Business · Companies · 2 hrs ago
Westpac reports flat underlying profit as lending grows
Westpac reported A$6.8 billion in statutory profit for the financial year ending in 2026, down 1% from the previous year.
Its profit excluding notable items was broadly flat at A$7 billion, even as total loans rose 5% and customer deposits grew 6%.
Business and institutional lending grew strongly, with balances up 12% and 18%, respectively.
Westpac said its cost-to-income ratio improved as it continued a program to invest in technology and simplify operations.
The bank’s net interest margin fell, while credit impairment charges more than doubled to A$864 million, adding pressure to its results.
Its capital ratio was 12.5%, and it declared a final dividend of 77 cents per share, bringing the full-year total to A$1.54.
The results leave profit growth as a key challenge: at about A$37.44 per share, the assessment in the story was that the shares were a hold, not a buy.
Analysts may revise their earnings forecasts after the results, while investors will be watching whether stronger lending and lower costs lead to faster profit growth.
Westpac reported FY26 underlying net profit of about $7 billion, broadly flat from the previous year.
Statutory net profit fell 1% to $6.8 billion.
Total loans grew 5% over the year, while customer deposits increased 6%.
Business and institutional lending balances rose 12% and 18%, respectively.
Westpac’s net interest margin fell to 1.87%, and credit impairment charges rose to $864 million.
- Who
- Westpac Banking Corp.
- What
- It reported FY26 results, including broadly flat underlying net profit and growth in lending.
- When
- The results were released on November 2, 2026.
- Where
- Not stated.
- Why
- Not stated.
This story does not have two clearly opposing sides.
Westpac recorded about $7 billion in underlying net profit, with total loans up 5% over the year.
Westpac released its FY26 results to the ASX.
- Underlying net profit
- About $7 billion, broadly flat year on year
- Statutory net profit
- $6.8 billion, down 1%
- Total loans
- Increased 5% over the year
- Customer deposits
- Increased 6% over the year
- Net interest margin
- Fell from 1.94% to 1.87%
- Credit impairment charges
- Rose from $424 million to $864 million