HBOSA profit down with investments
(6 August 2008 – Australia) HBOS Australia has announced that its interim profits were down 12 percent to A$325 million, due in part to increased investment.
While the bank recorded revenue growth of 15 percent, the profit results below last years figure was the result of both the expansion plans and impairment losses.
HBOS Australia has over recent times put a great deal of focus on the branch expansion plan of its BankWest brand.
The results reflect the impact of a 24 percent increase in expenses from HBOS Australia’s expansion program, which is a A$1 billion investment in an enhanced east coast physical presence through new bank stores and Business Banking Centres.
HBOS Australia chief executive, David Willis, said that the continued growth of HBOSA has been on track and in line with long terms strategy and that staff numbers continue to expand and now approach 6500 people.
He also said that the impact of this expansion on profit had been flagged in previous results announcements and a normalisation of expense growth would have shown continued profit growth notwithstanding increased impairment charges.
Willis said the core books remained sound and increases had been principally attributed to a small number of higher value exposures.
Impairment loses as a percentage of average advances rose to 0.41 percent from 0.28 percent at half year ended 31 December 2007.
While much of the expansion plan is focused on the east coast, HBOSA also indicated that a revitalisation of the west coast was also occurring, including a number of new stores as well as a purpose built head office for BankWest in Perth.
HBOS Australia has over recent times put a great deal of focus on the branch expansion plan of its BankWest brand.
The results reflect the impact of a 24 percent increase in expenses from HBOS Australia’s expansion program, which is a A$1 billion investment in an enhanced east coast physical presence through new bank stores and Business Banking Centres.
HBOS Australia chief executive, David Willis, said that the continued growth of HBOSA has been on track and in line with long terms strategy and that staff numbers continue to expand and now approach 6500 people.
He also said that the impact of this expansion on profit had been flagged in previous results announcements and a normalisation of expense growth would have shown continued profit growth notwithstanding increased impairment charges.
Willis said the core books remained sound and increases had been principally attributed to a small number of higher value exposures.
Impairment loses as a percentage of average advances rose to 0.41 percent from 0.28 percent at half year ended 31 December 2007.
While much of the expansion plan is focused on the east coast, HBOSA also indicated that a revitalisation of the west coast was also occurring, including a number of new stores as well as a purpose built head office for BankWest in Perth.
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