Westpac Banking Corp.

Westpac's robust capitalization will remain a strength to its credit profile. Credit losses should remain low and close to pre-pandemic levels for the next two years. That said, the dependence of Westpac and other Australian major banks on domestic and offshore wholesale funding remains a weakness. This is notwithstanding improvements in the past 10 years across the Australian banking system. Westpac's creditworthiness, however, benefits from a high likelihood that the Australian government will provide timely financial support to the bank if needed, in our view. The outlook on Westpac is stable. Economic risks facing Australian banks are likely to remain low. This is despite rising interest rates and consumer prices. In our base case, we project house prices in Australia

...Australia-based Westpac Banking Corp. should be able to maintain its earnings profile. Support will come from the bank's strong market position and focus on low-risk retail and commercial banking in Australia and New Zealand. Despite rapid increases in consumer prices and interest rates, and falling house prices, the economies of both countries have a solid outlook. Unemployment should remain low. Westpac's robust capitalization will remain a strength to its credit profile. Credit losses should remain low and close to pre-pandemic levels for the next two years. That said, the dependence of Westpac and other Australian major banks on domestic and offshore wholesale funding remains a weakness. This is notwithstanding improvements in the past 10 years across the Australian banking system. Westpac's creditworthiness, however, benefits from a high likelihood that the Australian government will provide...

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