Westpac’s reported net profit after tax (NPAT) for FY2023–24 will be impacted by some $123 million, according to the big four bank.
Ahead of its full-year results to be released next month, Westpac confirmed in an update to shareholders that the hit to its NPAT is due to notable items.
It clarified that these items solely relate to “unrealised fair value gains and losses on economic hedges and net ineffectiveness on qualifying hedges, which reverse over time”.
Westpac operates on an alternate fiscal calendar to many other ASX-listed companies, with the group’s latest financial year having concluded at the end of September as opposed to the end of June.
Ahead of its FY22–23 results last year, Westpac was similarly affected by notable items, taking a hit of $173 million.
However, the group clarified that this was “significantly lower” than the $874 million reduction the year prior.
In its FY22–23 wrap-up, Westpac posted a net profit of $7.20 billion, a jump of 26 per cent on the previous financial year (FY21–22).
“Over the past year we’ve further strengthened the bank, improved our financial performance, and continued to support customers in a rising interest rate environment,” chief executive officer Peter King said at the time.
“This result delivers a better return on equity, higher earnings per share, and increased net profit. This is built on the back of growth in key markets, including deposits, mortgages, and institutional banking.”
The bank is now poised to see a significant change in leadership in F24–Y25, with Anthony Miller set to commence in the role of group chief executive and managing director in December.
It was first announced last month that Miller, the current business and wealth division chief executive, would succeed King, who will be retiring after 30 years with the group.
In September, Miller clarified that he seeks to build on King’s work to “unleash Westpac’s full potential”.
“Westpac is an exceptional company that plays a profoundly important role in the lives of millions of Australians,” he said.
“I want Westpac to be a bank built on trust and reliability – always there to help our customers through every one of life’s moments.
“I’m committed to growing the bank safely and sustainably, completing the customer outcomes and risk excellence transition and delivering UNITE, our business and technology simplification.”
