WBC - Westpac Banking Corporation

[macduffy]

SP already retreating.

Let's see what happens when the ASX opens.

[bottomfeeder]

Let's see what happens when the ASX opens.

Yep Aussies applaud WBC pushing the RBNZ around.

[Baa_Baa]

WBC posturing will see them lose the Government Account. I believe they think they are such a large company, and little old NZ can be pushed around to change their requirement for extra capital. SP already retreating.

The [central] Government [agencies] 'account' is not exclusive to Westpac since the last contract round, and it is a tiny rounding error on their total NZ revenue. The account is a strategic position, giving access to the agencies CFO, CEO's and government Ministers.

I won't be surprised if talk of selling WBNZ is just a tactical push back on RBNZ after they've been hammered by regs, reviews, restrictions, etc etc.

[mikelee]

good for customer to have so much competitions but NZ market is simply too small for so many banks

[ynot]

The [central] Government [agencies] 'account' is not exclusive to Westpac since the last contract round, and it is a tiny rounding error on their total NZ revenue. The account is a strategic position, giving access to the agencies CFO, CEO's and government Ministers.

I won't be surprised if talk of selling WBNZ is just a tactical push back on RBNZ after they've been hammered by regs, reviews, restrictions, etc etc.

Yes, tactical push came to mind.
Why would they want to sell if the 3 kiwi branches of the big 3 are as suggested the "jewels in the crown" for them. They make a better return on investment in nz than back home.

[macduffy]

Yes, tactical push came to mind.
Why would they want to sell if the 3 kiwi branches of the big 3 are as suggested the "jewels in the crown" for them. They make a better return on investment in nz than back home.

That's my pick, too, ynot. NZ has consistently provided around 20% of Aussie banks' profits from around 15% of their business.

As for NZ being too small for "so many banks", the opposite, not enough competition, is a more frequently heard comment.

[traineeinvestor]

From Hotcopper:

"The high costs [or RBNZ regulatory changes] involved have challenged the outlooks of the Australian-headquartered Big Four lenders, with analysts estimating their return on equity ratios could fall by between half and a third from the about 15% they used to deliver."

"With profitability becoming more challenging, "we don't think an Australian bank owning a New Zealand bank makes sense," Johnson said." [Brian Johnson is an analyst with Jeffries]

"Westpac's New Zealand unit represents about 10% of its earnings and credit exposure. According to KPMG, it could be valued at over A$10 billion"

https://hotcopper.com.au/threads/news-wbc-westpac-could-lead-australian-exit-from-new-zealand-banking.5977385/

Disclosure: held

[Waltzing]

would not be surprised if costs for customers go up..

or a reduction in services until they ROI moves back up.

it could be a way of getting the big ANZ, WBC to push up costs.

how much competition do they really have.

Else they get grumpy ... moan a lot and then accept the status Q.

[Bjauck]

That's my pick, too, ynot. NZ has consistently provided around 20% of Aussie banks' profits from around 15% of their business.

As for NZ being too small for "so many banks", the opposite, not enough competition, is a more frequently heard comment.

. It is shameful that so much of NZ's banking business is overseas owned. All that residential property mortgage business providing profits for Australian shareholders! Those big Aussie owned banks were among the biggest beneficiaries of the debt-fuelled NZ preference for investing in housing/land as opposed to shares?

Disc: HGH shareholder

[Greekwatchdog]

I would like to see a consortium of Kiwibank lead with ACC and Super Fund to buy. I wonder if they had the $10b between them...