Westpac has recorded a 15 per cent decline in full-year net profit after tax of 15 per cent to $5,970 million on the back of higher impairment charges and a 94 per cent increase in income tax expense.
However the big banking group pointed to a strong result from its new Australian Financial Services division, which includes Australian retail banking, business banking and wealth operations.
The group described the income tax expense as a "large one-off benefit from St George tax consolidation" while its chief executive, Gail Kelly, described the outcome as a strong result in a lower-growth economic environment.
Westpac's announcement released on the Australian Securities Exchange (ASX) today said that BT Financial Group (BTFG) had a strong second half, with cash earnings increasing 17 per cent compared to the first half, but down 10 per cent when compared with last financial year.
It said the BTFG earnings had been impacted by lower asset markets, a reduced contribution from the equities business and the de-risking of the lender's mortgage insurance business.
However it said the strong underlying performance had been "supported by further growth in its planner network and a strong result across life and general insurance".
The ASX announcement said BTFG had continued to lead the market in funds under administration flows, increasing corporate superannuation flows, increasing insurance cross-sell and in expanding its adviser network.
Looking into the immediate future, the Westpac announcement said the banking group would continue to position itself in line with the significant economic shifts which had occurred over recent years.
In doing so, it said that in terms of growth it would be "building on its strength in wealth through increasing focus on superannuation and insurance, investing in developing a next-generation wealth platform and increasing the number of advisers".
