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 0.6727 0.0018 0.27%
AUD 0.9288 -0.0032 -0.34%
EUR 0.6039 0.0025 0.42%
GBP 0.4585 0.0001 0.02%
HKD 5.2267 0.0170 0.33%
JPY 74.8090 0.4220 0.57%

Commods

Commodity Price Change Time
Gold Index 1212.7 -6.530 2016-05-27T00:
Oil Brent 50.0 0.550 2016-05-27T00:
Oil Nymex 49.3 -0.080 2016-05-27T00:
Silver Index 16.3 -0.070 2016-05-27T00:

Indices

Symbol Open High Last %
NZX 50 7023.3 7046.8 7019.6 0.28%
NASDAQ 4904.1 4933.5 4901.8 0.65%
DAX 10356.1 10365.2 10333.2 -0.52%
DJI 17826.8 17873.2 17828.3 0.25%
FTSE 6270.8 6290.1 6270.8 -0.03%
HKSE 20617.3 20974.7 20629.4 0.90%
NI225 17029.5 17251.4 17068.0 0.98%
ASX 5408.0 5408.0 5408.0 -0.54%