News: WBC Westpac Says Intense Mortgage Competition Expected To Negatively Impact Margins In Next...

May 8 (Reuters) - Westpac Banking Corp (WBC) :

• AT A MACRO LEVEL, OUR LOAN PORTFOLIOS REMAIN HEALTHY
• BOOSTED CREDIT IMPAIRMENT PROVISIONS THIS HALF REFLECTING THE FORECAST TOUGHER ECONOMIC OUTLOOK
• INTEREST RATES NOW CLOSER TO THEIR FORECAST PEAK, BUT WE ARE FOCUSED ON HOW LONG THEY STAY HIGH
• EXPECT TO SEE MORE STRESS IN THE PERIOD AHEAD FROM HIGH INTEREST RATES, PARTICULARLY IN SMALL BUSINESS
• AUSTRALIAN ECONOMY EXPECTED TO SLOW OVER THE REMAINDER OF 2023
• WE'LL SHIFT OUR FOCUS FROM AN ABSOLUTE EXPENSE TARGET TO IMPROVING THE EXPENSE TO INCOME RATIO RELATIVE TO PEERS
• CREDIT GROWTH – BOTH HOUSING AND BUSINESS – WILL EASE IN 2023
• INTENSE MORTGAGE COMPETITION EXPECTED TO NEGATIVELY IMPACT INDUSTRY AND WESTPAC'S MARGINS IN THE NEXT HALF
• SHIFT IN FOCUS TO O INCOME RATIO RELATIVE TO PEERS DUE TO EXPECTED CONTINUING INFLATION, ONGOING AND NEW RISK & REGULATORY REQUIREMENTS
• IN FUTURE, WE'LL SHIFT FOCUS FROM ABSOLUTE EXPENSE TARGET TO IMPROVING EXPENSE TO INCOME RATIO RELATIVE TO PEERS