Western Pacific Bank (Westpac) today announced that its full-year profits tumbled 15 percent to 6.78 billion yuan, a result that President Hajel (Brian Hartzer) described as "disappointing", mainly dragged down by low interest rates and low growth conditions.
The results of one of Australia`s top four banks are disappointing, but similar to analysts` most pessimistic forecasts.
It announced a 15% reduction in the year-end dividend at 80 cents a share.
Monday`s annual report also revealed that Hajel, the bank`s chief executive, had also been paid back, especially as he lost the chance to receive a short-term bonus of 4.03 million yuan.
He earned 5 million yuan in 2018 / 19, down from 6.6 million yuan the previous year.
Over the past year, Bank of Western Pacific has cut its full-time staff by 5 percent, or 1, 741, a plan to increase "productivity", cutting spending by 405 million yuan, slightly above its original target of 400 million yuan.
After a "disappointing year" of plummeting cash profits, Western Pacific now hopes to raise 2.5 billion yuan from investors. Among them, 2 billion yuan rights issue is underwritten by securities firms, and the other 500 million yuan rights issue is sold through a non-underwriting plan.
"We expect the recent recovery in house prices, especially Sydney and Melbourne, to expand into 2020," Harzel said of the housing market.
