15/08/2012 - 15:32

Bankwest delivers jump in profit to $524m

15/08/2012 - 15:32

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Bankwest delivers jump in profit to $524m

Bankwest has delivered a 13 per cent bump in profits for the year ended June 30, driven by strong increases in lending and deposit balances.

The Western Australia-based bank announced its net profit for financial year 2012 was $524 million, up 13 per cent on the previous year.

Banking income was up 1 per cent, to $1.66 billion and operating expenses fell by 2 per cent, while loan impairment expenses decreased by 44 per cent to $61 million, Bankwest said.

Lending balances were up 7 per cent due to growth in home lending, while deposits were up 6 per cent on the prior year.

Managing director Rob De Luca said the results were encouraging in a time of uncertain and volatile economic markets.

“Despite these challenging conditions we achieved positive revenue growth and reduced our cost base via productivity improvements across both retail and business,” Mr De Luca said in a statement.

“This enables us to continue offering real value to our existing and prospective customers.

“Continued risk performance through managing down our troubled and impaired assets, has resulted in an improved loan impairment expense outcome.

“Overall, our strategy is delivering for our shareholder, but most importantly for our customers.”

Mr De Luca said the Commonwealth Bank of Australia-owned lender would continue to invest in its business across the state, building on its 115-year history in WA.

“Western Australia is our home state, and this ongoing investment reaffirms our commitment to this great state.”

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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