Switch to fix puts pressure on: Westpac
Peter Clare announced the bank’s first-half results today. It was the eighth consecutive half-year period in which the bank had reported cash earnings growth.
The bank’s cash earnings were up 17% on the same half last year, to $432 million. Its lending earnings were up 6% to $63.2 billion but its net interest margin was down six basis points to 2.28%.
Clare said the market was clearly expecting more increases in the official cash rate. More customers are moving to fixed rates, predominantly between one and three years, which have less of a margin for the bank than floating rates.
But Clare said margins would open and close depending on the broader market conditions as well as customer preferences.
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