Westpac posts 84 per cent profit rise

Amid growing consumer anger about rising interest rates, Westpac has today announced an 84 per cent increase in statutory net profit to $6.346 billion.

The bank’s chief executive, Gail Kelly (pictured), described the result as “robust” and made specific reference to the role Westpac had played in a “secure and stable national banking system that underpinned Australia’s strong performance through and after the global financial crisis”.

Drilling down on the banking group’s results, Kelly acknowledged the contribution made by BT Financial Group with good flows and improving markets and the fact that active advisers using BT’s wrap platforms had grown by 8.2 per cent.

The bank also noted that the integration process following its merger with St George was now largely complete with all major milestones having been met or exceeded.

It said cost synergies of $326 million had been achieved in 2010, representing an increase of $183 million over the previous year.

Kelly also made reference to the banking group having continued to grow its mortgage market share “ building on the gains hard won over the past two years”.

Unlike some other banking chief executives, Kelly indicated a cautiously optimistic outlook for the next 12 months.

“In the year ahead, economic activity is expected to improve further as business investment picks up and global growth trends improve,” she added. “Nevertheless we expect some legacies of the global financial crisis to remain, including cautious financial markets.”