Westpac banks $3.78b profit
Westpac has recorded a flat first half cash profit of $3.78 billion and the bank has warned it faces possible headwinds from a subdued outlook for the economy and intense competition for loans. The result for the six months to March 31 is slightly below the $3.88 billion cash profit analysts had expected and came after weakness from Westpac's investment bank offset solid mortgage lending growth.
Net profit, which includes one-off items, was $3.609 billion, compared to $3.622 billion for the same period a year ago.
Meanwhile, Westpac lifted its fully-franked interim dividend three cents to 93 cents per share.
Chief executive Brian Hartzer expects growth in the housing market to continue to offset weakness from other parts of the economy, including mining.
"Areas like housing, infrastructure, and agriculture will do relatively well, while other areas such as mining and resource-driven regions and adjacent service providers will find it tough," he said.
"For Australian banks, this means that credit growth will be modest but positive with housing growing faster than business."
Mr Hartzer also said competition among lenders would remain intense.
Despite the competition for loans, Westpac kept its net interest margin, the profit it makes on loans, flat at 2.01 per cent.
Australian housing loans increased seven per cent during the half, while net interest income was up four per cent to $6.93 billion.
But the result was weighed down by a 17 per cent slide in earnings from Westpac Institutional Bank.
AAP
