Westpac Reports 13% Surge in First-Quarter Net Profit
Westpac Banking Corporation, Australia's third-largest lender by market capitalization, announced a 13% increase in its first-quarter net profit on Monday. The positive results were driven by growth in customer deposits and lending volumes.
For the three months ended December 31, 2023, Westpac reported an unaudited net profit of A$1.7 billion ($1.08 billion), compared to A$1.5 billion in the same period last year.
Despite the profit increase, the bank's core net interest margin experienced a slight decline of 2 basis points from the second half of 2023 to 1.81%. Westpac attributed this modest reduction to prudent management amidst ongoing mortgage competition and a shift towards lower-spread savings and term deposits.
"We are experiencing a modest decline in our core net interest margin due to prudent management in response to ongoing competition in the mortgage market and a shift in deposit mix towards lower-spread products," the bank stated.