Westpac Banking Corp shares face pressure amid slowing mortgage growth

Westpac Banking Corp shares have faced downward pressure, declining approximately 9% over the past 12 months and trading near their 52-week low. While the bank reported a quarterly net profit of $1.8 billion—a 2% increase compared to the previous half-year average—investors remain cautious regarding future growth.

Key concerns include a noticeable slowdown in mortgage application volumes, which dropped from an average of 29,000 monthly applications in the third quarter to approximately 26,000 following the budget. Additionally, the bank expects net interest margins to face further pressure in the near term due to intensifying competition and interest-rate uncertainty.

Despite these challenges, Westpac offers a lower price-to-earnings ratio compared to the Commonwealth Bank of Australia and provides a higher dividend yield, which may appeal to income-focused investors.