Westpac result defies tough times

market-volatility/financial-services-sector/bt-financial-group/chief-executive/

1 May 2008
| By Mike Taylor |

Westpac Banking Corporation has defied the market volatility to post a 34 per cent increase in net profit after tax to $2.2 billion for the six months ending March 31 on the back of a 10 per cent increase in cash earnings to just over $1.8 billion.

The result sees the bank deliver investors a fully franked interim dividend of 70 cents, with Westpac chief executive Gail Kelly claiming the outcome demonstrated that the company was managing the current market volatility well.

The only gloomy element in the Westpac result appeared to be the performance of the BT Financial Group, which reported a 10 per cent decline in earnings, prompting the bank to state that it had been impacted by difficult investment markets and that its wrap platform continued to perform strongly.

Commenting on the outlook over the remainder of the year, the bank said tighter conditions in global capital markets would continue to dominate the near-term outlook for the financial services sector, with higher funding costs and slower system growth expected.

“Despite these conditions, the Australian economy remains sound,” Kelly said. “However, we expect the higher interest rate environment will contribute to a dampening of economic growth through the remainder of 2008.”

She said Westpac expected the sector to have slower loan growth, higher impairment charges in both consumer and business segments, continuing market volatility and continuing higher funding costs.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months 4 weeks ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

5 months ago

ASIC has suspended the Australian Financial Services Licence of a Melbourne-based financial advice firm....

1 week 6 days ago

The corporate regulator has issued infringement notices to three AFSLs whose financial advisers provided personal advice to a retail client while unregistered....

2 weeks 5 days ago

ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test....

3 weeks 3 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND