After facing fire from the royal commission, Westpac have finally seen the light at the end of the tunnel.
Outperforming the other four other big banks, shares were up 1.28% at the time of writing.
The large bank has managed to lift its half-year tax profit by 7%, while dampening further concerns regarding its home loan issues.
Its market cap is valued at $100.201 billion.
Westpac’s improved margins and quality of mortgages
Westpac managed to grow its margins by 10 points, a 2.17% increase compared to the first half of 2017.
This contributed to its steady share growth, happening since the beginning of the month.
The bank has defended itself against APRA after coming under fire regarding mortgage issues.
Westpac CEO Brian Hartzer stated that the bank was well placed to further capitalise in a slowdown period. Currently the bank holds almost 400 repossessed houses on a nationwide basis.
According to News.com.au, Hartzer also had this to say on the matter:
‘While the housing market is expected to continue to cool, this dynamic means that opportunities are opening up for first home buyers, who are beginning to step up in place of investors.’
Westpac dubbed their credit portfolio as fundamentally sound, after receiving high volumes of payments that are no longer overdue.
In the wake of the royal commission, Westpac has taken proper steps to improve customer outcome and satisfaction.
They’re reviewing hundreds of their products — resulting in many changes to policy’s and business practices. Including an introduction to low rate credit cards and removing incentives for tellers.
Westpac is more than on track to produce an independent advocate for their customers.
Customer feedback and action from the royal commission is what has pushed for Westpac to implement these changes.
For Money Morning
PS: Westpac alongside many other large companies are often considered to be top performers when its figures are set to rise. Aussie finance expert reveals four Aussie stocks he believes could be top performers in 2018. Get your free ‘The Four Best ASX Stocks’ report now