Australia's Westpac annual profit falls 1.4% on sale of unit

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Nov 7 (Reuters) - Australia's no.3 lender Westpac Banking Corp (WBC.AX) connected Monday reported a 1.4% driblet successful yearly profit, wounded by contention successful its location lending concern and a complaint related to the merchantability of its beingness security unit, portion raising its outgo target.

Last month, the slope warned of a A$1.3 cardinal deed to the second-half nett net and currency earnings, driven chiefly by a nonaccomplishment connected the merchantability of its beingness security business.

While its lending margins successful the 2nd fractional did retrieve somewhat from the archetypal half, full-year margins were inactive down 13 ground points from past year. Since May, the slope has moved successful measurement with the Reserve Bank of Australia to pass on complaint hikes to its customers.

The slope besides moved distant from its outgo people of A$8 cardinal by the 2024 fiscal year, revising it upwards to A$8.6 billion, citing wage increases from a choky labour marketplace and regulatory costs.

Cash net came successful astatine A$5.28 cardinal for the twelvemonth ended September, down from A$5.35 cardinal a twelvemonth earlier but beating a Morgan Stanley estimation of A$5.23 billion.

Westpac declared a last dividend of 64 Australian cents per share, compared with 60 Australian cents past year.

($1 = 1.5610 Australian dollars)

Reporting by Harshita Swaminathan and Savyata Mishra successful Bengaluru; editing by David Evans

Our Standards: The Thomson Reuters Trust Principles.

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