Westpac posts $6.8b profit, forecasts 11% house price fall by 2027

Westpac, Australia's second-largest lender, reported a $6.8 billion annual profit and forecast an 11% fall in house prices by March 2027, citing elevated interest rates. The bank said the economy is holding up "relatively well" but inflation remains above target, with a fifth rate rise expected at Tuesday's RBA meeting. Profit fell 1% from last year, while net interest margin dropped to 1.86%. Westpac noted mortgage hardship cases remain low at 0.6%, though overcommitment has increased. Credit impairment provisions rose to $5.2 billion due to geopolitical and economic uncertainty, while unemployment hit 4.7% in September.