11 hours Ago By Staff Writers
One of Australia's big four banks has praised the resilience of its customers as they faced up to cost of living issues. Westpac also said there was welcome relief on the way, now that the Reserve Bank of Australia appeared to be turning into an interest rate easing cycle. Australia's oldest bank on Monday posted a dip in first half earnings to $3.
3 billion, down one per cent on the same period last year. "The resilience of customers who have navigated significant cost-of-living challenges over the past few years is impressive," CEO Anthony Miller said. "We're pleased we've been able to support customers through this period and RBA rate cuts are now also providing welcome relief.
"This resilience is reflected in the improvement in credit quality metrics, indicating we may have passed the low point in the cycle." The bank's mortgage delinquencies and impairment charges remain low. However, Mr Miller warned geopolitical uncertainty was a key risk and was "as high as it has been for a very long time".
This was taken as a reference to US President Donald Trump's trade and tariffs policies, which will raise the cost of imported goods and sparked fears that America could face an economic recession. "Changes to global trade policies have impacted markets and funding for the bank," Mr Miller said. But he also called on investors to "look through the noise", adding that Australia was "well placed" to handle the volatility.
"We look forward to working with the (federal Labor) government and combining our efforts to address key challenges and opportunities, including providing more housing, guaranteeing access to cash with a sustainable long-term model and challenging ourselves as to how we compete as a nation going forward," Mr Miller concluded. Westpac announced an interim dividend of 76 cents per share, one cent higher than the previous corresponding period..
