Westpac On Expected A$ Dividend Inflows

The local bank sees less dividend related inflows compared to previous years. See below for more details:

"The first of the big Australian dividends that are declared in US$ and will show up as FX flows as investors request payment in local currency has just been declared and the theme appears to be set in place. Surging costs, impairment charges, and falling energy prices are hitting profits and thus dividends."

"Our initial estimate for FX flow is the lowest since H2 2020 at A$11bn with about 40% of that being transacted as soon as this week, according to stated dividend policy, reasonable assumptions, author calculations, and the usual caveats that this is just a guesstimate. We will update that guesstimate as other miners/resource companies declare dividends in the days ahead."