News: WBC Westpac Banking Corp FY Cash Earnings Little Changed

Nov 5 (Reuters) - Westpac Banking Corp (WBC) :

• FY CASH EARNINGS $8,065 MILLION, LITTLE CHANGED
• FY STATUTORY NET PROFIT $8,095 MILLION, UP 1%
• FY NET INTEREST INCOME $16,339 MILLION VERSUS $15,704 MILLION
• AS AT SEPT 30, COMMON EQUITY TIER 1 CAPITAL RATIO 10.6%
• UNCHANGED, FINAL, FULLY FRANKED DIVIDEND OF 94 CENTS PER SHARE
• AS AT SEPT 30, CASH RETURN ON EQUITY (ROE) 13.0%
• OUTLOOK FOR AUSTRALIAN ECONOMY REMAINS POSITIVE, ALTHOUGH THERE ARE LIKELY TO BE ECONOMIC HEADWINDS IN 2019
• FY NET INTEREST MARGIN UP 2.11 PERCENT VERSUS 2.09 PERCENT
• CONSUMERS ARE LIKELY TO BE MORE CAUTIOUS IN FACE OF FLAT WAGES GROWTH AND A SOFT HOUSING MARKET
• EXPECT RESERVE BANK OF AUSTRALIA TO KEEP RATES ON HOLD THROUGHOUT 2019.
• EXPECT HOUSE PRICES TO COOL FURTHER, AND INVESTOR DEMAND TO REMAIN WEAK
• "REMAIN COMMITTED TO GETTING THINGS RIGHT FOR OUR CUSTOMERS AND HAVE MADE GOOD PROGRESS ON IMPLEMENTING ABA'S SIX POINT PLAN"
• OPERATING EXPENSES RISE INCLUDES INCREASE IN REGULATORY AND COMPLIANCE COSTS AND COSTS ASSOCIATED WITH EXIT OF HASTINGS BUSINESS
• WITH AROUND 70% OF AUSTRALIAN CUSTOMERS AHEAD ON REPAYMENTS AND DELINQUENCIES LOW, CREDIT RISKS IN HOUSING MARKET CURRENTLY REMAIN LOW
• EXCLUDING THE INFREQUENT ITEMS, MOST OF THE INCREASE IN COSTS WAS RELATED TO HIGHER INVESTMENT AND REGULATORY AND COMPLIANCE SPENDING
• CHINA WILL BE NEGATIVELY IMPACTED BY THE TRADE WAR WITH THE U.S . AND OFFICIAL POLICIES AIMED AT SLOWING GROWTH IN THE NON-BANK SECTOR
• MORTGAGE BOOK FUNDAMENTALLY SOUND, WITH AROUND 70% OF AUSTRALIAN CUSTOMERS AHEAD ON REPAYMENTS AND 90 DAY DELINQUENCIES REMAINING LOW

Source text: http//bit.ly/2RCJsNV

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