H1 earnings fall 12, but top estimates
Company maintains 2024 cost plan
Shares climb 3
4,000 jobs cut in H1

May 9 Reuters Australia39;s Westpac Banking Corp said on Monday it was on track to meet its expense targets by 2024 even as inflation drives peers to abandon their costcut plans, while the lender39;s halfyear earnings beat estimates, sending its shares 3 higher.

The country39;s thirdlargest bank forecast secondhalf costs for fiscal year 2022 to be flat to 2 lower sequentially, signalling that its bold cost restructuring strategy was beginning to pay off.

Westpac, which is emerging from an expensive turnaround to fix outdated software and convoluted banking procedures, said it cut more than 4,000 jobs in the first half and expenses fell 27 from second half of 2021.

The bank reiterated reining in costs within A8 billion 5.60 billion by fiscal 2024, unlike peer National Australia Bank, which last week scrapped its cost reduction plans, owing to rising inflation.

Retaining their FY24 cost target while peers walk away from theirs is likely to create some debate in the market, Citibank analysts wrote, calling the results a sigh of relief for shareholders.

Pressure on margin from intense competition in home lending drove the bank39;s firsthalf earnings lower by more than 12, but they topped analyst estimates and put Westpac shares on track for their best singleday performance in two months.

Net interest margin, a key profitability indicator, fell 15 basis…