(Reuters) -Australia Westpac Banking (NYSE:) Corp on Monday reported a 3% drop in annual profit 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 performer and contributed the most to the lender's profit decline, reflecting competition in the mortgage market.
Westpac said in a statement it expects strong demand for property and business credit in 2025, as the country's central bank looks to shift to an accommodative stance next year.
High interest rates in Australia have increased lender exposure to bad debt as customers facing cost of living pressures struggle to repay loans on time.
Australia's third-largest lender by market value reported attributable net profits of A$6.99 billion ($4.61 billion) for the year ended Sept. 30, up from A$7.20 billion. million Australian dollars reported last year and an LSEG estimate of 6.50 billion Australian dollars.
It declared a higher final dividend of 76 Australian cents per share, compared to 72 Australian cents a year earlier.
($1 = 1.5147 Australian dollars)
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