Full-year profit $5.97b for Westpac
(6 November 2012 – Australia) Westpac’s full-year net profit sits at A$5.97 billion, a fall of 15 percent, blamed on tax implications for its takeover of St George.
The result for the year to 30 September was down from A$6.99 billion in 2010/11, when Westpac received A$1.1 billion in tax benefits. The 2011/2012 result includes A$165 million in retrospective tax charges.
The bank’s cash earnings in the 12 months to 30 September, which takes out one-off financial items, rose 5 percent to A$6.598 billion compared to the previous year. The cash result was above analysts' expectations of A$6.46 billion.
Westpac said the result included a 9 percent rise in second-half cash profit, beating expectations on tight costs, and said it had improved its balance sheet even as bad debts rose.
Cash earnings from the bank’s Australian retail and business banking units were higher than the previous year’s, up 14 percent to A$2.1 billion as deposits and loans grew.
Other divisions of the bank posted more steady results, with St George’s earnings flat compared to the previous year, at A$1.2 billion.
Westpac chief executive, Gail Kelly said credit growth would remain subdued in the year ahead, while savings are expected to continue to grow strongly, due to weak consumer sentiment.
‘‘Volatility in global markets is likely to continue and as a result of the structural changes that are now occurring, both overseas and domestically, the operating environment will remain challenging,’’ she said.
The bank’s cash earnings in the 12 months to 30 September, which takes out one-off financial items, rose 5 percent to A$6.598 billion compared to the previous year. The cash result was above analysts' expectations of A$6.46 billion.
Westpac said the result included a 9 percent rise in second-half cash profit, beating expectations on tight costs, and said it had improved its balance sheet even as bad debts rose.
Cash earnings from the bank’s Australian retail and business banking units were higher than the previous year’s, up 14 percent to A$2.1 billion as deposits and loans grew.
Other divisions of the bank posted more steady results, with St George’s earnings flat compared to the previous year, at A$1.2 billion.
Westpac chief executive, Gail Kelly said credit growth would remain subdued in the year ahead, while savings are expected to continue to grow strongly, due to weak consumer sentiment.
‘‘Volatility in global markets is likely to continue and as a result of the structural changes that are now occurring, both overseas and domestically, the operating environment will remain challenging,’’ she said.
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