Westpac posts flat profit, raises dividend

For the year ending 30 September, Westpac reported a 1 per cent decline in statutory net profit to $6.8 billion, whereas net profit excluding notable items remained steady at $7 billion. The bank’s pre-provision profit saw a 4 per cent increase to $10.9 billion, and revenue rose by 1 per cent to $22.7 billion. Meanwhile, expenses, excluding the prior year’s restructuring charge, also experienced a 1 per cent increase as the bank continued to balance investment with cost management.

Dividend and Growth

Westpac’s deposits exhibited a 6 per cent growth rate, while lending increased by 5 per cent, with notable rises in business lending, which was up 12 per cent, and institutional lending, which rose by 18 per cent. The bank announced a fully franked final dividend of 77 cents per share, resulting in a full-year dividend of 154 cents, representing a 1 per cent increase from FY25. Shareholders registered by 6 November will receive the final dividend on 21 December.

According to Chief Executive Anthony Miller, the bank’s primary focus has been on enhancing customer support, improving their overall experience, and expanding its core businesses despite the uncertain economic climate. Miller stated, “This year, we’ve built momentum across the bank, delivering a solid result while investing in Westpac’s transformation.”

As part of its efforts, Westpac expanded its workforce by hiring more bankers to support businesses, established three new regional service centres, and launched its Community Banking Service across 14 locations. This initiative has enabled the bank to reach over 65,000 community members, as indicated in the results statement. Westpac’s common equity tier one capital ratio stood at 12.5 per cent, surpassing its target of 11.25 per cent.

As the bank continues to develop its technology, it must strike a balance between efficiency and risk mitigation. The increasing reliance on tools that handle sensitive data and customer interactions creates potential vulnerabilities that may not be addressed by traditional controls, which could lead to regulatory scrutiny.

Notably, 95 per cent of Westpac’s employees are utilizing artificial intelligence, which has enhanced their efficiency and allowed them to dedicate more time to customer interactions. The bank emphasized the importance of trust and literacy in its use of AI and is investing in the necessary foundations to scale the technology responsibly, alongside providing employee education and training.