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BRIEF-Westpac Banking Corp FY Cash Earnings Little Changed

Published 05/11/2018, 08:01 am
Updated 05/11/2018, 08:10 am
© Reuters.  BRIEF-Westpac Banking Corp FY Cash Earnings Little Changed
WBC
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Nov 5 (Reuters) - Westpac Banking Corp WBC.AX :

* FY CASH EARNINGS $8,065 MILLION, LITTLE CHANGED

* FY STATUTORY NET PROFIT $8,095 MILLION, UP 1%

* FY NET INTEREST INCOME $16,339 MILLION VERSUS $15,704 MILLION

* AS AT SEPT 30, COMMON EQUITY TIER 1 CAPITAL RATIO 10.6%

* UNCHANGED, FINAL, FULLY FRANKED DIVIDEND OF 94 CENTS PER SHARE

* AS AT SEPT 30, CASH RETURN ON EQUITY (ROE) 13.0%

* OUTLOOK FOR AUSTRALIAN ECONOMY REMAINS POSITIVE, ALTHOUGH THERE ARE LIKELY TO BE ECONOMIC HEADWINDS IN 2019

* FY NET INTEREST MARGIN UP 2.11 PERCENT VERSUS 2.09 PERCENT

* CONSUMERS ARE LIKELY TO BE MORE CAUTIOUS IN FACE OF FLAT WAGES GROWTH AND A SOFT HOUSING MARKET

* EXPECT RESERVE BANK OF AUSTRALIA TO KEEP RATES ON HOLD THROUGHOUT 2019.

* EXPECT HOUSE PRICES TO COOL FURTHER, AND INVESTOR DEMAND TO REMAIN WEAK

* "REMAIN COMMITTED TO GETTING THINGS RIGHT FOR OUR CUSTOMERS AND HAVE MADE GOOD PROGRESS ON IMPLEMENTING ABA'S SIX POINT PLAN"

* OPERATING EXPENSES RISE INCLUDES INCREASE IN REGULATORY AND COMPLIANCE COSTS AND COSTS ASSOCIATED WITH EXIT OF HASTINGS BUSINESS

* WITH AROUND 70% OF AUSTRALIAN CUSTOMERS AHEAD ON REPAYMENTS AND DELINQUENCIES LOW, CREDIT RISKS IN HOUSING MARKET CURRENTLY REMAIN LOW

* EXCLUDING THE INFREQUENT ITEMS, MOST OF THE INCREASE IN COSTS WAS RELATED TO HIGHER INVESTMENT AND REGULATORY AND COMPLIANCE SPENDING

* CHINA WILL BE NEGATIVELY IMPACTED BY THE TRADE WAR WITH THE U.S . AND OFFICIAL POLICIES AIMED AT SLOWING GROWTH IN THE NON-BANK SECTOR

* MORTGAGE BOOK FUNDAMENTALLY SOUND, WITH AROUND 70% OF AUSTRALIAN CUSTOMERS AHEAD ON REPAYMENTS AND 90 DAY DELINQUENCIES REMAINING LOW

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