Westpac is the latest bank to reveal that profit margin pressures are fading as the ultra-competitive mortgage wars cool.

Chief executive Peter King said that the three months to June 30 was a “solid quarter” for the Sydney-based lender, which reported an unaudited net profit of $1.8 billion over the period. This was flat year-on-year, but represented a 6 per cent jump on average quarterly profits earned in the first half.