Westpac's dividend payout ratio also jumped to 98 per cent in the last half, due to hefty compensation payments. Westpac last week said it was able to "look through" what should be a temporary rise in costs, but some, such as UBS analyst Jonathan Mott, still think the crunch on bank profits will lead to a future cut in the dividend. Jun Bei Liu, portfolio manager at Tribeca Investment Partners, believes there will be pressure on dividends over the next 12-to-18 months across the banking sector due to a worsening profit outlook.