![Australia's Westpac reports higher annual profits as key markets boost profits](https://i-invdn-com.investing.com/trkd-images/LYNXMPEJA408L_L.jpg)
©Reuters. A pedestrian looks at his phone as he walks past a logo of Australia’s Westpac Banking Corp, located outside a branch in downtown Sydney, Australia, November 5, 2018. REUTERS/David Gray/file photo
(Reuters) -Australia Westpac Banking (NYSE:) Corp posted a 26% rise in full-year profit on Monday, helped by growth in key markets, although the lender warned of operational challenges that would persist into fiscal 2024.
Westpac also said it had begun a A$1.5 billion ($975.60 million) share buyback.
The company said it has reaped the benefits of operational improvements and growth in its key markets, including deposits, mortgages and institutional banking.
A rapid rise in interest rates since May last year has significantly boosted Australian lenders’ margins, but fierce competition in the mortgage market, slowing credit growth and concerns about rising bad debt have emerged as headwinds.
Westpac, the country’s fourth-largest lender by market value, reported net profit of A$7.20 billion for the year ended September 30, compared with A$5.69 billion last year. That missed an LSEG estimate of A$7.41 billion.
It declared a final dividend of 72 Australian cents per share, compared with 64 Australian cents a year earlier.
($1 = 1.5373 Australian dollars)