Westpac flags global trade risks, shares slide after profit miss

Australian No.2 mortgage lender Westpac’s first-half profit missed expectations yesterday as margins contracted, and it warned that shifting global trade policies were rattling markets and may raise funding costs, knocking its shares down 3%.

- ROSHAN THOMAS HIMANSHI AKHAND

“Geopolitical uncertainty is a key risk that's as high as it has been for a very long time,” said Anthony Miller, who became CEO in December.

“Business confidence has also weakened. This could lead to softer consumer spending and business activity. Funding spreads have widened since the end of the first half and volatility may push funding costs higher,” he told reporters on a conference call.

Westpac posted a 1% drop in net profit for the six months ended March to A$3.32 billion ($2.14 billion), missing a Visible Alpha consensus estimate of A$3.43 billion.