Westpac Banking Corporation (ASX:WBC) says its first quarter cash profit dipped 3.2 per cent to $1.5 billion, coming in below market expectations.
In the three months to the end of December 2011 Westpac generated a net profit of $1.4 billion, broadly in line with the year before.
CEO Gail Kelly says the result reflected a more challenging operating environment which contributed to a $200 million decline in markets related income.
Westpac says operating conditions deteriorated in the December quarter and despite a pick up in market sentiment since it remains cautious about the fundamental issues in Europe.
Westpac last week lifted its home loan and small business rates by ten basis points to 7.46 per cent, independent of the Reserve Bank’s decision to keep rates on hold.
