(Reuters) -Australia’s Westpac Banking (NYSE:WBK) Corp reported a 3% fall in annual profit on Monday due to rising costs and intense competition in the mortgage market, while it increased its buyback program by A$1 billion.
The bank’s consumer segment was the worst performing, contributing the most to the lender’s profit decline, reflecting competition in the mortgage market.
Westpac said in a statement it expects solid demand for housing and business credit in 2025, as the country’s central bank looks to shift to an easing stance next year.
High interest rates in Australia have increased the lender’s exposure to bad debt as customers grappling with cost-of-living pressures struggle to repay loans on time.
Australia’s third largest lender by market value reported net profit attributable of A$6.99 billion ($4.61 billion) for the year ended Sept. 30, compared with A$7.20 billion reported last year and an LSEG estimate of A$6.50 billion.
It declared a higher final dividend of 76 Australian cents per share, as compared to 72 Australian cents a year earlier.
($1 = 1.5147 Australian dollars)