Westpac First Half Profits Leap 32 Per Cent
Australian banking major Westpac delivered a 32 per cent increase in first half net profit. Posting its results on Tuesday, the lender said its strong performance was helped by lower credit impairment charges and a stronger Australian economy.
Net profit for the half year ending March 31st leapt to a record $2.88 billion, up from $2.16 billion from a year earlier.
Credit impairment charges were nearly half the level they were at a year earlier, falling to $879 million from $1.56 billion a year earlier, adding yet another sign that the bad debt charges for the largest banks have no passed their peak.
Westpac CFO Phil Coffey says the lenders wholesale funding costs have continued to increase, but that he expects the pace of the increase to begin to moderate going forward.
Mr. Coffey added that it was not Westpac’s intention to lift mortgage lending rates outside any hikes to the official interest rate.
“It isn’t on our current agenda to do that, we are hopeful that the increase in cost of funds will moderate and we will obviously monitor that through time.” Mr. Coffey told reporters.
The bank said it would pay an interim dividend of 65 cents a share, up from 56c last year. Analysts had expected a dividend of 66c a share, with estimates ranging from 61c to 71c.
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