Westpac Banking (WBC) Share Trading Update

Submitted by Craig Strzelecki on 26 February, 2007 - 22:30

Westpac Banking (WBC) have a retained hold rating and a share price target of $26.50 from analyst Citigroup Investment Research (CIR). They have commented that despite the bank's material margin decline, above-system volume momentum has led them to upgrade EPS estimates by 1-3% as well as their target price. In the Australian business, market share gains in all major product segments would indicate discounting and third party channels have been a major lever. Despite the rapid-fire growth, this week’s split of the Business & Consumer Banking division, combined with the departure of the Consumer head, indicates management had its own concerns. WBC's approach to provisioning appears more prudent than some other banks. A by-product of this is that the bank's increased volumes will also drive a higher bad debt charge. A new CEO in New Zealand Business Should Provide a catalyst and the analyst is optimistic that this will accelerate the turnaround, though it will take time. Basel II Likely to Provide a Boost in FY08 in CIR's opinion; Together with other major banks, WBC will benefit from capital release on transition to the new accord.

Westpac Banking Corporation Limited is listed on the Australian Stock Exchange (ASX) under stock code WBC. You can view their investor website here. WBC was listed on the ASX on 18 July, 1970. Find out the meaning of the recommendations in this primer. Ted Evans is the chairman of Westpac and the Managing Director is Dr David Morgan. Westpac provides banking, financial and related services. Browse for other stockbroker recommendations. You can use Instalment Warrants to trade WBC. Check your charts and good luck with your share trading!

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