Westpac home loans could be spared rises
(9 May 2011 – Australia) Westpac indicated it will not be raising monthly mortgage payments for home owners in the immediate future, instead focusing on a recovery in business lending.
Chief executive Gail Kelly said there would be no repeat of last year’s home-loan rises above the Reserve Bank’s increases, which helped lift Westpac’s earnings within its retail bank on a half-on-half basis.
''At this time, we have no plans to do anything over and above that,'' she said after Westpac announced a 7 percent increase in half-year profit to A$3.16 billion from a year ago.
Mrs Kelly balanced her optimism about the overall strength of the economy, particularly as a consequence of the resources boom, with an acceptance that consumers and businesses had become a lot more cautious when lending and spending.
Both were saving more and borrowing less than before the global financial crisis, she said.
Nevertheless, despite a small drop in income to A$8.5 billion, Westpac's 6 percent increase in lending and almost halving bad debt charges to A$463 million helped lift profit.
''At this time, we have no plans to do anything over and above that,'' she said after Westpac announced a 7 percent increase in half-year profit to A$3.16 billion from a year ago.
Mrs Kelly balanced her optimism about the overall strength of the economy, particularly as a consequence of the resources boom, with an acceptance that consumers and businesses had become a lot more cautious when lending and spending.
Both were saving more and borrowing less than before the global financial crisis, she said.
Nevertheless, despite a small drop in income to A$8.5 billion, Westpac's 6 percent increase in lending and almost halving bad debt charges to A$463 million helped lift profit.
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