Changes are happening - please bear with us while we update our site.

Changes are happening - please bear with us while we update our site.

Westpac (ASX:WBC) share price on watch after asset sale

Westpac Banking Corp (ASX:WBC) continues to work on improving its balance sheet after announcing another asset sale. 

Westpac Banking Corp (ASX: WBC) continues to work on improving its balance sheet after announcing another asset sale. The Westpac share price is currently down by 0.35%

Westpac asset sale

After the recent announcement of another asset sale, Westpac announced that it has agreed to sell its Vendor Finance business to Angle Finance, a company owned by Cerberus Capital Management.

As a bit of background, Vendor Finance supports third parties to fund small ticket equipment finance loans to around 42,000 Australian businesses. The transaction is expected to result in the transfer of around $500 million of customer loans.

Westpac management said that this sale represents the first transaction of the bank’s plan to simplify the business and brings certainty to Vendor Finance customers.

It’s a pretty small part of the Westpac, so the sale is expected to have negligible impact on Westpac’s balance sheet and capital ratios. The bank is expecting a small accounting loss on the sale with an initial payment on completion and deferred considerations payable over the two years afterwards. The transaction is expected to complete at the end of April 2021.

Summary

This seems like an interesting sale because it heralds more asset sales by Westpac. Individually this deal doesn’t amount to much, but several of them together could have a meaningful impact on increasing Westpac’s balance sheet strength, which is welcome during this difficult period. So keep a lookout on Rask Media for more articles in the future about asset sales by Westpac.

However, even with a stronger balance sheet I don’t think Westpac is a buy. For a financial business I’d rather buy Macquarie Group Ltd (ASX: MQG) and for defensive dividends I would rather invest in Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) shares.

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

At the time of publishing, Jaz owns shares of WHSP.
Skip to content