Westpac Banking Corp (ASX: WBC) shares hit a 52-week high of $29.97 today as investors turn bullish on the banks largely on the back of improving house prices and credit growth data.
On September 9 the Australian Bureau of Statistics (ABS) reported that household lending rose 3.9% in July to follow on from growth of 1.9% in June.
Australia's 'big 4' banks all make the largest part of their profits from home loan lending and signs that credit growth is growing nicely again means the banks could be back on track towards profit growth.
Today, the National Australia Bank Ltd (ASX: NAB) share price also hit a 52-week high of $29 for similar reasons.
The rebound in residential housing market conditions is underpinned by the Reserve Bank's June and July 2019 cash lending rate cuts to 1 per cent, alongside APRA's decision to loosen lending restrictions imposed on the banks in terms of assessing loan serviceability.
Analysts at Goldman Sachs have a 12-month share price target of $30.55 on Westpac shares.
