Bankwest nets $339m in half year

Bankwest has recorded a $339 million net profit for the first half of the financial year, fuelled by solid income growth and flat expenses, along with lower loan impairments compared to 2016.

Profits were up 17 per cent relative to 2016, after Bankwest restated its figures to reflect a transfer of the company's east coast banking operations, with a 6 per cent rise in income to $885 million and operating expenses of $368 million, which was on par with the previous year.

The company recorded a profit of $355 million for the corresponding period in 2016.

Loan impairments dropped from $50 million in 2016 to $30 million last year.

Bankwest managing director Rowan Munchenberg said the company’s performance was reflective of the local economy.

“Our solid performance reflects Australia’s economy with strong home loan performance on the east coast and challenging economic conditions in Western Australia,” he said

“Despite WA’s challenges, we have continued to support our customers and communities and recent economic indicators suggest WA is now in the early stages of a return to modest growth.

“We are also beginning to see the strategic decisions we have made to refocus our business on retail and small business customers nationwide and to strengthen our position in WA contribute positively to our overall performance.”

The company registered 6 per cent growth in home loans and business loans, while accruing growth of 11 per cent in total deposit balances and a 5 per cent increase in transaction deposits.

Mr Munchenberg said Bankwest would improve its digital and broker offering in 2018.