Westpac Reports Higher 3Q Profit, Flags Improving Economic Environment

By Alice Uribe

SYDNEY--Westpac Banking Corp reported its higher third quarter unaudited net profit, while its net interest margin remained stable as the economic environment improved.

The Australian lender on Monday said that its unaudited net profit for the three months through June was 1.8 billion Australian dollars (US$1.2 billion), up 6% compared to the quarterly average of its first half.

Excluding the impact of notable items, which Westpac said was related to hedge accounting that will reverse over time, unaudited net profit increased by 2% to A$1.8 billion.

"Our consistent focus on customer service has contributed to another solid quarter. We grew the business and maintained a strong financial position," said Chief Executive Peter King.

Westpac's net interest margin for the third quarter was 1.92%, up 3 basis points on the quarterly average of its first half. This comprised core NIM of 1.82%, up 2 basis points, which the lender said reflected the benefit of higher earnings on capital and hedged deposits.

Still, expenses increased by 2% due to higher investment spend which is weighted toward the second half, said Westpac, along with ongoing inflationary pressures particularly in technology services.

"Impairment charges to average loans of 4 basis points were down from 9 basis points, reflecting an improvement in the economic outlook," said the lender.

Write to Alice Uribe at alice.uribe@wsj.com

(END) Dow Jones Newswires

August 18, 2024 18:32 ET (22:32 GMT)

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