Westpac posts flat $6.8 billion annual profit as housing slump hits banks

Westpac reported a flat annual net profit of $6.8 billion on Monday, down 1 percent, as Australia's housing slump continues to pressure major bank earnings. The bank's cash profit, excluding one-off items, reached $7 billion, with a full-year dividend of $1.54 per share. Chief executive Anthony Miller expects the Reserve Bank to deliver one or two more rate hikes, following four increases this year. The results come ahead of a widely forecast RBA rate rise on Tuesday, expected to lift the cash rate to 4.85 percent, adding over $6000 to annual mortgage payments. Politicians warn of job losses and business closures, while inflation remains above target at 4.3 percent.