Bullish indicating open at $55-$60, IPO prices at $37
Investing.com-- Shares of Westpac Banking Corp (ASX:WBC) declined on Monday after the lender reported a 1% decline in first-half net profit, as higher operating expenses and tighter lending margins offset growth in its loan portfolio.
One of the "Big Four" Australian banks, Westpac, posted a net profit of A$3.32 billion ($2.2 billion) for the six months ended March 31, down 1% from A$3.34 billion profit last year.
The bank’s revenue rose 2% to A$10.79 billion, driven by a 2% increase in net interest income to A$9.35 billion, though competition squeezed its core net interest margin by 3 basis points to 1.80%.
Shares of the company fell 3.2% to A$32.290 as of 00:39 GMT.
Operating expenses climbed 6% to A$5.7 billion, reflecting wage increases and technology investments, while impairment charges fell to A$250 million from A$362 million a year earlier, reflecting improved credit quality.
However, the company said that uncertainty around global trade and tariffs has made future economic forecasts less clear. In response, the bank raised the weight of its downside scenario for expected credit losses from 42.5% to 45%.
Westpac declared an interim dividend of 76 Australian cents per share, unchanged from the previous half.
Loan growth was led by a 5% rise in Australian business lending and a 2% increase in housing loans, while deposits grew 3%.