Westpac reports 27 percent increase
(23 August 2010 – Australia) Westpac has revealed a 27 percent rise in third-quarter cash profit to A$1.4 billion, however highlighted that there is continuing global economic uncertainty.
Westpac increased its Tier 1 capital ratio to 8.9 percent from 8.6 percent as of March.
The bank also said in an statement that it lent an additional A$7 billion to households and small businesses during the quarter, while increasing deposits by A$4 billion, adding that lending and deposits had grown at about the same pace as the system as a whole.
Total revenue for the quarter was about one percent lower than the previous quarter due to lower treasury and markets income.
Westpac said its margin for the third quarter declined two basis points to 2.17 percent.
Gail Kelly, Westpac’s CEO said the third quarter had seen another solid performance from the bank.
Customer numbers have grown across all our brands with the average number of products per customer also increasing, Mrs Kelly said in a statement.
Mrs Kelly also highlighted that the bank’s operating environment remained challenging.
The Australian economy is robust but conditions in Europe and signs of slowing growth in the US continue to create global uncertainty, Mrs Kelly said.
In these circumstances Westpac believes it is prudent to maintain its very strong capital levels and provisioning coverage, Mrs Kelly highlighted.
Mrs Kelly said that credit quality had clearly stabilised and the bank was seeing fewer large stressed assets.
However, and consistent with this stage of the cycle, we have seen a further rise in small business experiencing stress, Mrs Kelly said.
The bank also said in an statement that it lent an additional A$7 billion to households and small businesses during the quarter, while increasing deposits by A$4 billion, adding that lending and deposits had grown at about the same pace as the system as a whole.
Total revenue for the quarter was about one percent lower than the previous quarter due to lower treasury and markets income.
Westpac said its margin for the third quarter declined two basis points to 2.17 percent.
Gail Kelly, Westpac’s CEO said the third quarter had seen another solid performance from the bank.
Customer numbers have grown across all our brands with the average number of products per customer also increasing, Mrs Kelly said in a statement.
Mrs Kelly also highlighted that the bank’s operating environment remained challenging.
The Australian economy is robust but conditions in Europe and signs of slowing growth in the US continue to create global uncertainty, Mrs Kelly said.
In these circumstances Westpac believes it is prudent to maintain its very strong capital levels and provisioning coverage, Mrs Kelly highlighted.
Mrs Kelly said that credit quality had clearly stabilised and the bank was seeing fewer large stressed assets.
However, and consistent with this stage of the cycle, we have seen a further rise in small business experiencing stress, Mrs Kelly said.
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