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Westpac Banking Corporation (WBK). 1820 Investment Group, LLC Stock Presentation – Oct 2010. Too Big to Fail. Oldest bank in Australia (f. 1817) Over 12 million customers One of the “big four” banks in Australia $80 billion Market Cap / $670 Billion Assets. How do they make money?.
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Westpac Banking Corporation (WBK) 1820 Investment Group, LLC Stock Presentation – Oct 2010
Too Big to Fail • Oldest bank in Australia (f. 1817) • Over 12 million customers • One of the “big four” banks in Australia • $80 billion Market Cap / $670 Billion Assets
How do they make money? • Interest on Loans • Service Fees
Loan Portfolio • $500 billion loan portfolio • 90% of loans within Australia • 67% retail lending (lending to individuals)
Fun Facts about Australia • Did you know that Australia is home to 20 of the 25 deadliest species of snakes?
Spread ‘Em 2.19%
Fun Facts about Australia • In 1954 Bob Hawke made it into the Guinness Record Book: he sculled 2.5 pints of beer in 11 seconds. • Bob Hawke went on to become the Prime Minister of Australia.
Dividends • 6.21% Dividend Yield • 67% Dividend Payout Ratio
Australian Economy • ~5.1% Employment Rate • In the midst of a boom due to mining and the price of raw minerals • 27% of exports go to China
Fun Facts About Australia • Mining operations comprise 0.02% of Australia’s land area • More land is covered by pubs
Interest Rate Environment • Reserve Bank of Australia lowering interest rates • What does this mean for the bank’s stock price?
Fun Facts about Australia • Steve Irwin died because he was stabbed in the heart by a Sting Ray QUESTIONS?