Westpac Bank's annual profit has fallen 4 percent as low interest rates and competition squeezed its margins and its expenses rose.
The cash profit for the year ended September was $872 million, a fall from $905m the year before.
Westpac's deposits grew 11 percent compared to a 9 percent rise in its lending.
"Intense competition for new lending and a shift to lower-spread fixed rate mortgages has compressed margins," the bank said in a statement.
The bank's net interest margin - a measure of its profitability - fell to 2.13 percent from 2.25 pct.
Its bad debts grew marginally to $59 million, driven by failures resulting from the slide in dairy prices.
The fall in Westpac's profit mirrors a modest easing in profits for the other main Australian owned banks operating here.
The bank is closing nine branches around the country.
