Plus   Neg

Westpac Scraps H1 Dividend Due To Certain View

Australia's Westpac Banking Corp. (WBC.AX,WBK) announced that its board has now decided that it is prudent not to pay a First Half 2020 dividend, citing the desire to maintain a strong balance sheet in an uncertain operating environment.

Westpac also specified that it will next consider dividends as part of finalising its Full Year 2020 results.

The company reported third quarter statutory net profit of A$1.12 billion, up 87% than the quarterly average of A$595 million.

Cash earnings for the quarter were A$1.32 billion, which is higher than the quarterly average of A$497 million in its first half when notable items were excluded.

Core earnings were A$2.72 billion, while net interest income was A$4.27 billion and non-interest income was A$1.01 billion.

Net interest margin 2.05% for the quarter. Common equity tier 1 capital ratio of 10.80% at 30 June 2020.

"We have maintained our strong balance sheet and increased provisions for bad debts to support our prudent approach to managing impairments," Chief Executive Officer Peter King said in the statement.

"While there have been some signs that the economy is performing better than early expectations, significant uncertainty remains, particularly given the unpredictability of Covid-19 outbreaks and their local impacts."

For comments and feedback contact: editorial@rttnews.com

Business News

Follow RTT