Ann: Notable items affecting 2H21 results of $1.3bn, page-5

Nothing much unexpected in this largely non cash writedown that has little impact on earnings, forecast or valuation in my view.

Very good buying opportunity at this share price coming into the annual results on 1/11in my opinion, especially given that WBC are expected to do a share buyback in the order of $6B. If they do it on market (for simplicity sake) this means the shares should be worth circa 6.3% more post completion - which would put them at around $27.21 (and still substantially undervalued vs the other big 4 at that price).

That being said, the expectation seems to be that they will do it off market similar to CBA, in which case there will also be a lot of franking credits also released - in which case this additional value should mostly be reflected in the share price at some point and may well effectively add another billion + to the size of the buyback returns to shareholders.

In addition to that, on a purely P/E basis, WBC is already significantly cheaper than the other big 4s (based on analyst consensus earnings) which I don't really think is justified.

Add up all of the above and the share price should hit 27.50-28.00+ over the next few weeks in my opinion.