Westpac Full Year Profits Jump A Whopping 84 Per Cent
Australian banking major Westpac reported a whopping 84 per cent rise in full year net profits, which jumped from $3.45 billion a year ago, to $6.35 billion.The stellar result will likely fuel public anger against major lenders, after rival CBA lifted its lending rates by 45 basis points, far outstripping the 25 basis point rate hike enacted by the Reserve Bank of Australia.
Westpac which is Australia’s second largest mortgage lender says it will consider its lending rates over the next few days, but added that it expects funding costs to continue to remain high.
Rivals ANZ and NAB both also said that their lending rates were under review.
For the year ending September 30th Westpac said its net interest margin declined by 11 basis points, which was largely as a result of higher wholesale and deposit based funding costs.
Westpac’s full-year cash profit a performance metric closely watched by investors rose by 26 per cent to $5.88 billion, as revenues increased by 2.4 per cent to $16.91 billion.
The bank declared a final dividend of 74 cents a share, also beating market expectations.
“We began the year in strong shape and finished it even stronger,” chief executive Gail Kelly said. “We are well positioned to meet the challenges in an operating environment, which although improving, remains uncertain.”
“In the year ahead, economic activity is expected to improve further as business investment picks up and global growth trends improve,” Ms Kelly said. “Nevertheless, we expect some legacies of the global financial crisis to remain, including cautious financial markets.”
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