Spreads widen
Westpac yesterday reported on how its lending spreads have moved over the past year and, despite banks' comments that they are re-pricing business loans, it was consumers who bore the brunt through wider spreads on mortgages and cards.
The spread on credit card rates went up 30 per cent, from 5.06 per cent in March last year to 6.59 per cent in the latest half.
The spread on mortgages went up 28 per cent from 0.67 to 0.86 per cent over the same period.
The spread on business lending went up only seven per cent, from 1.56 to 1.67 per cent, and the spread on institutional lending went up 21 per cent from 0.6 to 0.73 per cent.
Westpac chief financial officer Phil Coffey said the re-pricing of business lending was not yet completed.