Westpac full year profit up 84% to $6.5bln

A sharp decrease in impairment or bad loan charges drove the lender’s profit up.

Westpac has outshone its big four banking rivals, announcing full year net profits of $6.5 billion this morning, up a staggering 84 per cent on last year's result, with BT Financial Group one of its best performing business units.

Westpac's cash earnings per share for the year were $1.98, up 21 per cent on the '09 result. The company will pay a fully franked final dividend of 74 cents, bringing its full year distribution to $1.39 per share - a payout ratio of 71 per cent.

"We know the important contribution our shares, and particularly our dividends, make to the retirement savings of many Australians," chief executive Gail Kelly said.

The result was lifted by a sharp decrease in impairment or bad loan charges, which were almost halved, adding significantly to the company's bottom line.

BT Financial Group was one of the best performing divisions with cash earnings rising by 21 per cent to $595 million, about 10 per cent of the company's total cash earnings.

View the full story in Financial Standard.