Australian banking group Westpac has reported statutory net profit of A$7.44bn for the full year ended September 2016, a fall of 7% compared to the prior year.
Annual cash profit stood at A$7.82bn, flat compared to a year ago, the bank said in its earnings statement.
Compared to last year, total revenue increased 3%, while net interest income rose by 8% to A$15.35bn. Non-interest income dropped 7% year-on-year to A$5.85bn.
The bank’s common equity Tier 1 capital ratio stood at 9.5%, a dip of 2 basis points from the previous year.
Westpac CEO Brian Hartzer said: “We are continuing to deliver our service-led strategy, increasing customer numbers, delivering world-leading digital services, and supporting more customer needs. At the same time we have strengthened our balance sheet, carefully managed margins, and achieved $263 million in productivity savings, while increasing our investment in digital and other service initiatives.
“The result demonstrates our consistent approach to managing our core franchise over many years, including the discipline we apply to balancing growth and returns.”
BT Financial Group, the wealth management arm of the bank, posted cash earnings of A$876m for the full year ended September 2016, a fall of 4% from the prior year.
“Westpac’s foundation is built on a strong and prudently managed balance sheet, strict performance disciplines, and a service-led strategy that is embracing technology to deliver great service and deeper customer relationships. With top-quartile capital, healthy liquidity, and sector-leading asset quality, we remain in a strong position to respond to the volatile global environment,” Hartzer added.