Australia's major banks focussed on improving productivity and cutting costs as revenues stagnate, analysts say.

Westpac has higher productivity gains in its sights after unveiling a new sourcing strategy and the biggest profit from an Australian bank in history.

National Australia Bank cuts standard variable home loan interest rate by less than its peers and the central bank.

NAB has posted a record annual cash profit of $5.5 billion and warned its funding costs will rise until 2014.

Woolworths has increased the size of a note issue to $700 million after strong demand.