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May 8 (Reuters) - Australia's Westpac Banking Corp (WBC.AX) on Monday threw out a cost-cutting target citing inflation and flagged thinner profit margins going ahead, but investors pushed its shares higher after it handily beat expectations for first-half profit. Westpac shares closed 2% higher, ahead of a broader market advance (.AXJO) of 0.8%, as the market cheered the better-than-expected profit. Costs for Westpac came to A$5 billion for the half, down from A$5.2 billion a year earlier. Westpac declared an interim dividend of 70 Australian cents per share, up from 61 Australian cents last year. ($1 = 1.4810 Australian dollars)Reporting by Roushni Nair in Bengaluru; Editing by Lisa ShumakerOur Standards: The Thomson Reuters Trust Principles.

☆ Westpac H1 profit jumps on higher interest rates, flags second-half margin pressures
▼ + stars: | 2023-05-07 | by ( ) www.reuters.com time to read: +1 min

Intense mortgage competition is expected to negatively impact industry and Westpac’s margins in the next half," it said. The country's No.3 lender said net profit came in at A$4.00 billion ($2.70 billion) for the six months ended March 31, compared with A$3.28 billion a year earlier. Net interest margin - the difference between interest earned from lending and paid for deposits - rose 5 basis points from a year earlier to 1.96% at the end of March. Westpac declared an interim dividend of 70 Australian cents per share, as compared with 61 Australian cents last year. ($1 = 1.4819 Australian dollars)Reporting by Roushni Nair in Bengaluru; Editing by Lisa ShumakerOur Standards: The Thomson Reuters Trust Principles.

2 lender, fell short of analyst forecasts in half-year profit released on Thursday and took a hit to its share price after warning that the windfall from rising interest rates had peaked. The update signals a tough new phase for Australia's lenders which have benefited from a year of rising interest rates by charging more to borrowers while limiting the amount they pay deposit-holders. "What the market's concerned about is the exit NIM (net interest margin)," said Hugh Dive, chief investment officer at Atlas Funds Management which holds bank stocks. In personal banking, which includes mortgages, profit shrank slightly due to a A$393 million impairment charge. The bank had telephoned 7,000 borrowers deemed to be most vulnerable to rising interest rates and just 13 had requested assistance.

☆ Bank of Japan unlikely to end yield curve control before the fourth quarter, strategist says
▼ + stars: | 2023-04-20 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailBank of Japan unlikely to end yield curve control before the fourth quarter, strategist saysSean Callow of Westpac Bank says he doesn't expect the "inflation dynamics" to change before then and "it might even be a case of next year."

☆ U.S. banks fallout will intensify margin headwinds for Aussie lenders, UBS says
▼ + stars: | 2023-03-29 | by ( ) www.reuters.com time to read: +2 min

Australian banks are "well regulated" and carry strong liquidity coverage ratios, UBS said. Regulators and bankers insist the country's banks, bolstered by post-global financial crisis reforms, are well placed to handle the solvency and liquidity shocks that rocked lenders overseas like Silicon Valley Bank in the United States. Competition for mortgages, accounting for anywhere between 45% and 65% of net interest income of banks, "has never been fiercer," with some banks "sub-economically" pricing new business, UBS said. Still, the brokerage expects the bank to report strong first half earnings on sustained operational momentum. Three of the "Big Four" banks barring CBA lost between 1% and 5% from March 10 when the first signs of trouble surfaced at the tech-focused lender Silicon Valley Bank.

☆ Dollar slumps as banking crisis chips away at its haven status and makes further Fed rate hikes a coin flip
▼ + stars: | 2023-03-23 | by ( George Glover | ) www.businessinsider.com time to read: +3 min

The US dollar has slipped 2% over five trading days as the banking crisis rattles investors. The collapse of SVB and Signature Bank may threaten the greenback's haven status, one analyst said. The buck's run of losses follows the collapse of Silicon Valley Bank and Signature Bank earlier this month. The Fed shying away from hikes could also weigh on the dollar. Read more: The Fed's latest move confirms it's trying to thread the needle between cooling inflation and helping banks in turmoil

☆ U.S. dollar and Swiss franc are 'easily the weakest' of major currencies, strategist says
▼ + stars: | 2023-03-23 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailU.S. dollar and Swiss franc are 'easily the weakest' of major currencies, strategist saysSean Callow of Westpac Bank says they're "not getting that traditional safe haven demand."

☆ Australia regulator seeks risk reports from banks on startups, crypto -report
▼ + stars: | 2023-03-22 | by ( ) www.reuters.com time to read: +1 min

SYDNEY, March 22 (Reuters) - Australia's prudential regulator has started asking the country's banks to declare their exposure to startups and crypto-focused ventures following the collapse of Silicon Valley Bank, according to the Australian Financial Review (AFR). The APRA declined to comment on the report but referred to its statement last week that it would intensify supervision of the local banking industry and seek more information on any potential impact from Silicon Valley Bank's collapse. ANZ Group Holdings (ANZ.AX) declined to comment, while Commonwealth Bank of Australia (CBA.AX), Westpac Banking Corp (WBC.AX) and National Australia Bank (NAB.AX) did not immediately respond to requests seeking comment. Treasurer Jim Chalmers last week said Australia was in a good position to withstand some of the market volatility because the country's banks were well capitalised, well regulated and had strong liquidity. Reporting by Renju Jose in Sydney; Editing by Jamie FreedOur Standards: The Thomson Reuters Trust Principles.

[1/4] A combination of photographs shows people using automated teller machines (ATMs) at Australia's "Big Four" banks - Australia and New Zealand Banking Group Ltd (bottom R), Commonwealth Bank of Australia (top R), National Australia Bank Ltd (bottom L) and Westpac Banking Corp (top L). REUTERS/StaffSYDNEY, March 17 (Reuters) - An A$300 billion ($201.21 billion) refinancing task for Australia's biggest banks is about to get harder, say analysts, as appetite for new debt shrinks across global markets roiled by concerns about bank stability and liquidity. "Now major banks don't have to hit markets everyday... but ultimately banks can't stay out of the market forever." Refinancing today would add extra 5 to 10 basis points to banks' costs versus a week and a half ago, he added. ($1 = 1.4910 Australian dollars)Reporting by Lewis Jackson and Scott Murdoch; Editing by Simon Cameron-MooreOur Standards: The Thomson Reuters Trust Principles.

☆ Australian regulator says banks paid $3.10 bln in compensation for wrongly charged fees
▼ + stars: | 2023-03-10 | by ( ) www.reuters.com time to read: +1 min

[1/3] Australian dollars are seen in an illustration photo February 8, 2018. REUTERS/Daniel MunozMarch 10 (Reuters) - Australia's corporate watchdog said the country's six largest banking services providers have paid or offered A$4.7 billion ($3.10 billion) in compensation to customers who suffered losses for fees charged for services that were not provided. The largest business lender in Australia, NAB, took the lead and coughed up A$1.49 billion in compensation as of the end of 2022, followed by CBA and Westpac coughing up a payout of A$1.13 billion and $1.03 billion, respectively. ASIC said its final update on remediation figures "draws a line" under its eight-year long programme of addressing financial institutions' failure to provide ongoing services to fee-paying customers. ($1 = 1.5177 Australian dollars)Reporting by Riya Sharma in Bengaluru; Editing by Krishna Chandra Eluri and Rashmi AichOur Standards: The Thomson Reuters Trust Principles.

☆ Australia's 'Big Four' banks to hike home loan rates to match RBA move
▼ + stars: | 2023-03-09 | by ( ) www.reuters.com time to read: +1 min

March 9 (Reuters) - Australia's so-called 'Big Four' banks said on Thursday they would pass on the central bank's latest quarter-percentage point interest rate hike in full to their home loan customers. Among the top four lenders, the Commonwealth Bank of Australia (CBA.AX), National Australia Bank (NAB.AX), and ANZ Group Holdings (ANZ.AX) will hike their rates from March 17, while Westpac Banking Corp's (WBC.AX) will hike its rates from March 21, the banks said in separate statements. Interest rates in the country have already gone up by 350 bps since last May, when they were at an all-time low of 0.1%. However, RBA Governor Philip Lowe said the central bank was closer to pausing its aggressive cycle of rate increases as policy was now in restrictive territory, and suggested a halt could come as soon as April. Reporting by Navya Mittal and Himanshi Akhand in Bengaluru; Editing by Rashmi AichOur Standards: The Thomson Reuters Trust Principles.

[1/3] Students walk past stalls during the orientation week at The University of Sydney, in Camperdown, Australia February 15, 2023. 'BIG RUSH'The shortage has meanwhile jumpstarted one of the few subsets of Australian residential property, the student accommodation sector, that languished during COVID. Before 2020, Chinese students accounted for about 40% of the A$40 billion ($27 billion) Australia made educating foreigners annually. But China's reopening has raised the issue about the availability of beds in a "welcome sign" for investors, said Brad Williams, managing director of AMP Capital's diversified infrastructure trust, Australia's third-largest owner of purpose-built student accommodation. Tomas Johnsson, CEO of UniLodge Australia, the country's biggest operator of purpose-built student accommodation, said some developers were even paying more to speed up construction.

☆ Australia's Big Four banks pass c.bank rate hike to home loan customers
▼ + stars: | 2022-12-06 | by ( ) www.reuters.com time to read: +1 min

Dec 6 (Reuters) - All of Australia's "big four" banks said on Tuesday they will raise their home loan rates by a quarter-point, passing on the central bank's eighth rate hike in as many months to their customers in full. Earlier on Tuesday, the Reserve Bank of Australia lifted its cash rate by 25 basis points to a 10-year high of 3.1%, and reiterated that further policy tightening would be needed to contain inflation. The top four lenders, the Commonwealth Bank of Australia (CBA.AX), National Australia Bank (NAB.AX) and Australia and New Zealand Banking Group's (ANZ.AX) will hike their rates from the end of next week, while Westpac Banking Corp's (WBC.AX) hike will be effective December 20, the banks said in separate statements. However, heightened borrowing costs could impact credit demand, housing market, employment and economic growth, posing as challenges to the lenders. Reporting by Rishav Chatterjee and Echha Jain in Bengaluru Editing by Vinay Dwivedi and Nivedita BhattacharjeeOur Standards: The Thomson Reuters Trust Principles.

☆ Australian banking system cushioned for imminent climate change-related risks - regulator
▼ + stars: | 2022-11-30 | by ( ) www.reuters.com time to read: +2 min

Nov 30 (Reuters) - Potential economic downturns caused by climate change could pose risks to the loan books of Australia's top five banks without resulting in any severe stress to the system and the economy, a risk study conducted by the country's banking regulator showed. With global focus sharply pivoting towards climate change, banks have come under increased scrutiny for their ties with fossil fuel projects, prompting them to set goals to cut emissions and raise investments in clean energy projects. These banks have "predicted they would adjust their risk appetite and lending practices, such as cutting back on high loan-to-valuation lending and reducing exposure to higher risk regions and industries", the regulator said. APRA will now consider how the assessment could be applied to other regulated industries and climate-related challenges, it said. ($1 = 1.4948 Australian dollars)Reporting by Sameer Manekar and Tejaswi Marthi in Bengaluru; editing by Uttaresh.V and Subhranshu SahuOur Standards: The Thomson Reuters Trust Principles.

Nov 14 (Reuters) - Three of Australia's 'big four' banks settled separate class action lawsuits for A$126 million ($84.51 million) with Slater & Gordon (SGH.AX), who took the banks to court two years ago over sale of credit insurance products, the companies said on Monday. Law firm Slater & Gordon in 2020 filed class action lawsuits against Commonwealth Bank of Australia (CBA.AX), Westpac Banking Corp (WBC.AX), and Australia and New Zealand Banking Group (ANZ.AX) on behalf of around one million customers. ANZ, along with QBE Insurance, and OnePath Life and OnePath General Insurance, indirect units of Swiss firm Zurich Insurance Group (ZURN.S), will pay a total of A$47 million to their customers under the settlement, with ANZ contributing A$42 million, Slater & Gordon said. Westpac would pay A$29 million, subject to court's approval. ($1 = 1.4910 Australian dollars)Reporting by Sameer Manekar in Bengaluru; editing by Diane Craft and Rashmi AichOur Standards: The Thomson Reuters Trust Principles.

The banks are now less conservative in counting expected rental income when assessing loan applications, said the four sources. In September, about a third of new bank mortgage lending was for investment. On Nov. 12, NAB will also halve its discount on rental income to 10%, including for Airbnb-like short-term rentals, the sources said. NAB, Westpac and ANZ trail market leader Commonwealth Bank of Australia (CBA.AX), which has a quarter of the mortgage market. Commonwealth continues to apply a rental income discount of 20% on mortgage applications, a sixth source said.

☆ Australia's NAB flags slowing lending growth from rising rates, shares fall
▼ + stars: | 2022-11-09 | by ( Sameer Manekar | ) www.reuters.com time to read: +2 min

[1/2] A National Australia Bank (NAB) logo is pictured on an automated teller machine (ATM) in central Sydney September 12, 2014. The country's second-largest lender also warned that economic uncertainty created by rising interest rates owing to soaring inflation could challenge some customers, however, said it expects strong employment conditions and substantial home and business savings helping it weather the impact. NAB forecasts a steep decline in business and housing lending volumes in fiscal 2023 in Australia, with business credit growth seen decelerating to 3.6% from 14.7% in fiscal 2022. NAB, the country's biggest business lender, recorded strong growth in its business and home lending during the year ended September, with windfall benefit from rising interest rates boosting its cash earnings to A$7.10 billion ($4.62 billion). That compares with A$6.56 billion reported a year earlier and analysts' estimate of A$7.08 billion, according to Refinitiv Eikon.

☆ Australia's Westpac to tap U.S. dollar bond market - term sheet
▼ + stars: | 2022-11-09 | by ( Scott Murdoch | Thomson Reuters | Scott Murdoch Has Been A Journalist For More Than Two Decades Working For Thomson Reuters | ) www.reuters.com time to read: +1 min

SYDNEY, Nov 9 (Reuters) - Australia's Westpac Banking Corp (WBC.AX) has mandated banks to work on two- and five-year U.S. dollar bond issuances, according to a term sheet reviewed by Reuters. Westpac raised A$2.8 billion ($1.82 billion) in an Australian-dollar-denominated bond on Monday, domestic media said. The bank plans to issue in U.S. dollars a two-year fixed rate bond, a two-year floating rate note, and a five-year fixed rate transaction, the term sheet showed. The final pricing is due to be set later in the New York trading session on Wednesday, subject to market conditions, according to the term sheet. Westpac planned to use the U.S. dollar proceeds from the bonds for general corporate purposes, the term sheet showed.

☆ Australian lender Westpac sees profit drop on charge, raises cost target
▼ + stars: | 2022-11-06 | by ( Harshita Swaminathan | ) www.reuters.com time to read: +2 min

3 lender Westpac Banking Corp (WBC.AX) on Monday reported a drop in annual earnings, hit by a charge on the sale of its life insurance unit, and raised cost guidance as it flagged lower home prices and higher unemployment into 2023. Westpac revised its target for costs incurred to A$8.6 billion ($5.52 billion) by fiscal 2024 from a prior target of A$8 billion, citing wage increases from a tight labour market and continued regulatory costs. Westpac's cost target excludes its specialist business and some other items. Analysts at Citi said this implies a total cost base of A$9.2 billion for fiscal year 2024, which consensus estimates have already priced in. Shares of the lender fell over 3% to A$23.38, while the broader market (.AXJO) was up 0.5%.

☆ Australian lender Westpac's profit falls on charge, raises target for costs
▼ + stars: | 2022-11-06 | by ( ) www.reuters.com time to read: +2 min

Westpac also revised its target for costs incurred up to A$8.6 billion by the 2024 financial year, citing wage increases from a tight labour market and continued regulatory costs. The new cost target marks a departure from its A$8 billion by FY24 target set in May 2021, as part of a cost-cutting exercise which analysts had termed "ambitious". However, the bank saw a 19% reduction in annual operating expenses, benefitting from lower asset writedowns and lower staff expenses. read moreWhile its lending margins in the second half did recover slightly from the first half, full-year margins were still down 13 basis points from last year. Westpac declared a final dividend of 64 Australian cents per share, compared with 60 Australian cents last year.

☆ Australia's Westpac sees $824 mln hit in second half from unit sale
▼ + stars: | 2022-10-24 | by ( ) www.reuters.com time to read: +1 min

Oct 24 (Reuters) - Australia's Westpac Banking Corp (WBC.AX) warned on Monday that its second-half reported net profit and cash earnings will be reduced by A$1.3 billion ($824 million) after tax, citing a loss on the sale of its life insurance business, among others. Westpac, the country's third-largest lender, said the one-off charge will have a net positive impact of 12 basis points (bps) on its common equity tier 1 capital ratio as the unit sale added 17 bps. Westpac is set to announce its fiscal 2022 results on Nov. 7. Rivals National Australia Bank (NAB.AX) and Australia and New Zealand Banking Group (ANZ.AX) will report their annual results on Nov. 9 and Oct. 27, respectively. ($1 = 1.58 Australian dollars)Register now for FREE unlimited access to Reuters.com RegisterReporting by Sameer Manekar in Bengaluru; Editing by Maju SamuelOur Standards: The Thomson Reuters Trust Principles.

☆ Australia's Tyro Payments shares jump on takeover talks with Westpac, others
▼ + stars: | 2022-10-17 | by ( ) www.reuters.com time to read: +2 min

Oct 18 (Reuters) - Australia's Tyro Payments Ltd (TYR.AX) confirmed on Tuesday it was in preliminary takeover talks with selected parties, including no.3 lender Westpac Banking Corp (WBC.AX), sending shares of the payment terminals firm up more than 5%. Tyro last month rejected a A$1.27 per share indicative offer from a private equity consortium led by Potentia Capital Management. Westpac on Tuesday separately confirmed the talks in a brief statement and said a potential deal would strengthen its small business proposition. "From a Tyro perspective, it's clear that Westpac would have significantly more synergies than the PE consortium. He said the logic of synergies from a deal for Tyro should also apply to Westpac's rivals National Australia Bank (NAB.AX) and Australia an New Zealand Banking Group (ANZ.AX).

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