Westpac profit ticks lower, warns on global | Australian Markets

One of Australia’s large 4 banks has praised the resilience of its prospects as they confronted up to value of residing points.

Westpac additionally mentioned there was welcome aid on the way in which, now that the Reserve Bank of Australia seemed to be turning into an rate of interest easing cycle.

Australia’s oldest bank on Monday posted a dip in first half earnings to $3.3 billion, down one per cent on the identical period final yr.

“The resilience of customers who have navigated significant cost-of-living challenges over the past few years is impressive,” CEO Anthony Miller mentioned.

“We’re pleased we’ve been able to support customers through this period and RBA rate cuts are now also providing welcome relief.

“This resilience is mirrored within the enchancment in credit high quality metrics, indicating we might have handed the low level within the cycle.”

The bank’s mortgage delinquencies and impairment charges remain low.

However, Mr Miller warned geopolitical uncertainty was a key risk and was “as high because it has been for a very long time”.

This was taken as a reference to US President Donald Trump’s trade and tariffs policies, which will raise the cost of imported goods and sparked fears that America could face an economic recession.

“Changes to global trade insurance policies have impacted markets and funding for the bank,” Mr Miller mentioned.

But he additionally referred to as on buyers to “look via the noise”, adding that Australia was “effectively positioned” to deal with the volatility.

“We sit up for working with the (federal Labor) authorities and mixing our efforts to handle key challenges and alternatives, together with offering more housing, guaranteeing entry to money with a sustainable long-term model and difficult ourselves as to how we compete as a nation going ahead,” Mr Miller concluded.

Westpac introduced an interim dividend of 76 cents per share, one cent larger than the earlier corresponding period.