Westpac profit down 11 per cent

Westpac took an 11 per cent profit hit in the year to September 30, 2009, reporting net profit after tax of $3,446 million.

In the year it merged with St George, Westpac reported a 42 per cent fall in revenue to $16,505 million, and an 8 per cent fall in pro forma cash earnings to $4,627 million.

Westpac chief executive Gail Kelly described the bank’s performance as sound in what had been a challenging year. Kelly said the bank's merger with St George had progressed smoothly and the combined group had ended the year with a “significantly stronger balance sheet and funding profile”.

The group’s statement to the Australian Securities Exchange said the bank’s multi-brand model created through its merger with St George had underpinned revenue growth through the expansion of product offerings and distribution channels.

BT Financial Group recorded an 8 per cent drop in cash earnings to $493 million, while cash earnings in the group’s insurance division were up 20 per cent over the year.

Westpac maintained its market share across platforms, retail and wholesale funds management and corporate super.

The group said it would be launching its BT Super for Life product to St George clients early next year, adding it had begun selling BT insurance products into St George with positive early results. The group said Super for Life accounts were growing at a rate of 1,600 per week.