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BRIEF-Westpac Banking Corp Posts H1 Net Interest Income $8,389 Million

Published 06/05/2019, 07:49 am
Updated 06/05/2019, 07:50 am
© Reuters.  BRIEF-Westpac Banking Corp Posts H1 Net Interest Income $8,389 Million
WBC
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May 6 (Reuters) - Westpac Banking Corp WBC.AX :

* PROPOSES INTERIM DIVIDEND OF 94 CENTS PER SHARE

* AS AT MARCH 31, COMMON EQUITY TIER 1 CAPITAL RATIO 10.64 PERCENT

* H1 STATUTORY NET PROFIT $3,173 MILLION, DOWN 24%

* H1 CASH EARNINGS $3,296 MILLION, DOWN 22%

* AUSTRALIAN ECONOMY WILL REMAIN SUBDUED WITH GDP GROWTH THIS YEAR EXPECTED TO HOLD AT AROUND 2.2%

* H1 NET INTEREST MARGIN 2.12% VERSUS 2.28%

* AS AT MARCH 31, CASH RETURN ON EQUITY (ROE) OF 10.4%, DOWN 3.5 PERCENTAGE POINTS

* H1 NET INTEREST INCOME $8,389 MILLION VERSUS $8,717 MILLION

* SAYS SECOND HALF WILL CONTINUE TO BE CHALLENGING

* EMPLOYMENT GROWTH IS LIKELY TO SLOW WHILE INFLATION IS LIKELY TO REMAIN LOW

* HOUSE PRICES ARE LIKELY TO REMAIN SOFT AND HOME BUILDING IS SET TO REDUCE THROUGH 2019 AND INTO 2020

* EXPECT SYSTEM HOUSING CREDIT GROWTH TO SLOW TO 3% IN CURRENT BANK YEAR AND FALL FURTHER NEXT YEAR TO 2.5%

* ON TRACK TO DELIVER TARGET OF $400 MILLION IN PRODUCTIVITY SAVINGS OVER FULL YEAR

* REDUCED FULL TIME EQUIVALENT STAFF BY 788 THIS HALF

* EXPENSES EXCLUDING MAJOR REMEDIATION AND RESTRUCTURING ITEMS WERE DOWN 3% THIS HALF

* "WE ARE DEALING DECISIVELY WITH A DIFFICULT COMMERCIAL ENVIRONMENT FOR BANKS"

* PROVISIONED $1,445 MILLION PRE-TAX IN TOTAL OVER PAST 3-YEARS TO WORK ON CUSTOMER REMEDIATION PROGRAMS

* WESTPAC- IMPLEMENTING RECOMMENDATIONS OF ROYAL COMMISSION & OTHER INDUSTRY INITIATIVES WHILE CONTINUING TO INVEST IN TECHNOLOGY AND DIGITAL PLATFORMS

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