Westpac Leads Australian Bank Shares Lower Amid Capital Concerns
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Westpac Banking Corp. shares slid the most since 2011 as its plan to raise A$2 billion ($1.6 billion) in capital fueled concern that Australia’s biggest banks will need more equity to meet stricter regulatory requirements.
Westpac, which revealed the capital proposal Monday as it reported lower-than-estimated profit, dropped as much as 4.9 percent, the biggest intraday drop since September 2011. The lender, the nation’s second largest by market value, sank 3.4 percent as of 1:51 p.m. in Sydney, while its three biggest competitors dropped at least 0.9 percent.