Peter King (pictured above left), delivering his final annual result as CEO of Westpac, praised the bank’s strong footing and forward momentum as he prepares to pass the leadership baton in December.
Westpac reported a slight dip in net profit to $7 billion, marking a 3% decrease, while announcing a 76-cent final dividend per share and a $1 billion extension of its share buyback program.
King stressed the bank’s solid balance sheet and improved customer service, crediting these advancements to disciplined financial management.
Despite economic challenges, Westpac maintained its net interest margin, with only a minor decline to 1.95% year on year.
Westpac CFO Michael Rowland highlighted disciplined margin management as a key achievement, noting a 4% rise in total loans and a 5% growth in deposits.
Although non-interest income fell by 15% due to recent divestments, the bank’s net interest income increased by 2%, underscoring Westpac’s resilience.
Incoming CEO Anthony Miller’s business and wealth division stood out with a 13% rise in net profit, while business lending grew by 9%.
The consumer division showed gains in the second half of FY24, achieving a 6% increase in net profit amid strong competition in the mortgage market.
Westpac’s Institutional Bank recorded a modest 2% profit increase, and in New Zealand, profits rose by 10% as impairment charges eased.
King acknowledged the challenges faced by some customers but offered a cautiously optimistic view of the economy’s trajectory.
“As we approach 2025, the domestic economy is showing positive signs,” he said, pointing to a rise in consumer sentiment and a stable labour market.
King anticipates potential rate cuts by the Reserve Bank in 2025, which could provide relief for households and businesses alike.
However, King remains vigilant about global uncertainties, stressing the importance of a robust balance sheet amidst unpredictable geopolitical factors.
After five years at the helm, King will step down on Dec. 16, handing over to Miller (pictured above right).
King leaves behind a leaner, more focused Westpac, having led efforts to simplify the bank’s portfolio and enhance its risk management.
Employee engagement has improved significantly under his leadership, with Westpac’s organisational health index climbing from 70% to 80%, placing it among the top quartile globally.
King expressed confidence in the bank’s future, stating, “Westpac is a simpler, stronger bank, and we are better at managing risk.”
He commended Westpac’s workforce, thanking them for their dedication as the bank prepares to enter a new phase under Miller’s leadership.
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