wbc charts & thoughts (november), page-3

Beats expectations with strong results.

We'll see what the market really thinks by the end of the day or in a few days.

Shonan Trader


Westpac profit slides 15pc

By online business reporter Michael Janda
Updated 1 hour 2 minutes ago


Westpac's full-year statutory net profit has fallen 15 per cent to $5.97 billion, due to one-off tax gains last year.

The one-off benefit from a tax consolidation related to its St George takeover pushed last year's profit higher, making this year's result appear weaker.

However, the bank's preferred measure of underlying cash earnings, which removes one-off items like the tax benefit, was up 5 per cent to $6.6 billion.

The bank recorded revenue growth of 6 per cent, but also saw costs grow by 4 per cent.

Westpac's net interest margin - the difference between the rate it borrows money at and the rate it lends it out at - was 5 basis points lower at 2.17 per cent.

The bank says it has boosted customer deposits, which now fund 67.6 per cent of its loans.

Westpac's chief executive Gail Kelly says that has been a key priority for the bank.

"At our half-year results, I stressed that a priority was growing deposits, so I am pleased that our total customer deposits grew 12 per cent or $38 billion this year, more than funding our growth in loans," she noted in the report.

Westpac will pay a final dividend of 84 cents fully-franked, up from 82 cents in the first half.

http://www.abc.net.au/news/2012-11-05/westpac-profit-slides/4352734