Expected, but lower than I thought. In line with ANZ.
The real issue now is the capital raising. SPP available for shareholders.
I will likely take up the new issue, but otherwise will be keenly interested in share price movement over the next month.
When WBC last raised funds 4 years ago the exercise price was $25.50 but , market share price did not get down that low. For SPP, we will be buffeted by average weighted price close to closing of offer. Let’s wait and see what happens
At $25 the dividend yield is 6.5% fully franked, not bad, much better than bank interest. Your investment thesis would ask the question as to whether the capital raised is adequate going forward, and the worst is behind WBC. My thinking is yes, given remediation costs have been well flagged and profitability will be better in coming years. DYOR
WBC Price at posting:
$27.88 Sentiment: Buy Disclosure: Held
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