Westpac posts record profit but sees competition intensifying
(8 November 2004 – Australia) Westpac has posted a record profit of A$2.5 billion for 2004 but warned of intensifying competition in Australia’s banking markets.
Westpac increased its annual net profit by 16.3 percent on the previous year with revenue growing 15 percent to more than A$18 billion.
The bank’s second half cash earnings grew 13 percent, boosted by both strong home and business lending, which grew 12 percent and 15 percent respectively. The bank’s cards business increased by 13 percent.
Cash earnings in BT Financial, Westpac’s wealth management business, increased by 16 percent.
Westpac chief executive David Morgan expressed confidence the bank would continue to deliver strong results "at the upper end of the sector" in the coming year.
However, he said strong competition was coming from both established players and new entrants.
He said the composition of growth was changing from being consumption led to being driven by net exports and business investments.
"This is a more sustainable basis for growth but does mean that credit growth is likely to be lower than we have experienced in recent years," Dr Morgan said.
"Taken as a whole we expect the operating environment to be more challenging but continue to expect our businesses to perform well in the year ahead given the untapped potential in more of our customer bases and the good momentum we have built up," he said.
The bank’s second half cash earnings grew 13 percent, boosted by both strong home and business lending, which grew 12 percent and 15 percent respectively. The bank’s cards business increased by 13 percent.
Cash earnings in BT Financial, Westpac’s wealth management business, increased by 16 percent.
Westpac chief executive David Morgan expressed confidence the bank would continue to deliver strong results "at the upper end of the sector" in the coming year.
However, he said strong competition was coming from both established players and new entrants.
He said the composition of growth was changing from being consumption led to being driven by net exports and business investments.
"This is a more sustainable basis for growth but does mean that credit growth is likely to be lower than we have experienced in recent years," Dr Morgan said.
"Taken as a whole we expect the operating environment to be more challenging but continue to expect our businesses to perform well in the year ahead given the untapped potential in more of our customer bases and the good momentum we have built up," he said.
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