Westpac Banking Corporation provides various banking and financial services in Australia, New Zealand, and internationally. More Details
Flawless balance sheet second-rate dividend payer.
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: WBK is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: WBK's weekly volatility (3%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: WBK exceeded the US Banks industry which returned 35.4% over the past year.
Return vs Market: WBK exceeded the US Market which returned 36.3% over the past year.
Long-Term 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
3 years ago | Simply Wall StWhy income investors should have Westpac Banking Corporation (WBK) in their portfolio
3 years ago | Simply Wall StShould income investors buy Westpac Banking Corporation (WBK) today and lock in the 6.18% dividend yield?
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: WBK ($19.39) is trading above our estimate of fair value ($12.69)
Significantly Below Fair Value: WBK is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: WBK is poor value based on its PE Ratio (39x) compared to the US Banks industry average (13.1x).
PE vs Market: WBK is poor value based on its PE Ratio (39x) compared to the US market (21.5x).
Price to Earnings Growth Ratio
PEG Ratio: WBK is poor value based on its PEG Ratio (2.1x)
Price to Book Ratio
PB vs Industry: WBK is overvalued based on its PB Ratio (1.3x) compared to the US Banks industry average (1.1x).
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: WBK's forecast earnings growth (18.7% per year) is above the savings rate (2%).
Earnings vs Market: WBK's earnings (18.7% per year) are forecast to grow slower than the US market (19.3% per year).
High Growth Earnings: WBK's earnings are forecast to grow, but not significantly.
Revenue vs Market: WBK's revenue (5% per year) is forecast to grow slower than the US market (10% per year).
High Growth Revenue: WBK's revenue (5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: WBK's Return on Equity is forecast to be low in 3 years time (8.9%).
How has Westpac Banking performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: WBK has high quality earnings.
Growing Profit Margin: WBK's current net profit margins (13.5%) are lower than last year (34.1%).
Past Earnings Growth Analysis
Earnings Trend: WBK's earnings have declined by 10.9% per year over the past 5 years.
Accelerating Growth: WBK's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: WBK had negative earnings growth (-66.2%) over the past year, making it difficult to compare to the Banks industry average (0.5%).
Return on Equity
High ROE: WBK's Return on Equity (3.4%) 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: WBK's Assets to Equity ratio (13.4x) is moderate.
Allowance for Bad Loans: WBK has a sufficient allowance for bad loans (238%).
Low Risk Liabilities: 70% of WBK's liabilities are made up of primarily low risk sources of funding.
Loan Level: WBK has an appropriate level of Loans to Assets ratio (76%).
Low Risk Deposits: WBK's Loans to Deposits ratio (117%) is appropriate.
Level of Bad Loans: WBK has an appropriate level of bad loans (0.3%).
What is Westpac Banking current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: WBK's dividend (2.49%) is higher than the bottom 25% of dividend payers in the US market (1.31%).
High Dividend: WBK's dividend (2.49%) is low compared to the top 25% of dividend payers in the US market (3.64%).
Stability and Growth of Payments
Stable Dividend: WBK's dividend payments have been volatile in the past 10 years.
Growing Dividend: WBK's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (48.6%), WBK's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: WBK's dividends in 3 years are forecast to be covered by earnings (71.6% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Peter King (50 yo)
Mr. Peter Francis King, BEc, FCA, has been the Chief Executive Officer & Managing Director of Westpac Banking Corporation since April 02, 2020 and served as its Acting Managing Director & Chief Executive O...
CEO Compensation Analysis
Compensation vs Market: Peter's total compensation ($USD2.77M) is below average for companies of similar size in the US market ($USD10.56M).
Compensation vs Earnings: Peter's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
|CEO, MD & Director||1.25yrs||AU$3.56m||0.0036% |
|Chief Financial Officer||0.50yr||AU$1.22m||no data|
|Group Executive of Financial Crime||0.75yr||AU$1.19m||0.0022% |
|Group General Counsel & Enterprise Executive||1.17yrs||AU$1.14m||0.0012% |
|Group Executive of Human Resources||9.42yrs||AU$1.62m||0.00089% |
|Chief Executive of Specialist Businesses & Group Strategy||0.83yr||AU$1.27m||no data|
|Group Executive of Customer & Corporate Relations||2.83yrs||AU$1.45m||0.0018% |
|Chief Risk Officer||2.42yrs||AU$3.65m||0.0042% |
|Chief Executive of Business Division||1.25yrs||AU$2.75m||0.0013% |
|Chief Executive Officer of Westpac New Zealand Limited||6.08yrs||AU$1.80m||0.00026% |
|Chief Operating Officer||0.33yr||no data||no data|
|Head of Investor Relations||no data||no data||no data|
Experienced Management: WBK's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.
|CEO, MD & Director||1.25yrs||AU$3.56m||0.0036% |
|Independent Non Executive Chairman||0.92yr||AU$503.09k||0.0011% |
|Independent Non-Executive Director||7.75yrs||AU$397.25k||0.00060% |
|Independent Non-Executive Director||0.25yr||no data||0.00049% |
|Independent Non-Executive Director||0.50yr||AU$26.78k||0.00036% |
|Independent Non-Executive Director||5.75yrs||AU$344.35k||0.00041% |
|Independent Non-Executive Director||no data||no data||0.00014% |
|Independent Non-Executive Director||3.5yrs||AU$315.47k||0.00037% |
|Chairman of Westpac Foundation||8.17yrs||no data||no data|
|Independent Non-Executive Director||2yrs||AU$327.38k||0.00032% |
|Independent Non-Executive Director||3yrs||AU$398.27k||0.00042% |
|Independent Non-Executive Director||2yrs||AU$324.55k||0.00063% |
Experienced Board: WBK's board of directors are not considered experienced ( 2 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: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Westpac Banking Corporation's company bio, employee growth, exchange listings and data sources
- Name: Westpac Banking Corporation
- Ticker: WBK
- Exchange: NYSE
- Founded: 1817
- Industry: Diversified Banks
- Sector: Banks
- Market Cap: AU$91.124b
- Listing Market Cap: AU$70.864b
- Shares outstanding: 3.66b
- 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)||SPONSORED ADR||US||USD||Mar 1989|
|WBCC||DB (Deutsche Boerse AG)||SPONSORED ADR||DE||EUR||Mar 1989|
|0LVV||LSE (London Stock Exchange)||SPONSORED ADR||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|
|WBK||BASE (Buenos Aires Stock Exchange)||CEDEAR EACH REP 1/3 ADR(REP 1 ORD NPV)||AR||ARS||Dec 2007|
|WBCPE||ASX (Australian Securities Exchange)||FRN CNV PERP AUD1000||AU||AUD||May 2014|
|WBCPH||ASX (Australian Securities Exchange)||FRN CNV 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, and internationally. The company operates through four divisions: Consumer, Business, Westpac Institut...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/03/06 23:33|
|End of Day Share Price||2021/03/05 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.