Westpac Banking Corporation unaudited FY2015 results and entitlements offer
Westpac has today announced its unaudited preliminary final results for the year to 30 September 2015: cash earnings of $7.82 bn are up 3% on the pcp (FY2014: $7.628 bn) with statutory NPAT of $8.012 bn up 6% on the pcp. Cash earnings momentum is usually good for short term incentive schemes. While cash earnings excludes the accelerated amortised IT expenses of $354 million, it also excludes the $665 million profit on the partial sale and de-consolidation of BTIM. Of course the background for this announcement is the $3.5 billion entitlements offer, a pro-rated accelerated renounceable entitlements offer. The capital raising is in response to a need to respond to changes in risk mortgage rates and the amount of capital required to be held against this risk. Note the announcement indicates those requirements don't apply until 1 July 2016. Today's announcement of the capital raising indicates Westpac has decided to increase its variable home loan rates for both owner-occupiers and residential investment properties by 20 bps from 20 November 2015.
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With a background in human resources, executive search and corporate law, Kym Sheehan brings unique perspectives on corporate governance and meeting resolutions to her work for The Executive Remuneration Reporter. The Executive Remuneration...
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