It wasn’t a great day for the S&P/ASX 200 Index (ASX: XJO) this Friday, to say the least. The ASX 200 ended up closing the day down a nasty 1.57% at 7,473.3 points. That was its largest one-day fall in months. As you might expect, the Westpac Banking Corp (ASX: WBC) share price didn’t do too much better. Westpac shares ended up finishing down by 1.22% at $24.21.

This comes amid news that the ASX 200 big four banking giant is in line to pay another corporate fine. Westpac already holds the dubious distinction of being on the hook for Australia’s largest-ever corporate fine. That was a whopping $1.3 billion penalty that the bank had to pay back in 2020. This was in response to contraventions of the Anti-Money Laundering and Counter-Terrorism Financing Act.

Well, today, Westpac has been issued with another fine. Albeit one not quite as large. According to the Australian Securities and Investments Commission (ASIC), Westpac has been ordered by the Federal Court to pay a $113 million penalty. According to the watchdog, this was for “widespread compliance failures across multiple businesses, including Westpac’s banking, superannuation, wealth management and insurance brands”.

Westpac fined for multiple offences

Here’s some of what ASIC deputy chair Sarah Court had to say on this announcement:

The breaches found by the Court in these six cases demonstrate a profound failure by Westpac over many years and across many areas of its business to implement appropriate systems and processes to ensure its customers were treated fairly. Westpac, like all licensees, has an obligation to be honest and fair in its provision of financial services. Despite this, Westpac failed to prioritise and fund the systems upgrades necessary to help fulfil this obligation…

Over the course of 13 years, more than 70,000 customers have been affected by these failures, either by being incorrectly charged or given the wrong information. The sheer scale of this impact suggests that, at the time, Westpac had a culture that did not prioritise compliance.

What did the bank do?

The alleged offences that Westpac has been fined for include:

• ‘Fees for no service’ charged to deceased customers
• Issuing duplicate insurance policies
• Inadequate fee disclosures for financial advice
• Allowing accounts of deregistered companies to remain open and active
• Onselling consumer credit card and flexi-loan debt with incorrect interest rates
• Including banned commission payments in superannuation insurance premium charges.

According to the release, Westpac has “admitted to the allegations in each of the proceedings and will remediate more than $80 million to customers”.

The post Own Westpac shares? Here’s why the bank has just copped a further $100m in fines appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• Here are the 3 most traded ASX 200 shares on Friday
• How much were Fortescue shares when they first listed on the ASX?
• The future looks bright: Here’s why this investment firm is doubling down on ASX shares in April
• Why is the Wesfarmers share price having such a rough trot in April?

Motley Fool contributor Sebastian Bowen 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 recommended Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Graincorp Ltd (ASX: GNC) sure is harvesting some big ASX investor support of late. Its shares hit an all-time record price of $10.17 today before retracing to finish the session at $10.10, up 1.1%.

Why is the Graincorp share price reaching new heights?

Earlier this month, the agribusiness excited the market with an FY22 earnings guidance upgrade and trading update on 8 April.

Here’s what managing director and CEO Robert Spurway told the market:

… We are seeing high global demand for Australian grain and oilseeds and strong supply chain margins for grain exports. This has been driven by two consecutive bumper crops in east coast Australia (ECA), coupled with supply shortages in the northern hemisphere.

The conflict in Ukraine and resulting trade disruptions in the Black Sea region have created uncertainty in global grain markets, with buyers looking for alternate sources of supply. This has further increased both the demand for Australian grain and oilseeds and export supply chain margins.

Spurway added that the current La Nina weather cycle is benefitting the company, too.

Recent weather patterns and continued La Nina conditions have provided excellent planting conditions for the 2022 winter crop to date, building confidence in grain supplies from ECA and further supporting export sales and supply chain margins.

So what will all that do for earnings?

In short, really good things. Graincorp is now expecting underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of $590 million to $670 million — up from previous guidance of $480 million to $540 million. They reckon that will convert to net profit after tax (NPAT) of $310 million to $370 million — up from $235 million to $280 million.

ASX investors loved that and sent the Graincorp share price hurtling about 9% higher on the day.

Then came the broker upgrade. As my Fool colleague Brooke reported last week, Wilsons has increased its earnings expectations. According to the Australian Financial Review, the broker said:

While global demand is unlikely to diminish quickly, new crop grain price spreads will depend on the size of the Australian winter crop and exporters’ ability to secure supply chain access.

The outcome of this dynamic will likely have a significant impact on [financial year 2023] earnings. While we continue to assume volumes and margins normalise, GrainCorp’s balance sheet will benefit from the significant cash flow, with core net cash forecast at $333 million in [financial year 2023].

Could the Graincorp dividend really triple?

Wilsons anticipates $1.52 in earnings per share (EPS) and 62 cents per share in dividends.

Hold up, what was that?

Yes, indeed. The broker reckons all this additional income could add up to triple the annual dividend that was paid out in 2021. That was 18 cents, by the way. You do the math — 62 cents is actually more than triple!

Graincorp pays its dividends in July and December. According to the company’s website, Graincorp will release its HY22 earnings results on 11 May.

Wilsons has a $7.80 price target on Graincorp. Based on that price, 62 cents in dividends would represent a 7.95% dividend yield.

Based on today’s closing price of $10.10, the yield is lower at 6.2%. But wait, there’s more. Graincorp dividends usually have 100% franking on top. That equates to a grossed-up total yield of 8.85%.

The post Can the Graincorp dividend really triple in 2022? appeared first on The Motley Fool Australia.

More reading

• Could these ASX shares be the new FAANG stocks on the block?
• Why is the GrainCorp share price leaping 6% today?
• 3 ASX All Ordinaries shares rocking new all-time highs today
• Why Boss Energy, GrainCorp, Pro Medicus, and Select Harvests are pushing higher
• ASX 200 lunch update: GrainCorp jumps on earnings upgrade, Pro Medicus signs $32m deal

Motley Fool contributor Bronwyn Allen 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.

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Today, the S&P/ASX 200 Index (ASX: XJO) put a swift end to its five-day green streak with its worst performance in two months. At the end of the session, the benchmark index finished 1.57% lower at 7,473.3 points.

Ending what was an eventful short week of trade, Aussie equities retreated as the reality of rate rises in the near future weighed on the market. Westpac Banking Corp (ASX: WBC) highlighted the high probability of a near-term rate increase sharing its expectations today of a 40 basis point rise in June. In response, miners and tech shares took a sharp turn to the downside.

However, the question is: which shares delivered the biggest returns to investors on the ASX today? Here are the top ten stocks that came through for investors:

Top 10 ASX shares countdown today

Looking at the top 200 listed companies, Endeavour Group Ltd (ASX: EDV) was the biggest gainer today. Shares in the hospitality and liquor group inched 1.71% in an otherwise tough market as investors flocked to staples. Find out more about Endeavour Group here.

Hot on the heels of Endeavour was Ramsay Health Care Ltd (ASX: RHC), still basking in the excitement surrounding its potential takeover. The private hospital operator lifted 1.66% leading the best performing sector higher today. Uncover the latest Ramsay Health Care details here.

Today’s top 10 biggest gains were made in these ASX shares:

ASX-listed company	Share price	Price change
Endeavour Group Ltd (ASX: EDV)	$7.74	1.71%
Ramsay Health Care Ltd (ASX: RHC)	$84.37	1.66%
CSL Limited (ASX: CSL)	$270.86	1.45%
Domain Holdings Australia Ltd (ASX: DHG)	$3.56	1.43%
Shopping Centres Australasia Property Group (ASX: SCP)	$3.10	1.31%
JB Hi-Fi Ltd (ASX: JBH)	$51.83	1.15%
Goodman Group (ASX: GMG)	$23.62	1.07%
Charter Hall Retail REIT (ASX: CQR)	$4.41	0.92%
Magellan Global Fund (ASX: MGOC)	$2.47	0.82%
Coles Group Ltd (ASX: COL)	$18.83	0.80%

Our top 10 ASX shares today countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown.

The post Here are the top 10 ASX shares today appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most traded ASX 200 shares on Friday
• Despite today’s sell-off, these 3 ASX 300 shares are topping all-time highs
• How much were Fortescue shares when they first listed on the ASX?
• Brokers name 3 ASX shares to buy today
• Why Bellevue Gold, CSL, Endeavour, and Serko shares are pushing higher today

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended CSL Ltd. The Motley Fool Australia owns and has recommended COLESGROUP DEF SET and Shopping Centres Australasia Property Group. The Motley Fool Australia has recommended Ramsay Health Care Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Challenger Ltd (ASX: CGF) share price finished Friday’s session in the red, down 5.2% to $7.11.

This comes after a significant share price gain on Thursday following the release of the company’s latest quarterly results. ASX investors appeared very enthused by the numbers and bid the Challenger share price up by 9.49% to $7.50.

But today, broker UBS said it found the share market’s reaction “surprising”.

Challenger reported a 10% increase in life insurance sales, worth $2.7 billion, for the third quarter of FY22. As well, it reported life book growth of $500 million, up 2.8% for the quarter.

The financial services company also reiterated its FY22 guidance of normalised net profit before tax towards the upper end of the $430 million to $480 million range.

In response to the quarterly report, UBS raised its price target for Challenger shares from $6.40 to $7.30. However, it noted that analyst consensus was already at the upper end of the range at $470 million — so maybe investors got a little carried away on Thursday?

What did UBS say?

According to reporting in The Australian, UBS sent its clients a note saying: “While the tightening profit range ‘de-risks’ FY22 earnings into the August result and ‘removes perceived risk of a management reset’ under new chief executive Nick Hamilton, consensus net profit was already at the upper-end of the range ($470m). So we find the strong stock price reaction surprising.”

UBS said net outflows of $1.7 billion, excluding the impact of the Whitehelm sale, were well behind its forecast and “represents sequential quarter-on-quarter decline even after adjusting for lumpy mandates”.

Further, UBS reportedly said: “We expect fixed income outflows will persist, with global equities flows likely to perform better than domestic equities going forward.”

Yesterday, Hamilton commented on the quarterly results: “As we look to the future, we are well placed to continue our growth trajectory, meet the needs of more customers, and deliver on our purpose to provide financial security for a better retirement.”

The post Challenger share price slides as top broker calls Thursday’s gains ‘surprising’ appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• Why Betmakers, Brambles, Challenger, and Stockland shares are charging higher
• 3 ASX 200 stocks smashing 52-week highs today
• ASX 200 midday update: BHP, Megaport, and Zip release Q3 updates
• ‘Exciting opportunity’: Why the Challenger share price just leapt 8%

Motley Fool contributor Bronwyn Allen 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 recommended Challenger Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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