“Almost every customer has been financially affected by COVID-19” – chief executive
Westpac New Zealand has announced its full-year results for the 12 months ended 30 September 2020.
It recorded cash earnings of $649 million – down by 38% on the previous year. Core earnings were down by 14% to $1,223 million, and operating expenses went up by 7% to $1,059 million.
Despite this, the bank also recorded a 10% growth in customer deposits, and agribusiness lending grew by 6% year on year.
Chief executive David McLean says Westpac has been focused on helping customers through COVID-19, and says he is optimistic about New Zealand’s road to recovery.
“Almost every customer has been financially affected by COVID-19, whether that’s directly through losing a job or taking a hit to their business revenue, or indirectly through lower interest rates or KiwiSaver volatility,” McLean commented.
“Being there alongside our customers and our communities with help at such a critical time has been extremely fulfilling for our teams and is why our people show up for work every day.”
“Over the past year we’ve expanded our residential lending by 7% and have helped first home buyers into 5343 homes,” he continued.
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“We’ve increased our business lending by 3% and have been one of the few banks to expand our lending to farmers and agriculture. We are open for business and stand ready to support Kiwis’ dream of owning a home or expanding their business.”
McLean says that today’s results reflect the “exceptional circumstances” caused by the COVID-19 pandemic. Over the course of the year, Westpac has provided mortgage and loan repayment assistance to 21,959 customers, waived contactless and minimum monthly merchant service fees, and donated $1 million to rescue helicopters to address their fundraising deficit.
“We’ve provisioned for an increase in expected lending losses due to changing economic conditions, largely driven by COVID-19. However, our underlying asset quality remains strong,” McLean said.
“At the same time we’re investing to become a more resilient and modernised business to enable us to continue meeting the needs of our customers. The collaborative and collective response from the Government, regulators and banks has provided confidence and certainty to customers in a time of turmoil.”
