Westpac's CEO says they have noticed changing customer habits in the backdrop of a tougher economy.

The bank's half-year profit is up four percent, with its net profit rising to $545 million dollars.

It's down 19 percent on the previous six months.

CEO Catherine McGrath says businesses are getting good at controlling what they can.

"There's a little bit less money being spent on things like hospitality and retail spend - with businesses, some of them are pausing a bit on whether they want to do their expansion plans."

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