Westpac followed ANZ and NAB last week in revealing net interest margins have already peaked.
Westpac said its first-half profit jumped 22 per cent to $4 billion as it readies for a slowdown in credit growth over the second half as the impact of higher interest rates starts to bite consumer spending.
The bank lifted its interim dividend by 15 per cent compared with the first half of financial year 2022 to 70¢ a share and said it would shift its focus to target higher margin business lending over the second half. “Interest rates are now closer to their forecast peak, but we are focused on how long they stay high and what this means for household budgets and discretionary spending,” Mr King said.Mr King said the Australian economy remains resilient with low unemployment and high population growth, but that it would slow over the remainder of 2023.
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