Westpac/WBC

The banks continue to squeak through results season with profits just meeting expectations, but buybacks/special-divs and increased payouts smoothening over any cracks (thus far).

The graphs that we care most about, how are arrears travelling, continues to rise…

It seems clear to me that the “fixed rate cliff”, whilst not being the deadly harbinger previously thought, is not nothing either, given the graph above suggests that arrears on the variable are running at 2x that of fixed, and thus as the fixed rate reset rolls through, delinquencies should trend towards the higher number.

Today will be a reasonably strong day in the market; WBC numbers should be well received.

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