Westpac profit grows 5% on margin lift and higher lending
The country's third-largest bank by market value reported a net profit of A$1.9 billion (S$1.6 billion) for the three months to June 30, 5 per cent higher than the A$1.8 billion a year earlier.
Westpac's net interest margins, the spread between interest earned from loans and paid to depositors, came in at 1.99 per cent in the quarter, compared with 1.92 per cent a year ago. Net interest income was A$5 billion in the quarter, up 4 per cent from the quarterly average in the first half.
Customer deposits grew by A$10 billion during the quarter, while gross loans jumped by A$16 billion, the bank said in a trading update.
Westpac shares rose to A$35.66 to trade at their highest point in a decade. The bank's shares are up 4.9 per cent so far this year and have risen nearly 20 per cent in the past year.
Australian banking stock valuations, led by Commonwealth Bank, have soared in the past year on the back of increased foreign investor demand and are considered among the most highly valued in the world.
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Contribution from Westpac's treasury and markets segment also climbed sharply from a year ago, helped by a favourable interest-rate environment.
The Reserve Bank of Australia has cut its key cash rate by a total of 75 basis points this year, including a 25-basis-point reduction this week.
'The resilience of both households and businesses has been aided by the reduction in interest rates and the moderation of inflation,' said CEO Anthony Miller.
'This is reflected in lower levels of customer stress. It should also underpin a recovery in private sector activity and support lending growth.'
Miller, who took over as CEO in December, has since focused on cutting costs and streamlining operations and technology under a strategy dubbed UNITE. Quarterly expenses rose, driven by higher salaries and wages and a planned boost in investment for the program.
Late mortgage repayments fell three basis points from a year earlier, the bank added.
The results follow Commonwealth Bank of Australia's report on Wednesday of its strongest annual cash earnings.
The second-largest lender National Australia Bank is set to report its third-quarter earnings next week. REUTERS
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Straits Times
20 hours ago
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Straits Times
20 hours ago
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Straits Times
20 hours ago
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I felt shame, even though we were told the restructuring was not based on performance. I questioned if I was employable in an industry that I had spent a decade in. I stacked myself up against my colleagues, many of whom were trying for roles in the restructuring, and external applicants. I contended with how I would feel if I failed to get a role, and as importantly, how that would look. The optics bothered me and there was nothing I could do but sit with uncomfortable feelings. I can only imagine what was running through my dad's mind in the late 1990s, when retrenchment was a taboo subject. He was the sole breadwinner supporting a mortgage, my mum and I, and with more at stake than existential thoughts and a bruised ego. Retrenchment is viewed differently now. Just look at the LinkedIn networking platform, which is peppered with posts on job losses. The responses are overwhelmingly positive, offering comfort and, more often than not, connections to a new gig. As one retrenched worker put it: 'The response from you all has been so supportive and genuinely encouraging that it almost makes a girl want to get laid off more often! Emphasis on the almost...' In the current economic climate, with companies from Microsoft to the Bumble dating app announcing layoffs, people are using the platform to talk about the grief associated with losing a job. I have benefited from this, as it reminds me that retrenchment is a relatively common experience. But I could not find the words for a post, and having to engage in a public space felt like too much of a burden. Grief, however, had a way of reminding me that it needed some place to go. I was hypersensitive and erratic, and I knew I needed to accept that things would not be the same. With the restructuring, I lost a job that I loved, which came with a range of functions. I lost colleagues, many of whom had become friends. In choosing to leave the company, despite being offered roles, I gave up the prestige that comes with working for a global organisation. Giving grief an airing looks like this to me. In the immediate aftermath of the restructuring, my colleagues and I spoke a lot, sharing our worries, encouragement and practical resources. This grounded me during a challenging time when I was often working the early shift, and spending the afternoons and evenings at interviews. I am seeing a counsellor, which was a benefit offered to affected staff. She has helped me to balance my identity as a journalist with the other things I value. I told my loved ones about my struggles. I put aside thoughts of whether my feelings were valid and focused on what I knew I was carrying. Somewhere along the way, I told my mum. 'Never mind,' she said. 'Remember to eat well or else you will have no energy.' I learnt a big lesson. The stigma of retrenchment is nowhere as strong as my dad's experience, but it still carries a sting. During the process, I felt most comfortable keeping silent, thinking it was the best way to figure out the next steps. That silence magnified my inner turmoil. In crises, we are often our harshest judges. We live in a world that I hope has become kinder to downturns, failures and messy feelings. I don't think I have grown more comfortable with putting my thoughts online. But I did not have to look far for support, with people who were willing to see me through a difficult season.
