UBS has upgraded Westpac to a 'buy' rating, anticipating benefits from cost-cutting measures and noting its low balance sheet leverage among major banks. Despite a slight dip in shares, Westpac has seen a 55.87% increase over the past year, while Australian bank shares have outperformed the ASX 200 by 30%. Analysts highlighted three key factors that could influence value creation in FY25: sustained high cash interest rates, cost pressures from investments, and potential capital returns through buybacks and dividends.
