Westpac boosts profits as bad debts fall

Westpac New Zealand’s has revealed an $86 million rise in its full-year net profit to $322 million, as loans and deposit book grew and bad debts fell from last year’s peak.

Impairment charges of $347 million for the year to September were $225 million lower than at this time last year as a small number of large problem exposures didn’t reoccur.

The profit improvement was offset to the tune of $97 million by a reduction in customer fees from October 2009, higher funding costs and expenses related to the Christchurch earthquake.

Westpac said the result was a “pleasing turnaround” given the slow economic recovery.

Across the Tasman, Westpac Group this morning revealed full-year earnings for of $6.3 million on cash earnings of $5.9 million.

In New Zealand, business lending increased by a modest 2% during the year, particularly across rural and corporate banking and the northern region.

Mortgage growth of 6% was achieved during the year but consumer lending fell as consumers spent less and higher interest rates made an impact.

Shareholders will be paid a final dividend of 74 cents, bringing total dividend payments for the year to $1.39 – 20% higher than last year.
 


1 · Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

1 Comment & Question

Commenter icon key: Subscriber Verified

I think you mean the increase in profit was a "bleeding turnaround" not a "pleading turnaround"

Reply
Share
  • 0
  • 0

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.6605 0.0028 0.43%
AUD 0.9076 0.0062 0.69%
EUR 0.6023 0.0020 0.33%
GBP 0.4231 0.0021 0.50%
HKD 5.1214 0.0225 0.44%
JPY 81.8850 0.3050 0.37%

Commods

Commodity Price Change Time
Gold Index 1094.9 6.310 2015-07-31T00:
Oil Brent 52.2 -1.100 2015-07-31T00:
Oil Nymex 47.1 -1.410 2015-07-31T00:
Silver Index 14.8 0.060 2015-07-31T00:

Indices

Symbol Open High Last %
NZX 50 5921.0 5963.1 5921.0 0.62%
NASDAQ 5134.3 5143.1 5128.3 0.16%
DAX 11295.5 11460.4 11309.0 0.96%
DJI 17696.7 17704.8 17689.9 -0.30%
FTSE 6696.3 6710.8 6696.3 -0.11%
HKSE 24533.1 24533.1 24636.3 -0.91%
NI225 20540.2 20562.2 20585.2 -0.18%