The Australian lender has reported a profit before tax of A$4.5bn for the first half of 2022, a 14% decline compared to A$5.2bn for the same period in 2021
Westpac H1 2022 profits fell by 12%. (Credit: Scancode Productions on Unsplash)
Westpac has reported a net profit of A$3.1bn ($2.17bn), or A$85.4 ($60) per ordinary share, for the first half of 2022, a 12% decline compared to A$3.4bn ($2.4bn), or A$97.1 ($68) per ordinary share, for the same period in the last year.
The Australian lender has reported a profit before tax of A$4.5bn for the first half (H1) of 2022, a 14% decline compared to A$5.2bn for the same period in 2021.
The bank has reported a net operating income of A$10bn for H1 2022, an 8% decrease compared to A$10.8bn for the same period the previous year.
The company’s net interest income for the reported period was A$8bn, which declined by 5% compared to the A$8.5bn for the respective period in 2021.
Westpac attributed the decline in the first half of 2022 net profits, mostly to a A$511m turnaround in impairment charges.
Westpac said in its statement: “The first half of 2022 has been challenging for many customers. Floods, the lingering effects of the pandemic and the impact of the war in Ukraine have set many customers back and created uncertainty.
“Consumer spending may be tempered by higher prices and higher interest rates. However, the positives of strong household and business balance sheets, combined with the continued reopening of international borders and local economies, will likely increase economic activity.
“We expect the Australian economy to expand by 4.5% in 2022 but slow to 2.5% in 2023. Credit growth is forecast to be a strong 5.7% in 2022 slowing to 4.3% in 2023.”
Westpac’s consumer and business banking division has reported a net income of A$1.9bn for H1 2022, a 23% decline compared to A$2.4bn for the same period the prior year.
Its Institutional Bank unit has reported a net income of A$306m for H1 2022, a 3% rise compared to A$298m for the corresponding period in 2021.
The bank’s Specialist Businesses arm has reported a net income of A$135m for the H1 2022, an 18% increase compared to A$114m for the same period last year.
Westpac’s Group Businesses have reported a net income of A$176m for H1 2022, a 47% rise compared to A$120m for the corresponding period in 2021.
Last month, Westpac has been ordered by an Australian court to pay A$113m ($83m) in penalties for multiple compliance failures, after hearing six cases filed by the country’s corporate watchdog.