Westpac Banking Corp. said it’s seeing a modest increase in customer stress, while inflationary pressures are causing expenses to rise at the Australian lender.
(Bloomberg) — Westpac Banking Corp. said it’s seeing a modest increase in customer stress, while inflationary pressures are causing expenses to rise at the Australian lender.
Unaudited net profit came in at A$1.8 billion ($1.2 billion) for the third quarter, Westpac said in a statement Monday. Unlike some of its peers, the lender opted not to buy back stock.
Resilience in Australia’s economy and housing market has supported a strong backdrop for the nation’s lenders. Still, with sticky inflation that’s driving up staff costs, investors are on the look out for signs that margins may now face further pressure.
Credit quality is resilient and Westpac is well provisioned, according to the statement, despite a modest increase in stress.
Commonwealth Bank of Australia and National Australia Bank Ltd. this month said they are doing stock buybacks.
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