Wednesday, 11 Jun 2025
  • Contact
  • Privacy Policy
  • Terms & Conditions
  • DMCA
logo logo
  • World
  • Politics
  • Crime
  • Economy
  • Tech & Science
  • Sports
  • Entertainment
  • More
    • Education
    • Celebrities
    • Culture and Arts
    • Environment
    • Health and Wellness
    • Lifestyle
  • 🔥
  • Trump
  • House
  • VIDEO
  • White
  • ScienceAlert
  • Trumps
  • Watch
  • man
  • Health
  • Colossal
Font ResizerAa
American FocusAmerican Focus
Search
  • World
  • Politics
  • Crime
  • Economy
  • Tech & Science
  • Sports
  • Entertainment
  • More
    • Education
    • Celebrities
    • Culture and Arts
    • Environment
    • Health and Wellness
    • Lifestyle
Follow US
© 2024 americanfocus.online – All Rights Reserved.
American Focus > Blog > Economy > Australia’s Westpac flags global trade risks, shares slide after profit miss
Economy

Australia’s Westpac flags global trade risks, shares slide after profit miss

Last updated: May 5, 2025 9:22 pm
Share
Australia’s Westpac flags global trade risks, shares slide after profit miss
SHARE

Australian no.2 mortgage lender Westpac has reported a first-half profit that fell short of expectations, citing contracting margins and warning of potential impacts from shifting global trade policies. The bank’s net profit for the six months ended in March dropped by 1% to A$3.32 billion, missing the Visible Alpha consensus estimate of A$3.43 billion.

Westpac’s chief executive, Anthony Miller, expressed concerns about geopolitical uncertainty and weakening business confidence, which could lead to softer consumer spending and business activity. He highlighted that funding spreads have widened since the end of the first half, and volatility in the markets may push funding costs higher.

The bank’s operating costs rose by 6% due to investments in technology and its UNITE simplification program, offsetting growth in home, business, and institutional lending volumes. Additionally, Westpac’s net interest margin (NIM) fell one basis point to 1.88%, with the core NIM narrowing by three basis points to 1.80% as loan spreads tightened in a competitive mortgage market.

Analysts at Citi noted that while management is focusing on shifting lending growth to business and institutional sectors, the challenge lies in funding that growth in a competitive environment. The market may question the sustainability of this growth, especially as rate cuts pose additional challenges and the replicating portfolio impacts the NIM.

Despite these challenges, Westpac reported low mortgage delinquencies and impairment charges, with repayments on home loans in Australia more than 90 days late declining to 0.86% as of the end of March from 1.12% six months earlier. The bank’s shares initially fell 3.8% in response to the earnings announcement.

See also  Berkshire Hathaway's cash fortress tops $300 billion as Buffett sells more stock, freezes buybacks

This financial update comes shortly after the Australian Labor Party secured a historic second consecutive term, with housing costs being a central issue in the recent election. Miller expressed eagerness to collaborate with the government on various issues, such as expanding housing availability, ensuring sustainable access to cash, and enhancing national competitiveness.

Westpac declared an interim dividend of 76 Australian cents, up 1 cent from the previous year. The bank continues to navigate challenges in the market landscape and remains focused on addressing evolving economic conditions and regulatory developments.

(Reporting by Roshan Thomas and Shivangi Lahiri in Bengaluru; Editing by Marguerita Choy, Rod Nickel, and Sonali Paul)

TAGGED:AustraliasFlagsglobalprofitRisksSharesSlideTradeWestpac
Share This Article
Twitter Email Copy Link Print
Previous Article ‘Agreeing to Disagree’ Is Hurting Your Relationships—Here’s What to Do Instead ‘Agreeing to Disagree’ Is Hurting Your Relationships—Here’s What to Do Instead
Next Article Mom set to testify against ex-boyfriend in murder of her baby found stuffed in a dresser drawer Mom set to testify against ex-boyfriend in murder of her baby found stuffed in a dresser drawer
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Popular Posts

New study sheds light on health differences between sexes

Sex Differences in Health: New Study Reveals Insights A recent international study led by researchers…

May 13, 2025

20 Reasons Why Congress Must Unite Behind the One, Big, Beautiful Bill – The White House

In a call to arms, Congressional Republicans are urged to rally behind President Donald J.…

May 20, 2025

Behind the Scenes of Rupert Murdoch’s Media Dynasty’s Nasty Family Feud

The Murdoch Family Drama: A Power Struggle Unfolds In the Murdoch's case, life isn't imitating…

February 24, 2025

“We Don’t Owe You a Single Cent, You Bastards!” – Ungrateful Ukrainian Responds to Trump’s Demands to Repay $250 Billion – VIDEO |

The recent demand made by President Donald Trump for Ukraine to repay the $350 billion…

February 19, 2025

Eastern Star Masonic Retirement Community for sale after explosion

Eastern Star Masonic Retirement Community in Denver to be Sold Following Explosion Trustees of the…

May 7, 2025

You Might Also Like

US inflation rose less than expected to 2.4% in May
Economy

US inflation rose less than expected to 2.4% in May

June 11, 2025
Inflation pressures ease on a monthly basis as tariff uncertainty lingers
Economy

Inflation pressures ease on a monthly basis as tariff uncertainty lingers

June 11, 2025
Tesla drivers in France sue over Elon Musk’s political antics
Economy

Tesla drivers in France sue over Elon Musk’s political antics

June 11, 2025
Toyota Industries’ bn deal faces shareholder criticism
Economy

Toyota Industries’ $33bn deal faces shareholder criticism

June 11, 2025
logo logo
Facebook Twitter Youtube

About US


Explore global affairs, political insights, and linguistic origins. Stay informed with our comprehensive coverage of world news, politics, and Lifestyle.

Top Categories
  • Crime
  • Environment
  • Sports
  • Tech and Science
Usefull Links
  • Contact
  • Privacy Policy
  • Terms & Conditions
  • DMCA

© 2024 americanfocus.online –  All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?