Tag archive: Westpac

Westpac Reports Cash Profit of $4.02 Billion

Westpac has reported an interim first-half cash profit of $4.02 billion, an increase of three per cent as expected by market.

Cash earnings from the consumer bank rose five per cent to $1.511 billion for the six month to March 31, while total loans were up six per cent and deposits seven per cent.

However, the bank said the demand for housing loans, which supported its performance in the consumer sector, is expected to slow down. “We remain positive about the Australian housing market, although we expect price growth to moderate through 2017,” said Brian Hartzer, chief executive at Westpac.

The interim dividend was set at 94 cents per share and will be paid on July 4.

Commonwealth Bank

News: CBA Deposit Interest Rates Cuts Hit Savers

Commonwealth Bank (CBA) has cut a range of term deposit interest rates for the second time since August.

The bank blamed the cuts, which took effect last week, on changes in credit markets and the globally low- interest rate.

The rate cuts apply to six-term deposit products, spanning from three months to five years, by 5 to 15 basis points.

“The reason we have made changes to interest rates on some deposit accounts is due to the record-low interest rate environment, changes in underlying funding costs in local and international funding markets, and competitive conditions that affect the interest rates we are able to pay,” said Clive van Horen, executive general manager of retail products and strategy at CBA.

In August, CBA raised deposit rates and marketed it as a win for savers after the Australia’s big four banks passed on half of the Reserve Bank of Australia’s rate cuts to mortgage holders.

CBA reversed these cuts in September, and ANZ, NAB, and Westpac followed suit in October.

CBA

News: CBA Delivers $2.4 Billion for First Quarter Profit

Commonwealth Bank of Australia has recorded a $2.4 billion profit in its first quarter, with slight slowdown in income growth compared to the previous year.

CBA said the decline was due to the falling interest rates, stronger currency and higher insurance claims.

In total, CBA’s full-year cash profit to June 30 amounted to $9.45 billion.

Westpac announced on Monday that its full-year profit amounted to $7.82 billion, while National Australia Bank delivered $6.48 billion and ANZ reported 18 per cent decline in profit to $5.9 billion.