(Australia) – One of Australia’s regional banks, Perth based BankWest, has produced a first half 2002 net profit of A$79.1 million.Results are largely in line with market expectations, with an improvement in the bank’s performance in the second half of the year based on its ability to manage its net interest margin and asset quality positions, which have somewhat weakened over the last six months.
Closer cost controls and improved business lending volumes should however, generate a growth in profitability driven also by sound capital base, geographical market expansion and leverage potential with its 56 percent parent, HBOS of the UK.
Business lending currently constitutes 43.7 percent of BankWest’s total book, a somewhat higher ratio than its peer group.