NZE:WBC

New Zealand Banks' Senior Creditors to Benefit From Potential Issuance of Loss-Absorbing Capacity Instruments, Fitch Says

The senior creditors of New Zealand's four largest banks are expected to benefit from resolution debt buffers built by their Australian parents once New Zealand regulators allow for the issuance of loss-absorbing capacity (LAC) instruments, Fitch Ratings said Thursday.The Reserve Bank of New Zealand's new capital framework mandates internal issuance of LAC instruments to the Australian parents, supporting a single point of entry approach to resolution."We believe the placement of such instruments would provide a mechanism for the New Zealand subsidiaries to access the LAC buffers raised by their parents, reinforcing the subsidiaries' position within the parent banks' broader resolution groups," the ratings agency said.As such, Fitch has revised the outlooks on ANZ Group Holdings (ASX:ANZ, NZE:ANZ) unit ANZ Bank New Zealand, Commonwealth Bank of Australia (ASX:CBA) unit ASB Bank, Westpac Banking (ASX:WBC, NZE:WBC) unit Westpac New Zealand, and Bank of New Zealand to positive from stable.It added that New Zealand regulators are likely to allow for the issuance of LAC instruments by late 2028.

Fitch Upgrades Outlook on Westpac New Zealand to Positive, Affirms 'A+' Rating

Fitch Ratings has revised the outlook on Westpac Banking's (ASX:WBC, NZE:WBC) New Zealand unit, Westpac New Zealand (WNZL), to positive from stable, while affirming its "A+" long-term ratings, according to a Thursday note from the credit ratings agency.The positive outlook reflects expectations that WNZL's ratings could be upgraded after it is permitted to issue loss-absorbing capacity instruments to its parent, Westpac Banking, likely by late 2028.Fitch highlighted WNZL's strong market position, sound risk management, and adequate capital and liquidity, while cautioning that weaker asset quality, higher funding costs, and intensifying competition could create pressure.The bank's Common Equity Tier 1 ratio is expected to improve, while Fitch views WBC's New Zealand operations as strategically important, making parental support highly likely if required, Fitch said.

Australian Banking Association Says Former ASIC Deputy Chair to Conduct Banking Code Review

Australian Banking Association said that former Australian Securities and Investments Commission (ASIC) Deputy Chair Peter Kell will conduct a five-yearly independent review of the Banking Code of Practice, according to a Monday statement.The review will include public consultations from customers, consumer groups, small business groups, industry stakeholders, and others.Consultation with stakeholders is expected to begin in October, with an interim report published in March 2027 and the final report with detailed findings and recommendations released in June 2027.

Market Chatter: Westpac Banking Seeks More Private Credit Backing for Loan Portfolio

Westpac Banking (ASX:WBC, NZE:WBC) is adopting a strategy to split up more of its credit portfolio and obtain backing for the loans from private credit and superannuation funds, the Australian Financial Review reported Monday.The company has hired former Goldman Sachs partner Rob Taylor to manage the strategy, which comes amid high demand for exposure to Australian loans and will help the bank free up its balance sheet for use in other areas, according to the report.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.)

Armaguard's Designation Under Cash Distribution Framework Helps Ensure Cash Availability, Australian Banking Association Says

The designation of cash-in-transit operator Armaguard under Australia's Cash Distribution Framework Act will help provide continued stability to the distribution and availability of cash across the economy, the Australian Banking Association (ABA) said Thursday.The Reserve Bank of Australia disclosed the designation in a same-day statement, saying the move makes Armaguard a regulated entity that is subject to requirements designed to support a sustainable and efficient cash distribution system.The designation should provide further certainty for cash distribution amid a decline in cash usage in Australia, the ABA said. It added that banks and retailers have injected over AU$100 million in financial assistance above contractual conditions to Armaguard over the last two years.Commonwealth Bank of Australia (ASX:CBA), National Australia Bank Limited (ASX:NAB), Westpac Banking (ASX:WBC, NZE:WBC), and ANZ Group Holdings (ASX:ANZ, NZE:ANZ) are among the members of the ABA.

Westpac Banking Issues Tier 2 Subordinated Notes

Westpac Banking (ASX:WBC. NZE:WBC) issued AU$250 million fixed-rate to floating-rate callable subordinated notes due Aug. 20, 2036, and AU$1.25 billion floating-rate callable subordinated notes due Aug. 20, 2036, on Wednesday, according to a Friday Australian bourse filing.The notes are expected to be treated as Tier 2 regulatory capital under the Basel III capital adequacy framework, and the issuance is expected to raise its Tier 2 regulatory capital to satisfy Westpac's regulatory requirements.The fixed-rate to floating-rate notes will carry an interest rate of 5.901% per annum payable semi-annually in arrears until the first optional redemption date on Aug. 20, 2031, after which the interest rate shall be based on the bank bill swap rate. The interest rate for the floating rate notes will also be based on the bank bill swap rate.

ACCC Proposes Approval of Regional Multi-Bank ATM Trial

The Australian Competition and Consumer Commission (ACCC) is proposing to approve a regional automated teller machine trial for multi-bank withdrawals and deposits, it said Friday.Under the trial to be conducted by the Australian Banking Association and other financial institutions, all holders of an Australian-issued card will be able to withdraw cash on a fee-free basis, while customers of participating banks will be able to deposit cash without a fee.The ACCC said it proposes to grant authorization for three years, and is seeking feedback on its draft determination by Sept. 3 ahead of a final decision.

Australia's Financial Regulator to Review Banks' Lending Practices, Perform Stress Tests, Amid Slowing Credit Growth

The Australian Prudential Regulation Authority (APRA) will review banks' lending practices over the next 12 to 18 months to safeguard against potentially weaker lending standards amid slowing credit growth, the regulator said Thursday.In the first half of the review period, APRA will prioritize banks' lending to small and medium-sized businesses before increasing its focus on housing lending standards in the second half of the period.The review forms part of the regulator's latest corporate plan, under which it plans to maintain financial system safety and stability without creating undue costs for the industry."As we look across the operating environment, it's clear that the international and domestic economic environments remain challenging," said APRA Chair John Lonsdale. "Geopolitical tensions continue to have economic impacts on inflation, trade relationships and cost-of-living pressures."Additionally, APRA will conduct a joint stress-test exercise with the Reserve Bank of New Zealand to gauge resilience against a severe economic downturn at both the parent and subsidiary bank level. It will also start work on a new system-risk stress test to build on the entity-level testing.The shares of Australia's top banks, some of which have flagged a slowdown in mortgage applications, were lower in recent Thursday trade.Commonwealth Bank of Australia (ASX:CBA) fell nearly 3%, while ANZ Group Holdings (ASX:ANZ, NZE:ANZ), Westpac Banking (ASX:WBC, NZE:WBC), National Australia Bank Limited (ASX:NAB), and Bendigo and Adelaide Bank Limited (ASX:BEN) all shed about 2%.

Westpac Banking Launches Cashback Program for Credit Card Users

Westpac Banking (ASX:WBC, NZE:WBC) said its customers with a hotpoints Mastercard credit card can choose to receive cashback offers from retailers in New Zealand, according to a Monday statement.A total of 26 retailers are currently part of the cashback program, with more set to join. Customers will also continue to earn points which can be spent over the counter anywhere like cash as hotpoints Pay.Rewards, card benefits, and personalized cashback offers will be able to be accessed in one place within the Westpac One online banking platform.

HUB24 Appoints Chief Operating, Innovation Officer

HUB24 (ASX:HUB) appointed Jason Hair as chief operating and innovation officer, according to a Monday statement by the company.Hair joins the company from Westpac Banking (ASX:WBC, NZE:WBC), where he previously served as group chief digital officer.HUB24's shares rose around 2% in recent Tuesday trade.

Australian Shares Fall; Westpac Banking Fiscal Q3 Net Profit Excluding Notable Items Down

Australian shares fell slightly at market close on Monday as uncertainty around the resolution of the conflict in the Middle East continued to weigh on investor confidence.The S&P/ASX 200 Index closed 0.33% lower, or by 31 points, at 9,232.60.Overnight on Aug. 7, the Nasdaq Composite, the S&P 500, and the Dow Jones Industrial Average rose 1.3%, 0.6%, and 0.3%, respectively.Brent crude futures ​rose nearly 1% to around $84 per barrel. Iran said it is negotiating a deal with Oman on shipping through the Strait of Hormuz but reiterated that the US would have to meet its other conditions.In company news, Westpac Banking (ASX:WBC, NZE:WBC) logged AU$1.8 billion in net profit excluding notable items for the fiscal third quarter. In the same period a year ago, net profit excluding notable items was AU$1.9 billion. For the three months ended June 30, net operating income was AU$5.7 billion, unchanged from a year earlier. Its shares fell over 5% on market close.FleetPartners Group (ASX:FPR) said it received an indicative, non-binding and conditional offer after market close on Aug. 7 from Element Fleet Management to acquire all of the outstanding shares in FleetPartners via a scheme of arrangement at an indicative cash consideration of AU$3.80 apiece.CAR Group (ASX:CAR) logged AU$1.076 in adjusted EPS for fiscal year 2026, compared with AU$0.998 a year ago. For the 12 months ended June 30, revenue was AU$1.25 billion versus AU$1.18 billion previously.

Update: Westpac Banking Fiscal Q3 Net Profit Excluding Notable Items Down, Net Operating Income Flat; Shares Down 5%

(Updates with the stock movement in the headline and last paragraph)Westpac Banking (ASX:WBC, NZE:WBC) logged AU$1.8 billion in net profit excluding notable items for the fiscal third quarter, a Monday filing showed.In the same period a year ago, net profit excluding notable items was AU$1.9 billion, per an earlier filing.For the three months ended June 30, net operating income was AU$5.7 billion, unchanged from a year earlier, the Australia and New Zealand dual-listed bank added.The company's Australian and Kiwi shares both shed around 5% in recent Monday trade.

New Zealand Shares Rise; Contact Energy Fiscal 2026 EPS, Revenue Down

New Zealand shares ended higher on Monday as most Asian shares saw gains after a rally in Friday's Wall Street trading session.The S&P/NZX 50 Index rose 0.46% or 64.11 points to close at 13,888.24.On Thursday, the Nasdaq Composite gained 1.3%, the S&P 500 rose 0.6% while the Dow Jones added 0.3%.Iran said it was close to finalizing a shipping lane agreement with Oman through the Strait of Hormuz but insisted the US must meet additional conditions, including paying compensation and lifting sanctions and military threats, before the waterway would reopen, according to a Monday Reuters report.In domestic news, residential property values in New Zealand fell 1.5% across the three months through July as the market remained subdued and buyers grew more cautious, according to the QV house price index.In corporate news, Contact Energy (NZE:CEN, ASX:CEN) logged NZ$0.414 in earnings per share for fiscal 2026, compared with NZ$0.416 a year ago.Westpac Banking (ASX:WBC, NZE:WBC) logged AU$1.8 billion in net profit excluding notable items for the fiscal third quarter.

Westpac Banking Flags Decline in Average Monthly Mortgage Application Volumes; Shares Down 4%

Westpac Banking (ASX:WBC, NZE:WBC) said its average monthly mortgage applications fell 20% between May 15 and the end of July following the Australian government's changes to property tax policy, according to a Monday filing with the Australian bourse.The bank's average monthly volume of mortgage applications declined 11% from the fiscal second quarter to hit 29,000 in the fiscal third quarter.Westpac expects housing credit growth to moderate to 4.7% in fiscal 2027 from 6.8% fiscal 2026 before recovering to 5.2% in fiscal 2028, per the filing.The company also flagged a marginal slowdown in consumer spending since the eruption of the Middle East conflict.Westpac's Australian and New Zealand shares each fell nearly 4% in recent Monday trade.

Westpac Banking Reports Lower Total Capital in Q3, CET1 Rises

Westpac Banking (NZE:WBC, ASX:WBC) reported total capital of AU$96.45 billion for the third quarter ended June 30, down from AU$97.41 billion in the same period in the previous year, according to a Monday Australian bourse filing.Common equity tier 1 was AU$56.02 billion, up from AU$54.58 billion last year, while the liquidity coverage ratio was flat at 134%.

Westpac Banking Fiscal Q3 Net Profit Excluding Notable Items Down, Net Operating Income Flat

Westpac Banking (ASX:WBC, NZE:WBC) logged AU$1.8 billion in net profit excluding notable items for the fiscal third quarter, a Monday filing showed.In the same period a year ago, net profit excluding notable items was AU$1.9 billion, per an earlier filing.For the three months ended June 30, net operating income was AU$5.7 billion, unchanged from a year earlier, the Australia and New Zealand dual-listed bank added.

Westpac Banking Posts Fiscal Q3 Net Profit (Excluding Notable Items) of AU$1.8 Billion, Net Operating Income of AU$5.7 Billion

Locality Planning Energy Secures AU$7.2 Million Banking Facility with Westpac, Shares Up 12%

Locality Planning Energy Holdings (ASX:LPE) entered a AU$7.2 million secured banking facility with Westpac Banking (ASX:WBC, NZE:WBC) across three tranches, according to a Friday Australian bourse filing.The banking facility is structured as a AU$3 million project funding facility, a AU$3.7 million line of credit, and a AU$500,000 revolving equipment finance facility.The banking facility will consolidate the firm's existing facilities into a single arrangement and support its working capital requirements.Its shares rose 12% in recent trading on Friday.

Westpac Banking Partners With Amp Frontier to Launch AI Lab in Australia

Westpac Banking (ASX:WBC, NZE:WBC) has partnered with San Francisco-based artificial intelligence (AI) research lab Amp Frontier to establish Amp Labs in Australia, aimed at accelerating software development and advancing digital transformation, according to a Friday statement by the bank.The collaboration will leverage AI-powered software engineering tools to optimize workflows, minimize repetitive tasks, and accelerate the delivery of enhanced customer and employee experiences.The partnership aligns with the bank's broader AI strategy to enhance internal capabilities, develop skills, and support the growth of Australia's AI ecosystem.

Market Chatter: Westpac Banking Uses AI Agents to Assess Mortgage, Credit Card Applications, AFR Reports

Westpac Banking's (ASX:WBC) workers are using artificial intelligence agents in a multi-agent system, built using AWS's Bedrock AgentCore system, to assess mortgage and credit card applications, the Australian Financial Review (AFR) reported on Wednesday, citing the bank's chief digital, data, and AI officer, Andrew McMullan.One agent assessed borrowers' accounts, classifying transactions to reduce the need for manual reviews, another extracted payslip data, while a third verified the income and conducted the calculations against lending policies.The agents processed over 1.5 million transactions and saved 12,500 hours for workers in July, the first month of operation.(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.)