Last month, the Westpac Banking Corp (ASX: WBC) share price had a few ups and downs but ultimately ended the period right back where it started it at $23.87.
This was actually a decent result for investors, especially given that the bank's shares traded ex-dividend last month.
Furthermore, the ASX 200 index shed 3% of its value in May amid broad market weakness.
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Why did the Westpac share price outperform the market?
The Westpac share price held up better than most last month thanks to the release of the banking giant's half-year results.
In case you missed it, Australia's oldest bank reported a 12% reduction in cash earnings to $3,095 million and a 61 cents per share interim dividend.
While this may not look too flash on paper, it was well ahead of expectations. For example, the Visible Alpha consensus estimate was for first-half cash earnings of $2.8 billion and an interim dividend of 59 cents per share.
But perhaps the biggest boost for the Westpac share price was news that management has reiterated its bold cost cutting target.
With rivals Australia and New Zealand Banking Group Ltd (ASX: ANZ) and National Australia Bank Ltd (ASX: NAB) both abandoning their cost reduction targets a week earlier, many thought Westpac would be forced to follow suit. Particularly given how the market was already very sceptical over its plans.
But lo and behold, Westpac reiterated its target of reducing its cost base down to $8 billion by FY 2024. This compares to operating costs of $13.3 billion in FY 2021, which include $2.3 billion of notable items.
And there's reason to believe it could achieve this target. During the half, the bank reported a 10% or $624 million reduction in operating expenses to $5,373 million.
Where next for its shares?
While opinion is divided on the Westpac share price, one leading broker sees a lot of value in it.
A note out of Citi earlier this week reveals that its analysts have a buy rating and $29.00 price target on the bank's shares. This implies potential upside of over 20% for investors.
