Shares in the Aussie bank are up and down in 2021
The post It’s been a rollercoaster for the Westpac (ASX:WBC) share price over the last 6 months appeared first on The Motley Fool Australia. –
The Westpac Banking Corp (ASX: WBC) share price has been on a rollercoaster ride in 2021. Shares in the Aussie bank are up 4.4% in the last 6 months but 30.7% since the start of the year.
So, what’s been happening for the ASX bank share in recent times?
Why the Westpac share price is on a rollercoaster ride
The year started off strongly for shareholders as the Westpac share price surged higher in the first six weeks of the year.
From January 4 to February 18, shares in the Aussie bank rocketed 24.2% higher. That’s despite the S&P/ASX 200 Index (ASX: XJO) climbing just 3% in that same period.
Interestingly, there were no price-sensitive announcements from the bank until its first quarter update on 17 February. There was minimal activity from Westpac once again until its 3 May half-year results release.
Some of the big takeaways from the result include:
Statutory net profit after tax (NPAT) up 189% on the prior corresponding period (pcp) to $3,443 million
Cash earnings up 256% on pcp to $3,537 million
Return on equity increased to 10.2%
Net interest margin down 4 basis points on pcp to 2.09%
The Westpac share price has muddled along in the months since. Shares in the Aussie bank have climbed just 4.4% in the last 6 months and are underperforming the benchmark Aussie index.
Recent months have been eventful for shareholders with a number of announcements and big changes at the bank.
The bank has provided an update on Westpac New Zealand and announced it will hold onto the trans-Tasman subsidiary. Another major announcement moving the Westpac share price was the uncovering of potential fraud.
Westpac initiated proceedings against Forum Finance in July after reporting a potential exposure of around $200 million after tax from the alleged fraud.
There was also the $87 million in compensation unveiled for failing to provide critical information to customers in its financial advice business between 2005 and 2019.
The Westpac share price was once again one to watch after selling its Westpac Life New Zealand business in early July after the A$373 million sale of its general insurance business to Allianz.
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Analysts name Westpac (ASX:WBC) and this dividend share as buys
How have ASX bank shares performed during the August 2021 earnings season?
Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.