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WBC - WESTPAC BANKING CORPORATION


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Thanks for the chart Arty.

 

If we do get a rate drop on Cup day What direction do you think the banks will move ? Its less profit from Housing loans. But they pay less to depositors and there are lots of them at present. Thought I might buy WBC on a down day and hold until after Cup Day.

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... rates for term deposits and online savings accounts have fallen as much as 46 basis points in recent months - which is almost equivalent to a two-notch cut in the official cash rate. The end to hostilities on deposits is likely to help the bottom line of the big banks, particularly as more price cuts on savings accounts loom.Competition for deposits was furious at the start of this year, with banks trying to outdo each other in high-interest and online savings accounts. The scramble for savings coincided with calls by regulators for banks to reduce their reliance on volatile wholesale funding.

 

The focus on deposits worked. Billions of dollars in additional savings poured into bank accounts. But lending started to tail off and banks found they had excess funding, which prompted many to pull back on pricing.

 

The latest figures show the banking sector generated $8 billion more in deposits during August than was needed to meet demand for loans. According to calculations by broker Deutsche Bank, the lower rates paid to savers will help lift the revenue of big banks by between 3 per cent and 4 per cent.

 

Read more: http://www.smh.com.au/business/end-of-depo...l#ixzz1aQm6YqdN

as by far the majority of TDs are < 12 mths, this should wash through sooner rather than later and show up as a +ve

 

 

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  • 2 weeks later...

http://www.cnbc.com/id/44952953

 

In contrast, the Australian banks have found that U.S. MMFs have been more than willing to maintain their exposures," he said. "Indeed, recently the Australian banks have been beneficiaries of a reallocation by the MMFs away from the European banks

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is it so difficult to know that aussie banks are much safe bet than others??? :)

 

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Debelle also cautioned against reading too much into the pricing of credit default swaps (CDS), where premiums to insure against Australian banks had widened sharply in recent months. These are often used by commentators to suggest investors are actively hedging against the risk of default at the banks.

 

Yet Debelle noted volumes in the market were tiny. He pointed to CDS in mining giant BHP Billiton where premiums had shot higher even though the company was very lowly geared and had a mountain of cash. Typically, he said, there were only 2 or 3 trades a day in CDS.

 

"So the CDS premium does not have a lot of trading volume behind it, which potentially allows traders a cheap way to take a position either on the entity in question or as a proxy for a broader position, such as the Chinese economy

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2 or 3 trades a day--------that's how easy to use CDS to scared market, too easy to manipulate it! ;)

 

22.50---then 23.50!

 

 

 

 

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Can wbc make $24 before the div?

Still holding and hoping ....

Might hold the for div yet.

 

Actually the best buy in banks was BOQ.

Percentage wise a much better return from my $7 entry.

BOQ was really hammered in the sell of.

 

 

CS

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http://www.cnbc.com/id/45040575

Those concerns should be set to rest as its two key measures of underlying inflation rose just 0.3 percent on average in the third quarter. That was half the 0.6 percent forecast and the smallest rise since the statistician started calculating the series in 2002.

 

Readings for the second quarter were revised up to show a rise of 0.8 percent, from 0.6 percent, but it still left inflation travelling a lot more slowly than previously thought.

 

The annual pace of underlying inflation stood at 2.45 percent, bang in the middle of the RBA's long-term target band of 2 to 3 percent

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WBC shoots up like rocket------a rate cut is baked in!

 

 

 

 

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In Reply To: wolverine's post @ Sep 23 2011, 02:16 PM

Timing as ever is the issue, safety of the yield vs the kicker of potential growth

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you are absulotely right.

 

here is my thoughts wolvy

the next support level for Dr. copper is 3.2ish, if it can't hold then 2.8ish. it closed at 3.4ish last night. so might be they will give it another final knock down. i was on a trade with BHP this morning, once it reachs my target, i was think keep some just in case it hits bumm, but that copper price last night, got me think that there might have another knock. so i bail it!

for WBC

they will release earning call next month and anounce divy {to pay it month after], WBC might rally much better than BHP RIO for the next two months---put in a fancy words---out forform on short term base!

 

china has been slow down way back from start of the year, now they just start to see the results of that, i guess the slow down is almost over there, after national long holiday in china, things will be very good{ that is i've been told, not sure it is true or not}

 

my expectation for WBC is gain 15--20% before the divy! that is less than two month time and we talk about buying a AA rated Co.

:P

 

if have more cash i might have good look at WPL if it still around current price--the one i always wanted!

 

 

Said 'Thanks' for this post: <A style="COLOR: #666666" href="http://www.sharescene.com/index.php?showuser=265">wolverine

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hi wolvy me mate

i'm staring at screen WBC is over 22.40, never forget above post that i posted to you when market looks gonna go kuput that day.

the best part of it, --"WBC will out run BHP RIO for short term base". it's a one hell of call back then. now i feel like score a goal of the year! :)

 

good time to do the switch now??

 

 

 

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Hi early birds,banks are sure the go instead of resources,better div and more security.

 

I added this morning all the same share amount 2,000 wbc,anz,nab,plus apa and a 1,000qbe which i think is worth a punt so i think the finance sector is a better punt than minerals,cheers mrbear

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