Westpac (ASX:WBC) Posts 3% Decline in FY24 Net Profit Amid Growth in Key Segments

November 04, 2024 12:27 PM AEDT | By Team Kalkine Media

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Westpac (ASX:WBC) Posts 3% Decline in FY24 Net Profit Amid Growth in Key Segments — Image source: shutterstock

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Highlights

Westpac's FY24 net profit after tax falls by 3%.

Net interest income rises by 2%, totaling $18.75 billion.

Final dividend increases to 76 cents, fully franked.

Westpac Banking Corporation (ASX:WBC) has reported a 3% decrease in its net profit after tax (NPAT) for the 2024 fiscal year, totaling $6.99 billion compared to FY23. Despite this decline, the Australian bank experienced encouraging growth in specific areas, reflecting its efforts to strengthen its market position and customer experience.

One of the standout metrics was Westpac’s net interest income, which rose by 2%, reaching $18.75 billion for FY24, up from $18.32 billion in FY23. This growth in net interest income underscores the bank’s ability to manage its margins effectively, even in a highly competitive market. Additionally, Westpac increased its final dividend to 76 cents per share, fully franked, marking a 6% improvement over the previous year. This brings the total dividend for FY24 to $1.51, providing a steady return for shareholders.

Peter King, CEO of Westpac, highlighted the bank’s focused approach and achievements over the past year. King emphasized that the bank’s disciplined performance has established a robust foundation for future growth. Westpac’s efforts in enhancing customer service, expanding in crucial segments, and maintaining a strong balance sheet and capital position were central to its FY24 results.

The Consumer division, in particular, gained momentum in the second half of the fiscal year, and the Business division demonstrated solid performance. Westpac’s balanced approach to loan and deposit growth helped the bank maintain alignment with the broader financial system, reinforcing its position in the Australian banking sector.

Westpac’s capital strength was another highlight, allowing it to expand its share buyback program by an additional $1 billion. This strategic move aligns with the bank’s commitment to capital management and delivering shareholder value. King pointed out that Westpac’s capital position is one of the strongest he has observed, supporting initiatives like the increased buyback program and higher dividends.

Westpac’s NPAT saw a modest dip, the bank’s results for FY24 reflect growth in key segments, improved customer service, and effective margin management, positioning it well for the future.

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