The red and white bank is returning to form, seeing profit increase by 189% as it puts Austrac proceedings and a hit from COVID-19 behind it.
Westpac has seen profit increase, posting AU$3.4 billion for the first half of the financial year, a 189% increase over last year. In the first halves of both 2019 and 2020, the bank copped steep impairment costs associated with Australian Transaction Reports and Analysis Centre (Austrac) proceedings, including a provision for a potential penalty. COVID-related impacts were also to blame for Westpac’s 2020 «disappointing» first-half AU$1.2 billion profit. There were no costs or provisions associated with the Austrac proceedings in Monday’s results. In its «promising start to the year», Westpac reported AU$10.7 billion in revenue. Technology expenses in the six months to 31 March 2021 were AU$128 million — 10% higher than last year, totalling AU$1.4 billion. Westpac said excluding notable items, technology expenses were AU$19 million higher from software licensing costs to support increased staffing numbers. Westpac ended the six-month period with 38,747 staff, up from the 34,199 it boasted a year prior. Other tech expenses increased AU$40 million from costs relating to its Customer Outcomes and Risk Excellence (CORE) program and higher COVID-19 expenses. This was partly offset by a «revaluation of fintech investments». Westpac’s venture capital firm Reinventure will decouple itself from the banking giant and raise external funds for future investments.
