Westpac Banking Corporation reported a 3% decline in full-year net profit to A$6,990 million for the financial year ended September 2024, as its net interest margin narrowed and operating costs rose. The result was announced on 4 November 2024.
The bank generated net operating income of A$21.6 billion during the year while operating expenses rose 2% year-on-year to A$10.9 billion (7% excluding Notable Items). Return on equity stood at 9.8%. The Common Equity Tier 1 capital ratio was 12.5%.
MARGIN COMPRESSION AND COST PRESSURES
Westpac's net interest margin declined two basis points year-on-year to 1.93%. The Reserve Bank of Australia's rate-tightening cycle took the cash rate to 4.35% by late 2023.
DIVIDEND AND BUYBACK
Westpac's board declared a final dividend of A$0.76 per share, bringing the total dividend for FY2024 to A$1.51 per share. Total ordinary dividends rose 6% despite the year-on-year profit decline.
Westpac also increased its share buyback by A$1 billion.