19.56 0.00 (0.00%)
After hours: 4:48PM EDT
|Bid||19.57 x 800|
|Ask||19.99 x 1000|
|Day's Range||19.42 - 19.61|
|52 Week Range||16.41 - 22.20|
|Beta (3Y Monthly)||0.69|
|PE Ratio (TTM)||11.50|
|Forward Dividend & Yield||1.32 (6.73%)|
|1y Target Est||19.15|
(Bloomberg) -- Australia’s banking regulator has softened its capital buffer requirement on the nation’s largest banks after they argued that there wasn’t sufficient market capacity available to raise the necessary funds.The so-called Big Four banks will need to lift their total capital by three percentage points of risk-weighted assets by January 2024, less than an initial target of four to five percentage points, the Australian Prudential Regulation Authority said in a statement on Tuesday. The higher target remains the longer-term goal once APRA has considered ways to boost the pool of available capital.APRA proposed changes to the country’s capital adequacy framework last November to better ensure lenders could be wound-up in an orderly fashion in the event of failure. S&P Global Ratings welcomed the move on Tuesday, raising its outlook on the four banks.Bank regulators around the world are taking steps to boost the loss-absorbing capacity of systemically important banks in a bid to safeguard the financial system in the event of another crisis. APRA is adopting a simpler approach to other jurisdictions, allowing banks to issue Tier-2 capital that converts to ordinary shares or is written off at the point of non-viability.The softening of the additional capital buffers comes after the banks raised concerns the market wasn’t able to absorb the extra Tier-2 capital issuance and had the potential to excessively increase funding costs as they battle declining profitability. The regulator estimates the extra A$50 billion ($35 billion) the major banks will need to raise will lift their overall funding costs by less than five basis points.Reduce Risk“Although APRA’s proposed response may increase funding costs for Tier 2 instruments issued by major banks, overall funding cost increases can be expected to remain small,” APRA Deputy Chairman John Lonsdale said. “Increasing total capital requirements by three percentage points by 2024, instead of the four to five originally proposed, will be easier for the market to absorb and reduce the risk of unintended market consequences.”S&P lifted the outlook on the banks to stable from negative and Macquarie Bank Ltd. to positive from developing, saying their increased loss-absorbing capacity could lessen the need for taxpayer bailouts. Still, it added that the plan wouldn’t impede the government from supporting a systemically important bank in a crisis if needed.“Consequently, we now see a significantly reduced risk of a ratings downgrade in the next two years for the four major Australian banks and Macquarie Bank,” S&P said in a statement.Australia & New Zealand Banking Group Ltd. said the changes would result in an incremental increase to its total capital requirement of about A$12 billion, with an equivalent decrease in other senior funding.National Australia Bank Ltd. said the changes would mean an additional incremental increase of A$12.1 billion, and Westpac Banking Corp. and Commonwealth Bank of Australia expect they will need about A$13 billion each.A gauge of Australian financial stocks closed 0.3% lower after falling as much as 0.8%.“The ultimate cost is not yet known,” Commonwealth Bank said in a statement. “The pricing of instruments will be impacted by the change in market supply of new issuance by the Australian banks.”(Updates with S&P outlook upgrade from seventh paragraph)To contact the reporter on this story: Matthew Burgess in Melbourne at email@example.comTo contact the editors responsible for this story: Edward Johnson at firstname.lastname@example.org, James Thornhill, Russell WardFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- The Hong Kong dollar advanced to its strongest since June 2017 as tight liquidity in the city keeps borrowing costs elevated.The currency rose as much as 0.19% to 7.7827 versus the greenback Thursday, days after it started trading in the strong half of its band for the first time since September. The local one-month interbank rate rose 29 basis points to 2.99% -- the highest in more than decade -- while the overnight Hibor jumped 84 basis points to 3.14%.Local money rates are surging as companies hoard cash to pay for dividends and large share sales lock up funds, outstripping the income a trader can expect on U.S. dollars. That’s undermining a once-popular trade to sell the Hong Kong dollar and buy the greenback that had pushed the city’s currency to the weak end of its trading band only months ago. The tighter liquidity has also coincided with recent demonstrations in Hong Kong.“Hong Kong dollar movement comes with liquidity tightness,” said Frances Cheung, head of Asia macro strategy at Westpac Banking Corp. The liquidity situation will persist until after the second large share offering, she added.The Asia-Pacific arm of Anheuser-Busch InBev this week started preparing for a listing that could raise as much as $9.8 billion, while Alibaba Group Holding Ltd. is said to have filed for a Hong Kong share offering that could raise $20 billion.The Hong Kong Monetary Authority spent HK$22.1 billion ($2.8 billion) in March to defend the currency’s peg. The peg means Kong Kong’s de facto central bank effectively imports U.S. monetary policy.The Hong Kong dollar pared the gain to 0.10% at 7.7896 versus the greenback as of 5:27 p.m. in the city. To contact the reporter on this story: Livia Yap in Singapore at email@example.comTo contact the editors responsible for this story: Sofia Horta e Costa at firstname.lastname@example.org, Philip Glamann, Will DaviesFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- New Zealand plans to introduce a bank deposit protection regime to bring it into line with other developed nations and increase public confidence in its lenders.“New Zealand has been an outlier for many years in that we don’t have a formal deposit protection regime to support Kiwis if a bank were to fall over,” Finance Minister Grant Robertson said in a statement Monday in Wellington. While no decisions had been taken yet on how the system would be funded, deposit protection regimes elsewhere were often based on a bank levy, he later told a news conference.New Zealand’s banking system is dominated by four big Australian lenders -- Australia & New Zealand Banking Group Ltd., National Australia Bank Ltd., Westpac Banking Corp. and Commonwealth Bank of Australia -- which together hold around 90% of deposits. Separately, the RBNZ has told the banks it wants them hold more capital to make them more resilient.Adopting deposit protection is part of a review of the central bank’s underlying legislation and follows reports from the OECD and IMF that said New Zealand’s banking system might be more vulnerable in a crisis without one. The government will also give the RBNZ more tools to bolster prudential supervision as part of the review.Limited ProtectionNew Zealand is proposing deposit protection of up to NZ$50,000 ($33,000), which would cover 90% of individual bank deposits, but only about 40% of the total value, Robertson said. Final decisions and details will be announced in early 2020.The proposed regime would put the nation toward the lower end of protection when compared to similar economies, Robertson said. Australia introduced a guarantee on deposits of up to A$250,000 ($174,000) in 2008 at the height of the global financial crisis, while the U.S. guarantees deposits of up to $250,000 and the U.K. guarantees up to 85,000 pounds ($108,000).Robertson said the next phase of the review of the RBNZ will include looking at the bank’s supervision and enforcement powers, and whether penalties are tough enough to discourage certain behaviors.The government is considering adopting elements of overseas frameworks, which would increase the responsibilities and accountabilities of senior executives for the actions of New Zealand’s banks and licensed deposit-takers, he said.‘Stricter Regime’Models in Australia and the U.K. go a step further than New Zealand’s current director-attestation regime for banks by also holding senior managers to account for the prudent management of their bank within their area of responsibility, he said.“We want to look at the balance between the more light-handed regulatory model that the Reserve Bank has traditionally had, versus what we’ve been advised by the IMF and others over the years should be a stricter regime,” Robertson said.The announcement comes after the RBNZ last month censured ANZ Bank New Zealand Ltd. over persistent failure to comply with rules around modeling risk capital requirements.Earlier Monday, the RBNZ requested that ANZ New Zealand provide two independent reports to assure the central bank it is operating in a prudent manner. Last week, ANZ New Zealand Chief Executive Office David Hisco quit after a review revealed mis-characterization of personal expenses.New Zealand Prime Minister Jacinda Ardern said Monday there was no need for New Zealand to follow Australia and hold a Royal Commission into banking.The government has also taken a number of in-principle decisions to guide the review of the RBNZ Act:The RBNZ will retain a prudential supervisory role, rather than separating it into a new agencyA new governance board will be established that will be given statutory authority over all RBNZ decisions apart from monetary policy The Treasury Department will be the RBNZ’s monitoring agent The separate regulatory regimes for banks and non-bank deposit takers will be merged into one To contact the reporter on this story: Tracy Withers in Wellington at email@example.comTo contact the editors responsible for this story: Matthew Brockett at firstname.lastname@example.org, Peter VercoeFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
In yesterday's column I introduced the concept of "Goga stocks" in honor of Goga Bitadze, the Georgian prospect who was overshadowed by Duke's Zion Williamson at NBA Draft media day. Well, Goga was selected 18th in last night's draft by the Indiana Pacers, and he is about to become a very wealthy 19 year old. As for finding Goga stocks -- high-yielding names that will act as ballast for the shorts in my new entity, Excelsior Capital Partners -- perhaps the young man's story is insightful in more than one way.
Could Westpac Banking Corporation (ASX:WBC) be an attractive dividend share to own for the long haul? Investors are...
Moody's Investors Service has assigned the following definitive ratings to the notes issued by Liberty Funding Pty Ltd in respect of Liberty Series 2019-2. "IMPORTANT NOTICE: MOODY'S RATINGS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS.
Chinese stock markets fell Monday amid increasing trade tensions with the U.S., while markets in most of the rest of Asia gained.
Australia's second-biggest lender Westpac Banking Corp posted its lowest half-year profit since 2013 on Monday, as interest income shrank along with the housing market, and costs rose as the bank compensated customers for botched service. "Regulatory activity is intense, economic growth has slowed, consumer and business demand has softened, house prices have fallen and competition has increased," Chief Executive Officer Brian Hartzer said at an earnings presentation. Westpac's result rounds up a downward trend in profitability at the Big Four, which also includes Commonwealth Bank of Australia, Australia and New Zealand Banking Group Ltd and National Australia Bank Ltd (NAB).
Moody's Investors Service says that the execution of the Series 2008-1M WST Trust Amendment Deed 2019-2 on 24 April 2019 (the Amendment) will not, in and of itself and as of this time, result in the downgrade or withdrawal of the ratings of the Class A1 and Class B Notes issued by the above mentioned trust. "IMPORTANT NOTICE: MOODY'S RATINGS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS.
We can judge whether Westpac Banking Corporation (NYSE:WBK) is a good investment right now by following the lead of some of the best investors in the world and piggybacking their ideas. There's no better way to get these firms' immense resources and analytical capabilities working for us than to follow their lead into their best […]
Moody's Investors Service says that the substitution of AUD4.5 billion of mortgage loans into Series 2008-1M WST Trust on 8 March 2019 (the Substitution) will not, in and of itself and as of this time, result in the downgrade or withdrawal of the ratings of the Class A1 and Class B Notes issued by the above mentioned trust. "IMPORTANT NOTICE: MOODY'S RATINGS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS. Moody's has determined that the Substitution, in and of itself and at this time, will not result in the downgrade or withdrawal of the rating on the Class A1 and Class B Notes.
Australia's Westpac Banking Corp was sued on Thursday by customers who said the bank had lent them money they could not afford to repay, the second such case the firm has faced in the past year. The case comes with Australia's financial services sector under great pressure to reform after a public inquiry uncovered widespread misconduct, including charging customers fees for no service, irresponsible lending and deception of regulators. Westpac had already agreed to pay a A$35 million ($25 million) fine for wrongly approving thousands of mortgages in a similar case filed by Australia's corporate regulator last year.
[Editor's note: This story was previously published in June 2018. It has since been updated and republished.]The banking sector -- and bank stocks -- saw an intriguing reversal in the 21st century.For most of the latter 20th century, banks generally paid depositors a higher rate of interest than bank stocks paid in dividend yields. This trend reversed soon after the turn of the century and became more pronounced after the 2008 financial crisis. Beginning in the early 2000's, interest-rate cuts gave bank stock investors dividend yields that exceeded the rates depositors earned in interest. Although interest rates have begun to gradually move higher in recent months, bank-deposit interest rates remain extremely low by any measure.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Monster Growth Stocks to Buy for 2019 and Beyond Fortunately, some banks pay the 5%-plus returns comparable to bank and CD rates in the 20th century. These five stocks show that earning substantial cash payouts from banks remains possible -- if investors take a chance on bank stocks.[Editor's Note: This story was originally published June 29, 2018. It has since been republished and updated to reflect new information.] Source: (PRNewsFoto/Bladex) Bladex (BLX)Div. Yield: 8.17%Bladex (NYSE:BLX), or Foreign Trade Bank of Latin America, based in Panama City, serves as a special purpose bank. The bank works to facilitate trade and business relationships between Latin America and the Caribbean. Its commercial sector accounts for most of its activities and generates most of the institution's income. Its treasury sector handles funding, liquidity and investment management. Operating in Panama also creates a unique advantage. Since the Republic of Panama uses the United States dollar, it also enjoys the credibility that comes with conducting business in the world's reserve currency.BLX remains a stable institution for more reasons than its use of the U.S. dollar, though. This stability extends to the growth (or lack thereof) of revenue and net income levels. After seeing revenue and profit growth in 2014, both revenue and profits had fallen back to 2013 levels by 2017. Growth has stagnated since, and analysts believe that it will not resume until next year.Hence, dividends remain the compelling reason to invest in BLX stock. While dividend levels saw some fluctuations in past years, the company has held its annual dividend to the $1.54 per share level since 2016. This roughly translates into a 8.17% yield. Moreover, if profit growth predictions hold, consensus 2018 earnings of $1.82 per share should cover the dividend. Also, if the company meets 2019 profit forecasts of $2.18 per share, a dividend increase for 2019 remains a possibility. With the advantages of operating in Panama and the stability of its income, the BLX stock dividend remains a safe bet for a high dividend return. Source: Gyver Chang via Flickr (Modified) HSBC Holdings (HSBC)Div. Yield: 4.7%HSBC Holdings plc (ADR) (NYSE:HSBC) is a British banking and financial services holding company. Founded in Hong Kong (then a British colony) in 1865 as a bank to finance trade between Europe and Asia, the bank now bases itself in London. Today, it provides banking and wealth management services to clients in 67 countries and territories across the world.Although revenue has seen years of decline, it has begun to rebound. Moreover, the price-earnings (P/E) ratio of HSBC stock is currently at 16.This level of profit growth should bode well for its dividend. Its current dividend stands at $2 per share. * 10 Monster Growth Stocks to Buy for 2019 and Beyond New York Community Bancorp (NYCB)Div. Yield: 5.75%New York Community Bancorp (NYSE:NYCB) holds about $49.7 billion in assets and operates branches throughout metro New York City, as well as Arizona, Florida and Ohio.Like with many bank stocks that pay high dividends, investors should not buy NYCB stock in hopes of stock price growth. Both revenue growth and profit growth remain negligible. Its current P/E ratio stands at about 15.NYCB has maintained an annual dividend of 68 cents per share since 2016. This represents a cut from $1 per share per year, a level it had maintained for several years. However, with forecasted profits for 2019 at 80 cents per share, the current dividend of 68 cents per share places the bank on a more solid footing. Even with its lowered dividend, the dividend yield stands at an attractive level for income-oriented investors. Source: Shutterstock Oritani Financial (ORIT)Div. Yield: 5.87%Unlike most bank stocks with high dividend yields, Oritani Financial Corp (NASDAQ:ORIT) exhibits some degree of growth. The commercial bank, which is based in Washington, New Jersey, saw its stock price fall to a low of $6.37 per share in 2009. Now trading around $16.80 per share, both its stock price and its dividend saw huge increases as the stock emerged from the depths of the financial crisis.Those who bought near the 2009 low and held have also enjoyed massive dividend growth. The annual dividend in 2009 stood at 18 cents per share. By 2015, that dividend had grown to $1.20 per share. Though current conditions have forced the current annual dividend down to $1 per share, investors have still enjoyed both stock price and dividend growth over time.In the near term, it appears most of the benefits will come from the dividend. If the 2019 earnings projection of $1.10 per share holds, that places the forward P/E at around 14. Hence the stock trades near its average multiple. With 2020 profits expected to come in at $1.05 per share, the stock lacks the catalyst to energize growth. * 10 Monster Growth Stocks to Buy for 2019 and Beyond However, some ORIT stock investors may want only the dividend. Buyers who have time to wait on stock growth still should do well. Hence, investors wanting a high dividend and long-term growth should receive both from ORIT if they can exercise patience. Source: Shutterstock Westpac Banking Corp (WBK)Div. Yield: 7.04%As Australia's oldest bank, Westpac Banking Corp (NYSE:WBK) has enjoyed an enormous first-mover advantage Down Under. The institution makes consumer and business loans as well as providing wealth management throughout Australia and New Zealand.The bank has leveraged an extensive network and a high credit rating to bolster both revenue and profit growth. Unlike many banks that pay high dividends, it has grown revenue and earnings consistently for several years. Although the stock has traded in a range since soon after the financial crisis, that might change in time. Over the last five years, revenues have increased by about 3.6% per year. While earnings may have fluctuated, they increased on average by just over 6.1% per year over the same period. As a result, the stock has fallen to an 11.07 P/E ratio. The average P/E over the last five years has stood at 14.2, indicating growth could come.As for the dividend, payment in Australian dollars has led to slight fluctuations. With that movement, the annual dividend currently comes in at $1.35 per share. Investors must endure some currency risk with this dividend. Still, with a yield of over 7% and the potential for stock growth, a little currency risk yields a substantial amount of reward.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * Are These 7 Dividend Aristocrats ETFs Fit for a King? * 7 of the Best Emerging Markets Stocks to Buy * 5 Gold Stocks That Should Glitter in 2019 Compare Brokers The post 5 Bank Stocks That Pay Big Dividends to Shareholders appeared first on InvestorPlace.
Shares are lower in most markets open in Asia with much of the region taking a break for the Lunar New Year. Shares edged lower in Japan and India on Tuesday but surged 2.1 percent in Australia following ...
Moody's Investors Service has today affirmed all 16 rated notes from eight WST RMBS transactions. On 1 February 2019, Westpac Securitisation Management Pty Limited (as trust manager for the eight WST RMBS transactions) advised noteholders that it is likely that some loans to borrowers who were not Australian residents as at the relevant cut-off date have been sold into the eight WST RMBS transactions. Such loans do not meet the eligibility criteria for the WST RMBS transactions.