Westpac shareholders will get a 6% lift in full year dividend for after small dip in cash profit for the year to September 30.
The bank said a final dividend of 64 cents a share will be paid to shareholders to go with the interim of 61 cents, taking the full year to $1.25, up from $1.18 in the previous year.
That was after a 1% dip in cash earnings to $5.276 billion, which put it well behind rival ANZ which reported a 5% lift its full year cash result of $6.5 billion.
Westpac’s statutory profit was up 4% at $5.69 billion.
The bank said in a statement on Monday morning that it sharpened its “focus on core banking, reduced costs, and improved service to customers. Westpac returned to growth in our key segments of Australian mortgages and business lending. In the second half, our banking divisions delivered strong growth in core earnings on the back of good cost and margin management.”
“After the work of the past two years, Westpac is now a simpler, stronger bank. We’re continuing to get our costs down, we’re simplifying our operations and our program of co-locating branches in similar locations is removing duplication.
“At the same time, we are investing in the right places, such as the launch of our digital mortgage and new personal finance management tools in the Westpac app.
“Our year-on-year results are solid and over the past six months in particular we have demonstrated momentum, with core earnings (ex-notable items) up 12% and our net interest income up 7%. Margins increased 5bps in the second half to 1.90% but they remain below historical level.
“Most key credit metrics improved over the half, including a reduction in stressed assets and delinquencies. However, it’s important to acknowledge the challenges ahead as customers navigate the tougher environment.
Westpac said costs were down 7% in the year “driven by our simplification program and a reduction in full-time equivalent employees of 2,667.”
