It’s been a tough run on the ASX for Westpac. We take a closer look at what’s happened
The post The Westpac (ASX:WBC) share price has fallen 8% over the last 30 days appeared first on The Motley Fool Australia. –
The Westpac Banking Corp (ASX:WBC) share price is having a tough month on the ASX.
Right now, it’s fallen 7.53% over the last 30 days. This time last month, shares in Westpac were trading for $26.94. Now, they’re swapping hands for $24.91.
So, what’s been going on to drive the Westpac share price down? Let’s take a look.
The month that’s been for the Westpac share price
New Zealand decision
On June 24, Westpac broke the tension by announcing it had decided to keep its New Zealand banking business.
The Westpac share price fell 0.96% on the back of the news.
Back in March, the bank announced it was reassessing whether it would continue to operate its New Zealand business. Westpac stated it was considering numerous options, one of which was demerging the business.
Ultimately, the demerger didn’t come to fruition. Westpac’s CEO Peter King said:
WNZL is a strong business that has been serving New Zealand for 160 years. We remain committed to delivering for customers and fulfilling our purpose of helping Australians and New Zealanders succeed.
On 1 July, Westpac released news it had sold Westpac General Life Insurance and Westpac General Insurance Services Limited to Allianz.
After the announcement, the Westpac share price dropped to close 0.62% lower.
Allianz paid $725 million for the two businesses. It’s expected to pay another $25 million later this year.
Compensation payment and fraud allegations
July 2 wasn’t a good day for Westpac.
In the morning, it announced it would pay out $87 million in compensation for failing to provide its customers with needed information.
The bank compensated 32,000 customers who were affected by its financial advice business’ failings between 2005 and 2019.
Then, that afternoon, the bank announced it was taking Forum Finance to court after it discovered potential fraud within a portfolio of equipment leases arranged by Forum.
Westpac said it planned to begin proceedings against Forum in the Federal Court of Australia. Westpac said none of its customers had been affected. However, around $200 million (after tax) of its own coin had been exposed.
Despite all of the bad news, the Westpac share price only fell 0.04%.
Finally, on 6 July, Westpac announced it sold Westpac Life NZ to Fidelity Life Insurance.
The Westpac share price fell 0.43% on the back of the news.
Westpac received around $373 million from the sale. The sale is still subject to numerous approvals but it’s expected to be completed before the end of this year.
Westpac share price snapshot
Despite a poor month’s performance, the Westpac share price has been going well lately.
It’s gained 26% year to date. It has also increased by 39% over the last 12 months.
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Motley Fool contributor Brooke Cooper 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.