Westpac Banking Corporation

MRE aggressively downgraded Australian banking sector earnings in April this year following the March half-year reporting season.

Which Bank?

Westpac Banking Corporation (WBC) has a price target of $25.90 from Australian stock analyst UBS.

Westpac Banking Corporation (WBC) SGB MIA - "a growth agenda"

No surprises in the WBC/SGB Merger Implementation Agreement (MIA):

Westpac Banking Corporation (WBC) has a price target of $26.00 from Australian stock analyst UBS.

Westpac Banking Corporation (WBC) and St George Bank (SGB) all-scrip merger talks

Event: WBC disclose merger discussions with SGB:

Westpac (WBC)stated that they are in a strong capital position and have no requirement for additional capital from stockmarket analyst Macquarie Research Equities.

Westpac Banking Corporation (WBC): Westpac Dividend Yield Play

It’s bank dividend season again, and WBC follows ANZ this year with a $0.70 fully franked dividend, going ex-div on Monday 19th May.

National Australia Bank's (NAB) plans to underwrite the interim DRP will leave the balance sheet in a slightly stronger position from Australian stockmarket analysts from Citi.

National Australia Bank (NAB): Is it time to NAB a Dividend?

Australian Banking Sector Update from sharemarket analyst Macquarie Research Equities.

Australian Banking Sector Update

Time to buy back the shorts

We are increasing our price targets on the banks by an average 5%:

Following a better than expected reporting season and clarity around environment and event risk, we are moving to increase our price targets across the bank sector. On average, our PT's have been increased by 5%.

Banks have been large under-performers YTD:

Here is the Australian Banking Sector Update from sharemarket analyst Macquarie Research Equities.

Australian Banking Sector Update

Post WBC: to CP or to SP?

1H08E Sector EPS g -5.7% seq. Core earnings solid up 5% seq.:

With NAB & SGB due to report next week, Sector Cash EPS is on track to be -5.7% seq. Core earnings appear more solid up 5% seq. Key drivers seq: (1) mgns -10bp, (2) strong vol growth 9.5%, (3) weaker fee income 2.9%, (4) BDD up 17bp to 37bp of loans, (5) lower tax rate 27.9%.

Mixed messages on provisions, expect further capital raisings:

Westpac Banking Corporation (WBC) has a $24.55 share price target and an Outperform recommendation from Australian stock analyst Macquarie Research Equities.

Westpac Banking Corporation (WBC) Reasonable 1H08, with specific issues!

1H08 Cash NPAT flat (sequential), held back by BDD, tax rate low: