Business banking underpins Westpac result
(2 November 2007 – Australia) Westpac Bank has posted a strong full year profit result ensuring outgoing chief executive David Morgan hands over to new boss Gail Kelly on a positive note.
The bank delivered a better than expected profit of A$1.82 billion for the full year to 30 September, up nine percent on the previous year.
Revenue increased 11 percent whilst return on equity hit 24 percent.
Business lending, Westpac Institutional Bank (WIB) and wealth management were the drivers behind the result, which was boosted by a strong second half cash profit rise of nine percent.
Business lending grew 16 percent and WIB’s cash earnings increased by 16 percent driven by the vibrant debt and financial markets.
Dr Morgan said all businesses were showing good momentum and he expected the appetite for both business and consumer borrowing to remain high into 2008.
He said legislative changes to retirement savings had acted as a further boost to the bank’s wealth management business, BT Financial.
Morgan said he expected the changes brought about in the wake of the US sub-prime mortgage market to remain structural and that they would become a permanent feature of the markets.
Revenue increased 11 percent whilst return on equity hit 24 percent.
Business lending, Westpac Institutional Bank (WIB) and wealth management were the drivers behind the result, which was boosted by a strong second half cash profit rise of nine percent.
Business lending grew 16 percent and WIB’s cash earnings increased by 16 percent driven by the vibrant debt and financial markets.
Dr Morgan said all businesses were showing good momentum and he expected the appetite for both business and consumer borrowing to remain high into 2008.
He said legislative changes to retirement savings had acted as a further boost to the bank’s wealth management business, BT Financial.
Morgan said he expected the changes brought about in the wake of the US sub-prime mortgage market to remain structural and that they would become a permanent feature of the markets.
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