The Westpac Banking Corp (ASX: WBC) share price has been surging higher in the last 12 months. Shares in the Aussie bank are up 51.4% over that time and outperforming the S&P/ASX 200 Index (ASX: XJO) by a significant margin.
However, investors looking a little more closely would see the last 3 months haven’t been so good. Since the start of June, the Westpac share price is down 1.5% to $25.82 per share.
Here’s what’s weighing on the ASX bank share at the moment.
Why the Westpac share price is down in the last 3 months
It’s certainly not all doom and gloom for shareholders right now. In fact, the main share price declines came in a one-month period from June 22 to July 20. The Westpac share price fell 7.9% lower in that time to hit its lowest point since March 2021.
Shares in the Aussie bank slipped lower after an update on its New Zealand operations. Westpac advised that it would hang onto its Westpac New Zealand business after a review of the business and its fit within the broader group.
That was a period that coincided with some big announcements from the bank. Among those, there was the 2 July announcement that Westpac had uncovered a potential fraud.
The Aussie bank commenced proceedings in the Federal Court of Australia against Forum Finance after discovering a “significant potential fraud”. Westpac reported a potential exposure of around $200 million after tax from the alleged fraud.
The Westpac share price was again in focus after announcing it would pay $87 million in compensation after failing to provide necessary information to customers.
Finally, Westpac also announced the sale of its Westpac Life NZ business to Fidelity Life Insurance for $373 million while selling its general insurance business to Allianz in July.
Foolish takeaway
That June/July period was a busy one for the bank. The Westpac share price slipped lower before rebounding strongly in August.
All in all, the ASX bank share is up 31.5% in 2021 and outperforming the ASX 200.
The post Here’s why the Westpac (ASX:WBC) share price is down in the last 3 months appeared first on The Motley Fool Australia.
Should you invest $1,000 in Westpac right now?
Before you consider Westpac, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Westpac wasn’t one of them.
The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of August 16th 2021
More reading
- How does the NAB dividend compare to its sector?
- 2 buy-rated ASX dividend shares with big fully franked yields
- Australia’s rising delta recession risk could hit these ASX 200 shares badly
- ASX 200 Weekly Wrap: A mixed bag of earnings dominates ASX
- How has the Westpac (ASX:WBC) share price performed against the banking sector in August?
Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
from The Motley Fool Australia https://ift.tt/3zAzv9U
Leave a Reply