Westpac Banking Corp.’s profit expanded slightly as deposit and loan growth offset caution on the housing market from the lender’s chief executive. The Sydney‑based lender reported an unaudited net profit of A$1.8 billion ($1.3 billion) for the three months to June 30, according to a statement on Monday. It also posted a net interest margin of 1.89%, underscoring the financial performance despite the slowdown.

Mortgage applications have fallen about 20% since the government’s budget in May, prompting the CEO to flag a moderating housing market. Nevertheless, the bank’s total income rose, driven by stronger deposit inflows and continued loan growth, which helped keep earnings on an upward trajectory.

The bank’s financial results were released alongside broader commentary on the property sector, with new housing projects visible in suburbs such as Caddens, Sydney. While the housing slowdown raises questions about future credit demand, Westpac remains confident that its diversified funding base will sustain profitability. The company’s share price responded modestly, reflecting investors’ focus on the earnings beat and the outlook for credit quality. Analysts expect the bank to maintain its earnings momentum as it navigates the evolving macroeconomic environment and potential regulatory changes. The outlook remains cautiously optimistic.