The Westpac Banking Corp (ASX: WBC) share price is under pressure on Monday despite the release of a positive announcement.
At the time of writing, the banking giant's shares are down 0.5% to $20.91.
This means the Westpac share price is now down almost 19% in the space of two months.
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Why is the Westpac share price falling?
The weakness in the Westpac share price today appears to have been driven by events on Wall Street on Friday night.
A number of major banks fell heavily following a very poor night of trade on the Dow Jones and S&P 500 indices.
This has led to Westpac and the rest of the big four banks starting the week in the red today.
What did Westpac announce?
As mentioned at the top, not even a positive announcement has been able to stop the Westpac share price from sliding today.
According to the announcement, Westpac has completed the sale of its wholesale dealer loan book of approximately $1 billion in receivables to Angle Auto Finance.
Management notes that this is the key milestone in its plan to sell its dealer finance and novated leasing businesses to Angle Auto Finance. It also advised that the transition of Westpac's retail, wholesale dealer and introducer networks to Angle Auto Finance is underway and is expected to complete by the end of March 2022.
The transaction is expected to add 6 basis points to Westpac's Common Equity Tier 1 capital ratio and generate an accounting gain on sale.
Westpac's Group Chief Executive, Specialist Businesses, Jason Yetton, notes that the sale will simplify the bank's operations while supporting the Auto Finance industry.
He said: "Westpac is confident that Angle will provide a high level of support for dealers and customers and is committed to investing and growing the business to help more Australians get behind the wheel."
