The Westpac Banking Corporation (ASX: WBC) share price has been a net winner on the charts over the past week.
Whereas the S&P/ASX 200 Index (ASX: XJO) has climbed 1.2% since last Monday, Westpac Banking shares have gained around 5% over the same time, to $26.16.
What's behind the Westpac share price lately?
Firstly, Westpac completed the divestiture of its Australian Life Insurance arm in a $900 million transaction to TAL Dai-ichi Life Australia on 9 August.
The sale was on a "0.96x (times) FY20 embedded value", and includes ongoing payments to Westpac under the agreement.
In its release to the ASX, Westpac said the sale was its exit from "manufacturing life insurance products" and would free up capital for the bank's common equity Tier 1 (CET 1) capital ratio.
The bank will hold responsibility for various pre-completion matters, and "provide protection to TAL, through a combination of provisions, warranties and indemnities", as per the release.
Investors can expect the deal to complete in CY22 and have pushed Westpac shares 5% into the green since the announcement was made.
Any other tailwinds?
The tone of analyst commentary demonstrates another positive for the Westpac share price. To illustrate, a report from broker Morgans last week reaffirmed its add rating, with a price target of $29.50.
Morgans believes the capital injection from the life insurance business sale could benefit the bank and potentially lift Westpac shares.
At a price target of $29.50, this implies a total return upside potential of approximately 18%, factoring in the bank's forward dividend yield estimates.
Morgan's also estimates Westpac to return dividends to shareholders fully-franked on a yield of around 5% in FY22.
Westpac share price snapshot
The Westpac share price has climbed 35% this year to date, extending the previous 12 month's gain of 45%.
These returns have outpaced the broad index's return of around 24.5% into the green over the past year.
