Westpac fattens margins as mortgage book grows

However, statutory net profit fell 33% to $426 million from $640 million in the previous first half.

The fall partly reflected profits from selling Westpac Life in the previous first half – excluding that, profit in the latest six months was down 15%.

That reflected a big increase in charges against profit for bad debts to $154 million compared with a $10 million writeback of previous charges in the year-earlier six months. The charges included provisions for Cyclone Gabrielle and other severe weather events.

Chief executive Catherine McGrath said the results also reflect the weakening economic cycle and noted there isn't clarity yet about several key issues for homeowners and businesses who were severely impacted by the weather events.