The Westpac Banking Corp (ASX: WBC) share price has been under pressure in 2020 as one of many ASX bank shares to fall lower.
Westpac shares are down 35.26% since the start of the year while the S&P/ASX 200 Index (ASX: XJO) is down 21% in the same period. With the major banks reporting their earnings right now, is it a good time to snap up Westpac shares for a bargain?
Why Westpac shares could be cheap right now
Any share price worth taking a look at when it's fallen over 30% in the space of a few months. These are unusual times, but you can still find good value buys.
I think the ASX bank shares could be top of the list for undervalued shares. The coronavirus pandemic is having wide-reaching impacts on the economy and society, and the banks are being asked to play their part.
We've seen bank dividend cuts and doomsday predictions for the Aussie housing market. Interest rates are at all-time lows and ASX bank shares are recording billions of dollars of loan impairments.
However, it's not all doom and gloom. The Aussie banks are lending conservatively and slashing earnings, but if you're a long-term investor I don't think the outlook is too bad.
Westpac is trading at just $15.77 per share but hit a 52-week high of $30.05 as recently as October. Obviously, times have changed with the recent AUSTRAC scandal and now COVID-19 impacting on the bank's valuation. But that doesn't mean now isn't a good time to buy Westpac shares.
Is it time to snap up a bargain?
Despite individual circumstances, I think most of the ASX bank shares are in a similar spot right now. If restrictions are wound back and the economy can pick up again, I think Westpac could be a good buy.
There are concerns over the rise of neobanks and competitors in different business areas for the banks. I won't personally be buying in just yet, but I will be keeping an eye on Westpac shares in 2020.
