Westpac share price on watch following Q1 update

Australia's oldest bank has released its first quarter update this morning…

Key points
  • Westpac has released its first quarter update
  • The banking giant had a strong quarter operationally
  • No profit details were provided by the bank

The Westpac Banking Corp (ASX: WBC) share price will be one to watch on Friday.

This is because Australia's oldest bank has just released its first quarter update.

Young investor sits at desk looking happy after discovering Westpac's dividend reinvestment plan

Image source: Getty Images

Westpac share price on watch

Investors will be watching the Westpac share price closely today after the banking giant's first quarter update was released to the market.

Unfortunately, the banking giant's update isn't as thorough as the one from rival National Australia Bank Ltd (ASX: NAB) on Thursday and doesn't include any profit details.

However, it does provide a few metrics that gives investors an idea of how Westpac is performing right now.

What did Westpac report?

Westpac's update provided details on its credit quality, capital position, and funding and liquidity.

In respect to credit quality, Westpac reported that its 90+ day mortgage delinquencies were down five basis points to 0.7%.

It also revealed that its provisions to total committed exposure (TCE) edged slightly higher to 40 basis points from 39 basis points. Though, this is still lower than the prior corresponding period.

As for its capital position, Westpac reported a CET1 ratio of 11.13% and an 0.6% or $2.8 billion increase in risk weighted assets (RWA) to $480.4 billion. The latter was driven by higher lending.

Finally, the banking giant provided investors with a funding and liquidity update, which revealed that both measures have strengthened during the quarter.

Westpac's liquidity coverage ratio (LCR) was up 7 percentage points to 139%, its net stable funding ratio (NSFR) was up 1 percentage point to 122%, and its deposit to loan ratio came in 1.1 percentage points higher at 84%.

The Westpac share price is down 3% over the last 12 months.

Motley Fool contributor James Mickleboro has positions in Westpac Banking. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Westpac Banking. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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