Australian banking group Westpac has reported cash earnings of A$4.25bn ($3.1bn) for the first half of fiscal year 2018, an increase of 6% compared to A$4.01bn ($3bn) reported a year ago.
The banking group’s statutory net profit for the period ended 31 March 2018 was A$4.2bn, up 7% from A$3.91bn in the corresponding year ago period.
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On a reported basis, net interest income increased 9% to A$8.28bn from A$7.61bn last year, while non-interest income dropped 9% year-on-year to A$2.87bn. Compared to the previous year, impairment charges slumped 20% to A$393m.
Operating expenses were A$4.72bn, up 2% from A$4.63bn in the previous year.
The banking group’s common equity Tier 1 capital ratio stood at 10.50% at the end of March 2018, as against 9.97% a year earlier.
BT Financial Group (Australia), the Australian wealth management and insurance arm of Westpac, posted cash earnings of A$404m for the first half of fiscal year 2018, a 7% rise from A$379m a year ago.
Net interest income at the division surged 20% to A$285m from A$237m last year, while non-interest income remained flat at A$898m.
The division’s net operating income rose 5% to A$1.18bn from A$1.13bn last year, while operating expenses rose 2% year-on-year to A$601m.
Westpac Group CEO Brian Hartzer said: “This is a good quality result built on consistent performance and a disciplined approach to growth and returns. Over the past 12 months we have continued to make progress on our service-led strategy, including adding over 370,000 new customers and making it easier for customers to manage their money. We have invested over $1.3bn in delivering new services to customers and upgrading the bank’s infrastructure.”
