The Westpac Banking Corp (ASX: WBC) share price is slightly in the red today, however, it is outperforming some other banks.
The banking giant's shares are currently swapping hands at $21.32, a 0.88% fall. For perspective, the S&P/ASX 200 Financials Index (ASX: XFJ) is down 0.82% today. Commonwealth Bank of Australia (ASX: CBA) shares are down 1.3%, while Australia and New Zealand Banking Group Ltd (ASX: ANZ) shares are down 1.66%. The National Australia Bank Ltd (ASX: NAB) share price is 1.65% in the red.
Let's take a look at what is going on at Westpac.
Sale complete
Westpac has finished the sale of its life insurance business to TAL Dai-ichi Life Australia.. This deal was first announced on 9 August 2021.
The terms of the sale remain the same.
The bank is now expecting to report a total loss after tax on sale of about $1.37 billion. Of this, $0.27 billion was accounted for in the company's 2021 results.
A loss of about $1.1 billion after tax will be recorded as a notable item in the Westpac FY22 results.
Westpac will receive ongoing payments as part of an exclusive 20-year strategic alliance for delivering life insurance to its Australian customers. The sale also adds about 17 basis points to the bank's common equity tier 1 capital ratio.
Commenting on the sale, Wespac specialist businesses chief executive Jason Yetton said:
This sale is another important step in simplifying our business.
We have now completed Westpac's exit of insurance underwriting following the sales of our General Insurance and Lenders Mortgage Insurance businesses in Australia, as well as Life Insurance in New Zealand.
In other news, Goldman Sachs has upgraded its price target on Westpac's shares. Analysts have placed a $26.12 price target on the Westpac share price. As my Foolish colleague James reported this morning, Goldman emphasised "WBC's NIM leverage to higher rates".
Finally, Westpac is planning on delivering a four percent pay rise to staff earning up to $94,446 per year in 2023, The Australian reported. Human resources group executive Christine Parker was quoted as saying:
We know that inflation is increasing and that people are dealing with a higher cost of living.
Westpac share price snapshot
The Westpac share price has lost about 13% in the past year, while it is down 0.14% year to date.
For perspective, the S&P/ASX 200 Financials Index (ASX: XFJ) has shed more than 13% in a year.
Westpac has a market capitalisation of about $74.6 billion based on the current share price.
