Westpac reports $A1.5b profit in choppy conditions
Banking giant Westpac says the Australian economy is solid but uneven and report higher impairment charges and squeezed margins.
Banking giant Westpac says the Australian economy is solid but uneven, and report higher impairment charges and squeezed margins.
The Westpac Group said in its December quarter financial report to the NZX cash that earnings for the quarter were $A1.5 billion (down from $1A1.55 billion in the year-ago period) and unaudited statutory profit for the period was $1.4 billion.
The bank described Australian business conditions as choppy with some regions and industries showing little growth, and caution leading to weak demand for new credit.
Revenues for retail and business banking divisions were up 1.3%, but net interest margins declined 10 basis points compared to the second half of last year.
Markets-related income declined $200 million, partly offset by asset sales.
Impairment levels continued to decrease after peaking in the second half of 2010. The ratio of stressed assets to total exposure declined to 2.33% from 2.48% in the September quarter.
Impairment charges of $300 million were up from the second half of 2011 and the increase blamed on lower asset valuations in a subdued property market.
Matt Nippert
Thu, 16 Feb 2012
Thu, 16 Feb 2012
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Westpac reports $A1.5b profit in choppy conditions
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