WBK - Westpac Banking: Capital Return And Divestments Draw Attention

• I have a mixed view of Westpac Banking's recent quarterly update; the bank's Australian mortgages business maintained similar growth as the market, but it also took a A$300 million provision.
• Westpac Banking might announce significant share buyback plans in November 2021, which is supported by its healthy CET-1 ratio that could be further increased by potential divestments.
• The market currently values Westpac Banking at 1.33 times trailing P/B and 14.4 times FY 2022 P/E, and the stock also offers a forward FY 2022 dividend yield of 4.8%.

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