Westpac reported an 80 per cent jump in net profit of $1.82bn for the quarter ended 31
December 2021 but said it sees pressure on margins.
While unaudited cash earnings climbed 74 per cent to $1.58bn, excluding notable items, it was up just 1 per cent, the statement showed. Lending increased $5bn for the quarter while the net interest margin of 1.91 per cent was down 8 basis points due to competition and higher liquid assets.
"We have made a sound start to the year and we are seeing the cost benefits of our simplification programs," said Westpac chief financial officer Michael Rowland.
“The environment however remains highly competitive, and we continue to see pressure on margins.
“Given this, we are bringing forward our simplification plans and changing our operating structure to improve efficiency and move more of our people closer to the customers they support.”
WBC Price at posting:
$20.60 Sentiment: Buy Disclosure: Held
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