The Westpac Banking Corp (ASX: WBC) share price is marching higher today.
Again.
Shares in the S&P/ASX 200 Index (ASX: XJO) bank stock closed yesterday trading for $32.79. In early afternoon trade on Tuesday, shares are swapping hands for $33.03, up 0.7%.
While that's no massive intraday move, it does see the Westpac share price not only setting a new 12-month high but also approaching a new seven-year high.
That's right. You'd have to go back to November 2017 to find the ASX 200 bank share trading at a higher level. At current prices, the big four bank now commands a $113.8 billion market cap.
With today's intraday gains factored in, Westpac stock is now up a whopping 52.2% since this time last year.
For some context, the ASX 200 has gained 12.5% over that same period.
Here's what's been driving that outperformance.
The Westpac share price is on a tear
It's not just the Westpac share price that's been rewarding shareholders this year.
The past 12 months have been kind across the ASX 200 banking sector. Consumers and businesses have weathered the high inflation and interest rate environment with only a small uptick in bad loans.
ANZ Group Holdings Ltd (ASX: ANZ) shares, for example, have gained 20.9% over the full year. The National Australia Bank Ltd (ASX: NAB) share price has gained 30.8%, and Commonwealth Bank of Australia (ASX: CBA) shares are up 39.4% over this time.
Still, the 52.2% leap in the Westpac share price leads the charge among the big four Aussie banks.
And this doesn't include the $1.62 a share in fully franked dividends the bank paid over the year. If we add that welcome passive income back into the current $32.79 a share, then the accumulated value of Westpac stock is up 57.9% since this time last year.
What's been driving ASX 200 investor interest?
Westpac has been capturing investor interest over the year amid strong performance alongside increasing dividends. The Westpac share price also got a boost from the $1 billion increase in the company's share buyback program, bringing that to $2.5 billion.
At its half-year results, Westpac reported a 4% year on year decline in net operating income to $10.59 billion. Net profit before one-offs declined 8% to $3.51 billion.
But investors shrugged off those dips, with Westpac CEO Peter King (soon to be replaced by Anthony Miller) noting at the time that net interest margins [NIM] had held up over the year and mortgage competition among the banks was easing.
"The impact of competition on mortgage margins moderated this half. NIM excluding Notable Items was unchanged from the second half of 2023," King said.
The Westpac share price closed the day up 2.7%.
