Unaudited net profit for the three months ended Dec. 31 came in at A$1.7 billion ($1.1 billion), the Sydney-based bank said in a statement Monday. Hedging contributed to the bulk of the fall, with margins and profit otherwise flat. The core net interest margin declined to 1.81%.
Just months into the job, Miller has taken the helm at Westpac as the Australian economy heads toward a phase of expected monetary policy easing that could curb bank margins. Analysts are also wary about the outlook after the stock price soared over the past year.
“Cost of living pressures and high interest rates remain challenging for some customers while many businesses face cost pressures and lower demand,” Miller said in the statement. “Encouragingly, inflation has eased and we could see the Reserve Bank of Australia reduce the cash rate as early as tomorrow.”
The stock fell 5.9% as of 10:45 a.m. in Sydney, paring its advance over the past year to about 30%.
What Bloomberg Intelligence Says
Westpac’s profit might fall 3-5% in fiscal 2025 ending Sept. 30 after 1Q dropped 9% to A$1.7 billion. Margin fell 2 basis points vs. 2H24 to 1.81%, a harbinger for the sector given expected rate cuts — Bloomberg Intelligence Senior Industry Analyst Matt Ingram.
(Adds Monday’s share price from first paragraph)
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