(Bloomberg) -- Westpac Banking Corp.’s first-half profit topped analyst estimates as costs continued to decline. 

Cash profit fell to A$3.1 billion ($2.2 billion) in the six months to March 31, compared with the same period a year earlier, according to a statement Monday. That beat the average A$2.9 billion estimate of six analysts surveyed by Bloomberg. 

Banks are seeing an improvement in the outlook for margins after Australia’s central bank last week hiked interest rates for the first time since 2010 amid strong underlying economic momentum. Still, with signs of the housing boom cooling and cost pressures rising on consumers, executives have signaled hesitancy as they assess how businesses and individuals will react to higher borrowing costs. 

“We’ve made steady progress towards our goals,” Westpac Chief Executive Officer Peter King said in the statement. “We’re managing through the low-rate environment and making the changes required to become a simpler, stronger bank.”

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