Westpac posts weaker-than-forecast profit

Sydney

WESTPAC Banking Corp posted a lower than expected three per cent rise in annual cash profit and a drop in profitability, with hesitant consumers and a tepid economy weighing on the growth prospects of Australia's second biggest lender.

Australia's "Big Four" banks are still earning record profits led by modest lending growth and a focus on costs but they are now starting to feel the impact of cracks in the property market, weak retail sales, heightened competition and an increased regulatory burden.