Westpac Banking Corporation ADRWBK

Morningstar Rating

Stock Research and Analysis

by Peter Warnes

Westpac Banking Corporation is one of the four major banks operating in Australia. It offers a full suite of banking and financial services to the consumer, business, and corporate sectors. It also operates throughout New Zealand and the South Pacific Read more

Bulls Say

Westpac is a consistently profitable company. The dominance of the large banks has been bolstered by the onset of the credit crisis as a result of their superior balance sheets.

Good operational momentum through all business units is underpinned by the strong domestic economy and historically low unemployment.

Operating efficiency continues to improve with economies of scale.

New management should bring cultural change and lead to improvements in productivity and efficiency. Read more

Bears Say

New CEO Gail Kelly has little experience in institutional banking, a significant part of the Westpac operation. Read more

Strategy

Westpac has maintained a conservative tilt since the debacle of the early 1990s, which saw large losses stemming from poor lending practices and overly ambitious international expansions. Subsequently, Read more

Management

Westpac's management has been the most conservative of the four major Australian banks during the last five years. Under the leadership of David Morgan, Westpac delivered solid and sustainable earnings and dividend growth. What has been impressive is Read more

Profile

Westpac Banking Corporation is Australia's oldest bank and operates a sound banking franchise in Australia and New Zealand with a balanced exposure to both the retail, corporate, Read more

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