(3 November 2006 – Australia) Westpac Bank delivered a record profit of just over A$3 billion, a result built on a stronger second half performance.Westpac’s Institutional division posted a strong 20 percent increase but its business segment grew just seven percent over the year. Consumer banking grew 16 percent.
Chief executive officer David Morgan described the result as “sound, but below potential” with the operational momentum and sales platforms not kicking in until the second half.
“Good loan growth was delivered in mortgages and cards and business lending was particularly strong in the second half of the year,” he said.
Dr Morgan said Westpac had rebuilt volumes, which would provide “good momentum” into 2007.
“Our decision to embrace sustainable and responsible business practices was the right one,” he said.
“It is now translating from workplace gains into business gains and positions us well to deliver future growth.”
Dr Morgan said he expected a slight easing in housing credit in 2007 and that business credit would return to “more sustainable levels after a buoyant 2006”.