Westpac Banking Reports Decline in Net Profit for FY 2024

Westpac Banking Corp.'s latest report reveals a decline in its net profit for the fiscal year 2024, dropping to A$6.99 billion. While net interest income increased, non-interest income fell sharply. The company also announced a larger share buyback and increased dividends, aiming to enhance shareholder value.

Date: 04-11-2024

AI Rating: 5

Westpac Banking Corp. has reported a decline in net profit attributable to owners for fiscal year 2024, which decreased from A$7.20 billion to A$6.99 billion. This represents a negative trend in net income, which might raise concerns among investors regarding the company's profitability. However, it is important to note that net interest income increased from A$18.32 billion to A$18.75 billion, indicating a growth in earnings from lending activities.

On the other hand, the annual non-interest income saw a decline from A$3.33 billion to A$2.84 billion. This drop suggests that Westpac may be facing challenges in generating revenue from non-lending services, which could impact overall financial performance negatively.

In a positive sign for investors, the bank announced a substantial increase of A$1 billion to its share buyback program. This move may indicate that the company believes its shares are undervalued and seeks to enhance shareholder returns. Additionally, fully franked ordinary dividends increased by 6%, with a final dividend of 76 cents per share, bringing total ordinary dividends to 151 cents per share.

The increase in dividends suggests that despite the decline in profit, Westpac aims to maintain a strong return for its shareholders. Overall, while the decrease in net profit and non-interest income is concerning, the bank's positive moves in share buybacks and dividend increases could help mitigate some investor fears.

Stocks: WBC.AX