Australian banking giant Westpac posted a better-than-expected 11 percent increase in first-half net profit to a record Aus$3.3 billion (US$3.4 billion).
Australia’s second largest bank by market capitalisation said cash earnings, the preferred measure which strips out volatile items, were up 10 per cent to Aus$3.53 billion against the first half last year.
Analysts had forecast cash profit of Aus$3.47 billion for the six months to March 31.
The bank noted that all its Australian businesses produced double-digit cash earnings growth.
“The operating environment continues to be challenging, with subdued lending growth,” said chief executive Gail Kelly.
“However, in line with our strategy, we are actively targeting opportunities in higher growth areas where conditions are more favourable such as deposits, wealth, trade finance and natural resources.”
Analysts applauded the results.
“However you look at the headline numbers from Westpac this morning, they can only be seen one way — investor pleasing,” said IG market strategist Evan Lucas.
Kelly said that Westpac’s capital strength helped it to pay a higher interim dividend of Aus$0.86 per share as well as a special dividend of Aus$0.10.
A rally in Australian bank shares in the past 12 months has pushed the market value of Westpac above $100 billion.
Australia's Westpac notches record first-half profit
