Westpac Banking Corporation has reported unaudited net profit of $1.8 billion for the third quarter of 2026, up 3 percent from the 1H26 average and maintaining $1.8 billion when excluding notable items, representing 2 percent growth on the same basis. The result demonstrates continued operational momentum across the bank’s diversified portfolio while maintaining a robust capital position, with the CET1 capital ratio standing at 12.1 percent above the 11.25 percent target ratio for normal operating conditions. Chief Executive Anthony Miller highlighted the bank’s strong balance sheet position and commitment to delivering sustainable returns while supporting customers through current economic uncertainty.
Revenue grew 1 percent during the quarter, driven primarily by a 2 percent increase in net interest income that offset a 3 percent decline in non-interest income. The net interest margin remained stable at 1.89 percent, a key metric for investors monitoring profitability in the current environment. This stability comprises a core NIM of 1.78 percent, which increased 1 basis point compared to the second quarter, alongside a treasury and markets contribution of 11 basis points. NIM resilience reflects benefits from the higher interest rate environment and liquid asset positioning, though these gains were partially offset by competitive pressures in lending, deposit mix dynamics, and the increasing proportion of customers qualifying for saving bonus rates. Westpac’s deposit growth reached 2 percent during the quarter, while lending advanced 2 percent with broad-based strength across the portfolio, including 4 percent growth in business lending, 3 percent in institutional, and 2 percent in housing.
Westpac has continued executing its multifaceted transformation agenda with several initiatives coming to fruition. The UNITE platform migration programme remains on track, with commercial banking customers now transferring to the new system and all invoice finance facilities already completed. Enterprise data migration to the cloud has strengthened data foundations and enabled greater use of analytics and artificial intelligence capabilities. On the customer acquisition and product innovation front, Westpac expanded the Spend&Save offering to customers up to age 40 and increased the balance cap from $30,000 to $150,000, supporting first-time home buyers and contributing to a higher proportion of new lending through proprietary channels. The addition of 150 regional business bankers has strengthened presence in regional Australia, contributing to agribusiness growth. Westpac achieved number one Net Promoter Score ranking in business and number two in consumer markets. The completed sale of the RAMS mortgages portfolio further strengthened the balance sheet and reduced operational complexity.
Management’s forward guidance points to housing credit growth moderating from 6.8 percent in FY26 to 4.7 percent in FY27, with undersupply of housing and population growth expected to partially offset headwinds from higher interest rates and recent federal policy changes. Investors should monitor several dynamics in coming quarters: the trajectory of net interest margins as Reserve Bank policy evolves, the success of regional expansion initiatives in sustaining business lending growth, operational efficiency gains flowing from the UNITE transformation programme, and credit growth dynamics as the housing market adjusts to policy shifts. The RAMS portfolio sale completion and ongoing cloud infrastructure investments also warrant close observation. This announcement has been classified as price sensitive and flagged as material by the ASX.
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About Westpac Banking Corporation (ASX: WBC)
Westpac Banking Corporation is one of Australia’s oldest and largest banks, providing consumer, business, and institutional banking services. It operates across Australia, New Zealand, and the Pacific region.
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