With Westpac's (WBC) provisioning nearing cyclical lows and household credit growth restricted by highly indebted households, it is difficult to see...

With Westpac's (WBC) provisioning nearing cyclical lows and household credit growth restricted by highly indebted households, it is difficult to see significant earnings and dividend upside from the bank's traditional businesses. We derive a financial year 2014 valuation at September 30, 2014 of $31.60, rising to $32.86 in FY15. Investors should target a 15% total first-year shareholder return when investing in a major bank at this stage of the cycle. The WBC share price at which the current forward return is 15% is $30.70.Read the full article published in The Eureka Report (VIEW LINK)