Westpac (ASX:WBC) has followed rivals, CBA, and NAB in reporting a flat revenue performance for the three months to June. However, unlike the other two banks, Westpac said it lifted net profit by 6% to $1.8 billion, steady on the previous quarter. Revenue remained flat at $5.4 billion for the quarter.
The bank reported an improved net interest margin, a higher return on capital, and a main capital ratio of 12%, slightly below its rivals’ levels of 12.3% (CBA) and 12.6%.
Unlike its competitors, Westpac set aside less in provisions for the quarter, reducing them by four points to 1.34% of risk-weighted credit assets. The bank noted a 1.12% increase in Australian mortgage delinquencies (90 days or more overdue), up six points, while New Zealand delinquencies remained flat.
CEO Peter King stated in the ASX announcement: “Our unaudited net profit of $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 by 2% to $1.8 billion. The slight decline in pre-provision profit was more than offset by a reduction in impairment charges. Net interest margin (NIM) of 1.92% was well managed with Core NIM rising by two basis points to 1.82%. Operating momentum was positive with customer deposit growth of $15.4 billion and loan growth of $14.7 billion. This includes Australian household deposit growth of 3% and housing loan growth of 8%, outperforming the system.”