Westpac is planning to return capital to shareholders as a post-pandemic turnaround of the economy left Australian banks with excess cash.
According to a Reuters report, Australia recorded increase in property prices and credit growth after early control of Covid-19 last year.
This allowed the key lenders in the country announce plans to return excess cash to the shareholders.
However, Westpac is the only among the ‘big four’ banks which is yet to release its plan.
The lender said that it will considering returns capital to the shareholders and announce its decision at its full-year results in November.
At the end of June, the bank’s common equity tier 1 ratio was at 12%. At the end of the previous quarter, the figure was 12.3%.
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By GlobalDataWestpac also stated that it expects lower margins for the second half and higher expenses for fiscal 2021. It also plans to raise A$1 billion ($734 million) through a sale of notes.
Other recent Westpac developments
Last month, Westpac Group’s plans to divest its Pacific businesses hit a regulatory roadblock.
The lender planned to divest its Pacific businesses to Kina Securities. This includes Westpac Fiji and Westpac’s 89.91% stake in Westpac Bank Papua New Guinea (PNG).
However, PNG competition watchdog indicated that it would reject the deal and sought additional submissions. Final decision is due next month.
In June, Westpac announced plans to recruit 300 new people in Adelaide, South Australia.