Jarrod Martin's questions to WESTPAC BANKING (WEBNF) leadership • Q1 2022
Question
Jarrod Martin from Credit Suisse asked if the 10 basis point quarterly decline in product margin would persist through FY22 and requested more detail on the drivers of this decline, such as loan switching and competition.
Answer
CFO Michael Rowland explained that the margin pressure is primarily driven by the significant build-up of liquid assets and the continued customer shift to lower-margin fixed-rate mortgages. He noted that the flow into fixed-rate loans has recently started to moderate from a peak of mid-40% to the mid-30% range as fixed rates have increased.