BANKWEST has recorded a $68.8 million after tax profit for the six months to August 31.
The profit was down from the $69.4 million profit for the corresponding period, but that included an abnormal of $5.4 million from the creation of PlanB.
BankWest managing director Terry Budge was disappointed the profit was not greater than the corresponding period. However, on a pre-abnormal basis, the profit has risen 7.5 per cent from that period.
The bank will maintain its 8.5c per share fully franked dividend.
Earnings per share for the period was 13.4 per cent, compared to 12.9 per cent before abnormals for the previous corresponding period.
Mr Budge said concerns about BankWest’s ownership resulted in a slow start in its business lending markets – particularly in the east.
He said the bank’s eastern states push had proven fruitful.
“The WA economy has been growing slower than the rest of Australia’s, particularly in the areas that affect the bank,” he said.
“However, we still have plenty of capacity to grow our balance sheet.
“We expect the growth (in the east) to continue because we have a small market share (3.2 per cent).”
He said the bank’s “Harry hears you” campaign had been effective.
