Westpac’s share price tumbled in early trade as company announced fall in its net interest margin for the third quarter ending June 2018. Financial services group today revealed that its net interest margin for 3Q18 has reduced to 2.06% compared to 2.17% in 1H18, due to higher cost of getting funds and lower contribution from Group’s Treasury.
The Pillar 3 Report released 11 bp decline in the net interest margin (NIM) of the group, which governs the core revenue generation of the bank. This margin pressure is greatly attributable to sharp rise in bank bill swap rate (BBSW) which impacts group margin to decline by 1bp with every 5pb upside movement.
In June quarter 2018, Westpac (ASX: WBC) recorded on average 24bps change in BBSW, moving upwards, compared to first half of 2018.
As the gap narrows between what the bank earns and what it pays to its lenders, Westpac’s stock dropped by 1.97% to $27.79 on 24 August 2018, 2:20 PM AEST.
The Income available from dividends remains attractive for many investors.
We take a look at the best yields on the market and assess what they say about a company’s prospect.
One Thing is certain, though, Australia interest rates are still low, making income difficult to come by and keeping the focus for many investors on high yielding stocks. Kalkine’s team of analysts bought you handpicked report for “Top 25 Dividend Stocks For 2018.”
ASX-relevant Special Reports are published year-round to provide a detailed analysis into an investing opportunity or a potential risk to your portfolio.
Click here to get your free report.
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkinemedia.com and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.
There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.
Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.
As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.