Australian lender Westpac’s full-year profit ticks higher
Australian lender Westpac Banking Corp reported a slight increase in its annual profit for the financial year ending September 30, 2022, according to a Reuters report on November 2. The country's third-largest bank by market value announced a net profit of A$6.99 billion, which was in line with the consensus estimate of A$6.99 billion.
The bank's deposits and loans expanded by 6% and 5%, respectively, while Australian housing loans, excluding RAMS, grew by 7%. Business lending rose by 12%, and credit demand across energy, infrastructure, and resources sectors drove institutional lending up by 18%. However, mortgage demand slowed, with a 15% drop in average monthly mortgage applications in the fourth quarter compared to the same period in 2021.
The government's recent tax changes, which scrapped tax concessions for property investors, have impacted housing mortgage and investor credit demand. As a result, Australia's top four banks, which control over 70% of the mortgage market, have been affected. Westpac declared a final dividend of 77 Australian cents per share, maintaining the same payout as the previous year.
The bank's core net interest margin, a key profitability indicator, fell by 5 basis points to 1.76%, and its common equity tier 1 ratio, a measure of spare cash, declined by 7 basis points to 12.46%.
Written by urgent.news from Investing.com's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.