
2017-03-31 59,372.00 234,259.00 71,508.00
2016-12-31 59,372.00 234,259.00 71,508.00
2016-09-30 58,181.00 238,850.00 61,613.00
2016-06-30 58,181.00 238,850.00 61,613.00
2016-03-31 57,981.00 250,517.00 86,320.00
2015-12-31 57,981.00 250,517.00 86,320.00
2015-09-30 53,915.00 247,910.00 81,607.00
2015-06-30 53,915.00 247,910.00 81,607.00
2015-03-31 50,317.00 245,987.00 98,769.00
2014-12-31 50,317.00 245,987.00 98,769.00
2014-09-30 49,337.00 218,144.00 104,142.00
2014-06-30 49,337.00 218,144.00 104,142.00
2014-03-31 48,031.00 206,959.00 86,002.00
2013-12-31 48,031.00 206,959.00 86,002.00
2013-09-30 47,537.00 192,251.00 84,548.00
2013-06-30 47,537.00 192,251.00 84,548.00
2013-03-31 47,194.00 197,202.00 82,269.00
2012-12-31 47,194.00 197,202.00 82,269.00
2012-09-30 46,219.00 202,022.00 91,230.00
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • Westpac Banking has an acceptable proportion of non-loan assets held.
  • Westpac Banking's liabilities are made up of primarily low risk sources of funding.
  • Westpac Banking has advanced significantly more loans than the customer deposits it holds (i.e. bank has borrowed additional funds to lend).
  • Westpac Banking's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).
  • Westpac Banking has a sufficient allowance for bad loans.
  • Westpac Banking has an acceptable level of bad loans (less than 2%).
X
Financial health checks
We assess Westpac Banking's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Westpac Banking has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

WBC Dividends

 What is Westpac Banking's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
6.76%
Current annual income from Westpac Banking dividends. Estimated to be 6.61% next year.
If you bought A$2,000 of Westpac Banking shares you are expected to receive A$135 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Westpac Banking's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.53%).
  • Westpac Banking's dividend is above the markets top 25% of dividend payers in Australia (5.74%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:WBC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
Australia Banks Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 5.9%
Australia Market Average Dividend Yield Market Cap Weighted Average of 416 Stocks 4%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.5%
Australia Bottom 25% Dividend Yield 25th Percentile 2.5%
Australia Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:WBC Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2022-09-30 1.96 1.00
2021-09-30 1.82 12.00
2020-09-30 1.82 13.00
2019-09-30 1.86 14.00
ASX:WBC Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-05-06 1.880 6.774
2018-11-06 1.880 7.218
2018-11-05 1.880 7.019
2018-05-07 1.880 6.631
2017-11-06 1.880 6.163
2017-05-08 1.880 5.940
2016-11-07 1.880 5.690
2016-05-02 1.880 6.270
2015-11-02 1.880 6.085
2015-05-12 1.860 5.804
2015-05-04 1.860 5.414
2015-04-15 1.860 4.864
2014-11-03 1.840 5.225
2014-07-01 1.800 5.332
2013-11-04 1.760 5.298
2013-05-02 1.720 5.555
2012-12-03 1.680 5.849
2012-05-11 1.640 7.043
2011-11-11 1.600 7.590
2011-11-01 1.600 7.467
2011-05-04 1.520 7.210
2010-11-02 1.480 6.413
2010-05-14 1.250 5.488
2009-11-04 1.160 4.544
2009-05-06 1.280 5.791
2008-10-30 1.440 8.263

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Westpac Banking's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (1.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.3x coverage).
X
Income/ dividend checks
We assess Westpac Banking's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.5%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Westpac Banking afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Westpac Banking has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

WBC Management

 What is the CEO of Westpac Banking's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Brian Hartzer
COMPENSATION A$6,572,180
AGE 52
TENURE AS CEO 4.4 years
CEO Bio

Mr. Brian Charles Hartzer, BA, CFA, is Managing Director & Chief Executive Officer of Westpac Banking Corporation since February 2, 2015 and serves as Director. Mr. Hartzer joined Westpac as Chief Executive, Australian Financial Services in June 2012 encompassing Westpac Retail & Business Banking, St.George Banking Group and BT Financial Group. He spent three years in the UK as Chief Executive Officer for Retail, Wealth and Ulster Bank at the Royal Bank of Scotland Group. Prior to that, he spent ten years with Australia and New Zealand Banking Group Limited (ANZ) in Australia in a variety of roles, including his final role as Chief Executive Officer, Australia and Global Segment Lead for Retail and Wealth. Before joining ANZ, He spent ten years as a financial services consultant in New York, San Francisco and Melbourne. He is a Director of The Financial Markets Foundation for Children and the Australian Banker’s Association Incorporated. He has been Chairman of Australian National University Business and Industry Advisory Board since March 2017 and the Financial Markets Foundation for Children and Australian Bankers’ Association Incorporated. He graduated from Princeton University with a degree in European History and is a Chartered Financial Analyst.

CEO Compensation
  • Brian's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Brian's remuneration is about average for companies of similar size in Australia.
Management Team Tenure

Average tenure and age of the Westpac Banking management team in years:

4
Average Tenure
54
Average Age
  • The tenure for the Westpac Banking management team is about average.
Management Team

Brian Hartzer

TITLE
MD, CEO & Director
COMPENSATION
A$7M
AGE
52
TENURE
4.4 yrs

Peter King

TITLE
Chief Financial Officer
COMPENSATION
A$3M
AGE
49
TENURE
0.8 yrs

Gary Thursby

TITLE
Chief Operating Officer
COMPENSATION
A$2M
AGE
57
TENURE
0.3 yrs

Christine Parker

TITLE
Group Executive of Human Resources
COMPENSATION
A$2M
AGE
59
TENURE
7.8 yrs

David Lindberg

TITLE
Chief Executive of Consumer
COMPENSATION
A$3M
AGE
44
TENURE
4.1 yrs

Lyn Cobley

TITLE
Chief Executive of Westpac Institutional Bank
COMPENSATION
A$3M
AGE
56
TENURE
3.8 yrs

David Lees

TITLE
Deputy Chief Financial Officer
COMPENSATION
A$1M
AGE
49

David McLean

TITLE
Chief Executive Officer of Westpac New Zealand Limited
COMPENSATION
A$2M
AGE
61
TENURE
4.4 yrs

Craig Bright

TITLE
Chief Information Officer
TENURE
0.6 yrs

Andrew Bowden

TITLE
Head of Investor Relations
Board of Directors Tenure

Average tenure and age of the Westpac Banking board of directors in years:

4.8
Average Tenure
57.5
Average Age
  • The tenure for the Westpac Banking board of directors is about average.
Board of Directors

Lindsay Maxsted

TITLE
Chairman of the Board
COMPENSATION
A$830K
AGE
65
TENURE
7.6 yrs

Brian Hartzer

TITLE
MD, CEO & Director
COMPENSATION
A$7M
AGE
52
TENURE
4.4 yrs

Jon Nicholson

TITLE
Chairman of Westpac Foundation
AGE
63
TENURE
6.5 yrs

Ewen Graham Crouch

TITLE
Independent Non-Executive Director
COMPENSATION
A$345K
AGE
63
TENURE
6.4 yrs

Peter Marriott

TITLE
Independent Non-Executive Director
COMPENSATION
A$368K
AGE
62
TENURE
6.1 yrs

Catriona Deans

TITLE
Independent Non-Executive Director
COMPENSATION
A$333K
AGE
52
TENURE
5.3 yrs

Craig Dunn

TITLE
Independent Non-Executive Director
COMPENSATION
A$341K
AGE
56
TENURE
4.1 yrs

Nerida Caesar

TITLE
Independent Non-Executive Director
COMPENSATION
A$297K
AGE
55
TENURE
1.8 yrs

Peter Nash

TITLE
Independent Non-Executive Director
COMPENSATION
A$176K
AGE
56
TENURE
1.3 yrs

Anita Fung

TITLE
Independent Non-Executive Director
AGE
59
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
08. Jan 19 Sell Brian Hartzer Individual 03. Jan 19 03. Jan 19 -43,914 A$25.00 A$-1,097,850
08. Jan 19 Buy Brian Hartzer Individual 03. Jan 19 03. Jan 19 43,914 A$25.00 A$1,097,850
14. Nov 18 Buy Nerida Caesar Individual 12. Nov 18 12. Nov 18 3,598 A$27.78 A$99,952
19. Jul 18 Buy The Vanguard Group, Inc. Company 16. Mar 18 17. Jul 18 7,861,404 A$29.80 A$229,943,709
X
Management checks
We assess Westpac Banking's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Westpac Banking has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

WBC News

Simply Wall St News

Do Institutions Own Westpac Banking Corporation (ASX:WBC) Shares?

A look at the shareholders of Westpac Banking Corporation (ASX:WBC) can tell us which group is most powerful. … Check out our latest analysis for Westpac Banking ASX:WBC Ownership Summary, July 8th 2019 What Does The Institutional Ownership Tell Us About Westpac Banking? … General Public Ownership The general public -- mostly retail investors -- own 77% of Westpac Banking.

Simply Wall St -

Are Dividend Investors Getting More Than They Bargained For With Westpac Banking Corporation's (ASX:WBC) Dividend?

Could Westpac Banking Corporation (ASX:WBC) be an attractive dividend share to own for the long haul? Investors are often drawn to strong companies with the idea of reinvesting the dividends. Yet sometimes, investors buy a popular dividend stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations. A high yield and a long history of paying dividends is an appealing combination for Westpac Banking. It would not be a surprise to discover that many investors buy it for the dividends. Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1. … For the purpose of this article, we only scrutinise the last decade of Westpac Banking's dividend payments. … Dividend Growth Potential Dividend payments have been consistent over the past few years, but we should always check if earnings per share (EPS) are growing, as this will help maintain the purchasing power of the dividend.

Simply Wall St -

Risk Factors To Consider Before Investing In Westpac Banking Corporation (ASX:WBC)

As a AU$89b market capitalisation company operating in the financial services sector, Westpac Banking Corporation (ASX:WBC) has benefited from strong economic growth and improved credit quality as a result of post-GFC recovery. … Growth stimulates demand for loans and impacts a borrower’s ability to repay which directly affects the level of risk Westpac Banking takes on. … It is relevant to understand a bank’s level of risky assets on its accounts as it affects the attractiveness of its stock as an investment.

Simply Wall St -

Westpac Banking Corporation (ASX:WBC): What We Can Expect From This Growth Stock

On 30 September 2018, Westpac Banking Corporation (ASX:WBC) announced its earnings update. … with earnings expected to grow by 4.7% in the upcoming year … the past 5-year average growth rate of 2.9%.

Simply Wall St -

Westpac Banking Corporation (ASX:WBC) Will Pay AU$0.94 In Dividends

Westpac Banking Corporation (ASX:WBC) will be distributing its dividend of AU$0.94 per share on the 20 December 2018, and will start trading ex-dividend in 4 days time on the 13 November 2018. … Below, I will explain how holding Westpac Banking can impact your portfolio income stream, by analysing the stock's most recent financial data and dividend attributes. … If you are a dividend investor, you should always assess these five key metrics:?

Simply Wall St -

What Should You Know About Westpac Banking Corporation's (ASX:WBC) Future?

The most recent earnings release Westpac Banking Corporation's (ASX:WBC) announced in September 2018a

Simply Wall St -

Is Westpac Banking Corporation (ASX:WBC) Overpaying Its CEO?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. … How Does Brian Hartzer's Compensation Compare With Similar Sized Companies. … Our data indicates that Westpac Banking Corporation is worth AU$90.8b, and total annual CEO compensation is AU$7m.

Simply Wall St -

Westpac Banking Corporation (ASX:WBC) Is Trading At A 23.5% Discount

Valuing WBC, a bank stock, can be daunting since these financial companies have cash flows that are impacted by regulations that are not imposed upon other industries. … For instance, banks must hold a certain level of cash reserves on the books as a safety precaution.

Simply Wall St -

What Makes Westpac Banking Corporation (ASX:WBC) A Great Dividend Stock?

Westpac Banking Corporation (ASX:WBC) has pleased shareholders over the past 10 years, by paying out dividends. … The company currently pays out a dividend yield of 7.1% to shareholders, making it a relatively attractive dividend stock. … View our latest analysis for Westpac Banking

Simply Wall St -

Have You Considered These Key Risks For Westpac Banking Corporation (ASX:WBC)?

Post-GFC recovery has strengthened economic growth and credit quality, benefiting large banks such as Westpac Banking Corporation (ASX:WBC), with a market capitalisation of AU$90.6b. … A borrower’s demand for, and ability to repay, loans is driven by economic growth which directly impacts the level of risk Westpac Banking takes on. … Check out our latest analysis for Westpac Banking

Simply Wall St -

WBC Company Info

Description

Westpac Banking Corporation provides various banking and financial services in Australia, New Zealand, Asia, the Pacific region, and internationally. It operates through five divisions: Consumer Bank, Business Bank, BT Financial Group, 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, not-for-profit savings, and foreign currency accounts; term and farm management deposits; debit, credit, and travel money cards; home, personal, investment, small business, and commercial loans; and equipment, automotive, cash flow, property, insurance premium, corporate and structured finance, and trade and supply chain financing services. It also provides home and content, landlord, car, travel, boat, caravan and trailer, life, credit card and loan repayment, income protection, business, farm pack, person income, and business overheads insurance products; superannuation and retirement products; investment portfolios; instalment warrants; and trading, financial advisory, wealth, foreign currency exchange, international payment, cash flow management, international trade, and import and export services. In addition, it offers industry specific banking and treasury services; other services, such as emergency cash, online and telephone banking, ATMs, unclaimed money, travel center, margin lending, and banking services to migrants moving to Australia; and mobile wallets. Further, it provides capital advisory and fund management, transactional and private banking, and financial market 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.

Details
Name: Westpac Banking Corporation
WBC
Exchange: ASX
Founded: 1817
A$96,409,485,456
3,440,738,239
Website: http://www.westpac.com.au
Address: Westpac Banking Corporation
275 Kent Street,
Sydney,
New South Wales, 2000,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX WBC Ordinary Shares Australian Securities Exchange AU AUD 02. Jan 1992
OTCPK WEBN.F Ordinary Shares Pink Sheets LLC US USD 02. Jan 1992
DB WBC Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1992
NZSE WBC Ordinary Shares New Zealand Stock Exchange NZ NZD 02. Jan 1992
NYSE WBK ADR(EACH REP 1 ORD NPV) New York Stock Exchange US USD 17. Mar 1989
ASX WBCPE FRN CNV PERP AUD1000 Australian Securities Exchange AU AUD 23. May 2014
ASX WBCPI FRN SUB MTN PERP AUD1000 '6' Australian Securities Exchange AU AUD 14. Dec 2018
ASX WBCPH FRN RVCV 09/2025 AUD1000 Australian Securities Exchange AU AUD 14. Mar 2018
BASE WBK CEDEAR EACH REP 1/3 ADR(REP 5 ORD NPV) Buenos Aires Stock Exchange AR ARS 06. Dec 2007
DB WBCC ADR(EACH REP 1 ORD NPV) Deutsche Boerse AG DE EUR 17. Mar 1989
Number of employees
Current staff
Staff numbers
31,007
Westpac Banking employees.
Industry
Diversified Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/15 10:34
End of day share price update: 2019/07/15 00:00
Last estimates confirmation: 2019/07/14
Last earnings filing: 2019/05/05
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/09/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.