Westpac makes $1.8b profit in June quarter as mortgage competition continues
Save articles for later
Add articles to your saved list and come back to them any time.
Westpac notched up $1.8 billion in profits in the June quarter, the banking giant said on Monday, as it also reported ongoing pressure from stiff competition in mortgages and rising staff costs.
The bank on Monday said its operating revenue had been resilient in the three months to June, as it pointed to the ongoing rivalry between banks in the home loan market, where lenders have been competing fiercely on price.
Westpac said profits were $1.8 billion for the June quarter.Credit: Will Willitts
The trading update said the bank’s core net interest margin – which compares funding costs with what the bank charges for loans – was 1.86 per cent, a 4 basis point decline from the March half, reflecting ongoing mortgage competition.
As all banks face rising costs from a higher wages bill and other inflationary pressures, Westpac said its expenses had risen by about 5 per cent compared with the March half, and it pointed to cost-cutting measures.
“Expense growth was driven by inflationary pressures, including higher supplier costs, wages and salaries, and investment in the Group’s technology and customer simplification agenda,” the bank said.
“The group remains committed to cost discipline with recent cost reset actions driving a full-time equivalent employee reduction of approximately 2 per cent for the second half 2023 to date.”
More to come
The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. Sign up to get it every weekday morning.
Most Viewed in Business
Source: Read Full Article