Westpac has cut costs faster than it lost revenue and maintained its cost target of $8 billion amid a severe contraction in its interest margin, delivering cash earnings for the first half of $3.1 billion and lifting its dividend slightly.
“Consumer spending may be tempered by higher prices and higher interest rates,” he said. “However, the positives of strong household and business balance sheets, combined with the continued reopening of international borders and local economies, will likely increase economic activity.” More than 4000 people lost their jobs and Mr King said the bank would hold a target of an $8 billion cost base by FY24, after ANZ and NAB pointed to rising inflation to move away from their previous targets last week.
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