10 August 2011
Highlights of 2011 Results:
Bankwest cash net profit after tax for the year ended 30 June 2011 was $463 million, up significantly from the $45 million loss in the prior year. The improved performance was driven by a 12 percent increase in operating performance and lower loan impairment expense.
Key drivers of this performance were:
Bankwest has announced a cash NPAT of $463 million for the full year ending 30 June 2011, up from a $45 million loss in the previous year. This performance was supported by an increase in banking income to $1,640 million, up 5 percent compared to the prior year and a reduced LIE of $109 million, 86 percent lower than the prior year. Operating expenses also decreased by 1 percent. The expense to income ratio improved to 53 percent. The decrease in operating expenses reflects an ongoing trend, with lower expenses recorded every year since acquisition by CBA. Lending balances increased 1 percent on the prior year, with the increase in home lending partly offset by the strategic run-off of low quality and complex business lending. Deposit balances increased 2 percent on prior year.
Customer satisfaction remains a core strategic objective for Bankwest. A number of initiatives during the financial year supported an improved customer satisfaction performance, including:
The success of these initiatives was reflected in:
Commenting on the results, Bankwest Managing Director Jon Sutton said: "It is encouraging to see this strong result, marking a turnaround in Bankwest’s performance. We are beginning to see a positive return on a number of initiatives and significant investment we’ve made, all aimed at improving levels of customer satisfaction.”
“The starting point was understanding the needs of our customers. With these firmly in mind, our focus has been to strive for operational excellence, investing in and delivering the product and service innovations necessary to continue to meet and exceed customer expectations. We’ve also invested heavily in the improvement of our distribution network, refurbishing a significant number of our WA stores and re-energising our award winning website.”
“I’m particularly pleased we’ve made progress with a number of key partnerships in the West Australian community, including a major sponsorship of the West Coast Eagles. These investments and improvement in our financial performance have all been made possible by the consistent execution of the strategy we implemented following acquisition by CBA.”
"Overall, our strategy is delivering for our shareholder, but most importantly for our customers. We will continue to invest in our business and build on the more than 115 years heritage we already have in WA."
(1) Source: Roy Morgan Research six months rolling average Main Financial Institution score.