Westpac H1 Profit A$3.41B Misses Expectations

Westpac Banking Corp., Australia's second-largest mortgage lender, reported a first-half net profit of A$3.41 billion for the six months ended March 31, missing analyst expectations of around A$3.5 billion, as it raised provisions for potential bad debts amid economic pressures from the Middle East conflict.

The Sydney-based bank announced the results on Tuesday, May 5, ahead of a Reserve Bank of Australia decision expected to include another interest rate increase. Net profit rose 3 percent from a year earlier but was weighed down by a credit impairment charge of A$443 million, up from A$250 million, including about A$200 million in additional provisions compared with the prior half. The move reflected caution over a weakening economy, with new overlays for energy-intensive sectors hit by supply chain disruptions and higher prices from the conflict.

Chief Executive Anthony Miller stated that the bank remained well-positioned despite challenges. "The war in the Middle East is presenting challenges for some customers and the economic impact of the conflict will continue through the year," he said. "The disruption to energy supply chains has driven a rise in prices and we're...