Unlike ANZ with minority stakes in Asia banks which used to have greater Asia ambitions, and NAB (which a UK bank before its demerger ASX CYG). Westpac similar in the vein of CBA is primarily focused on Australia.
Westpac Share Price Return
Chart below shows the year to date return of the largest banks listed on the ASX and included in the ASX. The return figures excludes dividends paid.
All of the big 4 banks are included in the ASX top 20 companies. We agree with others that the heavy reliance on the banks in the major Australia equity indexes and index fund (STW ASX) poses a concentration risk.
The year to date return of the banks shows that there is a high degree of correlation with the except of CYB which is really a UK bank.
WBC Dividend History
Investors love banks for its high dividend yield. On top, Westpac dividends are fully franked as almost all of its earnings are based in Australia.
Westpac dividend history shows that the annual dividends has increased 50% over the last 9 years. This is on the back of the longest stretch of economic growth in Australia where there has not being a recession in 20 years. Overall growth of dividends lagged CBA.