“Growth is solid across lending and deposits, with several highlights,” Miller added. “We grew Australian mortgages, excluding RAMS, in the half at 1.2x system, with the proportion of new first party lending increasing. We are supporting Australian businesses with lending up across both business and institutional over the past year. At the same time we are managing costs, which are down from the prior half.”
Business lending was a standout, rising 16% year-on-year, driven by growth across both the institutional and business and wealth segments.
Westpac has intentionally targeted business lending, having unveiled a multi-year strategy of aggressive banker hiring alongside digital investment late last year. The strategy includes a new business lending origination platform, BizEdge, aimed at getting business approvals out the door quicker.
Business lending was diversified across key sectors including agriculture, health and professional services, with growth supported by deeper client relationships and increased activity from existing customers.
On the top line, group-wide profit after tax added three basis points to $3.42 billion. Westpac announced a 77 cent fully franked ordinary dividend per share.