Westpac Banking Corporation
(ASX:WBC) chief Gail Kelly has conceded the boom days for Australia’s banks are over.
Speaking at a business forum Mrs Kelly said yesterday the days of banks reporting more than 20 per cent return on equity are long gone.
Westpac aims to sustain a 15 per cent return on equity rate which Mrs Kelly believes is still appropriate when risk management is applied.
Mrs Kelly cautioned, when releasing the bank’s results earlier this month, volatility in global markets is likely to continue and the operating environment will remain challenging.
Westpac’s net profit dropped 15 per cent to $6 billion in the 2012 financial year, impacted by the tax implications of its acquisition of St George.
