Credit ratings agencies have warned that borrowers, hit by the rising costs of living, could struggle to cover principal and interest payments for a record amount of home loans taken out in 2014-2015 that are set to become due soon.
Westpac noted delinquencies were rising across most states, with the overall percentage of loans that are 90-days overdue three basis points higher during the June quarter.
It also flagged higher stressed exposures in its corporate property and retail portfolio over the same period.
Westpac's home loan book, however, grew at 6 percent for the 12 months June, faster than the other three major banks.
"Whilst the NIM outcome is weak there is an offsetting outcome which is the strong loan growth," Khan said.
DELINQUENCIES RISING
Credit ratings agencies have warned that borrowers, hit by the rising costs of living, could struggle to cover principal and interest payments for a record amount of home loans taken out in 2014-2015 that are set to become due soon.
Westpac noted delinquencies were rising across most states, with the overall percentage of loans that are 90-days overdue three basis points higher during the June quarter.
It also flagged higher stressed exposures in its corporate property and retail portfolio over the same period.
Westpac's home loan book, however, grew at 6 percent for the 12 months June, faster than the other three major banks.
"Whilst the NIM outcome is weak there is an offsetting outcome which is the strong loan growth," Khan said.