Why Shares of Westpac Banking Corp Are Falling This Week
Shares of the Australian bank Westpac Banking Corp (NYSE: WBK) had fallen nearly 13% on the week, as of market close Thursday. Shares dropped after the bank reported earnings for the 12 months ending Sept. 30.
Westpac reported a profit equivalent to nearly $4.1 billion for fiscal year 2021, up more than 130% from fiscal year 2020. But on a core basis, earnings were down. The higher earnings are mostly a result of releasing reserve capital (previously set aside for loan losses) back into earnings, which boosted profits.
The net interest margin fell on a year-over-year basis. Net interest margin is essentially the difference between what banks make on interest-earning assets, such as loans, and payout on interest-bearing liabilities, such as deposits.
Source Fool.com
