Australia’s Westpac Banking Corp. reported a 3% drop in annual profit to A$6.99 billion (US$4.62 billion) in its fiscal year ended September 30, mainly affected by rising costs and increased competition in the mortgage market. The bank expects housing and business credit demand to remain strong as the Reserve Bank of Australia may shift to an accommodative monetary policy in 2025.

At the same time, Westpac Bank also increased its buyback program by A$1 billion. The Reserve Bank of Australia has raised the cash rate by 425 basis points to 4.35% since May 2022.