(11 May 2004 – Australia) Westpac has posted a record half-year net profit of $1.23 billion for the six months to March 2004, up 17 percent on the corresponding period last year. The bank also announced a $500 million share buyback.The bank said the strong performance was driven by a 30 percent jump in business lending, which now constitutes a quarter of the bank’s overall profits. Home lending, on the other hand, experienced a small decline.
Westpac chief executive David Morgan said the bank’s decision to acquire wealth management business BT had proven to be the “right one”.
“BT is now a major contributor to our financial performance and places Westpac in a strong position in the funds management industry,” he said.
Morgan said the bank would continue improving its customer satisfaction levels.
“While we have made good progress, we believe that we can continue to improve customer experience and satisfaction levels, further improving long term earnings sustainability,” Morgan said.
The bank said it expected to deliver a second half result of about $1.3 billion.