Westpac profits up, while NAB profits fall

By Luke Cornish | 6/05/2010 12:00:00 AM | 0 comments

National Australia Bank first-half net profit plummeted more than 21% to just over $2bn, while Westpac recorded a 32% rise in first half profits to a record of almost $3bn.

NAB’s profit fell to $2.1bn for the six month period – down from $2.7bn a year earlier. Despite its fall, the result demonstrates that the Australian banking sector is still capable of healthy profits.

However, unlike the mining industry which has been slugged with a proposed 40% tax on “super profits”, the federal government is unlikely to turn its attention to the banking sector’s record returns according to Westpac CEO Gail Kelly.

Kelly said that the banking industry is fundamentally different to the mining industry. “Those industries are dealing with natural resources,” Kelly said after announcing Westpac’s results. “We are dealing with something very different, we are dealing with providing financial services support to customers for the long run.”

Last week, ANZ announced its profits had jumped 36% to $1.9bn.

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