WBC
WBC better than expected across the board. Similar to ANZ the key was low expectations coming into the result, which both companies hurdled, in contrast to CBA and NAB, which disappointed, and were priced for perfection.
Cost-income back in line with peers, is well regarded…
As is the very large step up in ROE, back to a more acceptable level when compared to peers.
Capitalisation remains strong, useful in this period of uncertain future bad and doubtful debts.
The weaker NIM outlook is par for the course given pressure on deposits, competition on rates. Our point is that WBC and ANZ don’t deserve to be priced at notable discounts to peers like CBA and NAB anymore.
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