Westpac Banking Corporation (ASX:WBC) has just missed earnings expectations, announcing a 27.3 per cent increase in profit to $1.4 billion for the three months to 30 June.
The bank says higher funding costs affected the result.
Westpac reports that it has a secure funding position with $40 billion in term wholesale funding raised this financial year to date.
For the quarter the bank says customer numbers have grown across all brands with the average number of products per customer also increasing.
CEO Gail Kelly says the third quarter produced a solid performance and Westpac expects further improvement, though the operating environment remains challenging.
Ms Kelly also says this uncertainty supports Westpac's decision to lengthen the term of wholesale funding and increase the corporations holdings of liquid assets.
Westpac reported a profit of $3.45 billion for the year to 30 September 2009.
WBC Price at posting:
$22.65 Sentiment: None Disclosure: Held
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