EXECUTIVE SUMMARY Westpac is one of the Australia’s great and oldest bank organizations which support a wide range of consumer, and business bank services and assistance services regarding wealth management. Westpac is operating in five customer-facing groups which includes Consumer Bank, Business Bank, BT Financial Group Australia, Westpac Institutional Bank and Westpac New Zealand. There are even other divisions in which Westpac operates that includes Treasury (deals with interest rate, funding and capital), Group Technology (dealing in technology strategy and application development), and Core support (composed of all the functions that are operated and performed centrally). This report has interpreted the annual report of Westpac Organization …show more content…
The financial performance in 2017 looked satisfactory with net profit increased by 7 % and the cash earnings were increased by 3 % as compared to year 2016. As the growth describing loans, deposits and finance was good with lower margins resulted in 2% increase in net interest income in 2017, due to rise in housing loans. This 2% increase was combined with small reduction in non-interest income which led to a 2% increase in net operating income. This happened mostly because of influence of additional shares distributed under the plan of dividend …show more content…
Consumer Bank is consistently a key driver of overall group’s growth by increasing the cash earnings and enlarging the customer base, each by 4%. The net interest income was assisted by 6% increase each in mortgages and deposits. 2. Business Bank also contributed a 6% rise in cash earnings with an increase in small business loans by 6% and deposits by 4%. 3. BT Financial Group: Though BTFG remained a strong support in fund flows, rise in insurance premiums but the cash earnings was drop down by 11% in 2017 as compared to 2016, due to revaluation loss and reduced earnings. 4. Westpac Institutional Bank contributed 18% increase in cash earnings indicating increase in transactions, market incomes and less impairment charges. 5. Westpac New Zealand contributed 9% increase in cash earnings throughout the year 2017. The operating income showed a small change which was resulted in a flat core