Westpac September 2007 profit highlights
• Westpac reported net profit of $3.45 billion for the year to September, up 12.4 per cent on 2006. This was based on revenue of $10.2 billion, which was up 10.4 per cent.
• The bank's preferred measure of cash earnings, after adjusting for one-off items and hedging movements, was $3.5 billion, 13 per cent up on the previous year.
• Cash earnings per share rose 13 per cent and the full year dividend was also up 13 per cent.
• Return on equity was 24 per cent, the highest in the sector.
• The expense to income ratio was down 220 basis points to 45 per cent.
• The biggest contributor to the overall result was business financial services, which made cash earnings of $975 million. Consumer financial services made cash earnings of $951 million, WIB made $610 million, New Zealand $465 million and BT Financial Group $417 million.
• The fastest growing business unit was BT Financial Group, whose cash earnings rose 23 per cent. Consumer financial services was up 21 per cent, WIB 16 per cent, business financial services 11 per cent and New Zealand two per cent.
• The net interest margin fell 10 basis points from 2.29 to 2.19 per cent.