Westpac's full-year profit ticks higher, flags slowing loan demand

Nov 2(Reuters) - Australian lender Westpac Banking Corp WBC.AX reported a marginal rise in its full-year profit on Monday, helped by healthy growth in deposits and lending, although mortgage demand slowed following the government's tax changes.

The country's third-largest lender by market value reported net profit excluding notable items of A$6.99 billion ($4.91 billion) for the year ended September 30, compared with A$6.97 billion reported last year.

That was in line with the Visible Alpha consensus estimate of A$6.99 billion.

Here are some details:

• Westpac said its deposits and loans grew by 6% and 5%, respectively, during the financial year.

• The country's second-largest mortgage lender by loans said Australian housing loans, excluding RAMS, increased by 7%.

• Lending to business rose by 12%, and strong credit demand across sectors including energy, infrastructure and resources drove institutional lending 18% higher.

• However, the bank saw a 15% decline in average monthly mortgage applications in the fourth quarter, compared with the same period last year.

• Housing mortgage and investor credit demand has weakened since the government scrapped tax concessions for property investors earlier in the year.

• That has pressured Australia's top four banks, which account for more than 70% of the mortgage market and rely on home lending as a key source of profit.

• Westpac declared a final dividend of 77 Australian cents per share, same as last year.

• Its core net interest margin, a key measure of profitability, slid 5 basis points from last year to 1.76%, while its common equity tier 1 ratio, a measure of spare cash, slipped 7 basis points to 12.46%.

($1 = 1.4225 Australian dollars)