The St George acquisition, in addition to strong financials, have given Westpac not only the leading home lending market share of 25% but also a unique platform for growth.
In 2007 (end-September) Westpac posted a successful net profit growth of 13.2% to $4.5bn and posted a further 34% expansion in the interim result to end-March 2008. With no subprime exposure, no extraordinary write-downs and no need for capital raisings, Westpac has weathered the global financial crisis better than most banks.
In performance terms, Westpac achieved a healthy 23.5% return on equity in 2007 and 27.2% in interim 2008, along with a reducing cost-income ratio of 44.7% in 2007 and a low non-performing loan ratio of 0.2%.
“In my first year as CEO, I am delighted that Westpac has been named the Bank of the Year for Australia, for the sixth time in the past seven years,” says Ms Kelly.
“It has been an extraordinary year in financial services, a year that has highlighted the strengths and accentuated the weakness of financial service companies globally. Within this environment Westpac has performed well, we have held true to our strategy, remained focused on our core markets and delivered for all stakeholders.”
