Westpac Banking Company (ASX:WBC) announced full-year financial results for 2024. For the fiscal year ended September 30, 2024, the bank reported net profit after taxes of $6.99 billion. This is a decrease of 3% compared to the previous year but exceeds market expectations.
Despite rising operating costs, Westpac achieved a strong balance sheet position with a 4% increase in total loans to $807 billion and a 5% growth in customer deposits to $674 billion. Westpac’s capital strength has been strengthened with a Common Equity Tier 1 (CET1) capital ratio of 12.5%, which has supported a $2 billion share buyback program and a total of 151 cents in fully franked dividends for action during the year.
The bank’s performance in 2024 reflects both challenges and progress in its core business lines. Westpac has seen competitive pressure in its consumer segment, where mortgage competition has limited revenue growth, leading to a 6% decline in overall consumer revenues despite an increase in loan approvals. However, the corporate and institutional segments posted stronger results, with business loans increasing 9%, supported by growth in the professional services, agriculture and healthcare sectors. The institutional bank expanded customer relationships and increased revenue through higher deposit levels and loan growth.
CEO Peter King highlighted several strategic initiatives that have contributed to operational resilience and customer satisfaction. In a competitive mortgage market, Westpac’s mortgage processing times have halved, leading to a notable increase in customer satisfaction scores. Additionally, Westpac’s mobile app retained its title as the most popular banking app in Australia and new anti-scam technology contributed to a 29% reduction in customer-reported losses to scams.
“Our disciplined performance in FY24 has set Westpac up for growth and success,” King said, adding that the bank’s risk management efforts also allowed APRA to reduce operational risk capital coverage by Westpac of $500 million.
Anthony Miller will succeed Peter King as CEO in December 2024.