(4 November 2005 – Australia) Westpac posted a A$2.8 billion profit for the full year to 30 September 2005, an 11 percent jump in net profit.The bank’s residential lending business grew just eight percent for the year while business lending and deposits grew 11 percent on the back of a stronger second half.
Westpac chief executive David Morgan said the bank would deliver another solid performance in the year ahead though he said the level of competition in the banking markets would continue to pressure margins.
The bank also announced a A$700 million share buyback.
Westpac’s wealth management business, BT, reported cash earnings of A$276 million for the full year, which was a 48 percent increase on the same period last year.
“While delivering a great result, BT’s full potential is only just materialising. In 2005, cross sell emerged as a key contributor to funds flows, yet in many ways our financial planning capability still has much upside,” Morgan said.
Morgan said all commercial banks had identified the need for improved customer service, better distribution and more customer facing staff but that the key to success would be in the execution of these strategies.