Westpac stock posts 6.8 billion Australian dollar FY26 profit
Published on 11/02/2026 at 09:20 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSWestpac reports a mixed fiscal result
- Statutory net profit fell 1 percent to 6.8 billion Australian dollars, while net profit excluding notable items was broadly unchanged at 7.0 billion dollars.
- Deposits grew 6 percent and lending 5 percent, but the net interest margin declined to 1.87 percent.
- Westpac declared a fully franked final dividend of 77 Australian cents per share and expects interest rates to remain elevated into 2027.
Westpac Banking Corporation reported a mixed fiscal 2026 result on Monday, November 2, after the year ended September 30. The Australian bank's statutory net profit fell 1 percent to 6.8 billion Australian dollars, while net profit excluding notable items was broadly unchanged at 7.0 billion dollars, according to Westpac's ASX release.
Revenue growth and cost control supported the result. Net operating income excluding notable items rose 1 percent to 22.7 billion Australian dollars, while operating expenses fell 1 percent to 11.8 billion dollars. Pre-provision profit increased 4 percent to 10.9 billion dollars. The improvement was offset by impairment charges of 864 million dollars, more than double the prior year's 424 million dollars.
Margins remain under pressure
Net interest income excluding notable items rose 1 percent to 19.7 billion Australian dollars as average interest-earning assets increased. The net interest margin nevertheless declined 7 basis points to 1.87 percent, while core net interest margin fell 5 basis points to 1.76 percent. The figures point to continued pressure from competition for deposits and lending, even as the balance sheet expanded.
Customer deposits increased 6 percent to 766.2 billion Australian dollars and loans grew 5 percent to 901.3 billion dollars. Business lending rose 12 percent and institutional lending 18 percent. Westpac also reported that stressed exposures declined to 1.17 percent of total committed exposures. The common equity tier 1 ratio stood at 12.5 percent, above the bank's 11.25 percent target.
Dividend holds at 77 cents
The board declared a fully franked final dividend of 77 Australian cents per share, taking the full-year dividend to 154 cents, 1 percent above fiscal 2025. Return on average tangible equity improved 14 basis points to 11.11 percent, while the expense-to-income ratio improved to 51.88 percent.
Chief Executive Anthony Miller said Westpac had built momentum while investing in customer services, technology and transformation. The bank said 95 percent of employees use artificial-intelligence tools monthly and that all key fiscal 2026 milestones for its UNITE transformation program had been delivered. It also set a target to facilitate 100 billion Australian dollars of housing-related lending by 2030.
Management expects interest rates to remain elevated into 2027 and highlighted continuing cost-of-living pressure for households and businesses. That outlook, together with the lower margin and higher credit impairments, leaves earnings sensitive to competition for funding, credit quality and the path of monetary policy.
Westpac stock traded at 23.11 euros on Lang & Schwarz at 09:15 CET on Monday, November 2, 2026.
Westpac Banking Corporation
- ISIN: AU000000WBC1
- Fiscal period: Year ended September 30, 2026
- Statutory net profit: 6.8 billion Australian dollars, down 1 percent
- Net profit excluding notable items: 7.0 billion Australian dollars
- Final dividend: 77 Australian cents per share, fully franked
- Lang & Schwarz quote: 23.11 euros on November 2, 2026 at 09:15 CET
The broader market backdrop in the Euro Stoxx 50 provides a separate reference point for investors, while Westpac's operating exposure remains concentrated in Australia and New Zealand.
