Westpac stock posts $6.8 billion FY26 profit as dividend holds

Published on 11/03/2026 at 10:12 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Westpac stock faces a mixed earnings picture after stronger lending and lower costs offset higher credit charges. The bank kept its final dividend steady.

Westpac balances growth and pressure

Statutory fiscal 2026 net profit fell 1 percent, while profit excluding notable items was broadly unchanged.
Deposits rose 6 percent and loans increased 5 percent, led by business and institutional lending.
Westpac kept its fully franked final dividend at 77 Australian cents per share and expects elevated interest rates into 2027.

Westpac, AU000000WBC1, Illustration mit AI erstellt.

Westpac reported its fiscal 2026 results on Monday, November 2, with statutory net profit down 1 percent to 6.8 billion Australian dollars. The figures cover the year ended September 30 and were released in a media announcement published by Westpac.

Profit excluding notable items was broadly unchanged at 7.0 billion Australian dollars. Pre-provision profit increased 4 percent to 10.9 billion Australian dollars, but impairment charges rose to 864 million Australian dollars from 424 million a year earlier. Net interest income increased 1 percent to 19.7 billion Australian dollars, while the net interest margin narrowed to 1.87 percent from 1.94 percent.

Lending growth offsets margin pressure

The balance sheet expanded despite the tighter interest-rate environment. Customer deposits grew 6 percent and loans increased 5 percent. Business lending rose 12 percent and institutional lending gained 18 percent, reflecting stronger demand from sectors including agriculture, health, professional services, energy, infrastructure and resources.

Westpac said it continued to invest in its transformation program while controlling expenses. Operating expenses excluding notable items declined 1 percent to 11.8 billion Australian dollars, and the expense-to-income ratio improved by 116 basis points to 51.88 percent. The bank said investment spending represented 9.4 percent of revenue.

Chief Executive Officer Anthony Miller described the result as solid and pointed to stronger customer relationships, technology investment and progress on the UNITE transformation program. Westpac also said 95 percent of its employees use artificial-intelligence tools monthly, while stressing the importance of responsible implementation and training.

Dividend remains central to returns

Westpac declared a fully franked final dividend of 77 Australian cents per share, taking the fiscal-year total to 154 cents. The CET1 capital ratio stood at 12.5 percent, above the bank's 11.25 percent target, leaving 2.9 billion Australian dollars of capital above target after the final dividend.

Credit quality remained a key issue for investors. Stressed exposures declined to 1.17 percent of total committed exposures, but Westpac applied new overlays for energy-intensive sectors and discretionary spending. The bank said interest rates are likely to remain elevated into 2027, keeping pressure on households and businesses.

Westpac stock traded at 22.92 euros on Lang & Schwarz at 10:04:47 CET on Tuesday, November 3, 2026. Investors can follow the real-time quote of Westpac stock.