COMPANY PROFILE -Westpac
Business Sector :Banking and Financial Services
Operating Geography :Australia and New Zealand, Global
About Westpac :
Westpac is as one of the four “Big Banks” of Australia and was founded in the year 1817 completing its 2011 years in 2021. It is Australia’s first bank and oldest company among the country’s four major banking organisations. Headquartered Westpac Place, Sydney, it offers a large portfolio of banking and financial services to its customers. Westpac employs more than 40,000 people as of early 2023. Westpac is working towards transforming its service strategy to achieve its vision “To be one of the world’s great service companies, helping our customers, communities, and people to prosper and grow”. Westpac won the award for Australia’s Best Major Bank for third year in a row in the 2022 Mozo Experts Choice Best Banking Awards.
The USP of Westpac lies in being one of the major banks in Australia. Westpac Group's purpose is creating better futures together. It's what we do, who we are and why we come to work every day. What's most important to us is understanding what a better future means to our customers and helping them get there.
Westpac Revenue :
$13.29 Billion – As of 31st December, 2022
$15.09 Billion – As of 31st December, 2021
Competitive Analysis of Westpac
The SWOT Analysis for Westpac is given below:
Strengths | Weaknesses |
1. 200-year-old brand with a broad portfolio of financial services
2. Strong level of capital structure placing Westpac in top quartile of global banks
3. Strong customer franchise with consistent growth
| 1. Embroiled in legal issues
2. Poor environmental record
3. Rising number of complaints from customers
|
Opportunities | Threats |
1. Opportunities in the digital future
2. Investments in new technology businesses to enable access to emerging fintech business models
| 1. Introduction of bank levy to impact stakeholders
2. Consumer-centric rise of fintech a threat to traditional banking players
3. Increasing digital technology adoption leading to threat from cyber security
4. Banks to reimburse a larger number of scam victims,
5. Consumers remained negative over inflation, rising interest rates and worsening economic conditions.
|
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Detailed SWOT Analysis of Westpac
Strength
1. 200 year old brand with a broad portfolio of financial services: Westpac is a 200-year-old brand with operations focused on its core markets in Australia and New Zealand with over 13 million customers. It is one of the “Big 4” banking players in Australia. It is also present across other major global markets in Asia and the United Kingdom. Westpac has a broad portfolio of financial services brands which enables it to reach to a diverse range of customers. The bank thrives on its clear strategic position of service differentiation, being No. 1 or 2 position across key markets and leveraging comparative advantage in wealth platforms.
2. Strong level of capital structure placing Westpac in top quartile of global banks: Westpac in 2017 has achieved an ‘unquestionably strong’ level of capital according to the Australian Prudential Regulation Authority (APRA). Westpac is comparatively in top quartile of banks globally. APRA has set standards for banks which are ahead of global regulations and this has paved the way for the introduction of Liquidity Coverage Ratio and Net Stable Funding Ratio. Westpac has ratios of 124% and 109% respectively which is comfortably ahead of the 100% benchmarks set by APRA.
The remaining section under "Strength" is available only in the 'Complete Report' on purchase.
Weakness
This section is available only in the 'Complete Report' on purchase.
Opportunity
This section is available only in the 'Complete Report' on purchase.
Threat
This section is available only in the 'Complete Report' on purchase.
The PESTLE Analysis for Westpac is presented below:
Political | Economical |
1. Policy changes such as introduction of bank levy
2. Impact of Russia-Ukraine war on banks
| 1. Rise in home loan interest rates
2. Chinese investments driving up Australian property prices
|
Social | Technological |
1. Increasing ageing and culturally diverse customers to require specific product and services
2. Demand for affordable housing and services
3. Australia consumer sentiment improves slightly
| 1. Digital product and service transformation
2. New consortium to drive fintech AI
|
Legal | Environmental |
1. Class action settlement with law firm Slater Gordon | 1. Environmental criticism leading to change in business practices
2. Investments in projects which facilitate climate change solutions
|
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Detailed Pestle Analysis of Westpac
Political
1. Policy changes such as introduction of bank levy: Regulations and policy changes at times have an adverse impact on the industry. The Australian parliament passed the Major Bank Levy Bill which mandates a 0.06 levy on banks with over $100 billion in total liabilities. Westpac is one amongst the five Australian banks which fall under the mandate. The government’s purpose is reducing the budget deficit in the short-term and strengthen the structural fiscal position. This can also be seen as an insurance premium where the government would bailout the banks if they got into distress to prevent contagion effects in the overall industry. However, the immediate impact of this was on the consumers and shareholders of the banks such as Westpac in form of higher consumer costs and reduced shareholder returns.
The remaining section under "Political" is available only in the 'Complete Report' on purchase.
Economic
This section is available only in the 'Complete Report' on purchase.
Social
This section is available only in the 'Complete Report' on purchase.
Technological
This section is available only in the 'Complete Report' on purchase.
Legal
This section is available only in the 'Complete Report' on purchase.
Environmental
This section is available only in the 'Complete Report' on purchase.
On purchase the Westpac SWOT and PESTLE Analysis PDF report will reach you within minutes. At rare times, a slight delay not exceeding 1 hour might be caused.
TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
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References used in Westpac SWOT & PESTLE Analysis Report
1. Website - https://www.westpac.com.au/
2. Annual Report - https://www.westpac.com.au/about-westpac/investor-centre/annual-report/
3. News Releases - https://www.westpac.com.au/about-westpac/media/media-releases/2023/
4. 95 Westpac customers have complained to Banking Ombudsman about payment processing glitch - https://www.stuff.co.nz/business/130950169/95-westpac-customers-have-complained-to-banking-ombudsman-about-payment-processing-glitch
The detailed complete set of references are available on request in the 'Complete report' on purchase.
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