WBC - Westpac Banking Corporation

[moXJO]

Isn't WBC subject to a lawsuit or something?
I was reading a report the other day that it and cba were in the worst position. Anz apparently the least at risk.

 

[InsvestoBoy]

WBC has already breached the lows of the GFC in one single month. First downside target from here is $8 - $9.50. Purely an observation.

View attachment 101712

Your observation is missing dividends

 

[sptrawler]

Isn't WBC subject to a lawsuit or something?
I was reading a report the other day that it and cba were in the worst position. Anz apparently the least at risk.

From memory, Austrac are after them for non reporting of money laundering, or something to do with it.
I think in the current climate it will probably be put on hold, untill a degree of calm falls over the banking industry and economy in general.
Just my opinion

 

[sptrawler]

Hopefully some sort of mediated outcome is sorted between AUSTRAC and WBC.

https://www.watoday.com.au/business...with-austrac-court-hears-20200330-p54f8v.html

 

[qldfrog]

Hopefully some sort of mediated outcome is sorted between AUSTRAC and WBC.

https://www.watoday.com.au/business...with-austrac-court-hears-20200330-p54f8v.html

Austrac might want some cash while the bank is still alive...

 

[sptrawler]

Westpac to suspend dividend, profits fall 70%.
I guess that has two effects, one lending will tighten and two so will my belt.

https://www.smh.com.au/business/ban...ofits-plunge-70-per-cent-20200504-p54ph2.html

 

[cutz]

Yep another day of disappointment, I guess it was expected.

 

[MrChow]

Keeping profits as capital would be my preference over raising at the bottom like 2008 and I think positive SP movement today has reflected that.

It's going to take until 2022 before the bad debt cycle normalises (in a good case scenario) so have to forecast medium term if thinking about getting back to peak dividend yields of 10%+ gross.

 

[cutz]

Keeping profits as capital would be my preference over raising at the bottom like 2008 and I think positive SP movement today has reflected that.

It's going to take until 2022 before the bad debt cycle normalises (in a good case scenario) so have to forecast medium term if thinking about getting back to peak dividend yields of 10%+ gross.

Agree with you there mate, but disappointing nevertheless, many of us rely on divis.

 

[sptrawler]

Agree with you there mate, but disappointing nevertheless, many of us rely on divis.

Yes it is going to be a tight year, dividends next to nothing, interest next to nothing and franking next to nothing. A lot of self funded will be eating capital this year, big time.

 

[sptrawler]

A good article on the Westpac anti money laundering issue, it will be interesting to see the end result of the proceedings.

https://www.smh.com.au/business/ban...lights-directors-dilemma-20200604-p54zfp.html

 

[sptrawler]

The Judge presiding over the Westpac case, has called for a line to be drawn under proceedings.

https://www.smh.com.au/business/ban...e-for-new-westpac-claims-20200617-p553gd.html

 

[sptrawler]

The Australian Securities and Investments Commission (ASIC) on Wednesday said it would not appeal the "wagyu and shiraz" case it has been fighting against Westpac over responsible lending, after its Federal Court appeal was rejected last month.

"While it would have been open to ASIC to seek special leave to appeal to the High Court to obtain a ruling on the construction of the statute, ASIC is mindful of the impact of the additional time required to resolve this matter in the current challenging economic circumstances," ASIC said.
ASIC had accused Westpac of breaching responsible lending laws, but its claim was rejected in a 2019 ruling by Federal Court Justice Nye Perram, who said borrowers could ditch luxuries such as wagyu steak and shiraz to afford a home loan.

 

[sptrawler]

Westpac not paying a dividend again, the pain continues for the self funded.
https://www.smh.com.au/business/ban...due-to-uncertain-outlook-20200818-p55mox.html

 

[Knobby22]

Sell buy BFG.
I warned you on Feb 28 on this thread.

 

[sptrawler]

Sell buy BFG.
I warned you on Feb 28 on this thread.

Unfortunately my other half is risk averse and thinks the banks are safer, as if.
I did actually suggest we sell half our bank holdings, she didn't agree, that is the downside of a SMSF with two members IMO.

 

[tinhat]

Unfortunately my other half is risk averse and thinks the banks are safer, as if.
I did actually suggest we sell half our bank holdings, she didn't agree, that is the downside of a SMSF with two members IMO.

Well, they won't go broke and they will pay a dividend. But as @Knobby22 suggests, there might be some alternatives worth looking at.

Martin North gave a very interesting opinion on where the money is coming from to sustain bank dividends in the interview below. There appears to be a lot of behind the scenes intervention propping up the banking sector at the moment. Martin's comments suggest that policy makers know how important bank share dividends are to many retirees and they reminded me of the AFR article "APRA gives banks wriggle room on dividends", 29 Jul 2020:

"Like that great Australian legal mind Dennis Denuto from The Castle, Australian Prudential Regulation Authority chairman Wayne Byres has given Australia's banks a "vibe of the thing" type of guidance on dividends.

"It's good news for investors – although exactly how good remains to be seen.

"The key part of APRA's guidance is that it will ask banks – but not tell them – to cap dividend payouts to 50 per cent of earnings. That's a fair step back from it's previous guidance that banks should defer dividends completely."

 

[tinhat]

Unfortunately my other half is risk averse and thinks the banks are safer, as if.
I did actually suggest we sell half our bank holdings, she didn't agree, that is the downside of a SMSF with two members IMO.

Also, if it means your wife can sleep at night then these are the things that matter. Happy wife, happy life.

 

[tinhat]

Martin North gave a very interesting opinion on where the money is coming from to sustain bank dividends in the interview below.

Sorry, I forgot to embed the video of the interview...

 

[sptrawler]

Also, if it means your wife can sleep at night then these are the things that matter. Happy wife, happy life.

After 44 years of marriage you learn that one, it is o.k doing the daring, but they only remember the losses not the wins.