Source : THE AGE NEWS
Westpac says new home loan applications have fallen 20 per cent since the May budget, when the government announced a tightening of tax concessions for property investors, as the banking giant’s profits moved higher.
The nation’s second-largest mortgage lender on Monday reported unaudited net profit of $1.8 billion for the June quarter, up 3 per cent on the quarterly average for the March half.
As the housing market slows, Westpac said the number of average monthly mortgage applications had fallen 20 per cent between the May budget and the end of July.
Despite a slowdown in new lending, the bank still expects growth in the overall stock of housing credit, which it forecasts will expand by 4.7 per cent in the current financial year and 5.2 per cent in following year.
“We have a strong balance sheet and are focused on supporting our customers through uncertainty while delivering sustainable returns”, Westpac chief executive Anthony Miller said.
“While many households are feeling the impact of cost of living pressures, businesses are investing and our customers have continued to show resilience.”
More to come
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Clancy Yeates is deputy business editor. He has covered banking and financial services, and was previously national business correspondent in the Canberra bureau.Connect via X or email.
