Shareholders benefiting
This was a strong result all around and our confidence in the future has allowed your Board to declare a final dividend of 68 cents per ordinary share, fully franked. Together with our first half fully franked dividend of 63 cents, the total dividend for 2007 of $1.31 is up 13% on 2006. The dividend payout ratio is steady at 69%.
In terms of market capitalisation, which stood at $53.2 billion as at 30 September 2007, the gain in our net value in the past year was $11.4 billion, or 27.3%.
Our total shareholder return for the year was 31%, at the top of our peers.
Soundly positioned
Importantly, our credit quality continues to be sound with net impaired assets, as a proportion of our equity and collectively assessed provisions, improved to 1.4%, from 1.5% in 2006.
Westpac’s capital position also remains strong. As at 30 September, our Tier 1 ratio stood at 6.5%, well within our target range of 6.0% to 6.75%. At the same time our Adjusted Common Equity Ratio stood at 4.5%, also within our stated target range of 4.0% to 4.75%.
We are also remaining focused on areas of comparative advantage within our core markets of Australia and New Zealand, while maintaining a conservative balance sheet, strong risk disciplines, diversified funding and prudent liquidity.
Our relatively low risk portfolio, sound credit quality and capital strength consequently have us well positioned to respond to the current market conditions and competitive environments and to pursue opportunities that arise.
One such opportunity was reflected in the announcement on 2 October 2007 that we had reached agreement to acquire the franchise distribution business of RAMS Home Loans Group Limited.
The business to be acquired includes the RAMS brand, franchise network and associated mortgage origination and servicing systems and contracts needed to run the business. This provides a new growth option for Westpac. It will add an additional retail channel and extend our retail footprint by more than 10 percent via an additional 92 stores operated by 53 franchisees, dovetailing neatly into our existing growth plans. As part of the agreement, we are not acquiring the ASX listed RAMS Home Loans Group Limited or its existing mortgage book.
At the time of going to print this agreement remains subject to approval by RAMS shareholders.
This was a strong result all around and our confidence in the future has allowed your Board to declare a final dividend of 68 cents per ordinary share, fully franked. Together with our first half fully franked dividend of 63 cents, the total dividend for 2007 of $1.31 is up 13% on 2006. The dividend payout ratio is steady at 69%.
In terms of market capitalisation, which stood at $53.2 billion as at 30 September 2007, the gain in our net value in the past year was $11.4 billion, or 27.3%.
Our total shareholder return for the year was 31%, at the top of our peers.
Soundly positioned
Importantly, our credit quality continues to be sound with net impaired assets, as a proportion of our equity and collectively assessed provisions, improved to 1.4%, from 1.5% in 2006.
Westpac’s capital position also remains strong. As at 30 September, our Tier 1 ratio stood at 6.5%, well within our target range of 6.0% to 6.75%. At the same time our Adjusted Common Equity Ratio stood at 4.5%, also within our stated target range of 4.0% to 4.75%.
We are also remaining focused on areas of comparative advantage within our core markets of Australia and New Zealand, while maintaining a conservative balance sheet, strong risk disciplines, diversified funding and prudent liquidity.
Our relatively low risk portfolio, sound credit quality and capital strength consequently have us well positioned to respond to the current market conditions and competitive environments and to pursue opportunities that arise.
One such opportunity was reflected in the announcement on 2 October 2007 that we had reached agreement to acquire the franchise distribution business of RAMS Home Loans Group Limited.
The business to be acquired includes the RAMS brand, franchise network and associated mortgage origination and servicing systems and contracts needed to run the business. This provides a new growth option for Westpac. It will add an additional retail channel and extend our retail footprint by more than 10 percent via an additional 92 stores operated by 53 franchisees, dovetailing neatly into our existing growth plans. As part of the agreement, we are not acquiring the ASX listed RAMS Home Loans Group Limited or its existing mortgage book.
At the time of going to print this agreement remains subject to approval by RAMS shareholders.