Westpac Banking has posted a steady net profit of A$1.8bn ($1.2bn) for the third quarter that ended 30 June 2024 (Q3 2024), matching the net profit reported in the same quarter of 2023.
In the first half of 2024, which ended 31 March 2024, the Australian banking and financial services company reported a net profit of A$3.34bn.
The net interest margin (NIM) of Westpac Banking for the reported quarter was 1.92%, down from 2.06% in Q3 2023. The core NIM of the bank in Q3 2024 was 1.82%.
Westpac Banking’s net operating income stood at A$5.4bn in Q3 2024, while the Australian bank’s net interest income for the reported period was A$4.7bn.
The pre-provision profit for the bank in the reported period was A$2.6bn.
Westpac Banking reported a 2% increase in expenses for Q3 2024, driven by higher investment spending, particularly in the second half of the year, as well as continued inflationary pressures, especially in technology services.
Westpac Banking CEO Peter King said: “Our consistent focus on customer service has contributed to another solid quarter. We grew the business and maintained a strong financial position.
“Our unaudited net profit of A$1.8 billion was up 6% compared to the first half 2024 quarterly average.
“Excluding the impact of Notable Items, related solely to hedge accounting which will reverse over time, unaudited net profit increased 2% to A$1.8 billion. The slight decline in pre-provision profit was more than offset by a reduction in impairment charges.”
According to the bank, its operating momentum for the given three months was positive with customer deposit growth of $A15.4bn and loan growth of A$14.7bn. This includes Australian household deposit growth of 3% and housing loan growth of 8%.
In Q3 2024, Westpac Banking unveiled an online ID verification process for new home loan customers. It also launched mobile notifications to inform customers about bonus interest opportunities on their savings.
Besides, the bank reduced the time for existing small business customers to receive a cash-backed bank guarantee as well as released an updated version of Westpac Verify to improve payment scam detection and reduce mistaken payments.
