Australian financial services company Westpac has reported a net profit of A$7.19bn ($4.7bn) or $195.2 ($127) per diluted share for the full year ended 30 September 2023, a 26% rise compared to $5.69bn ($3.7bn) or $152.4 ($99) per diluted share for the previous year.
The company reported a profit before income tax expense of A$10.30bn for the full year 2023, a 22% increase compared to A$8.46bn for the full year 2022.
Westpac reported operating expenses of A$10.69bn for the full year 2023, a 1% decline compared to A$10.80bn for the previous year.
The Australian company reported net interest income of A$18.31bn for the full year 2023, a 7% rise compared to A$17.16bn for the full year ended 2022.
Westpac CEO Peter King said: “This result delivers a better return on equity, higher earnings per share and increased net profit. This is built on the back of growth in key markets including deposits, mortgages and institutional banking.
“A strong banking sector is vital for a resilient economy and Westpac’s balance sheet is the strongest I’ve seen in my 29 years at the bank.
“Capital and liquidity are above regulatory requirements and credit quality is resilient. For shareholders, we’re delivering an increased dividend and commencing an A$1.5bn share buyback.”
Westpac’s Consumer and Business Banking segment reported a net profit of A$4.68bn for the full year 2023, an 11% rise compared to A$4.2bn for the full year 2022.
The Westpac Institutional Bank reported a net profit of A$1.06bn for the full year 2023, a 54% increase compared to A$687m for the previous year.
The Westpac New Zealand business reported a net profit of A$887 for the full year 2023, an 18% decline compared to A$1.07bn for the full year 2022.
The Australian bank’s Specialist Businesses reported a net profit of A$605m for the full year 2023, compared to a loss of A$723m for the previous year.
Westpac’s Group Businesses reported a loss of A$38m for the full year 2023, compared to a profit of A$444m for the full year 2022.
Peter added: “This year we completed our portfolio simplification which saw the exit of 10 businesses and we’ve remained focused on embedding the change from our Customer Outcomes and Risk Excellence program.
“The second half of 2023 presented a more challenging environment for Westpac and the broader industry. This is expected to continue into 2024.
“We’ve restructured our divisions to focus on growth, returns and improving customer service while rebalancing investment between risk, growth and productivity to support our strategy.”
