Buoyant BankWest given ratings thumbs up
(12 October 2004 – Australia) BankWest’s momentum continues apace with Standard & Poor’s announcing it has upgraded the bank’s long term credit rating from A to A+ while affirming its A-1 short term rating.
S&P said the rating reflected the bank’s improved standalone credit profile and the strengthening of the bank’s strategic importance to the HBOS group since the British bank bought the bank 12 months ago.
Last week BankWest launched two new savings products in an attempt to boost its market share on the eastern seaboard. As part of its push interstate the banks is spending A$15 million on an advertising campaign.
S&P said BankWest’s ratings upgrade reflected its sound market position as Western Australia’s dominant commercial bank and solid financial profile.
"Key factors supporting the improvement in BankWest’s credit profile include a strengthening of its absolute capital position over time (adjusted common equity stood at A$1.3 billion at the end of fiscal 2003), and its sound and improving credit risk profile," S&P said.
"BankWest’s operating performance remains satisfactory and has been reasonably steady over recent years, although the bank is seeking to improve profits under full HBOS ownership by maintaining strong loan growth, particularly in the consumer sector and outside of Western Australia, while better leveraging off group resources," S&P said.
The bank’s new savings products are intended to compete with high interest, no minimum balance savings accounts offered by the ING Direct, Citigroup and Bank of Queensland. The products will be delivered via telephone and the internet.
Last week BankWest launched two new savings products in an attempt to boost its market share on the eastern seaboard. As part of its push interstate the banks is spending A$15 million on an advertising campaign.
S&P said BankWest’s ratings upgrade reflected its sound market position as Western Australia’s dominant commercial bank and solid financial profile.
"Key factors supporting the improvement in BankWest’s credit profile include a strengthening of its absolute capital position over time (adjusted common equity stood at A$1.3 billion at the end of fiscal 2003), and its sound and improving credit risk profile," S&P said.
"BankWest’s operating performance remains satisfactory and has been reasonably steady over recent years, although the bank is seeking to improve profits under full HBOS ownership by maintaining strong loan growth, particularly in the consumer sector and outside of Western Australia, while better leveraging off group resources," S&P said.
The bank’s new savings products are intended to compete with high interest, no minimum balance savings accounts offered by the ING Direct, Citigroup and Bank of Queensland. The products will be delivered via telephone and the internet.
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