Why is the Westpac share price falling on Wednesday?

The Westpac Banking Corp (ASX: WBC) share price is trading lower on Wednesday. In morning trade, the banking giant's shares …

The Westpac Banking Corp (ASX: WBC) share price is trading lower on Wednesday.

In morning trade, the banking giant's shares are down almost 1% to $20.88.

A woman with a sad face looks to be receiving bad news on her phone as she holds it in her hands and looks down at it.

Image source: Getty Images

Why is the Westpac share price falling?

Today's decline is likely to have been driven by a couple of factors.

The first is broad market weakness following a sell-off on Wall Street overnight. This has seen all of the big four banks tumble into the red today.

Also potentially weighing on the Westpac share price today has been the release of the announcement relating to its Pacific operations.

What did the bank announce?

According to the release, Westpac has ended the sales process for its Pacific banking businesses after failing to find a suitable buyer.

It appears that Westpac struggled to find an alternative after Papua New Guinea's Independent Consumer and Competition Commission (ICCC) denied authorisation for the proposed sale to Kina Securities Limited (ASX: KSL).

As a result, the bank will be retaining its Westpac Fiji and Westpac Bank PNG businesses.

Westpac also advised that it will continue to support local businesses, improve digital and service capabilities for customers, and deliver important community programs in financial literacy and education.

Should you buy the dip?

Analysts at Morgans are likely to see the dip in the Westpac share price as a buying opportunity.

The broker currently has an add rating and $22.58 price target on its shares. This implies almost 8% upside for investors from current levels.

And with Morgans forecasting a fully franked dividend of $1.47 in FY 2024, which equates to a 7% dividend yield, the total return on offer stretches to approximately 15%.

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. 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 no position in any of the stocks mentioned. 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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