Westpac Banking Corp (ASX:WBC) shares dip as much as 2.1% to A$20.82, marking their lowest value since July 10.

Westpac, ranking as Australia’s third-largest lender, reported a third-quarter cash profit of A$1.8 billion ($1.15 billion).

This is mainly due to surging competition in the home lending sector, which significantly affected margins.

It is observed that the expenses to date for the second half have increased by 5% as compared to the first half, as a direct result of high supplier costs and employee wages.

Furthermore, Westpac posted a core net interest margin of 1.86% for the third quarter, indicating a decrease of 4 basis points from the first half of fiscal 2023.

The company noted its biggest intraday fall since Aug.

2, with shares sliding 8.9% for the year as of the last close.

Westpac is one of Australia’s leading banks, offering banking and financial services to consumers and businesses.