Despite sliding 5.9% since last Friday's close, Westpac Banking Corp (ASX: WBC) shares remain up an impressive 29.4% since this time last year.
Shares in the S&P/ASX 200 Index (ASX: XJO) bank stock are down 2.0% in intraday trade today, swapping hands for $32.62 apiece.
For some context, the ASX 200 is down 0.7% at this same time, as investors await the much-anticipated interest rate decision from the RBA this afternoon.
Atop the sizeable capital gains the big four bank delivered to investors over the year, Westpac also paid out $1.66 in fully franked dividends. This sees Westpac shares trading on a fully franked trailing dividend yield of 5.1%.
With that strong run behind it, can the ASX 200 bank stock keep outperforming in the year ahead?
Westpac shares: Buy, sell, hold?
While a growing number of analysts are increasingly bearish on the big four bank stocks, Fairmont Equities' Michael Gable believes Westpac shares have more gains to offer in the months ahead (courtesy of The Bull).
"The share price has performed strongly in the past 12 months, increasing from $24.55 on February 13, 2024, to trade at $34.82 on February 13, 2025," Gable noted last week, when shares were trading 6.3% above current levels.
"It has led some market watchers to suggest profit taking, citing the shares are overvalued," said Gable, who has a bullish 'hold' recommendation on the ASX 200 bank stock.
Indeed, consensus analyst recommendations on CommSec show one strong buy, three hold, two moderate sell, and five strong sell suggestions.
But pointing to the strong momentum of Westpac shares over the past six months, Gable is more optimistic.
"Our charting analysis suggests WBC can continue trading higher from here. Since September 2024, the share price has been forming higher lows, which is a bullish sign," he said.
What's the latest from the ASX 200 bank stock?
Westpac reported its first-quarter results yesterday.
Excluding notable items, the ASX 200 bank achieved a 3% increase in net profit to $1.9 billion.
However, investors may have pressured Westpac shares on the day, with the bank's net interest margin (NIM) slipping 0.02% to 1.81%.
Looking to what's ahead, Westpac CEO Anthony Miller said, "We continue to prioritise financial strength with capital, funding and liquidity remaining comfortably above regulatory minimums."
Miller added:
Cost of living pressures and high interest rates remain challenging for some customers while many businesses face cost pressures and lower demand. Encouragingly, inflation has eased.
