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Westpac recorded net profits after tax of $7 billion. While this is no small figure, it’s 3 per cent lower than FY23. Loans, on the other hand, saw an increase, with the total hitting $807 billion. This was 4 per cent higher than FY23 results.
Brokers continue to play a strong role in the bank’s processes, with flows reaching 63.6 per cent. This is higher than the half-yearly results where brokers settled 61.4 per cent of new mortgages.
However, Westpac has addressed “intense mortgage competition” affecting consumer performance, with profits in this segment down 17 per cent to $2.2 billion. Helping make brokers’ and borrowers’ lives easier, however, is a reported halved mortgage time to approval.
“Net profit decreased 17 per cent, net loans increased 4 per cent and deposits grew 8 per cent. Revenue was down 6 per cent reflecting intense mortgage competition. Operating expenses increased by 1 per cent. Financial performance recovered in the second half with net profit up 6 per cent,” said Westpac.
However, the business arm of the bank performed much better, with net profits up 13 per cent to $2.4 billion.
“Net profit grew 13 per cent with pre-provision profit up 9 per cent. Net loans rose 7 per cent with business lending increasing by 9 per cent due to strong growth in our target industries of agriculture, health and professional services. Expenses rose 4 per cent,” said Westpac.
Currently, Westpac’s market share of mortgages is 21 per cent and business lending is 16 per cent.
Despite the drop in overall revenue, Westpac CEO Peter King is confident the organisation is set up for “growth and success” as he gears up to pass the mantle to the new CEO, Anthony Miller on 16 December. He even went as far as to say the bank’s “capital position is one of the strongest I’ve seen”.
“Our disciplined performance in FY24 has set Westpac up for growth and success. We’ve significantly improved our customer service, grown in key segments and delivered another financial result built on a solid balance sheet and capital position,” said King.
“We’ve continued to manage margins well in a competitive environment while growing in line with system in loans and deposits. The Consumer division built momentum in the second half and performance in Business has been a standout.”
These results continue trends of profit loss that were recorded in the half-yearly results for Westpac earlier this year.
Back in May, the major reported a 16 per cent drop in half-yearly revenue from the year prior. However, loans saw an increase, too. Total loans grew by 5 per cent to $784.8 billion with housing loans climbing 5 per cent and business loans increasing by 9 per cent.
Between the half-yearly results and the current data, business lending market share saw a 2 per cent increase, highlighting Westpac’s performance in the commercial space.
Related: Westpac announces leadership changes
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