Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

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

News SummaryMost relevantAll newsSector 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
05/04/2012 | 07:20am CET

--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


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; caroline.henshaw@dowjones.com

share with twitter share with LinkedIn share with facebook
share via e-mail
01/19 Polar Capital Appoints Rochussen As New Chief Executive
01/18 Stockmarket drops amid light trading
01/17 WESTPAC BANKING : 16/01/2017 Vanguard Laundry Services set a new cycle for socia..
01/16 WESTPAC BANKING : to Go Ex-Dividend on November 17th
01/16 WESTPAC BANKING : Ceasing to be a substantial holder for ONE
01/12 QIP : Change in substantial holding from WBC
01/10 WESTPAC BANKING : Sells 104,063 Shares of Lowes Companies, Inc.
01/06 WESTPAC BANKING : Takes Position in Apple Hospitality REIT, Inc. (APLE)
01/05 WESTPAC BANKING : Dividend/Distribution - WBCPG
01/05 AIB : Change in substantial holding from WBC
More news
Sector news : Banks - NEC
12:12a Wells Fargo to merge international business with wholesale banking
12:09aDJJPMORGAN CHASE : J.P. Morgan CEO to Get $28 Million in 2016 Compensation -- 2nd ..
01/19DJJPMORGAN CHASE : J.P. Morgan CEO to Get $28 Million in 2016 Compensation -- Upda..
01/19DJJPMORGAN CHASE : J.P. Morgan CEO to Get $28 Million in 2016 Compensation
01/19DJU.K.'s May Meets With Wall Street Bank Chiefs--Update
More sector news : Banks - NEC
News from SeekingAlpha
01/18 The Banks Bull Market Has Created Many Short Opportunities In Asia
01/18 Tracking Ken Fisher's Fisher Asset Management Portfolio - Q4 2016 Update
01/06 Riding The Roller Coaster That Was 2016
2016 A Look At ANZ Banking Group And Its Dividend
2016 10 Trades And 4 Books For 2017
Financials ( AUD)
Sales 2017 22 062 M
EBIT 2017 12 384 M
Net income 2017 8 194 M
Debt 2017 -
Yield 2017 5,66%
P/E ratio 2017 13,58
P/E ratio 2018 13,07
Capi. / Sales 2017 4,93x
Capi. / Sales 2018 4,74x
Capitalization 108 855 M
More Financials
Duration : Period :
Westpac Banking Corp Technical Analysis Chart | WBC | AU000000WBC1 | 4-Traders
Full-screen chart
Technical analysis trends WESTPAC BANKING CORP
Short TermMid-TermLong Term
Technical analysis
Income Statement Evolution
More Financials
Mean consensus OUTPERFORM
Number of Analysts 15
Average target price 32,8  AUD
Spread / Average Target 1,1%
Consensus details
EPS Revisions
More Estimates Revisions
Brian Hartzer Chief Executive Officer, Executive Director & MD
Lindsay Philip Maxsted Chairman
Peter King Chief Financial Officer
David Curran Chief Information Officer
Robert Wilson Chief Technology Officer
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
JPMORGAN CHASE & CO.-2.72%300 360
WELLS FARGO & CO-1.52%272 560
More Results