Westpac stock: FY26 profit slips as dividend holds steady

Published on 11/02/2026 at 16:06 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Westpac stock reports a mixed fiscal 2026 result as stronger lending and cost control meet higher credit charges. Management sees rates staying elevated into 2027.

Westpac FY26 result reshapes investor focus

Higher credit impairment charges offset stronger operating performance and balance-sheet growth.
Management expects elevated interest rates and continued cost-of-living pressure into 2027.
Capital remains above target while transformation spending and artificial-intelligence adoption advance.

Westpac, AU000000WBC1, Illustration mit AI erstellt.

Westpac Banking Corporation reported its fiscal 2026 results on Monday, November 2, after the year ended September 30. The bank said 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 Australian dollars. The figures come from Westpac's ASX release.

Higher charges offset operating progress

Net operating income excluding notable items rose 1 percent to 22.7 billion Australian dollars, while operating expenses declined 1 percent to 11.8 billion. Pre-provision profit increased 4 percent to 10.9 billion Australian dollars. Credit impairment charges, however, more than doubled to 864 million Australian dollars from 424 million a year earlier.

Net interest income increased 1 percent to 19.7 billion Australian dollars as average interest-earning assets grew. The net interest margin fell 7 basis points to 1.87 percent, highlighting continued pressure in lending and deposit competition. Customer deposits rose 6 percent to 766.2 billion Australian dollars and loans increased 5 percent to 901.3 billion.

Dividend steady as outlook stays cautious

The board declared a fully franked final dividend of 77 Australian cents per share, taking the fiscal-year total to 154 cents, 1 percent above fiscal 2025. The common equity tier 1 ratio was 12.5 percent, above Westpac's 11.25 percent target, while stressed exposures declined to 1.17 percent of total committed exposures.

Chief Executive Anthony Miller said the bank had built momentum while investing in customer services, technology and transformation. Westpac said 95 percent of employees use artificial-intelligence tools monthly and that key fiscal 2026 milestones for its UNITE 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 sees ongoing cost-of-living pressure for households and businesses. For investors, the combination of resilient lending growth, narrower margins and higher impairments keeps earnings sensitive to funding competition, credit quality and monetary policy.

Westpac stock traded at 23.07 euros on Lang & Schwarz at 16:01 CET on Monday, November 2, 2026. See the real-time quote of Westpac stock.