Westpac reported a rise in net profit to $1.8 billion in the three months ending June 30, 2024, up 6% on the average quarter for the first half of 2024.

In a statement to the ASX on Monday, the bank said revenue was flat year-on-year, with expenses up 2 per cent, reflecting higher investment spending and continued inflationary pressures on technology services.

“Our continued focus on customer service contributed to another solid quarter. We have grown the business and maintained a strong financial position,” Westpac chief executive Peter King said.

Excluding the impact of notable items solely related to hedge accounting, which the bank said would change over time, unaudited net income increased 2% to $1.8 billion.

Net interest margin (NIM) rose 3 basis points to 1.92%, with core NIM rising 2 basis points to 1.82%.

"Operating momentum was positive with customer deposit growth of $15.4 billion and loan growth of $14.7 billion," King said.

"This included Australian household deposit growth of 3 per cent and home loan growth of 8 per cent, which outperformed the system."

Meanwhile, net interest income increased 2 percent, reflecting higher net interest margin and loan growth, while non-interest income declined 4 percent due to lower financial markets revenues.

The bank said average loan impairment charges of 4 basis points decreased from 9 basis points, "reflecting an improvement in the economic outlook".

However, King acknowledged that the cost of living and high interest rates "remain a challenge" for some customers, while many businesses face cost pressures and experience lower demand.

Westpac also confirmed it had completed 60 percent of a previously announced $2.5 billion market share buyback.

Last week, NAB reported unaudited cash earnings of $1.75 billion for the third quarter of financial year 2024, with its chief executive Andrew Irvine also acknowledging that the economic environment, including persistent inflationary pressures, remained "challenging" for customers.