Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  AUSTRALIAN SECURITIES EXCHANGE LIMITED  >  Westpac Banking Corp    WBC   AU000000WBC1

WESTPAC BANKING CORP (WBC)
Mes dernières consult.
Most popular
  Report  
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsofficial PublicationsSector newsTweets

Westpac Cuts Mortgage Rate By 37 BP; Withholds Part Of RBA Cut

share with twitter share with LinkedIn share with facebook
share via e-mail
0
05/04/2012 | 07:20am CEST

--Westpac cut its standard variable mortgage rate by 37 basis points after RBA rate cut

--Comonwealth Bank cut rates by 40 basis points and National Australia Bank by 32 basis points this week

--ANZ Bank set to report whether will pass on full 50 basis points cut next Friday

(Adds details of CBA and NAB cuts in the 5th-6th paragraphs; comments from Westpac CEO in the 8th paragraph; Fitch comments in the 9th-10th paragraphs.)

By Caroline Henshaw

Of

Westpac Banking Corp. (>> Westpac Banking Corporation) has followed peers in withholding part of the Reserve Bank of Australia's 50-basis-point rate cut to the cash rate this week from its mortgage customers.

Australia's second-largest bank by market value on Friday cut its standard variable mortgage rate by 37 basis points to 7.09%, effective from May 14. On its variable businesses loan rate, it passed on the RBA's full cut of 0.5%, the bank said in a statement.

The new standard variable rate is the lowest offered by Westpac since April 2010, and the cut is the biggest single reduction in more than three years. The bank says the move will save homeowners A$900 a year in interest repayments on an average A$300,000 mortgage.

"We feel it is particularly important to help small businesses at this time," said Westpac Group Executive of Retail and Business Banking Jason Yetton. "At the same time, we understand the need to keep mortgage rates as low as possible and continue to reduce rates for homeowners."

Earlier this week Commonwealth Bank of Australia (>> Commonwealth Bank of Australia), the nation's largest home lender, said it would reduce the interest rate on its range of variable home loans by 0.4% from May 11, dragging it to 7.01% a year. Rival National Australia Bank Ltd. (>> National Australia Bank Ltd.) has already announced a 0.32% reduction to its own headline mortgage rate, bringing it to 6.99%--the lowest of the big four banks.

Of the majors, only Australia & New Zealand Banking Group Ltd. (>> Australia and New Zealand Banking Group) has yet to show its hand on rate cuts. Its announcement is due next Friday.

All of the banks have blamed higher funding costs, intense competition for retail deposits and slowing loan growth as reasons to withold part of this week's 50 basis-point rate cut by the RBA this week.

"The margins pressures have become a bit stronger in the second quarter of this half," Westpac Chief Executive Kelly told reporters at a briefing on Thursday after the bank reported a record A$3.12 billion of cash earnings for the first half of fiscal 2012.

Fitch Ratings' Director of Financial Institutions Tim Roche said the move could help safeguard the banks' margins--which have been squeezed by high funding costs, slowing credit grow and intense competition for retail deposits--but would have little effect on their risk profile.

"Profitability is only one of the factors we look at," he said. "I don't think a few basis points here or there will affect their absolute rating level."

-By Caroline Henshaw, Dow Jones Newswires; 61-2-8272-4689; [email protected]

Stocks mentioned in the article
ChangeLast1st jan.
AUSTRALIA AND NEW ZEALAND BANKING GROUP -2.14% 26.57 End-of-day quote.-5.53%
COMMONWEALTH BANK OF AUSTRALIA -1.65% 72.25 End-of-day quote.-8.56%
NATIONAL AUSTRALIA BANK LTD. -2.10% 28.47 End-of-day quote.-1.66%
WESTPAC BANKING CORP -3.60% 28.13 End-of-day quote.-6.92%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on WESTPAC BANKING CORP
12:12aWESTPAC BANKING : defends mortgage book as probe reveals poor controls
AQ
04/26WESTPAC BANKING : 26/04/2018 Westpac reaffirms performance of mortgage portfolio
PU
04/25WESTPAC BANKING : Industry Super Australia Issues Statement on Funds
AQ
04/20Australia vows crackdown on corporate misconduct as bank inquiry claims AMP s..
RE
04/20RESMED INC. (OTCMKTS : RSMDF) Files An 8-K Entry into a Material Definitive Agre..
AQ
04/19Lost home, fees for the dead - Australia banking inquiry hears testimony
RE
04/18Australia says banking executives responsible for misconduct could face jail
RE
04/18Australia says banking executives responsible for misconduct could face jail
RE
04/17AUSTRALIA'S AMP MISLED CORPORATE WAT : inquiry hears
RE
04/17AUSTRALIA'S AMP MISLED CORPORATE WAT : inquiry hears
RE
More news
News from SeekingAlpha
04/20WESTPAC BANKING :  Back In The Strike Zone 
02/09Giving Up On Westpac Banking 
02/04A Look At The 4 Big Australian Banks 
02/01AUSTRALIA : Macro-Fiscal Flows And Investment Markets 
01/29Dividend Investing Has Made Me A Better Growth Investor 
Financials ( AUD)
Sales 2018 22 397 M
EBIT 2018 12 691 M
Net income 2018 8 420 M
Debt 2018 -
Yield 2018 6,57%
P/E ratio 2018 12,03
P/E ratio 2019 11,76
Capi. / Sales 2018 4,46x
Capi. / Sales 2019 4,30x
Capitalization 99 894 M
Chart WESTPAC BANKING CORP
Duration : Period :
Westpac Banking Corp Technical Analysis Chart | WBC | AU000000WBC1 | 4-Traders
Technical analysis trends WESTPAC BANKING CORP
Short TermMid-TermLong Term
TrendsBearishBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 15
Average target price 33,5  AUD
Spread / Average Target 15%
EPS Revisions
Managers
NameTitle
Brian Hartzer Chief Executive Officer, Executive Director & MD
Lindsay Philip Maxsted Chairman
Peter King Chief Financial Officer
David Curran Chief Information Officer
Robert Wilson Chief Technology Officer
Sector and Competitors
1st jan.Capitalization (M$)
WESTPAC BANKING CORP-6.92%75 664
JP MORGAN CHASE & COMPANY2.85%376 545
INDUSTRIAL AND COMMERCIAL BANK OF CHINA-3.39%330 275
BANK OF AMERICA2.27%309 257
CHINA CONSTRUCTION BANK CORPORATION-2.73%273 993
WELLS FARGO-12.46%256 044