(3 November 2010 – Australia) Westpac Banking Corporation has announced an 84 percent rise in full-year profits, adding fuel to the fire as customers of the top banks endure higher interest rates and fees.Westpac’s profit, which came above analysts’ expectations, soared from A$3.45 billion to A$6.35 billion, helped by a fall in bad debts.
Westpac’s impairment charges for problem loans fell to A$1.46 billion, amid improving economic conditions.
Chief executive Gail Kelly said, in a statement, that the bank began the year in strong shape and finished it even stronger.
‘We are well positioned to meet the challenges in an operating environment, which although improving, remains uncertain,” Mrs Kelly added.
News of Westpac’s bumper profit, combined with the announcement a day earlier that the Commonwealth Bank of Australia would be raising its variable interest rate 20 basis points above the Reserve Bank’s official movement has sparked outrage.
Treasurer Wayne Swan slammed a ‘culture of arrogance’ among the major banks.
Mr Swan said he would release reforms aimed at increasing competition among banks next month, following similar calls from the opposition.
‘It will put pressure on the major banks to behave in a better way,’ Mr Swan told public broadcaster ABC.