Westpac Banking Corp may be cutting back on branch numbers... Australia heading for a recession? ...
Fewer branches may be on the cards for Westpac
Westpac Banking Corp may be cutting back on branch numbers as its chief executive Brian Hartzer has been urged to reduce costs at the bank's strategy update this coming Monday, according to an article in the Sydney Morning Herald.
With 1276 branches nationwide, compared to CBA's 1026, ANZ's 851 and National Australia Bank's 783, Macquarie says Westpac could lift its earnings by 2 per cent if 9 per cent of its branches were closed, or to 8 per cent if it cut loose 37 per cent of its branches.
Credit Suisse said with the potential for "productivity-based restructuring", the bank has jumped from its fourth to its top preference. "Notwithstanding capital raising risk, we see a sector-leading productivity story unfolding," said Credit Suisse analyst Jarrod Martin.
Hartzer will provide a strategy update on Monday although analysts do not expect him to 'swing the axe' with store closures just yet.
Australia heading for a recession?
Weak consumer spending numbers and economic growth reportedly at its most sluggish pace in two years has raised the question whether Australia will experience a recession, The Australian reports.
Prime Minister Tony Abbott has said the economy was not perfect but Opposition Leader Bill Shorten's response to whether a recession could be on the horizon was, "I sincerely hope not. I think the Australian people are resilient but the real challenge here, and we can't deny it, is that our real growth and our nominal growth are too low."
Although retail spending data has dropped for the first time since May 2014, other figures paint a more positive picture, showing that the monthly international trade deficit had improved, exports rose two per cent in July and the services sector in August had its strongest expansion since March 2008.
Westpac Banking Corp may be cutting back on branch numbers as its chief executive Brian Hartzer has been urged to reduce costs at the bank's strategy update this coming Monday, according to an article in the Sydney Morning Herald.
With 1276 branches nationwide, compared to CBA's 1026, ANZ's 851 and National Australia Bank's 783, Macquarie says Westpac could lift its earnings by 2 per cent if 9 per cent of its branches were closed, or to 8 per cent if it cut loose 37 per cent of its branches.
Credit Suisse said with the potential for "productivity-based restructuring", the bank has jumped from its fourth to its top preference. "Notwithstanding capital raising risk, we see a sector-leading productivity story unfolding," said Credit Suisse analyst Jarrod Martin.
Hartzer will provide a strategy update on Monday although analysts do not expect him to 'swing the axe' with store closures just yet.
In depth: After the boom: broking in shrinking mining towns
The housing markets of Australia’s mining towns are going in the opposite direction to those of Sydney and Melbourne.
The housing markets of Australia’s mining towns are going in the opposite direction to those of Sydney and Melbourne.
Australia heading for a recession?
Weak consumer spending numbers and economic growth reportedly at its most sluggish pace in two years has raised the question whether Australia will experience a recession, The Australian reports.
Prime Minister Tony Abbott has said the economy was not perfect but Opposition Leader Bill Shorten's response to whether a recession could be on the horizon was, "I sincerely hope not. I think the Australian people are resilient but the real challenge here, and we can't deny it, is that our real growth and our nominal growth are too low."
Although retail spending data has dropped for the first time since May 2014, other figures paint a more positive picture, showing that the monthly international trade deficit had improved, exports rose two per cent in July and the services sector in August had its strongest expansion since March 2008.
In depth: BDM in the spotlight: Sornkin Sairlao
ANZ BDM for NSW, Sornkin Sairlao has been in banking since the GFC and loves every minute of her role.
ANZ BDM for NSW, Sornkin Sairlao has been in banking since the GFC and loves every minute of her role.
