Westpac up by 0.45%

[sash]

Yep...it might also show the idiots in Retail Banking (Peter Hanlon) and his marketing counter parts are not talking. Let alone Gail Kelly playing dodge the media....

To top this off....they gave all the senior execs a pre Xmas bonus....no amount of spin will sort this out. What a PR nightmare!

Personally, this was a very poorly thought out and executed strategy! Given Westpac service levels are not great...it will be interesting to see if customers actually walk out.

The irony in all this is the NAB...they were not particularly brialliant...but if they can use the media to show a more human face and if perceptions from the past haven't stuck....there maybe alot more customers knocking on their door.

Cameron Clyne (NAB CEO) and Lisa Gray (Head of Retail Bank..I think) are getting a lot of free marketing from the media.

About time ....we had competition in this country. If CBA and ANZ tow the NAB line......Westpac is stuffed!

Much bagging of Westpac

http://www.smh.com.au/business/lower-rate-nab-applies-the-heat-to-westpac-20091203-k8sg.html

http://www.smh.com.au/business/the-day-the-lights-went-out-at-westpac-20091203-k8sb.html

However it is very "pollyanna" to assume the Bank cares.

SIgnificantly, reports are others will follow NAB, hope so.

We need competition.

Peter

 

[buzzlightyear]

...Given Westpac service levels are not great...it will be interesting to see if customers actually walk out.

Had an IP loan with WBC submitted and approved in one week. Mortgage docs signed a couple days later. This was in the last 2 weeks.

 

[josko]

As a WBC shareholder I am very impressed with their tactics through the GFC. They have been writing the majority of the loans in the growing OO resi market to date due to their low margins. Now they have a bloated loan book in this area with lots of people on variable they can just up the margins on them and know most won't move coz the difference isn't "that much". Now they have:

1 - A much bigger loan book than their competitors; and
2 - Now very similar margins =
3 - Bigger profits

I reckon Gail has done a stellar job. Their rates are now getting closer to the others but they will still make more money from this strategy than the others.

As a WBC customer, I am happy I have chosen to diversify my lender base, much to the chagrin of my "relationship manager" at WBC.

HiEquity,

I have read WBC's arguement is that wholesale funding costs have risen. Where are Westpac sourcing their wholesale funding from, if NAB have seen no need to increase more than 0.25bp? Westpac and CBA are currently two of a few or so banks that will lend to 97% but the only two of the big banks. Surely WBC and CBA share an astute risk to the global market? High LVR lending in this market is incredibly risky and if they were greedy enough to get their share of the majority of loans in this country, they have certainly been greedy enough to take higher risks in wholesale funding.

ANZ and NAB have lowered LVR's on both Full DOcs and Low Docs. As far as I am concerned, the risk that the latter two banks have taken on in the GFC is far less than WBC!

What I am trying to say here is that I think that the raise in 0.45bp is due to WBC's high wholesale funding costs BECAUSE of their grab at LVR's over 90% when other Major Banks have tightened up. A much bigger loan book - a much bigger exposure to wholesale markets.

Westpac and CBA certainly did NOT have competitve rates - the Major's were all fairly similar until now. Westpac and CBA are reeling in the biggest profits and can dish out the biggest advertisements. Top that with high LVR's and a requirement on Brokers that they MUST write a certain amount of loans to retain accreditation - there you have a recipe for major Profit. See who can write the most loans?

What I would like to see, is ANZ follow NAB's lead.

Simply my take on the situation - for what it's worth.

Regards JO

 

[Rolf Latham]

WBC are great on the front end most times for straight PAYG, no corp trusts and forget anything with a moderate commercial flavour.

Getting it settled is another hassle, 40 % of our WBC deals on a running 90 day average have settlement issues, mainly due to their outsouced offshored EDS HP providers being poorly educated on how the "real world" works

ta
rolf

 

[Marko Legija]

Its disturbing that some think banks are charities and they 'care'.

The difference between Westpac and NAB is that Westpac have told customers up front they are going to get charged more, NAB will do it behind their backs with hidden charges and fees and when the next rate rise comes they will pump it up even more than the other banks.

Its the oldest trick in the book for all types of businesses and industries, lock em in with a cheap service than recoup the costs later on.

In the end it evens out.

 

[eggnog]

comm bank up 0.37%

http://www.theaustralian.com.au/bus...n-mortgage-rates/story-e6frg96f-1225806944525

 

[josko]

The suspense with ANZ is killing me.

Regards JO

 

[feihong]

The suspense with ANZ is killing me.

Regards JO

The wait's over.. ANZ up 35bp

 

[eggnog]

Summing up

SVR across the banks are now:

Westpac 6.76 per cent
Commonwealth Bank 6.61 per cent
ANZ 6.66 per cent, and
NAB 6.49 per cent


Have a good weekend y'all

 

[kissfan]

Had an IP loan with WBC submitted and approved in one week. Mortgage docs signed a couple days later. This was in the last 2 weeks.

Only thing is they didn't tell you what was coming, i.e the 0.45% increase.

Regards
Marty