Westpac (WBC) shares rise on 1H result
Westpac has this morning reported 1H21 results ahead of ANZ on Wednesday & NAB on Thursday. The result is a strong one with the following metrics:
- Cash earnings $3.5b v 3.42b expected
- Cash Earnings per share (EPS) 97.1c v 93c expected
- Dividend per share 58c v 54c expected
- Net Interest Margin (NIM) 2.09% up 2bp to 2.09% v 2.03% expected
- Tier 1 Capital 12.34% (incredibly strong)
MM’s Take: As we have highlighted previously , we expect dividend payout ratio’s to be guided lower with banks transitioning to a more sustainable level of 60-65% of earnings. Westpac has done this today. On first read through, this is a strong result from Westpac (WBC)
