Westpac 1Q24 Update Overview

Westpac Banking Corporation (ASX: $WBC) has released its 1Q24 update, reporting an unaudited net profit of $1.5 billion, down 6% from the 2H23 average. The unaudited net profit excluding Notable Items was $1.8 billion, remaining flat on the 2H23 average. The net interest margin stood at 1.78% and the CET1 capital ratio at 12.3%, down 9bps on Sep-23.

Executive Commentary on 1Q24 Performance

Peter King, Chief Executive Officer of Westpac, stated, 'This has been a solid quarter in which we've grown the franchise and maintained a strong financial position. Our unaudited net profit was $1.5 billion. The impact of Notable Items, related solely to hedge accounting which will reverse over time, drove the 6% decline. Excluding Notable Items net profit was $1.8 billion, in line with the second half 2023 average. Pre-provision profit grew 1% with both revenue and expenses rising 2%.'

Summary of Westpac 1Q24 Update

Westpac's 1Q24 update reflects a solid performance with a focus on maintaining financial strength and positive operating momentum. The unaudited net profit of $1.5 billion, although down 6% from the 2H23 average, remains robust. Excluding Notable Items, the net profit was $1.8 billion, in line with the second half 2023 average. The bank continues to prioritize financial strength with capital, funding, and liquidity well above regulatory minimums. Despite challenges in credit quality, Westpac remains focused on supporting customers facing economic pressures. Looking ahead, the bank expects the economy to remain resilient, supported by low unemployment and healthy corporate sector balance sheets, providing scope for monetary policy to become less restrictive within the next year.