Westpac (ASX:WBC) said its post-tax profit fell 11% in 2009 to $3.46 billion, but that business conditions were improving by the end of the year.
But CEO Gail Kelly warned that excessive regulation in the banking sector could cause a second global credit crunch in 2010.
The company said it increased its revenue 13% to $16.76 billion over the same period, but earnings per share declined 18% to 162 cents.
“We have remained strong in uncertain times by being well funded and provisioned,” Kelly said.
Westpac’s merger with St George was going well, and has already delivered $143 million worth of synergies, she added.