There is nothing in that report to suggest any sort of re rate...

There is nothing in that report to suggest any sort of re rate and it looks like being a slow slog turnaround.
Looks like main focus is on continuing cost reduction (simplification!!) and declining NIMs will continue.
If declining margins are to be the norm it can only be offset by lending growth long term however it quite often happens when focus is on cost reduction, pursuit of increased market share is often neglected.
If Westpac can continue on this path to a more leaner organisation it may place them in a much better position down the track to be more aggressive in the market, but that looks to be for another day.
The fact is that WBC continues to churn out solid cash earnings and will continue to provide a decent yield on investment which will underpin the SP however doubt if the market will be too excited about this report, although I still see no reason why it shouldn't be a bit closer to its peers (ANZ & NAB)