Westpac Banking Corporation has released its full-year results for the 2022 financial year (FY22), reporting a statutory net profit after tax of $5.69 billion, up 4 per cent from $5.45 billion in FY21.
However, cash earnings fell 1 per cent, down from $5.35 billion in FY21 to $5.27 billion.
Cash earnings were hit by a $406 million decline in revenue generated by business sales, and a $273 million fall in earnings underpinning its consumer banking division.
Non-interest income also dipped, down 2.1 per cent from $3.22 billion over FY21 to $3.15 over FY22 — driven by a 1.7 per cent decline in the total value of Westpac’s wealth management earnings, which totalled $725 million in FY22.
This was offset by a 7 per cent reduction in group expenses and growth across its business division (up $466 million) and institutional banking (up $232 million).
The underlying result produced a 2022 dividend of $1.25 per share, up 6 per cent, and a fully franked dividend of $0.64 per share.
Westpac Group CEO Peter King said he was pleased with the “solid” financial result, adding the company had made “steady progress” toward its strategic priorities.
“We’ve built positive momentum and positioned the company for the future. I’m pleased with our overall performance,” he said.
“We sharpened our focus on core banking, reduced costs, and improved service to customers.”
Westpac releases CORE program update
The company has also tabled the latest update on its Customer Outcomes and Risk Excellence (CORE) program, outlining the progress of its Integrated Plan to improve risk culture, governance, and accountability.
Promontory Australia conducted an independent review of the program, which comprises of 19 workstreams, 83 deliverables with 350 activities.
The latest report has revealed that as at 30 September 2022, Westpac had submitted 241 activities to Promontory with 213 activities assessed as “complete and effective”.
Mr King said the CORE program is “driving much of the improvement” in the company’s management of risk.
“…With the design phase complete, our focus is now on implementing the changes to drive sustainable improvements,” he said.
Westpac has reportedly halved the number of outstanding high-rated issues since September 2020, is “resolving seven significant regulatory matters and court actions”, and has “progressed” major customer remediation matters, which have included closing a further 14 programs.
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