News: WBC Westpac Banking Corp Posts H1 Net Interest Income $8,389 Million

May 6 (Reuters) - Westpac Banking Corp (WBC) :

• PROPOSES INTERIM DIVIDEND OF 94 CENTS PER SHARE
• AS AT MARCH 31, COMMON EQUITY TIER 1 CAPITAL RATIO 10.64 PERCENT
• H1 STATUTORY NET PROFIT $3,173 MILLION, DOWN 24%
• H1 CASH EARNINGS $3,296 MILLION, DOWN 22%
• AUSTRALIAN ECONOMY WILL REMAIN SUBDUED WITH GDP GROWTH THIS YEAR EXPECTED TO HOLD AT AROUND 2.2%
• H1 NET INTEREST MARGIN 2.12% VERSUS 2.28%
• AS AT MARCH 31, CASH RETURN ON EQUITY (ROE) OF 10.4%, DOWN 3.5 PERCENTAGE POINTS
• H1 NET INTEREST INCOME $8,389 MILLION VERSUS $8,717 MILLION
• SAYS SECOND HALF WILL CONTINUE TO BE CHALLENGING
• EMPLOYMENT GROWTH IS LIKELY TO SLOW WHILE INFLATION IS LIKELY TO REMAIN LOW
• HOUSE PRICES ARE LIKELY TO REMAIN SOFT AND HOME BUILDING IS SET TO REDUCE THROUGH 2019 AND INTO 2020
• EXPECT SYSTEM HOUSING CREDIT GROWTH TO SLOW TO 3% IN CURRENT BANK YEAR AND FALL FURTHER NEXT YEAR TO 2.5%
• ON TRACK TO DELIVER TARGET OF $400 MILLION IN PRODUCTIVITY SAVINGS OVER FULL YEAR
• REDUCED FULL TIME EQUIVALENT STAFF BY 788 THIS HALF
• EXPENSES EXCLUDING MAJOR REMEDIATION AND RESTRUCTURING ITEMS WERE DOWN 3% THIS HALF
• "WE ARE DEALING DECISIVELY WITH A DIFFICULT COMMERCIAL ENVIRONMENT FOR BANKS"
• PROVISIONED $1,445 MILLION PRE-TAX IN TOTAL OVER PAST 3-YEARS TO WORK ON CUSTOMER REMEDIATION PROGRAMS
• WESTPAC- IMPLEMENTING RECOMMENDATIONS OF ROYAL COMMISSION & OTHER INDUSTRY INITIATIVES WHILE CONTINUING TO INVEST IN TECHNOLOGY AND DIGITAL PLATFORMS

Source text http//reut.rs/2VfhEFC

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