|Bid||22.17 x 1300|
|Ask||22.19 x 500|
|Day's range||22.14 - 22.24|
|52-week range||21.73 - 26.72|
|PE ratio (TTM)||12.58|
|Forward dividend & yield||1.44 (6.46%)|
|1y target est||25.76|
Jacqueline and Hugh McDowall's retirement dream to buy a bed and breakfast business turned into a financial nightmare. Due to poor financial advice from a Westpac planner, the nurse and truck driver lost their family home pursuing a dream that was never going to become a reality. The McDowalls sold their Melbourne home, using the proceeds to clear the hefty mortgage and set up the SMSF.
Westpac chief executive Brian Hartzer says the bank had been sloppy rather than deliberately negligent in its checks on whether potential customers could repay their mortgages. "We have been a little sloppy on some of the record keeping but I think it is drawing a pretty long bow when you look at the actual performance and of credit quality of the banks over a long period of time to suggest that there is something fundamentally wrong," Mr Hartzer told a business summit in Sydney on Thursday. The banking royal commission has heard Westpac and the Commonwealth Bank had flawed processes for making sure home loan applicants were telling the truth about their income, expenses and debts.
Westpac was once described by the corporate regulator as the "most resistant" of the big four banks to Australia's finance laws, and accused of trying to keep misconduct quiet. The Australia Securities and Investments Commission expressed the views in notes drafted before a meeting with Westpac chairman Lindsay Maxsted in 2015, and tendered to the banking royal commission on Friday. ASIC met with Mr Maxsted after repeatedly raising concerns about how Westpac was issuing credit card limit increases to customers.
Westpac sent letters to more than one million customers offering credit card limit increases without checking their incomes or employment statuses. Westpac has been grilled at the banking royal commission about its approach to lifting credit card limits from 2012 to 2014, which ultimately led to it refunding $11.3 million to 3400 customers. David Malcolm, Westpac's general manager of credit, said before the 1.16 million letters were sent an automated system analysed customer spending data and repayment habits with the bank.
ROYAL COMMISSION PUTS SPOTLIGHT ON INAPPROPRIATE CONSUMER LENDING 1. RESIDENTIAL MORTGAGES CASE STUDIES * NATIONAL AUSTRALIA BANK'S INTRODUCER PROGRAM AND FRAUDULENT LOAN APPLICATIONS NAB in November revealed ...
Westpac's chief financial officer has told the Productivity Commission that Australian banks are not highly profitable just because they make large profits. Peter King told the commission's inquiry into competition in the financial industry that the $31.5 billion of profit amassed by Australia's big four banks in their last full financial year were due to their size and efficiency. "Australia's major banks are not 'highly profitable' as the draft report indicates," Mr King said.
Two of the nation's major banks are refunding more than $21 million to thousands of customers affected by errors with their credit card practices. Westpac has completed the repayment of $11.3 million to 3,401 customers that were impacted by the bank's former credit card limit increase processes. A review launched by the Australian Securities and Investments Commission in 2014 raised issues with the way Westpac was approving increases to credit card limits, and the bank in 2015 began reviewing customers that had since experienced financial difficulty.
One of Australia's largest banks has apologised to Tasmanian pensioners for not sending their promised energy rebate cheques before Christmas. Westpac on Thursday apologised for the delays in posting the state government's promised $125 energy bonus after earlier making repeated assurances the cheques would be sent out on time. "Westpac apologises to Tasmanians who did not receive their cheques on time and are reviewing the procedures to ensure that this does not occur again," the bank said in a statement.
Westpac will pay about $11 million in compensation to interest-only home loan customers who were not switched to principal repayments when they should have been. The refunds will go to 9,400 customers who held owner-occupier interest-only variable home loans, most of which had interest-only periods that expired between 2009 and 2016. A processing error led to these customers continuing to make interest-only repayments after the interest-only period ended, rather than being switched to principal and interest repayments.
Westpac chairman Lindsay Maxsted says criticism of the Australia's banking sector is "warranted" but he hopes a royal commission into alleged misconduct in the finance industry will restore trust and confidence. Mr Maxsted told the lender's annual general meeting in Sydney on Friday that the board was "disappointed" at the deterioration of the banking sector's reputation but accepted there had been times when the industry had failed to meet customer expectations.
The announcement of a banking royal commission has shaken Australia's financial sector and could land the big banks with a bill of up to $100 million each. Shares in Commonwealth Bank, Westpac, National Australia Bank, ANZ and Macquarie tumbled on Thursday as investors took fright at news the big lenders had, after months of resistance, told Treasurer Scott Morrison of the terms under which they would reluctantly accept a commission.
Westpac's New Zealand subsidiary has been ordered to increase the amount of capital it holds after the bank failed to comply with local governance standards. The Reserve Bank of New Zealand on Wednesday said Westpac NZ had used unapproved capital models since 2008. The RBNZ said a report uncovered serious shortcomings and non-compliance failures in relation to Westpac NZ's status as an "internal models bank" - a lender that uses its own estimates to measure risk.
SYDNEY--(BUSINESSWIRE)-- Westpac Banking Corporation (Westpac) filed its Annual Report on Form 20-F with the US Securities and Exchange Commission (SEC) for the financial year ended September 30, 2017 ...
Westpac says it will keep fighting to remove the federal government bank levy. Chairman Lindsay Maxsted says the introduction of the bank levy in July this year had already impacted both the value and the returns from shareholder investment in the bank. "It discriminates against Australian banks relative to global peers and it has impacted the value of your investment and the investments of millions of superannuation holders across Australia," Mr Maxsted said in Westpac's annual report.
Westpac lifted full-year profit three per cent to $8.062 billion, narrowly missing market expectations after it copped the cost of past mistakes. Westpac took a hit equivalent to 1.5 per cent of its cash profit to superannuation customers who lost out because of disclosure practices, package customers who did not receive benefits to which they were entitled, and others who did not receive on-time advice. Chief executive Brian Hartzer said Westpac had made changes to ensure there would be no repeat.
Westpac has lifted its full-year profit three per cent to $8.062 billion, boosted by six per cent growth in Australian mortgages. The lender on Monday said cash profit for the 12 months to September 30 rose from $7.822 billion a year ago, helped by a four per cent lift in earnings from the consumer division. Chief executive Brian Hartzer said Westpac had managed to grow its loan book, while ensuring it stayed within regulatory limits on investor and interest-only lending.
Westpac Banking Corp. Chief Executive Officer Brian Hartzer said the outlook for the financial industry is becoming more challenging and called on the Australian government to fix a range of policy messes ...
Westpac has accused the corporate regulator of taking phone calls between its traders out of context because "it's the best ASIC can do" to try and prove allegations of rigging the bank bill swap rate. Australia's second-largest bank on Wednesday responded to ASIC's accusations the bank engaged in misconduct and market manipulation to push the BBSW higher or lower between 2010 and 2012. Matthew Darke SC said recorded phone calls played in court as part of ASIC's case were "it seems, the best ASIC can do" in its Federal Court trial against Westpac.
Telephone conversations between a top Westpac trader and his colleagues show he knew manipulating the bank bill swap rate was wrong, ASIC has told a Federal Court trial. The regulator on Tuesday played an audio recording of Colin Roden, managing director of the bank's group treasury department, saying he would "f*** the rate" as it opened its case against Westpac. The Australian Securities and Investments Commission has accused Westpac of misconduct and market manipulation between 2010 and 2012 in relation to the bank bill swap rate.
Westpac is not backing down from its trial with the corporate regulator over allegations of inter-bank rate rigging, despite ANZ and National Australia Bank's decision to settle their cases. Counsel for all three banks and the Australian Securities and Investments Commission returned to the Federal Court on Monday to discuss their next steps after NAB settled its case for $50 million on Friday. ANZ was the first bank to settle with ASIC on October 23 on what was supposed to be the first day of a trial lasting up to five months.
A Federal Court challenge by Australia's corporate regulator aimed at some of the nation's largest banks is set to resume in Melbourne, pending news of further settlement between parties. The Australian Securities and Investments Commission is expected back in court on Monday along with representatives for several of the country's big banks. On Friday, NAB reached a settlement with ASIC, and will be forced to pay $50 million and admit to 12 occasions of unconscionable conduct by employees in 2010 and 2011.
A trial between the corporate regulator and two of Australia's largest banks could be over before it begins if National Australia Bank follows ANZ's lead and settles an inter-bank rate rigging case. If NAB settles with the Australian Securities and Investments Commission, Westpac could be the only institution left facing trial over bank bill swap rates. The BBSW, as it is known in financial markets, is a key benchmark used to price billions of dollars of loans, bills, bonds and derivatives.
Westpac could be the only institution left fighting allegations of inter-bank rate rigging if National Australia Bank follows ANZ's lead and settles with the corporate regulator. The three banks and the Australian Securities and Investments Commission returned to the Federal Court in Melbourne on Wednesday, but the trial was adjourned until Monday at ANZ's request. Justice Jonathan Beach said he was reluctant to adjourn the trial a second time and "waste court resources", but counsel for NAB said the adjournment could help its own discussions with ASIC.