The bank, which reported a $1.8 billion quarterly profit, expects growth in investor demand for housing credit to more than halve over the next two years.

Westpac is writing thousands fewer mortgages as the major bank expects investor home loans to more than halve over the next year.

This week marks a final bright spot for the country’s biggest lenders as slowing credit growth, margin pressure and bad debts emerge amid a softening housing market.