Westpac has seen net profit rise to $1.8 billion over the three months ending 30 June 2024, up 6 per cent compared with the first half 2024 quarterly average.
In a statement to the ASX on Monday, the bank noted revenue was flat year-on-year, with expenses up 2 per cent reflecting higher investment spend and ongoing inflationary pressures on technology services.
“Our consistent focus on customer service has contributed to another solid quarter. We grew the business and maintained a strong financial position,” Westpac CEO Peter King said.
Excluding the impact of notable items, related solely to hedge accounting which the bank said will reverse over time, unaudited net profit increased 2 per cent to $1.8 billion.
Net interest margin (NIM) was up 3 basis points to 1.92 per cent, with core NIM rising 2 basis points to 1.82 per cent.
“Operating momentum was positive with customer deposit growth of $15.4 billion and loan growth of $14.7 billion,” King said.
“This includes Australian household deposit growth of 3 per cent and housing loan growth of 8 per cent, which outperformed system.”
Meanwhile, net interest income increased by 2 per cent, reflecting higher net interest margin and loan growth, while non-interest income declined 4 per cent on lower financial markets revenue.
The bank said impairment charges to average loans of 4 basis points were down from 9 basis points, “reflecting an improvement in the economic outlook”.
However, King acknowledged cost of living and high interest rates “remain a challenge” for some customers, while many businesses are facing cost pressures and experiencing lower demand.
Westpac also confirmed it has completed 60 per cent of the previously announced $2.5 billion on market share buyback.
Last week, NAB reported unaudited cash earnings of $1.75 billion for the third quarter of the 2024 financial year, with its chief executive Andrew Irvine also acknowledging that the economic environment, including persistent inflationary pressure, remains “challenging” for customers.
