Westpac records 6% profit growth in third quarter of 2024

Westpac Banking Corporation (ASX:WBC) told investors that its profits had increased in the third quarter of 2024, a period that was also marked by technological innovations to enhance customer security and their banking experience.

The bank registered an unaudited net profit of $1.8 billion in the third quarter, a rise of 6% on the quarterly average for the first half of the year. When the impact of notable items was excluded (specifically related to hedge accounting), this meant a 2% rise.

Westpac’s net interest margin (NIM) for the third quarter was at 1.92% – an increase of 3 basis points compared to the first half of 2024. Core NIM had risen 2 basis points to 1.92%.

Customer engagement with the bank was also solid during the quarter, with deposits growing by $15.5 billion, and loans growing by $14.7 billion.

Drilling into the first one, Westpac said that household deposit growth had been 3% and housing loan growth had registered at 8% for the period – both of these being strong numbers in given the inflation-impacted conditions for customers.

Chief Executive Officer Peter King said the numbers reflected Westpac’s emphasis on providing for customer needs.

“Our consistent focus on customer service has contributed to another solid quarter. We grew the business and maintained a strong financial position,” he said.

“I’m particularly pleased with our efforts to enhance customer experience and keep customers safe.

“This quarter we launched an online ID verification process for new to bank home loan customers, introduced mobile notifications alerting customers of bonus interest opportunities on their savings, reduced the time for existing small business customers to receive a cash-backed Bank Guarantee from up to five days to less than two days, and released a new version of Westpac Verify to enhance detection of payment scams and reduce mistaken payments.”

Mr King added that he was aware of how the cost of living and high interest rates were affecting people’s lives, including businesses which were witnessing weakened demand and cost pressures too.

Westpac has been trading at $29.66

.