Overview
- Westpac reported net profit after tax of $6.9 billion for the year to September, down 1%, and lifted its final dividend to 77 cents per share.
- Net interest margins rose by 3 basis points in the September half versus a year earlier, with deposits up 7%, total loans up 6% and business lending up 15%.
- Loan impairment charges fell to 5 basis points of average loans from 7 basis points, reflecting still-low bad debts.
- Westpac agreed to sell the RAMS home-loan portfolio of $21.4 billion to a consortium of Pepper Money, KKR and PIMCO for an undisclosed sum after closing RAMS to new customers last year.
- The sector’s reporting season begins with expectations of roughly $30–30.6 billion in combined cash profits, as analysts flag strong loan growth and margins but note risks from potential bad-debt increases and ANZ’s disclosed $1.1 billion profit hit.