Westpac Banking Corporation [ASX:WBC] is still taking heavy blows to its share value.
With its shares dropping by 3.15% today, Westpac has many issues to address to its shareholders in the wake of its struggle.
Analysts recommend their clients sell the company’s stocks on the fact that Westpac were forced to hand over documents to the Royal Commission.
The Royal Commission has more of an impact than most investors think
Westpac isn’t just losing customers, but it’s losing future investors too.
Information about Westpac’s financial misconduct and unethical services is pushing people away from its business.
However, CFO Peter King stated that, ‘mortgage delinquencies and losses remain low both relative to historical and industry averages.’
The loan quality is an issue for the entire banking sector.
Even if Westpac do recover, the number of home loans is souring, and questionable mortgages have deterred people from committing.
Clancy Yeates from The Sydney Morning Herald wrote:
‘The drop in bank shares came as the Australian Prudential Regulation Authority scrapped a 10 per cent speed limit on bank lending to property investors, saying the cap has served its purpose and improved credit standards.’
Australian banks have been criticised of distributing liar loans.
The only thing keeping Westpac afloat is the fact that its rivals are also suffering a great deal from the royal commission.
For Money Morning
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