Westpac Banking Corporation (ASX:WBC) has announced its full-year financial results for 2024. For the fiscal year ending 30 September 2024, the bank reported a net profit after tax of $6.99bn. This is a 3% decrease compared to the prior year but exceeds market expectations.
Despite rising operational costs, Westpac achieved a solid balance sheet position with a 4% increase in total loans to $807bn and a 5% growth in customer deposits to $674bn. Westpac’s capital strength was reinforced with a Common Equity Tier 1 (CET1) capital ratio of 12.5%, which supported a $2bn share buyback program and a total of 151 cents in fully franked dividends per share across the year.
The bank’s performance in 2024 reflects both challenges and progress in its core business lines. Westpac saw competitive pressure in its consumer segment, where mortgage competition limited revenue growth, leading to a 6% drop in overall consumer revenue despite an increase in loan approvals. However, the business and institutional segments posted stronger results, with business lending up 9%, buoyed by growth in professional services, agriculture, and health sectors. The institutional bank expanded its client relationships and increased revenue through higher deposit levels and lending growth.
CEO Peter King highlighted several strategic initiatives that contributed to operational resilience and customer satisfaction. In a competitive mortgage market, Westpac’s mortgage processing times halved, leading to a notable boost in customer satisfaction scores. Additionally, Westpac’s mobile app retained its title as Australia’s top-rated banking app, and new anti-scam technology contributed to a 29% reduction in reported customer scam losses.
“Our disciplined performance in FY24 has set Westpac up for growth and success,” King stated, adding that the bank’s efforts in risk management have also allowed APRA to reduce Westpac’s operational risk capital overlay by $500m.
Anthony Miller is set to succeed Peter King as CEO in December 2024.