WBK earnings call for the period ending March 31, 2020.

NEW YORK, NY / ACCESSWIRE / March 30, 2020 / The Klein Law Firm announces that class action complaints have been filed on behalf of shareholders of the following companies. There is no cost to participate ...

(Bloomberg Opinion) -- While their peers in other countries weathered a season in hell after the 2008 financial crisis, Australian banks partied.Spared the recession that devastated lenders elsewhere, valuations soared to as much as three times book value — extraordinary levels when most banks in developed countries were trading at a discount to book.At one point in 2011, all of the country’s big four banks (Commonwealth Bank of Australia, Westpac Banking Corp., National Australia Bank Ltd. and Australia & New Zealand Banking Group Ltd.) were worth more than Bank of America Corp. in terms of market capitalization. Now, the U.S. lender is worth more than all four — put together.The road to the dismal present has been paved with money-laundering scandals, government inquiries, super-taxes, a housing market downturn and of course the coronavirus, but it’s another factor that has been most crucial: dividends.Bank valuations, after all, aren’t a disinterested vote on the credit quality of a company. Instead, they’re shareholders’ best guess of the current value of future payouts, adjusted for the risk that the share price itself may rise or fall.That’s been particularly important in Australia, thanks to the outsize influence of individuals managing their own retirement savings through so-called self-managed superannuation. In most of the world, fund managers focused on capital growth dominate the stock market, to the extent that many tech companies treat paying cash back to shareholders as a failure of imagination. In Australia, the retirement savers who make up a fifth of the stock market prize a steady and stable income, so generous dividend-payers like the country’s banks have consequently done well.Even when its valuation peaked at three times book in 2015, Commonwealth Bank, the biggest of the four, was still paying out dividends equivalent to more than 6% of its share price. Australian banks were offering all the income security of owning a bond, but with equity-style returns. There was just one problem. Much though they may have behaved like bonds to their investors, Australian bank shares were equity all along — and with the party finally ending, it’s shareholders who are ultimately taking the hit. On Monday, Westpac joined ANZ in deferring its decision about whether to make a payout this year. NAB went one step further last week, cutting its payout by about two-thirds and tapping shareholders for cash by selling A$3.5 billion ($2.2 billion) in new stock.It’s a sign of how crucial payouts have become to Australian bank shareholders that even with an unemployment rate tipped to hit 10% this year, both Westpac and ANZ are presenting their moves as delayed decisions rather than outright cancellations. Even in a crisis, giving up the gospel of dividends risks breaking the implicit contract between management and shareholders that’s supported valuations (and paid for executives’ Maseratis) for a generation.The trouble is, shareholders are already voting with their feet. Price-book valuations have slumped to positively European levels; only Commonwealth Bank is now valued at a premium to its net assets. Unlike other countries, which have spent more than a decade deleveraging, Australian household debt was at record levels relative to income just before the coronavirus struck.As rising unemployment and falling property prices eat into borrowers’ ability to repay, investors are (rightly) making the assessment that the first call on banks’ cash for the foreseeable future is likely to be funding defaulted loans. Next will be fines, like the A$1.06 billion Westpac set aside Monday for dealing with a money-laundering case.The silver lining is that those plunging share prices are making dividends, in isolation, look more attractive than ever. If the coronavirus downturn proves less drastic than feared and Westpac ends up paying out full-year cash in line with last year’s, it would be yielding around 11% at current share prices — not bad at a time when its best one-year term deposit account is paying 1.2%.It’s a mark of how bad things have gotten for Australian banks that even the perennial promise of payouts isn’t enough to tempt shareholders back this time.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.David Fickling is a Bloomberg Opinion columnist covering commodities, as well as industrial and consumer companies. He has been a reporter for Bloomberg News, Dow Jones, the Wall Street Journal, the Financial Times and the Guardian.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

Los Angeles, California--(Newsfile Corp. - March 30, 2020) - The Schall Law Firm, a national shareholder rights litigation firm, announces the filing of a class action lawsuit against Westpac Banking Corporation (NYSE: WBK) ("Westpac" or "the Company") for violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission.Investors who purchased the Company's securities between November 11, 2015, and November 19, 2019, inclusive ...

Best known as Britain's biggest financial crisis failure, some investors and analysts view majority state-owned Royal Bank of Scotland as the lender likely to emerge strongest from the coronavirus downturn. RBS had built the largest capital surplus of any major British bank before the pandemic struck, some 14 billion pounds ($17 billion) above the regulatory minimum, and had hoped to use much of this to buy back the government's 62% stake. Now investors are betting this capital cushion, which will help it absorb loan losses resulting from the economic crunch, will help RBS gain greater market share and potentially restore a dividend ahead of rivals.

To the annoyance of some shareholders, Westpac Banking (ASX:WBC) shares are down a considerable 30% in the last month...

Moody's Investors Service says that the execution of the Series 2008-1M WST Trust Amendment Deed 2020-3 taking effect on 20 May 2020 (the Amendment) will not, in and of itself and as of this time, result in the downgrade or withdrawal of the ratings of the Class A1 and Class B Notes issued by the above mentioned trust. Moody's has determined that the Amendment, in and of itself and at this time, will not result in the downgrade or withdrawal of the rating on the Class A1 and Class B Notes. Moody's opinion addresses only the credit impact associated with the Amendment, and does not express any opinion as to whether the Amendment has, or could have, other non-credit-related effects that may have a detrimental impact on the interests of noteholders and/or counterparties.

About A$1.6 billion of the impairment charges are predominantly related to COVID-19 impacts, the country's second-largest lender said, while the remaining A$600 million relate to certain other individual provisions and net write-offs. The impairments are in addition to provisions of A$1.43 billion after tax the lender announced earlier this month, mostly for an expected fine over accusations it enabled millions of illegal payments including between known child sex offenders. After Westpac's disclosure, two of the country's "Big Four" lenders have now detailed a hit to upcoming earnings, with No. 3 lender National Australia Bank making an A$1.22 billion provision in late-April.

Companies in the Asia Pacific need to raise a near record $69.3 billion to refinance their existing borrowings in the second quarter, Refinitiv figures show, as the region's capital markets remain turbulent due to the coronavirus pandemic. The level of U.S. dollar corporate debt due to mature in the region, including Japan and China, is the second highest on record and only slightly behind the $71.4 billion that was due during the same time last year. The data shows a Soft Bank Group bond worth $2.48 billion due to mature on April 18, and the conglomerate flagged it planned to carry out $41 billion worth of asset sales to buy back shares and pay down debt.

Rosen Law Firm, a global investor rights law firm, reminds purchasers of the securities of Westpac Banking Corporation (NYSE: WBK) between November 11, 2015 and November 19, 2019, inclusive (the "Class Period") of the important March 30, 2020 lead plaintiff deadline in the securities class action first commenced by the firm. The lawsuit seeks to recover damages for Westpac investors under the federal securities laws.

We hate to say this but, we told you so. On February 27th we published an article with the title Recession is Imminent: We Need A Travel Ban NOW and predicted a US recession when the S&P 500 Index was trading at the 3150 level. We also told you to short the market and buy […]

(Bloomberg) -- Westpac Banking Corp. deferred its dividend after soaring bad-debt provisions and a potential record anti-money laundering fine sent first-half earnings plummeting to the lowest in almost two decades.Cash earnings fell 70% to A$993 million ($636 million) in the six months ended March 31, Sydney-based Westpac said Monday, its smallest profit since 2002. The bank is also considering selling smaller units, including its wealth and insurance operations, as part of new Chief Executive Officer Peter King’s overhaul plan.Click here for more details from the earnings report“This is the most difficult result Westpac has seen in many years,” King said in a statement. “The bank is dealing with the twin impacts of Covid-19 and some of our own issues.”The profit plunge adds to a dismal earnings season for Australia’s biggest banks, which have historically been among the world’s most profitable. None made a loss even during the global financial crisis and shareholders had grown accustomed to generous dividend payouts.That’s now a fading memory, as the combination of the coronavirus crisis and the cost of cleaning up years of misconduct slashes earnings across the industry. National Australia Bank Ltd. and Australia & New Zealand Banking Group Ltd.’s first-half profits both slumped more than 50%.Like ANZ Bank, Westpac deferred its decision on whether to pay a dividend -- a move that will hurt retail shareholders -- until the economic outlook is clearer. Australia is heading for its steepest downturn in 90 years, according to James McIntyre, Australia economist at Bloomberg Economics.‘Difficult Decision’“This was a difficult decision given many retail shareholders rely on Westpac dividends,” the bank said. Last year it paid a first-half dividend of 94 Australian cents a share, for a total of about A$3.3 billion. Options for the dividend will be reviewed over the course of the year, the bank said. The stock fell 0.9% in early Sydney trading, taking its decline this year to 37%.Like banks globally -- HSBC Holdings Plc last week took its biggest charge for bad debt in almost nine years -- Australia’s big lenders have reported soaring provisions for bad debts as they brace for the fallout from the near-shuttering of the economy.Westpac’s are the biggest of the local banks. Loan-loss provisions increased to A$5.8 billion, which includes about A$1.6 billion predominantly related to the impact of Covid-19. It had already disclosed A$1.43 billion of charges to cover customer-compensation costs and the potential penalty to settle allegations it committed Australia’s biggest breach of anti-money laundering laws, including failing to detect payments linked to child abuse.In addition to steering the bank through the coronavirus crisis, King, who was appointed permanent CEO a month ago, is also leading efforts to restore the reputation of Australia’s second-biggest bank after the money-laundering scandal cost the previous CEO and chairman their jobs and raised questions about its risk controls.Asset SalesAs part of his overhaul, King said he will simplify the bank to focus on its Australia and New Zealand businesses. Several units, which lack sufficient returns or scale -- including wealth platforms, life insurance and auto finance -- will be moved into a new Specialist Businesses division.The bank will then conduct a strategic review of the units, including whether to sell them. Australia’s other major lenders have already sold peripheral businesses, particularly in wealth management and advice, as they retreat to focus on traditional banking operations.“It’s the next step in a process of the entire banking system” getting leaner, said Kyle Rodda, an analyst at IG Markets “The banks themselves got bloated and moved into areas which they didn’t have much of a competitive advantage in.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

Investors who take an interest in Westpac Banking Corporation (ASX:WBC) should definitely note that the Independent...

Investors who purchased the Company's securities between November 11, 2015 and November 19, 2019, inclusive (the ''Class Period''), are encouraged to contact the firm before March 30, 2020. You can also reach us through the firm's website at www.schallfirm.com, or by email at brian@schallfirm.com.

Australia's big banks have warned that credit losses from the country's first recession in three decades will top A$17 billion ($10.96 billion), but analysts predict the bill for the coronavirus lockdown will be higher - perhaps more than double. If losses spike, there could be more capital raisings and dividend deferrals at the "Big Four", which together fund 80% of Australia's loans, impeding their ability to plough money into the economy as it recovers from the virus that has infected 6,800 people and killed 96 in the country, analysts warn.

The scandal rocked Australia's second-biggest bank after it was accused of millions of breaches of anti-money laundering laws, including allegations that it enabled illegal payments between known child sex offenders. Les Vance, the current chief operating officer of Westpac's consumer division, has been with the lender since 2008. Earlier this month, Westpac admitted it breached anti-money laundering and counter-terrorism laws but denied that it enabled those illegal payments, according to a filing with a federal court.

This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934. If you wish to review a copy of the Complaint you can visit the firm's site: www.bgandg.com/wbk or you may contact Peretz Bronstein, Esq.

NEW YORK, NY / ACCESSWIRE / March 30, 2020 / The Law Offices of Vincent Wong announce that class actions have commenced on behalf of certain shareholders in the following companies. If you suffered a loss ...

By Gina Lee

(Bloomberg) -- Singapore’s economy is facing its worst contraction since independence more than a half-century ago as the coronavirus outbreak and measures to contain it pummel the trade-reliant city state.The government expects gross domestic product to shrink 4% to 7% this year, down from a previous forecast of a 1%-4% contraction, as the outlook for external demand deteriorates, the Ministry of Trade and Industry said in a statement Tuesday.“There continues to be a significant degree of uncertainty over the length and severity of the Covid-19 outbreak, as well as the trajectory of the economic recovery, in both the global and Singapore economies,” said Gabriel Lim, permanent secretary for the MTI.As one of the world’s most open economies, Singapore has been severely hit by the slump in global trade and travel amid the coronavirus outbreak. Deputy Prime Minister Heng Swee Keat is set to unveil a fourth stimulus package in Parliament later Tuesday to further counter the economic pain.Singapore’s gloomy outlook follows downbeat economic news elsewhere in the region over the past week. China abandoned an annual growth target for 2020 and pledged more stimulus, especially targeting employment. Japan saw consumer prices decline in April for the first time in more than three years, while India’s central bank expects GDP to contract for the first time in more than four decades.The downgrade in Singapore’s growth outlook was despite an improvement in first-quarter GDP. The economy contracted an annualized 4.7% from the previous three months, far better than the 10.6% drop estimated earlier, MTI data showed. That was mainly due to growth in pharmaceuticals manufacturing, which helped offset the slump in electronics.A surge in pharmaceuticals in April also helped boost manufacturing 13% from a year ago, a separate report showed, compared with a median forecast for a 1% contraction in a Bloomberg survey of economists. Consumer prices declined for the first time since October 2016. Gradual RecoveryWith the “circuit-breaker” restrictions on residents’ movements taking effect only in April, “the real damage will be from the second quarter onward,” said Vishnu Varathan, head of economics and strategy at Mizuho Bank Ltd. in Singapore. “Reasonable doubts about the speed and amplitude of demand recovery cannot be brushed aside.”Singapore will begin easing the circuit-breaker measures from June, to be replaced by a three-phase system to further reopen the economy.“How the Singapore economy performs in the second half of 2020 will depend in part on whether we are able to continue to contain the domestic outbreak after we emerge from the circuit-breaker period,” Lim said in an online briefing to reporters.While the economy will gradually recover over the second half of the year, labor market conditions are expected to deteriorate, according to the Ministry of Manpower. There is “considerable uncertainty” and the country must be prepared for retrenchments, it said.What Bloomberg Economists SayThe new growth forecast “likely reflects expectations that the easing of the lockdown to contain the coronavirus needs to be much more gradual, hamstringing the economy for most of the year. The risk of a second global wave has also increased as countries re-open.”Click here to read the full report.Tamara Mast Henderson, Asean economistHeng said Tuesday’s stimulus package will focus on jobs and skills training. He’s already delivered more than S$60 billion ($42 billion) of fiscal support to help cushion the blow for businesses and households. President Halimah Yacob has also given her in-principle approval for the government to draw on its past reserves for the fourth package.The Singapore dollar was up 0.2% at S$1.4220 against the U.S. dollar as of 3:05 p.m. local time.“The lifting of the circuit breaker is very slow,” which likely means the “recovery may not come until the fourth quarter,” said Frances Cheung, head of Asia macro strategy at Westpac Banking Corp. in Singapore.Singapore’s central bank, which took unprecedented easing steps in March to bolster the economy, sees monetary policy as appropriate, with the next review scheduled for October, Deputy Managing Director Edward Robinson said at the GDP briefing. Local interest rates will remain low given the very accommodative policies pursued by major central banks, he said.Other DetailsGDP contracted 0.7% in the first quarter from a year earlier, better than the 1.6% decline in a Bloomberg survey of economistsManufacturing surged an annualized 37.3% in the first quarter from the previous three months, services plunged 13.3%, and construction contracted 21.8%In a separate report, Enterprise Singapore said non-oil domestic exports will probably contract 1% to 4% in 2020(Updates with manufacturing data in seventh paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.