Westpac Banking Group full year profit down 7%

Company News

by Jessica Ellerm


Westpac Banking Group (ASX:WBC) says its net profit fell 7 per cent to $7.445 billion for the 2016 financial year.

The bank has reported growth in its consumer and business banking arms, while cash earnings were lower in its institutional division and at BT Financial Group.

CEO Brian Hartzer indicated a key feature of the year had been further significant strengthening of the Group’s balance sheet with higher capital, as well as improved funding and liquidity.

Given the current operating environment, low interest rates, evolving regulations and higher compliance costs, Westpac will adjust its current 15% Return on Equity target downwards.

The bank will now seek to now achieve a future ROE target in the range of 13% to 14% in the medium term.

A fully franked dividend of 94 cents per share has been declared, taking the full year payout to $1.88 cents per share.
 

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