Westpac Banking

Here are the Macquarie Research Equities (MRE) highlights on some of the recent impacts experienced by the Australian Banking Sector.

Bank Opportunities

The Australian Banks outperformed the market by 3.3% last week, yet are still trading significantly below their November 2007 highs. Headlining recent developments in this area has been the proposed merger between WBC and SGB. Macquarie Research Equities (MRE) review the week in question and reaffirm their guidance for the sector. Click through to find out more…

Banking Sector Impacts

Macquarie Research Equities (MRE) highlighted some of the recent impacts experienced by the Australian Banking Sector.

Banking Sector – Westpac (WBC) Looks to Slay the Dragon

The Strain of rising interest rates, spiking inflationary pressure and low levels of consumer sentiment seemed to take its toll on the Aussie banks last week as they underperformed the market by 4.3%. Macquarie Research Equities (MRE) discusses the key highlights of the week and the implications for the sector. With the exclusivity period for the SGB merger ending, what’s next?

Australian Banking Sector Update provided by Australian stockmarket analyst Macquarie Research Equities.

Banking Sector Revisited

National Australia Bank (NAB) has a particularly strong result in cost control and therefore an excellent operating performance from stockmarket analyst Macquarie Research Equities.

National Australia Bank (NAB): Dividend Yield Play – 10 Days to Go!

t’s bank dividend season again, and NAB follows ANZ and WBC this year with a $0.97 fully franked dividend, going ex-div on Friday 30th May. If you are looking for a high dividend trade, the following Dividend Yield Play strategy for the upcoming NAB dividend could be an interesting trade idea. .

Here are the Macquarie Research Equities (MRE) highlights for some of the recent impacts experienced by the Australian Banking Sector.

Banking Sector – Westpac Banking (WBC) Looks to Slay the Dragon

Westpac Banking (WBC) has a $25.90 share price target from Australian stock analyst Macquarie Research Equities.

Answering the $64bn question: 1 SGB = 1.31 WBC

Westpac Banking (WBC)/St George Bank (SGB) confirm terms: implies $33.10 p/SGB share ex 88cps div:

Key details: (1) WBC has a 2 wk exclusivity arrangement (2) EPS accretive in Yr3, although no synergies stated (3) key brands, branches and ATMs maintained (4) ACCC, APRA and Treasurer approval required (5) subject to no higher offer and independent expert report findings.

The Australian banking sector outperformed the market last week by an impressive 3.2% by Australian stockmarket analyst Macquarie Research Equities.

Banking Sector – Renewed Sentiment

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.

Shares in Westpac (WBC) have jumped over 2% in morning trade to lead the banking sector higher after announcing an increase to its buy-back program. Australia’s fourth-biggest bank has increased the size of its buy-back to $1b, a $300m increase over its announced target size of $700m. Macquarie Research Equities (MRE) reiterate their outperform recommendation and is MRE’s second top pick in the banking sector behind ANZ.