Westpac Banking Corporation (ASX: $WBC) has released its 2024 Interim Financial Results Announcement, incorporating the requirements of Appendix 4D. The unaudited report provides an overview of the company's performance for the six months ended 31 March 2024, including financial highlights, performance overview, key financial information, impact of Notable Items, review of earnings, credit quality, and other relevant metrics.
Westpac Banking Corporation (WBC) has reported its 2024 interim financial results, highlighting a net profit of $3,342 million, a 16% decrease compared to the same period in 2023. The stressed exposures in various segments, including Business in Australia and New Zealand, Institutional, and mortgage delinquencies, have been outlined. The provision coverage of the impaired portfolio increased to 47%, reflecting a higher level of coverage on impaired counterparties. The company's stressed exposure in WIB increased by 5 basis points to 0.63%, driven by downgrades in the wholesale & retail trade sector. Additionally, the company's liquidity risk management framework, funding profile, and capital management strategy have been detailed. Westpac also provided an update on its sustainability performance, including its sustainability strategy and progress in areas such as net-zero banking and climate resilience.
Westpac Banking Corporation (WBC) has made significant progress in improving its financial crime risk management through a multi-year program of work. The company has focused on strengthening its AML/CTF Program, enhancing transaction monitoring, and improving financial crime controls in various areas. Additionally, WBC has joined forces with other Australian banks to launch a Scam-Safe Accord to enhance protection against scams. The company has also commenced the Financial Accountability Regime and is preparing for new mandatory climate reporting legislation. WBC is also addressing regulatory changes affecting its businesses, including cyber security, artificial intelligence, and reforms to the Privacy Act. The company is also working on mitigating risks related to technology failures, geopolitical events, and climate and sustainability factors. Furthermore, WBC is actively managing its financial crime obligations to avoid adverse effects on its business and reputation. The company is also addressing potential losses due to litigation and is monitoring adverse funding market conditions. The report also includes detailed information on the fair values of financial assets and liabilities, provisions, contingent liabilities, and credit commitments. It also outlines the attribution of financial instruments measured at fair value to the fair value hierarchy and provides a reconciliation of non-market observables. Westpac's directors have declared a fully franked interim dividend of 75 cents per share and a 15 cents special dividend, with the proposed payment date set for 25 June 2024.