Westpac profit unchanged in first-half at $3.6 billion

Westpac Group today announced a First Half 2015 net profit of $3.6 billion which is unchanged from the same period last year.

While Westpac’s first-half cash earnings were also reported as unchanged from a year ago at $3.78 billion, competitor the Commonwealth Bank is set to reach an annual profit of a record $9 billion.

In the first profit result under Chief Executive Officer Brian Hartzer, the bank said its retail and business banking divisions were performing relatively well, attributing the flat result in cash earnings to an $85 million charge relating to derivative adjustments in the Westpac Institutional Bank business, and a lower Treasury contribution.

Prior to the derivative adjustments, cash earnings were up by 2%, in comparison to the corresponding period last year.

“Our primary goal is to continue to build the value of our franchise, and the drivers of value are heading in heading in the right direction. We have grown our customer base and continued to improve customer service, while maintaining our disciplined approach to growth and margin management,” said Hartzer.

The bank reported an increase in housing loans by 7% with home loan growth remaining slightly below the average of its competitors. Groupwide, customer deposits have also increased by 8% to $420.3 billion.

Despite the lack of profit growth, Westpac is also raising its fully-franked interim dividend by 1c from the previous half to 93c a share. However, this is a smaller increase compared to past decisions to increase dividends by at least 2c in every half since late 2009, according to SMH.  

Although Hartzer said he was maintaining a positive outlook about the growth of the Australian economy with record low interest rates, a low Aussie dollar and support from the housing sector, he expects this growth to be “uneven across different industry sectors and geographies.”

“Areas like housing, infrastructure, and agriculture will do relatively well, while other areas such as mining and resource-driven regions and adjacent service providers will find it tough.”

Bank account comparisons on Mozo - rates updated daily

Search promoted bank accounts below or do a full Mozo database search . Advertiser disclosure.
  • placeholder
    Choice

    account fee
    Payment Options
    interest rate
    $5.00$0 monthly account fee if you deposit min. $2,000 per month or are aged under 30.
    Apple, Pay, Google, Pay, Samsung, Pay, Fitbit, Pay, Garmin, Pay, Digital, Card
    0% p.a.

    $5 account fee waived when you deposit $2,000 each month (conditions apply). No account fee for customers under 30. Cardless cash feature. Apple, Google, Samsung Pay, Garmin, Fitbit and digital card pay. Partner discounts offered through Westpac App.

    Details
  • placeholder
    Everyday Options

    account fee
    Payment Options
    interest rate
    $0.00
    Apple Pay, Google Pay, PayID
    0.01% p.a.

    An easy, everyday banking account packed with flexible options to help you spend, budget & save better. $0 monthly account keeping fees & option to add up 9 sub-accounts.

    Details
  • placeholder
    Glide Account

    account fee
    Payment Options
    interest rate
    $0.00
    Apple Pay, Google Pay, PayID, Samsung Pay, FitBit Pay, Garmin
    0% p.a.

    Unlimited free internet transactions. Super fast transfers & use Apple Pay, Google Pay and Samsung Pay. No account keeping fees. Access Any Major Bank & MyState Bank ATM Fee-Free.

    Details
  • placeholder
    Transaction Account

    account fee
    Payment Options
    interest rate
    $0.00
    Apple Pay, Google Pay, PayID
    2.25% p.a.

    Earn 1.75% p.a. interest on all balances. No monthly account fees. Winner of a Mozo Experts Choice Australia's Best Bank 2022^.

    Details
  • placeholder
    Classic Banking Account

    with Standard Visa Debit Card

    account fee
    Payment Options
    interest rate
    $0.00
    Apple Pay, Google Pay, PayID, Samsung Pay
    0.01% p.a.

    No monthly account fees ever, with no conditions. Free use at over 7,000 ATMs around Australia. No overdrawn fees if you happen to go over your account balance. Open an account in less than 7 minutes.

    Details

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.