Westpac Banking Corp first-half profit rose 3 per cent to A$3.7 billion ($3.9 billion) following a hefty increase in capital to meet regulatory demands which came at the cost of returns while its New Zealand division lifted cash earnings by 2 per cent to A$445 million.
Lending and customer deposit growth rose by 6 per cent and 5 per cent respectively, with Australian mortgages growing 8 per cent.
Its New Zealand division increased cash earnings by 2 per cent on a year ago to A$445 million, as it continues to grow in line with the market while steadily expanding its wealth and insurance business.
Despite deteriorating conditions in New Zealand's dairy sector, asset quality had remained sound with impaired assets-to-total committed exposure (TCE) reducing 6 basis points to 0.35 per cent and consumer delinquencies remaining at near historic lows.
Westpac's New Zealand agricultural portfolio totals A$8.6 billion. The percentage of the portfolio graded as stressed rose to 7.81 per cent from 3.92 per cent in the September half-year, although the actual percentage of impaired agricultural loans decreased slightly to .32 per cent.
