Westpac profit falls on compensation costs and lending slowdown

Westpac's half-year profit has fallen by almost a quarter as the cost of customer compensation mounts and home-lending growth stagnates.

The bank's net profit fell 24 per cent to $3.2 billion for the half-year to March 31, while its preferred measure of cash profit was down 22 per cent to $3.3 billion — in line with analyst expectations. The bank has set aside almost $1.5 billion over the past three years for customer compensation schemes,The bank's crucial net interest margin — the profitable gap between what Westpac pays to borrow money and the rate it lends it out at — dropped sharply from 2.28 to 2.12 per cent.

Westpac has also warned lending growth will continue to slow to 3 per cent in the bank's current financial year and 2.5 per cent in the next one, putting further pressure on earnings over that period.In response, the bank said it had laid off the equivalent of almost 800 full-time staff to cut costs, but would maintain its dividend at 94 cents.

Westpac STILL makes $6.2 Billion Obscene Profits and paying Minimal TAX while our Wages Hospitals Schools Infrastructure Coal Oil Renewables are going without. How do we let this continue. Ohh thats right LNP

809 jobs. Just the start I’m afraid.

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