Westpac Banking Corp: Cost shock

About the author:

Author name:

By Nathan Lead

Job title:

Senior Analyst

Date posted:

22 August 2023, 8:30 AM

Sectors Covered:

Infrastructure, Utilities, Banks

• Westpac Banking Corp (ASX:WBC) published its Q3 trading update and regulatory capital disclosures.
• We have made material downgrades to our forecasts and reduced our target price to (login to view), mainly because of the unexpectedly high cost growth.
• The share price performance is disappointing for existing WBC investors. However, for a new investor we think the current price offers potential returns of c.19% (including c.7% cash yield) even after allowing for the reduced target price.

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