Westpac’s Q3 profit rises on loan growth, flags slower housing credit demand
It said its core net interest margin was broadly stable during the quarter
Westpac Banking Corp reported a slightly higher third-quarter cash profit of A$1.8 billion (US$1.27 billion) on August 10, driven by growth in customer loans and deposits. The bank's core net interest margin remained broadly stable, while lending and deposit growth of 2% reflected broad-based expansion across the Australian portfolio.
However, Westpac warned that mortgage demand had weakened following federal budget changes, with average monthly mortgage applications falling 20% from the previous quarter to 26,000 between May and July. The company also forecast housing credit growth to moderate to 4.7% in 2027 from 6.8% in 2026, citing higher interest rates and policy changes.
Westpac CEO Anthony Miller attributed the slowdown to an undersupply of housing, population growth, and the impact of higher interest rates and recent government policy changes on the housing market.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
