WBC could face a lot of problems not just related to money laundering and anti-trust/ lack of competition in Australian banks, some of the following could just be the beginning: 1. Rate reductions could reduce the WBC SP. If the RBA reduces rates further in 2025, further reducing NIM and stronger wage settlements keeping inflation high, that will prevent aggressive rate cutting. 2. Loan losses - will the benign bad debt trend continue? 3. Bad behavior - Australian banks are good at finding landmines from money laundering to anti-trust violations to responsible lending misdemeanours, frauds and scam, incurring wrath of regulators with billions of dollars of fines 4. Tech tribulations - Australian banks such as WBC are often facing legacy system problems, with accounts frozen, tech outages, and an Information Commissioner on the warpath with larger fines in the offing for system outges. 5. a housing downturn - If Australian banks were not so beholden to mortgages and bricks and mortar, this would not be a concern but likely curbs on immigration and housing stock inventories increasing, the pullback in house prices has already begun.
WBC Price at posting:
$30.57 Sentiment: Hold Disclosure: Not Held
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