0101 GMT - Westpac's 1Q update will lead to less conviction on capital management, Morgan Stanley says. Westpac's CET 1 ratio--a key measure of its ability to withstand financial shocks--missed MS's estimate by 0.2%. "As a result, we've reduced our medium-term buyback forecasts by A$1 billion, although we still assume another A$0.15/share (or A$500 million) special dividend at the 1H result," analyst Richard E. Wiles says. Still, MS says Westpac's board may choose not to pay this special dividend, noting it has a new CEO. MS also cites "the 'ramp up' in Project UNITE, its non-housing loan growth ambitions, and forecast for a proforma 1H CET1 ratio of just 11.8%" as reasons why Westpac might be cautious about additional capital management. (david.winning@wsj.com; @dwinningWSJ)
(END) Dow Jones Newswires
February 17, 2025 20:01 ET (01:01 GMT)
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