Westpac unveils 10 percent jump in annual profits

Australian banking giant Westpac unveiled a 10 percent jump in annual profits on November 02, but warned of a "softer" economic outlook due to jitters generated by Europe's debt crisis. Westpac's net profit jumped to Aus$6.99 billion (US$7.21 billion) in the 12 months to September 30, while its cash profit, a measure carefully watched by analysts, was up seven percent to Aus$6.30 billion.
The rise came as bad debt charges fell significantly while earnings remained stable, with the bank's retail and wealth divisions delivering strong performances.
"Deeper customer relationships, measured by customers with four or more products, are a real strength at a time of more subdued economic growth," said Westpac chief executive Gail Kelly. "We are also growing overall customer numbers in each of our major brands."
The banking behemoth had reported a net profit of Aus$6.35 billion and posted a cash profit of Aus$5.88 billion a year earlier.
Westpac's retail and business banking cash earnings were Aus$1.95 billion, up 11 percent from a year earlier, while core earnings income was up one percent and expenses up two percent.