- Westpac’s unaudited statutory net profit for the third quarter of 2024 was A$1.8 billion.
- The bank’s Common Equity Tier 1 ratio stood at 12%.
- Net interest margin was reported at 1.92%, with the core net interest margin at 1.82%.
- Impairment charges to average loans decreased to 4 basis points from 9 basis points, indicating an improvement in economic conditions.
- Expenses rose by 2%, driven by higher investment spending anticipated for the second half of 2024, and ongoing inflation in technology services.
- Unaudited net profit increased by 6% compared to the first half of 2024 quarterly average.
- Positive operating momentum included customer deposit growth of A$15.4 billion and loan growth of A$14.7 billion.
- Challenges remain for some customers due to the cost of living and high interest rates; businesses also face cost pressures and lower demand.
- The core net interest margin improved by 2 basis points due to better earnings on capital and hedged deposits.
- As of 30 June 2024, credit impairment provisions were A$5.1 billion, A$1.6 billion above the expected losses in the base case economic scenario.
- Westpac has completed 60% of its previously announced A$2.5 billion on-market share buyback.
- Analyst ratings: 3 buys, 6 holds, 7 sells.
A look at Westpac Banking Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 4 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Westpac Banking Corporation, a global player in the banking industry, is positioned for a favorable long-term outlook based on its Smartkarma Smart Scores. With above-average ratings in Dividend, Growth, and Momentum, Westpac shows promise in its ability to deliver steady returns to investors and maintain its growth trajectory.
While the company scores lower in Resilience, its solid performances in other key factors such as Value and Dividend indicate a strong foundation for sustained success. Investors may find Westpac Banking an attractive option for long-term investment, given its resilient operations and promising growth prospects in the banking sector.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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