Westpac (ASX:WBC) Share Price Surges to Near Seven-Year Highs Amid Investor Confidence

September 18, 2024 11:24 AM AEST | By Team Kalkine Media

Google News:

Westpac (ASX:WBC) Share Price Surges to Near Seven-Year Highs Amid Investor Confidence — Image source: © Nilsversemann | Megapixl.com

Recent News

Resolution Minerals (ASX:RML) to Host Webinar on U.S. Expansion and Ho...

AsiaPay Partners with Tai Wo Management to Launch JOIE digital Payment...

Miners Lead the Charge as ASX Set for a Positive Open

Shares of Westpac Banking Corp (ASX:WBC) continue their upward trajectory, reaching nearly seven-year highs, as investors maintain their confidence in the ASX 200 bank stock. After closing at AU$32.79 on Monday, Westpac shares rose by 0.7% to AU$33.03 during early afternoon trade on Tuesday. This modest gain brings the share price close to levels not seen since November 2017, pushing the bank’s market capitalization to AU$113.8 billion.

Westpac Outpaces the Market

Westpac's stock performance has been impressive, climbing 52.2% over the past year. In comparison, the broader S&P/ASX 200 Index (ASX:XJO) has gained only 12.5% over the same period. While other major Australian banks have also seen gains, Westpac’s share price leads the pack, with ANZ Group Holdings Ltd (ASX:ANZ) up 20.9%, National Australia Bank Ltd (ASX:NAB) rising 30.8%, and Commonwealth Bank of Australia (ASX:CBA) increasing by 39.4%.

Notably, Westpac shareholders have also benefited from AU$1.62 per share in fully franked dividends, bringing the total return to 57.9% over the last 12 months.

Key Drivers Behind Westpac's Performance

Several factors have driven Westpac’s strong stock performance. Despite reporting a 4% year-on-year decline in net operating income to AU$10.59 billion and an 8% drop in net profit to AU$3.51 billion at its half-year results, investors remain optimistic. The bank's ability to maintain stable net interest margins (NIM) amid easing mortgage competition has been a key positive factor.

Moreover, Westpac's expanded share buyback program, which increased by AU$1 billion to a total of AU$2.5 billion, has bolstered investor sentiment. Additionally, the banking sector's resilience in navigating a challenging environment of high inflation and interest rates, with only a slight increase in bad loans, has contributed to the positive momentum for Westpac.

What’s Next for Westpac?

Looking ahead, Westpac is poised for a leadership transition, with CEO Peter King set to be replaced by Anthony Miller.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.