Continued Earnings Improvement in Westpac's First Half 1998 Financial Result.SYDNEY Sydney, city, Australia Sydney, city (1991 pop. 3,097,956), capital of New South Wales, SE Australia, surrounding Port Jackson inlet on the Pacific Ocean. Sydney is Australia's largest city, chief port, and main cultural and industrial center. , Australia--(BUSINESS WIRE)--May 19, 1998--Westpac Banking Corporation (NYSE NYSE See: New York Stock Exchange : WBK WBK Word Backup (Microsoft Word file extension) WBK Welcome Back, Kotter (70s US TV Show) WBK Work Book WBK Word Backup File ) today announced a net profit after tax of A$666 (US$453) million for the half year ended March 31 1998. This represents a 4.4% increase on the A$638 (US$502) million earned in the six months to March 31 1997. Directors intend declaring an interim fully franked dividend of A$0.21 per ordinary (common) share (A$1.05 per ADS) (fully franked), an increase of 10.5% over the 1997 interim dividend of A$0.19 per ordinary share and a 5.0% increase on the 1997 final dividend of A$0.20 (fully franked). Earnings per share (before goodwill) for the half increased by 3.9% to A$0.376 from A$0.362 in the first half of 1997. Earnings per share (after goodwill) for the half increased to A$0.347 from A$0.344. Westpac's Managing Director and Chief Executive Officer Mr Bob Joss said that the result demonstrates Westpac's continuing progress in implementing its strategy of investing the bulk of its talent and resources in markets it knows well, namely Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. and New Zealand New Zealand (zē`lənd), island country (2005 est. pop. 4,035,000), 104,454 sq mi (270,534 sq km), in the S Pacific Ocean, over 1,000 mi (1,600 km) SE of Australia. The capital is Wellington; the largest city and leading port is Auckland. . "The result is particularly encouraging given that there are substantial cost savings and revenue benefits yet to flow from the mergers with Trust Bank New Zealand and the Bank of Melbourne Melbourne, city, Australia Melbourne, city (1991 pop. 2,761,995), capital of Victoria, SE Australia, on Port Phillip Bay at the mouth of the Yarra River. Melbourne, Australia's second largest city, is a rail and air hub and financial and commercial center. ." "Westpac has got the basics in good shape and we are now beginning to see the benefits of a sharper focus on delivering better solutions to our customers. For us, this is about continued earnings improvement." "We have the right team, right products and are operating in the right markets to continue this success. This result would not have been possible without the commitment and enthusiasm of our staff." "Looking ahead, competition is expected to remain intense against a backdrop Backdrop may refer to:
"In this environment, we believe our continued success will be built on meeting an increasing share of the financial needs of our seven million customers. Westpac's customer focus, combined with ongoing sound risk management and a quality balance sheet, will underpin our continued earnings performance," Mr Joss said. Australian Stock Exchange Australian Stock Exchange (ASX) Australia's major securities market, formed when the six state stock exchanges (Adelaide, Brisbane, Hobart, Melbourne, Perth, and Sydney stock exchanges) were merged in 1987. Announcement available on request (Unless otherwise stated, all figures are to Australian Australian pertaining to or originating in Australia. Australian bat lyssavirus disease see Australian bat lyssavirus disease. Australian cattle dog a medium-sized, compact working dog used for control of cattle. GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ) -0-
US MEDIA RELEASE
INFORMATION TABLES
Balance sheet exchange rate (spot)
19-May-98
PROFIT & LOSS EXCHANGE RATE (YTD AVERAGE): 0.6801
BALANCE SHEET EXCHANGE RATE (SPOT): 0.6628
Six months to/as at
31 March 31 March 30 Sept 31 March
1998 1998 1997 1997
USD AUD AUD AUD
(In millions except for share
data and percentages)
INCOME STATEMENT DATA
Amounts in accordance with Australia GAAP
Interest income 2,940 4,324 4,120 4,431
Fully taxable equivalent
gross up 47 69 79 48
Interest income (including
gross up) 2,987 4,393 4,199 4,479
Interest expense (1,755) (2,581) (2,462) (2,736)
Net Interest income (including
gross up) 1,232 1,812 1,737 1,743
Non-interest income 664 976 877 862
Operating income (including
gross up) 1,896 2,788 2,614 2,605
Provision for bad and doubtful
debts (34) (50) (28) (50)
Operating income (including
gross up) net of provisions
for bad and doubtful debts 1,862 2,738 2,586 2,555
Non-interest expenses (1,157) (1,702) (1,612) (1,616)
Operating profit before income
tax (including gross up) 705 1,036 974 939
Fully taxable equivalent gross up (47) (69) (79) (48)
Operating profit before income tax
(excluding gross up) 658 967 895 891
Income tax expenses (204) (300) (241) (252)
Outside equity interests (1) (1) (1) (1)
Operating profit after tax
attributable to shareholders 453 666 653 638
Amounts in accordance with US GAAP
Net income 457 672 677 686
-0-
US MEDIA RELEASE
INFORMATION TABLES
Balance sheet exchange rate (spot)
19-May-98
PROFIT & LOSS EXCHANGE RATE (YTD AVERAGE): 0.6801
BALANCE SHEET EXCHANGE RATE (SPOT): 0.6628
Six months to/as at
31 March 30 Sept 31 March
1998 1997 1997
USD AUD AUD AUD
(In millions except for share
data and percentages)
BALANCE SHEET DATA
Amounts in accordance with Australian GAAP:
Period end balances
Cash, short-term liquid assets 232 350 321 338
Statutory deposits 659 994 928 920
Due from other banks 2,449 3,695 4,002 5,208
Trading securities 4,650 7,015 6,243 7,153
Investment securities 1,273 1,921 1,633 2,134
Loans (net) 59,476 89,735 77,874 79,788
Acceptances of customers 7,638 11,524 11,242 10,898
Fixed assets 1,060 1,599 1,672 1,714
Intangible assets 1,218 1,837 1,029 1,058
Other financial market assets 7,615 11,489 9,370 6,584
Other assets 3,911 5,900 4,649 6,248
Total assets 90,181 136,059 118,963 122,043
Due to other banks 2,879 4,344 4,570 5,903
Deposits 51,437 77,605 66,818 69,160
Public borrowings 3,838 5,791 5,818 5,803
Bonds, notes and commercial paper 5,368 8,099 6,273 7,244
Acceptances 7,638 11,524 11,242 10,898
Securities liabilities 2,414 3,642 1,589 2,438
Other financial markets liabilities 6,963 10,505 9,276 7,098
Other liabilities 2,508 3,784 3,276 3,648
Total liabilities excluding
loan capital 83,045 125,294 108,862 112,192
Loan capital 1,313 1,981 1,895 1,883
Shareholders' equity (excl. outside
equity interests) 5,819 8,779 8,200 7,963
Outside equity interests 3 5 6 5
Total shareholders' equity 5,822 8,784 8,206 7,968
Average Balances
Total assets 93,747 137,843 123,749 125,807
Loans 61,457 90,365 80,378 82,472
Acceptances 7,795 11,461 11,184 11,548
Allowances for loan losses (1,087) (1,598) (1,691) (1,811)
Shareholders' equity (excl. outside
equity interests) 6,076 8,935 8,024 7,936
Outside equity interests 1 1 - 6
Total shareholders' equity 6,077 8,936 8,024 7,942
Amount in accordance with US GAAP:
Average total assets 93,747 137,843 122,666 125,807
Average shareholders' equity 6,108 8,982 8,034 7,903
Average outside equity interests 1 1 3 6
Average total shareholders' equity 6,109 8,983 8,037 7,909
-0-
Six months to/as at
31 March 31 March 30 Sept 31 March
1998 1998 1997 1997
USD AUD AUD AUD
CREDIT QUALITY DATA (in millions, except for percentages)
Allowance for loan losses 1,071 1,616 1,588 1,736
Allowance for loan losses
as a % of average loans
and acceptances (1) 1.6 1.6 1.7 1.9
Allowance for loan losses
as a % of loans (1) 1.8 1.8 2.0 2.1
Allowance for loan losses
as a % of loans and
acceptances (1) 1.6 1.6 1.8 1.9
Total impaired assets 601 907 869 1,030
Total impaired assets as a
% average of loans and
acceptances (1) 0.9 0.9 1.0 1.1
Bad debt write-offs (net
of recoveries) 87 128 164 157
Bad debt write-offs (net
of recoveries) as a %
of average loans (1) 0.14 0.14 0.20 0.19
Bad debt write-offs (net
of recoveries) as % of
average loans and
acceptances (1) 0.13 0.13 0.18 0.17
(1) Loans are stated before related allowances for loan losses.
-0-
US MEDIA RELEASE
INFORMATION TABLES
Balance sheet exchange rate (spot)
19-May-98
PROFIT & LOSS EXCHANGE RATE (YTD AVERAGE): 0.6801
BALANCE SHEET EXCHANGE RATE (SPOT): 0.6628
Six months to/as at
31 March 31 March 30 Sept 31 March
1998 1998 1997 1997
USD AUD AUD AUD
Ratio Analysis (In millions except for share
data and percentages)
Average fully paid ordinary
shares outstanding 1,872 1,872 1,781 1,796
Preference dividends 12 17 19 20
Ordinary dividend paid
and proposed 267 392 354 338
Ratios in accordance with Australian GAAP
Profitability ratios %
Net interest margin 3.46 3.46 3.63 3.55
Operating profit attributable
to shareholders to average
total assets 0.97 0.97 1.06 1.01
Operating profit attributable
to shareholders to average
shareholders' equity (excl OEI) 14.9 14.9 16.3 16.1
Capital Ratio %
Average total shareholders'
equity to average total assets 6.5 6.5 6.5 6.3
Risk adjusted capital ratio (net) 9.0 9.0 10.5 10.3
Earnings Ratios
Basic earnings per ordinary
share (cents) (1) 23.6 34.7 35.6 34.4
Fully diluted earnings per
ordinary share (cents) 22.8 33.5 34.6 33.2
Dividends per ordinary share
(cents) 14.0 21.0 20.0 19.0
Dividend payout ratio % (2) 60.4 60.4 55.8 54.7
Ratios in accordance with US GAAP
Profitability ratios %
Net interest margin 3.46 3.46 3.63 3.55
Operating profit attributable
to shareholders to average
total assets 0.98 0.98 1.10 1.09
Operating profit attributable
to shareholders to average
shareholders' equity (excl OEI) 15.0 15.0 16.9 17.3
Capital Ratio %
Average total shareholders'
equity to total average
assets 6.5 6.5 6.6 6.3
Leverage ratio % (3) 5.0 5.0 5.9 5.2
Earnings Ratios
Basic earnings per ordinary
share (cents) (1) 23.8 35.0 36.9 37.1
Primary and fully diluted
earnings per ordinary
share (cents) 22.6 33.2 34.9 34.7
Dividend payout ratio % (2) 60.0 59.8 53.8 50.8
(1) Calculated by dividing net income after deducting preference
dividends by average fully paid ordinary shares outstanding.
(2) Calculated by dividing the aggregate dollar amount of
dividends for each period by the net income (after deducting
preference dividends) for that period.
(3) The leverage ratios have been computed in accordance with the
Capital Adequacy Guidelines adopted by the US Federal Reserve.
(4) Primary and fully diluted earnings per ordinary shares
according to US GAAP has been calculated in accordance to FAS 128.
Previous years comparatives have been re-stated to comply with FAS 128
CONTACT: Sally Herman Herman only goal in life becomes winning at cards. [Russ. Opera: Tchaikovsky, Queen of Spades, Westerman, 401] See : Obsessiveness Senior Vice President and Country Manager, Americas A·mer·i·cas , the See America. 212-551-1801 or Owen van der Wall Director of Public & Consumer Affairs 61-2-9226-3005 |
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