WBC -1.17%: 1Q trading update released this morning landed broadly in line with expectations, with earnings ~5% ahead of run-rate forecasts, supported by treasury income and benign credit outcomes. While net interest margin trends lagged peers, stronger asset growth and a robust capital position helped balance the result.
1Q numbers
- Net profit (ex-Notables): $1.9b
- Net interest margin: 1.94%
- CET1 ratio: 12.3%
Overall, earnings were slightly ahead, they have balance sheet momentum with asset growth stronger than peers, helping offset margin compression. Costs and credit well controlled while asset quality continues to track benignly. The stock had run into the result on the back on CBA and ANZ updates, so had already priced in the slight beat to expectations.
MM has turned more neutral on WBC above $40
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