The bank warned that the sovereign debt crisis can spread in Australia.
The company’s statutory net profit after tax, on an unaudited basis, for the same period was approximately $1.4bn.
During the latest quarter, Westpac registered a cash profit of A$1.5bn ($1.6bn) down from A$1.55bn ($1.65bn) previous year, which the firm blamed to slower loan growth and higher funding costs.
Westpac chief executive Gail Kelly said the Group’s first quarter of 2012 result reflected the more challenging operating environment which contributed to a $200m decline in markets related income, while it negatively impacted operating income by around $100m.
According to the bank, its retail and business banking divisions in Australia performed well with total revenues up around 1.3% over the quarter a year ago.
Customer deposits with majority of term deposits raised over the first quarter, which fully funded the loan growth of the bank by approximately $5bn.
For the latest quarter the firm’s impairment charges were nearly $300m, with moderate increase compared to third and fourth quarter of fiscal 2011.
The increase occurred due to lower institutional write-backs and some provision top-ups to existing stressed assets consistent with some lower asset valuations and the continued subdued operating environment.
