Westpac’s Q1 profit surges
(17 February 2010 – Australia) Australia’s second biggest lender, Westpac, has announced a strong first quarter cash earnings of A$1.6 billion, attributed to a fall in bad debt charges.
Chief executive of Westpac, Gail Kelly, said in a statement that the earnings were a result of reduced impairments and good momentum across all businesses.
In the bank’s quarterly trading update, Westpac reported that its unaudited cash profit, the bank’s preferred measure due to the removal of volatile items, had risen to A$1.6 billion for the period ended 31st December 2009.
Impairment charges for the bank amounted to A$400 million for the first quarter of 2010, half what it was last year, and operating expenses grew at a lower rate compared to the FY09.
Mrs Kelly said that although the bank remains cautious on the economic outlook, Westpac believes that the worst of the crisis is now over; this is reflected in the significant fall in impairment charges.
Consumer asset quality remains strong although Westpac expects a small increase in delinquencies throughout the year, Mrs Kelly added.
Westpac’s customer deposits grew ahead of system, increasing 1.4 percent; lending also rose from September 2009, up 1.7 percent.
The bank's Tier 1 capital ratio was at 8.5 percent at December 30, up 38 basis points from September.
Westpac’s strong capital position, together with the steps taken to manage funding, will facilitate the continued support of Westpac’s customers as the economy recovers, Mrs Kelly said.
In the bank’s quarterly trading update, Westpac reported that its unaudited cash profit, the bank’s preferred measure due to the removal of volatile items, had risen to A$1.6 billion for the period ended 31st December 2009.
Impairment charges for the bank amounted to A$400 million for the first quarter of 2010, half what it was last year, and operating expenses grew at a lower rate compared to the FY09.
Mrs Kelly said that although the bank remains cautious on the economic outlook, Westpac believes that the worst of the crisis is now over; this is reflected in the significant fall in impairment charges.
Consumer asset quality remains strong although Westpac expects a small increase in delinquencies throughout the year, Mrs Kelly added.
Westpac’s customer deposits grew ahead of system, increasing 1.4 percent; lending also rose from September 2009, up 1.7 percent.
The bank's Tier 1 capital ratio was at 8.5 percent at December 30, up 38 basis points from September.
Westpac’s strong capital position, together with the steps taken to manage funding, will facilitate the continued support of Westpac’s customers as the economy recovers, Mrs Kelly said.
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