It's been another good start for the S&P/ASX 200 Index (ASX: XJO) so far this Wednesday. At the time of writing, the ASX 200 has gained another 0.3%, building on yesterday's strong showing to climb to around 7,226 points. But the same can't be said for the Westpac Banking Corp (ASX: WBC) share price.
Westpac shares seem to have gotten out on the wrong side of the bed this morning. The ASX 200 bank share opened at $23.75 a share this morning after closing at $23.66 yesterday. At present, the Westpac share price is down by 1% at $23.42 each.
So what's going on with Westpac today that's leading the ASX 200 bank to lose so convincingly to the broader market?
Well, we have had some big news out of the bank this morning that could explain investors' pessimism. You see, Westpac held its annual general meeting today. Although the tone of the AGM was generally upbeat, it did have some big moments.
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Westpac chair to retire
The first was the announcement that Westpac chair John McFarlane intends to retire following Westpac's 2023 AGM.
Here's what McFarlane had to say on his retirement this morning:
Given the progress in turning around your company – I have advised the Board that I intend to retire at the conclusion of the 2023 AGM in December of next year.
This delivers on my commitment to shareholders when I first took on the role in 2020 to create a leaner, more agile, and better performing Company.
In addition to this news, Westpac CEO Peter King also sounded less optimistic about what the future holds for the Australian economy. Here's what he said to investors about what the bank is expecting over the next 12 months:
There is no doubt that tighter monetary policy and slowing economic growth will impact some customers in the year ahead. We are prepared for this cycle given the quality of the loan portfolio and the strength of our balance sheet and provisioning…
We expect the combination of rising interest rates and the increase in cost of living to be felt more fully by consumers and businesses after Christmas. As I indicated earlier, we're well placed to support customers through what will be a tougher period.
So hardly filling investors with confidence over what the next 12 months might bring. This could be what is weighing on investor sentiment this Wednesday.
Further, there has been a report of disruption at Westpac's AGM.
Do shareholders get the last laugh?
According to a report in The Australian today, the AGM was "temporarily disrupted by a laughing protest" when McFarlane and King were outlining Westpac's initiatives on climate change.
McFarlane was making remarks that outlined Westpac's commitment to reducing emissions when some attendees reportedly started "breaking out with laughter".
Some attendees were then "asked to leave" when they began laughing while King was addressing the same topic.
So all in all, it seems that perhaps a combination of these events may be leading investors to shun Westpac shares today.
At the current Westpac share price, this ASX 200 bank has a dividend yield of 5.33%.
