Westpac's Fiscal Year Profit Up 26%, Commences A$1.5 Billion Buyback

By Alice Uribe

SYDNEY--Westpac said its annual net profit rose by 26% underpinned by growth in key divisions, with the company launching a 1.5 billion Australian dollar (US$980 million) share buyback and increasing its dividend.

Westpac, one of Australia's major banks, said its net profit totaled A$7.2 billion in the 12 months through September. That was in line with analysts' expectation of a full-year net profit of A$7.21 billion, according to FactSet's consensus estimates.

"This result delivers a better return on equity, higher earnings per share and increased net profit," Chief Executive Peter King said. "This is built on the back of growth in key markets including deposits, mortgages and institutional banking."

While Westpac's operating expenses fell 1% to A$10.69 billion, King said the lender had "more work to do as we seek to lower our cost to income ratio relative to peers."

Directors declared a final dividend of A$0.72 per share, up from A$0.64 per share a year ago.

The group's closely watched common equity tier 1 capital ratio was 12.4% at the end of September, up 109 basis points on year.

Write to Alice Uribe at alice.uribe@wsj.com

(END) Dow Jones Newswires

November 05, 2023 16:12 ET (21:12 GMT)

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