Australia’s Westpac posts flat third-quarter profit, helped by higher capital gains By Reuters

(Reuters) – Australia Westpac Bank (NYSE:) Corp said Monday that third-quarter net income remained essentially in line with a year earlier, as higher returns on equity and covered deposits offset rising expenses and bad loans.

Based on the company’s average quarterly performance in the first half of 2024, Westpac’s unaudited net profit increased 6%.

However, a decade of high interest rates and rising cost-of-living pressures are impacting households’ ability to repay loans on time, increasing the financial strain on Australian banks.

“The cost of living and high interest rates continue to pose challenges for some customers, while many businesses are facing cost pressures and experiencing lower demand,” Westpac said.

The country’s third-largest lender by market value said unaudited net profit was A$1.8 billion (S$1.20 billion) for the three months ended June 30, compared with A$1.8 billion a year earlier.

The bank’s net interest margin, or the difference between interest earned on loans and interest paid on deposits, stood at 1.82 percent, compared to 1.86 percent the previous year.

($1 = 1.5006 Australian dollars)