West­pac re­prots strong re­sults

The Pak Banker - - Front Page -

SYDNEY, AUS­TRALIA

West­pac Group to­day an­nounced cash earn­ings of $6,598 mil­lion for the 12 months to 30 Septem­ber 2012, up 5% com­pared to the same pe­riod last year.

Cash earn­ings of $6,598 mil­lion, up 5%; cash earn­ings per share of 215.9 cents, up 3%; fi­nal fully franked div­i­dend of 84 cents per share; to­tal div­i­dend 166 cents, up 6%; rev­enue up 6%, ahead of ex­pense growth of 4%; statu­tory net profit of $5,970 mil­lion, down 15%, as pre­vi­ous year ben­e­fited from one-off St.Ge­orge tax con­sol­i­da­tion; re­turn on eq­uity of 15.5%; net in­ter­est mar­gin 5bps lower at 2.17%. ex­pense to in­come ra­tio im­proved 70bps to 40.8%.

Strength­ened bal­ance sheet, in­clud­ing cus­tomer de­posit to loan ra­tio up 5 per- cen­t­age points to 67.6% and liq­uid as­sets boosted to $110 bil­lion. Statu­tory net profit was lower over the year prin­ci­pally as a re­sult of a large one-off tax ben­e­fit from St.Ge­orge tax con­sol­i­da­tion that was re­ported in the 2011 full year re­sult. West­pac Group Chief Ex­ec­u­tive Of­fi­cer Gail Kelly said: "This is a strong re­sult in a lower growth eco­nomic en­vi­ron­ment, and it re­flects the progress we have made over the past five years in build­ing a stronger, more pro­duc­tive and more cus­tomer fo­cused com­pany.

We have strength­ened our bal­ance sheet while de­liv­er­ing at­trac­tive re­turns to share­hold­ers and in­vest­ing for fu­ture growth. Our per­for­mance, par­tic­u­larly in the sec­ond half, demon­strates that we have in­creas­ing mo­men­tum across our busi­nesses. Our dis­ci­plined ap­proach to pro­duc­tivi- ty has im­proved cus­tomer ser­vice and in­creased ef­fi­ciency. Im­por­tantly, we continue to be the most ef­fi­cient Aus­tralian bank, with an ex­pense to in­come ra­tio down to 40.8%. Mrs Kelly said a high­light of the re­sult was the strong per­for­mance of the new Aus­tralian Fi­nan­cial Ser­vices division (AFS), which in­cludes the Aus­tralian re­tail bank­ing, busi­ness bank­ing and wealth op­er­a­tions.

West­pac In­sti­tu­tional Bank's strong growth in core earn­ings2 re­flects its in­dus­try lead­er­ship and strength in re­la­tion­ship man­age­ment, in­clud­ing sup­port­ing its cus­tomers in what continue to be volatile times. West­pac New Zealand is also per­form­ing strongly with sig­nif­i­cant front-line in­vest­ment and im­prov­ing credit qual­ity sup­port­ing a 22% in­crease in cash earn­ings com­pared to prior year.

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