The Westpac Banking Corp (ASX: WBC) share price struggled to gain ground amid the market's November rally.
That's despite the S&P/ASX 200 Index (ASX: XJO) bank share posting its full-year earnings last month.
After closing October at $24.11, the stock hit a high of $24.50 in early November and a low of $23.06 just days later, before closing the month at $23.77. That marks a 1.41% fall over the 30-day period.
Comparatively, the ASX 200 lifted 6.13% last month while the S&P/ASX 200 Financials Index (ASX: XFJ) gained 1.14%.
So, what went wrong for the big four bank stock in November? Let's take a look.
What weighed on the Westpac share price last month?
There was only one thing directly impacting the Westpac share price last month. And boy, was it a doozy.
The bank released its earnings for the 12 months ended 30 September on 7 November.
It posted a $5.7 billion profit – a 4% year-on-year increase; $5.3 billion of cash earnings – a 1% fall; and a 64-cent dividend.
That brought Westpac's dividends for financial year 2022 to $1.25 per share – marking a 6% improvement.
At the same time, however, its net interest margin slumped 17 basis points to 1.87% despite rising rates.
The bank's New Zealand segment posted notable growth, with its cash earnings lifting 15% to $1.2 billion. However, that was partially offset by its business segment's 15% decline in cash earnings, coming in at $918 million.
Of course, its bottom line was also dinted by the previously forecast $1.3 billion impact from notable items, mainly brought about by the sale of its life insurance business.
The bank's stock tumbled 4% on the back of its full-year results.
Fortunately, the Westpac share price is still able to boast a strong performance over the longer-term despite its November struggles.
It's currently 11% higher than it was at the start of 2022 and 16% higher than it was this time last year.
For comparison, the ASX 200 has fallen 3% year to date and is 2% higher than it was 12 months ago.
