Westpac NZ cash profit down 50pc

WBC

30.600

-0.18

-0.58%

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Westpac has reported a 50 per cent cut in its cash profit to $236 million for the year to September 30, but the bank is refusing to provide a bottom line figure.

Provisions for bad and doubtful debt has more than tripled to $572m.

Net interest income grew 7 per cent to $1.24b while other income was 4 per cent lower at $407m.

The bank says a bottom line profit figure will disclosed in the statutory general disclosure statement to be released next month.

This figure could be substantially different the cash result which excludes exclude one-off items and non-cash accounting items.

The figures released also did not appear to include any provision for nearly $1b in tax and penalties relating to some disputed foreign loans.

Chief executive George Frazis said the overall result was disappointing and reflected "the very difficult local and global economic climate".

But initiatives in the second half of the financial year were contributing to improved momentum

The $402m increase in provisioning related mainly to commercial property lending.

Mr Frazis said the credit health of the portfolio has begun to stabilise, and consumer delinquencies have improved over the last quarter, but rising unemployment still posed a risk.

Credit growth slowed to 2.8 per cent from 9.5 per cent last year as borrowers paid down debt.

Deposits were up 6 per cent with total assets up 3 per cent to $49b.

Westpac will open 12 new branches by the end next year and add 100 business bankers to it ranks