Westpac unveils strong profit
(31 October 2008 – Australia) Westpac has announced an increase in both cash and net full year profits, increasing by six and 12 percent respectively.
Westpac’s cash earnings result was A$3.7 billion, an increase of 6 percent, while the net profit result saw a 12 percent increase to A$3.9 billion.
The reduced cash earnings compared with the net result came from some specific significant items, while provisions came out of both results.
Westpac’s investment and restructuring programme aimed at redesigning product processes and operations has come in at a cost of A$226 million after tax.
Westpac also made significant item gains, including the partial sale of BT Investment Management Limited which provided a post tax gain of A$86 million and a A$205 million post tax gain on the Visa Initial Public Offering.
There has been an increase in impairment charges to A$931 million. Institutional impairment charges rose by A$201 million from a small number of single name exposures, predominantly in the first half. Total impairments jumped from A$482 million in 2007.
Westpac’s retail division saw a cash profit increase of nine percent to A$913 million over the year.
The small to medium business division, called Business Financial Services, rose by 11 percent. The A$1085 million earnings result was the largest contributor of any division once again.
The Westpac Institutional Bank saw its cash earnings fall by four percent to A$566 million. Revenue, however, was solid for the division, with an increase of 13 percent.
BT Financial Services was hit the hardest, with a 12 percent fall to A$389 million.
Thus far, Westpac has spent A$11 million on St George merger and integration expenses.
Westpac announced a fully franked final dividend of 72 cents, bringing the total dividend for the year to 142 cents, an increase of 8 percent.
The reduced cash earnings compared with the net result came from some specific significant items, while provisions came out of both results.
Westpac’s investment and restructuring programme aimed at redesigning product processes and operations has come in at a cost of A$226 million after tax.
Westpac also made significant item gains, including the partial sale of BT Investment Management Limited which provided a post tax gain of A$86 million and a A$205 million post tax gain on the Visa Initial Public Offering.
There has been an increase in impairment charges to A$931 million. Institutional impairment charges rose by A$201 million from a small number of single name exposures, predominantly in the first half. Total impairments jumped from A$482 million in 2007.
Westpac’s retail division saw a cash profit increase of nine percent to A$913 million over the year.
The small to medium business division, called Business Financial Services, rose by 11 percent. The A$1085 million earnings result was the largest contributor of any division once again.
The Westpac Institutional Bank saw its cash earnings fall by four percent to A$566 million. Revenue, however, was solid for the division, with an increase of 13 percent.
BT Financial Services was hit the hardest, with a 12 percent fall to A$389 million.
Thus far, Westpac has spent A$11 million on St George merger and integration expenses.
Westpac announced a fully franked final dividend of 72 cents, bringing the total dividend for the year to 142 cents, an increase of 8 percent.
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