ASX:WBC

Market Chatter: Australian Banks' May Reporting Season 'Underwhelming,' Operating Conditions Shifting Rapidly, Morgan Stanley Says

Australian banks' reporting season in May was "underwhelming" and they faced a rapid and material shift in operating conditions, according to Morgan Stanley analysts Richard Wiles and Sally Hong, the Australian Financial Review reported Wednesday.Morgan Stanley downgraded fiscal 2027 cash earnings-per-share estimates by 4% since March as revenue growth slows, credit demand weakens, and loan losses gradually rise, reversing an upgrade in February.Three hikes in the official cash rate, proposed changes to property-related tax measures in Australia's federal budget, as well as the impact of the global energy shock all contribute to the uncertainty in outlook for banks, per Morgan Stanley.The investment firm preferred ANZ Group Holdings (ASX:ANZ, NZE:ANZ) over Westpac Banking (ASX:WBC, NZE:WBC), National Australia Bank (ASX:NAB), and Commonwealth Bank of Australia (ASX:CBA).(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Westpac Banking to Issue SG$500 Million of Tier 2 Subordinated Instruments

Westpac Banking (ASX:WBC, NZE:WBC) will issue SG$500 million worth of 3% subordinated instruments due 2038 on Tuesday, according to a same-day filing with the Australian bourse.The instruments are expected to qualify as Tier 2 regulatory capital under Basel III rules, per the filing.The company said it plans to use the proceeds from the issue for general corporate purposes.Westpac Banking's Australian and New Zealand shares each gained 1% in recent Tuesday trade.

Westpac Banking Says State Street Reduces Stake

Westpac Banking (ASX:WBC, NZE:WBC) received notice that State Street and its subsidiaries decreased their holdings in the company to 7.76% from 9.42%, according to a Friday filing with the Australian bourse.State Street and its subsidiaries now own 265.6 million shares in the company, the filing said.

Market Chatter: Westpac Cutting 94 Jobs After Transitioning to Single Investment Platform

Westpac Banking (ASX:WBC, NZE:WBC) has informed Australia's Finance Sector Union that it will cut 94 jobs as a result of the decommissioning of its Asgard investment platform, the Australian Financial Review reported Tuesday.The bank has completed the migration of customers from Asgard to BT Panorama in a move that simplifies its structure to one in-house wealth management platform, according to the report.BT Chief Executive Matt Rady reportedly said the company attempted to retain as many employees as possible through training and transfers to different divisions."The current changes relate to BT's head office and operational functions as we reset how we are structured following the Asgard migration, transitioning to an operating model designed for a single platform," Rady was quoted as saying.Westpac did not immediately respond to a request for comment from.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

ASX Midday Sector Update: Financials Stocks Lead Broad Market Declines

All sectors on the Australian Securities Exchange were in the red in midday trading on Friday, with financial stocks falling past 2% to lead decliners, as oil prices climbed after reports of clashes between the US and Iran in and around the Strait of Hormuz.Commonwealth Bank of Australia (ASX:CBA) and Westpac Banking (ASX:WBC) both shed more than 2%, while National Australia Bank (ASX:NAB) was nearly 3% lower. Shares of Macquarie Group (ASX:MQG) were down more than 2% after earlier hitting a record high following its fiscal year 2026 results.

NZX Midday Sector Update: Consumer Services Stocks Advance, Financial Sector Struggles

Consumer services stocks advanced nearly 1% at midday Friday.Skycity Entertainment Group (NZE:SKC, ASX:SKC) gained nearly 1% in recent trade.On the flip side, the financial sector struggled, shedding almost 4%.Westpac Banking (NZE:WBC, ASX:WBC) shares fell nearly 5% in recent trade.

ASX Midday Sector Update: Financials Stocks Gain, Energy Slides

Financial stocks advanced nearly 3% to lead gainers in midday trading on Wednesday after Australia's central bank on Tuesday raised its official cash rate to 4.35%.Westpac Banking (ASX:WBC) rose nearly 5% after Jarden said in a Tuesday note that the bank has "meaningfully" boosted its growth and risk appetite to achieve a larger balance sheet and higher revenue base to increase earnings.On the flip side, energy stocks shed nearly 2% as oil prices declined after President Donald Trump said the US will pause an operation to help ships pass through the Strait of Hormuz due to "great progress" on a deal with Iran.Woodside Energy Group (ASX:WDS) dropped 2%, and Yancoal Australia (ASX:YAL) declined 4%.

NZX Midday Sector Update: Finance Advances, Distribution Services Decline

Finance shares gained the most on New Zealand's Exchange, rising over 4% by midday Wednesday.Westpac Banking (ASX:WBC, NZE:WBC) gained 5% in recent trade.The Reserve Bank of New Zealand on Wednesday said that New Zealand's four largest banks would maintain capital buffers even in a stress scenario where the unemployment rate peaks at 10.5%, gross domestic product declines by 6.5%, and house prices fall by 35%.Meanwhile, the distribution services sector shares fell past 3%.Vulcan Steel (NZE:VSL, ASX:VSL) was down 3% in recent trade.

Westpac Banking Expands Growth and Risk Appetite, Says Jarden

Westpac Banking (ASX:WBC) has "meaningfully" boosted its growth and risk appetite to achieve a larger balance sheet and higher revenue base to increase earnings, Jarden said in a note on Tuesday.The bank's total capital in the three months to March came in at AU$98.54 billion, up from the AU$97.14 billion it reported in the year-ago period. Its CET1 capital for the period clocked in at AU$56.94 billion, rising from the AU$55.01 billion it reported for the March 2025 quarter, according to a Tuesday Australian bourse filing.The investment firm said Westpac's UNITE program, aimed at optimizing its internal technology systems, is the right move but may not be easy. It is expected to cost more, take longer and could lead to write offs.Analysts at the brokerage also cautioned that accelerating growth and the company's increased risk appetite could prove ill-timed if the current Middle East conflict sets off a credit cycle.Jarden provided an underweight rating and price target of AU$32.

Australian Shares Fall as RBA Raises Cash Rate; Regis Resources to Acquire Vault Minerals in Merger of Equals

Australian shares fell on Tuesday after the Reserve Bank of Australia (RBA) decided to increase the official cash rate by 25 basis points to 4.35%.The S&P/ASX 200 Index retreated nearly 0.2%, or 16.60 points, to close at 8,680.50, setting a new 20-day low.Brent crude oil futures fell to $112.93 per barrel. The US and Iran conducted new attacks in the Persian Gulf in a bid to enforce blockades in the waterway. Maersk said the Alliance Fairfax, a US-flagged vehicle carrier operated by its Farrell Lines unit, exited the Strait of Hormuz accompanied by US military assets ​on Monday, Reuters reported.On the domestic front, Australia's seasonally adjusted household spending rose 1.6% to AU$80.41 billion in March, following a 0.3% increase in the previous month, the Australian Bureau of Statistics reported.The central bank said inflation picked up materially in the second half of 2025, with information since the beginning of 2026 confirming that some of the increase reflected greater capacity pressures. The RBA noted that the Middle East conflict has resulted in sharply higher fuel and related commodity prices already adding to inflation, with early signs that many firms experiencing cost pressures are looking to increase prices of goods and services.Australia's service sector returned to expansionary territory in April, helped by a recovery in business activity following a contraction in March. The S&P Global Australia Services PMI Business Activity Index rose to 50.7 in April from 46.3 in March.In company news, Regis Resources (ASX:RRL) agreed to acquire Vault Minerals (ASX:VAU) in a merger of equals to create a major gold producer that is expected to produce more than 700,000 ounces of gold per year through five operating assets across Western Australia. Under the proposed deal, Vault shareholders will receive 0.6947 shares in Regis for each Vault share owned. Regis' shares fell over 5% at market close, while those of Vault rose nearly 3%.Westpac Banking (ASX:WBC, NZE:WBC) reported fiscal first-half earnings of AU$1.014 per share excluding notable items, up from AU$0.998 a year earlier. Net operating income for the six months ended March 31 was AU$11.28 billion, compared with AU$10.99 billion a year earlier. Its shares closed down nearly 2%.Lastly, Magellan Financial Group (ASX:MFG) appointed Vinva Investment Management as the investment manager of certain global equity funds. The investment strategy for the Magellan Global Fund Open Class Units Active ETF and the Magellan Global Fund Hedged, which had about AU$5.3 billion of assets under management at the close of April, will be changed to the Vinva Global Alpha Strategy. Its shares fell over 6% on market close.

ASX Preview: Australian Shares Set to Fall as US-Iran Tensions Escalate; Westpac Banking Posts Higher Fiscal H1 Adjusted Earnings, Net Operating Income

Australian shares are poised to fall on Tuesday after renewed US-Iran hostilities and attacks around the Strait of Hormuz rattled global markets, sending oil prices higher and heightening fears over disruption to a key energy shipping route.Overnight, the S&P 500, the Nasdaq Composite, and the Dow Jones Industrial Average fell 0.4%, 0.2%, and 1.1%, respectively.In the macroeconomy, Australian services activity edged back into expansion in April as firms increased hiring and output, but persistent inflation driven by higher fuel costs linked to Middle East tensions continued to weigh on new orders and keep business sentiment subdued, according to a monthly survey by S&P Global released Tuesday.Reserve Bank of Australia's monetary policy decision is due at 2:30 pm Sydney time.In corporate news, Westpac Banking (ASX:WBC) reported Tuesday fiscal first-half earnings of AU$1.014 per share excluding notable items on net operating income of AU$11.28 billion, compared with earnings of AU$0.998 on net operating income of AU$10.99 billion a year earlier.Regis Resources (ASX:RRL) agreed to acquire Vault Minerals (ASX:VAU) in a merger of equals to create a major gold producer with a pro forma market capitalization of about AU$10.7 billion.Australia's benchmark index fell 0.4% or 32.7 points to close at 8,697.10 on Monday.

Westpac's Total Capital, CET1 Capital Up Year on Year in March Quarter

Westpac Banking (ASX:WBC, NZE:WBC) total capital and Common Equity Tier 1 (CET1) capital both increased year-over-year in the March quarter, according to a Tuesday Australian bourse filing.The bank's total capital in the three months to March came in at AU$98.54 billion, up from the AU$97.14 billion it reported in the year-ago period. Its CET1 capital for the period clocked in at AU$56.94 billion, rising from the AU$55.01 billion it reported for the March 2025 quarter.Its CET1 ratio for the March quarter was 12.4%, compared with a ratio of 12.2% in the prior-year period. It reported a liquidity coverage ratio of 132% for the quarter, compared with 135% in the same period in the previous year.

Westpac Banking Posts Higher Fiscal H1 Adjusted Earnings, Net Operating Income

Westpac Banking (ASX:WBC, NZE:WBC) reported Tuesday fiscal first-half earnings of AU$1.014 per share excluding notable items, up from AU$0.998 a year earlier.Analysts polled by FactSet expected earnings of AU$1.Net operating income for the six months ended March 31 was AU$11.28 billion, compared with AU$10.99 billion a year earlier. Analysts surveyed by FactSet expected AU$11.33 billion.The board declared an interim dividend of AU$0.77 per share, up from AU$0.76 a year earlier, payable June 26 to shareholders on record as of May 11.

Westpac Banking Posts Fiscal H1 EPS (Excluding Notable Items) of AU$1.014, Net Operating Income of AU$11.28 Billion

Australia's Payments Roundtable Seeks Feedback on Draft Vision for Account-to-Account Payments

The Account-to-Account Payments Roundtable released a public consultation on the draft vision for the future of account-to-account payments in Australia on Thursday, defining the desired end-user outcomes and future state for account-to-account payments, according to a same-day statement.The vision seeks to provide certainty to stakeholders on the long-term strategic direction for account-to-account payments in Australia and anchor the industry's development of account-to-account products, services, and underlying infrastructure.It noted the rapid changes, driven by advances in digital technologies such as artificial intelligence, digital assets, and digital identity, and their integration into the payments system.The development of a clear industry roadmap is the next step towards delivering the vision, per the statement. The roadmap will be developed collaboratively in 2026 through the roundtable process.The roundtable includes the Australian Payments Network, Australian Payments Plus, the Reserve Bank of Australia (RBA), and the Commonwealth Treasury. It was established in August 2025 under authorization by the Australian Competition and Consumer Commission.The deadline for the submission of consultations is May 22.

Australian Prudential Regulation Authority Warns Financial Sector Over AI-Related Risks

The Australian Prudential Regulation Authority (APRA) on Thursday called on the financial sector to enhance its management of AI-related risks, warning that information security practices are struggling to keep up with the speed of the technology's adoption.In a letter to the industry, the regulator outlined the findings of a review it launched last year, noting that the growing use of advanced AI is creating multiple new financial and operational vulnerabilities for banks, insurers, and superannuation trustees."Frontier AI models such as Anthropic's Claude Mythos, which could enhance the discovery of vulnerabilities by bad actors, are expected to further increase the probability, speed, and scale of cyber attacks," APRA said.The regulator found that financial corporates have a high interest in the potential benefits of AI usage, but in many cases lack the technical knowledge to effectively manage the associated risks.The APRA is not proposing to introduce additional requirements at this stage but expects to see a "significant improvement" in how the financial sector approaches AI-related risk management and governance.

Westpac Banking Opens Fourth Regional Service Center in New South Wales

Westpac Banking (ASX:WBC, NZE:WBC) opened its fourth regional service center in Yass, New South Wales, the banking and financial services firm said in a statement on Wednesday.The Yass service center follows the completion of new centers in Moree, also located in New South Wales, Leongatha in Victoria, and Smithton in Tasmania, the statement said.The firm also plans to expand its Community Banking Service pilot program to Walcha, New South Wales, by May, per the statement.Westpac shares fell nearly 1% in recent trade in Australia, and fell past 1% in New Zealand.

Westpac NZ Offers Relief to Flood-Affected Whanganui, Wellington Customers

Westpac Banking's (NZE:WBC, ASX:WBC) New Zealand unit is providing financial support to customers affected by severe flooding and landslides across the Whanganui and Wellington regions, including temporary loan repayment suspensions and hardship assistance measures, according to a Tuesday statement by the bank.Support measures may include temporarily suspending loan principal repayments, deferring credit card payments, and providing hardship assistance such as lower repayment amounts, short-term overdraft access, and early access to term deposit funds.Business and agricultural customers may be eligible for up to three months of relief on loan and credit card payments, while consumer customers can receive home loan payment suspensions or other customized support based on their situation.

Australian Banks Back Interest-Free Loans Under Australian Government Program

Australian banks support the roll-out of interest-free loans to businesses through the government's AU$1 billion Economic Resilience Program under the National Reconstruction Fund, the Australian Banking Association said in a statement on Monday.Businesses in identified priority sectors with an annual turnover of AU$100 million or less can secure a zero-interest loan of up to AU$5 million under the program, the banking group said.Banks participating in the program include the Commonwealth Bank of Australia (ASX:CBA), National Australia Bank (ASX:NAB), Westpac Banking (ASX:WBC, NZE:WBC), and ANZ Group (ASX:ANZ, NZE:ANZ), per the statement.Commonwealth Bank shares fell nearly 1% in morning trade in Australia, while National Australia Bank shares were down past 3%.Meanwhile, Westpac Banking and ANZ Group shares fell nearly 1% in recent trade in New Zealand.

Westpac Banking's Downward Annual Guidance Signals Caution as Credit Conditions Hold, Says Jefferies

Westpac Banking (ASX:WBC, NZE:WBC) is faring well with solid fundamentals, but its recent annual earnings guidance cut calls for a cautionary glance on weaker net interest margin, Jefferies said in a note on Tuesday.The bank revised its fiscal 2026 earnings per share down by 3%, dragged down by lower first-half net interest margin due to reduced markets and treasury contribution, one-off costs from the sale of its RAMS mortgage portfolio, and higher loan impairment charges.The investment firm said that provisions increased despite improving asset quality, pointing to a more defensive macroeconomic stance.Analysts at Jefferies also expect Westpac's New Zealand segment to be negatively affected by currency weakness in the first half, creating a modest headwind to earnings.Jefferies reaffirmed a hold rating on Westpac Banking and lifted the price target to AU$34.92 from AU$34.88.