Westpac posts $617m profit

11.25am

Westpac New Zealand today reported a net profit of $617m for the year ended September, up 6 per cent on the $581 normalised net profit posted the previous year.

Westpac NZ chief executive Ann Sherry said the bank was in a solid position ahead of a likely slowing in the economy and housing market in 2005.

Net interest income increased $64m or 6 per cent on the year-earlier, due to higher loan and deposit volumes. Higher levels of transactions and fees led to a 10 per cent, or $53m increase in non-interest income compared to the previous year.

Non-interest expenses rose $32m or 5 per cent, mainly due to higher staffing costs, while bad and doubtful debts expenses fell $166m from the year-earlier, which had included a one-off $178m general provision.

The bank took a 20.8 per cent share of the housing lending market over the year, peaking at 27 per cent in August. As at September 30, the bank's share of the house lending market was 20.1 per cent.

The bank said the latest TNS Business Finance Monitor showed it had increased its share of the small to medium enterprise sector to a market-leading 25 per cent.

Customer complaints have decreased, with Westpac's share of disputes at the Banking Ombudsman's office falling in the current year to 10 per cent, compared to 26 per cent the previous year.

Shares in Westpac rose 5c to $19.65 shortly after the announcement this morning.

The bank's Australian parent, Westpac Banking, posted a record net profit of A$2.5 billion ($2.8 billion) for the September year, on the back of a 15 per cent leap in revenue to A$18.126 billion.

- NZPA