Westpac has posted a statutory net profit of $6.8 billion for the year to 30 September, down 1% on the previous year, with net profit excluding notable items broadly flat at $7.0 billion. The result, released to the ASX on Monday 2 November, showed a bank leaning harder on business customers as the housing market cools.

The numbers

  • Pre-provision profit: up 4% to $10.9 billion.
  • Impairment charges: $864 million, up from $424 million.
  • Net interest margin: 1.87% for the year, down from 1.94%, and 1.86% in the second half.
  • Capital: a CET1 ratio of 12.5%, above the bank’s 11.25% target, equivalent to $2.9 billion of capital above target after the final dividend.
  • Dividend: a fully franked final dividend of 77 cents, taking the full-year total to 154 cents, up 1%.

Business lending does the heavy lifting

Deposits grew 6% and loans 5%. Business lending rose 12%, with strong growth in agriculture, health and professional services, while institutional lending increased 18%, supported by credit demand in energy, infrastructure and resources. Australian housing loans, excluding the RAMS portfolio sold in August, grew 7%, or 1.1 times the APRA system.

“The strong growth in deposits and lending was a highlight, at 6% and 5% respectively,” Mr Miller said. “We’ve deepened customer relationships and supported businesses to invest and grow, with Business and Institutional lending increasing 12% and 18% respectively.”

On housing, he said: “While the housing market slowed as buyers adjusted to rising rates and policy change, this remains consistent with previous cycles.” Westpac said it helped more than 190,000 Australians buy a home during the year and has set a target to facilitate $100 billion in housing-related lending by 2030.

Credit quality and provisions

Stressed exposures fell to 1.17% of total committed exposures, down 11 basis points. Even so, the bank applied new management overlays for energy-intensive sectors and discretionary spending, citing economic and geopolitical uncertainty, and credit impairment provisions rose to $5.2 billion over the year.

The outlook

“In a time of global uncertainty, the Australian economy is holding up relatively well with strong business investment supporting the medium-term outlook,” Mr Miller said. “However, inflation remains above the Reserve Bank’s target range and interest rates are likely to remain elevated into 2027.”

That warning was borne out a day later, when the Reserve Bank lifted the cash rate to 4.85%. Westpac said afterwards that its home loan variable rates were under review and that it would announce any changes once a decision had been made.

For business borrowers, the result is a reminder that the major banks are actively chasing commercial lending growth. With demand for business credit described as strong across Westpac’s customer base, well-prepared applicants remain in a reasonable position to negotiate on pricing and structure, even as rates rise.

Sources: Westpac ASX announcement, FY26 result (2 November 2026); Westpac interest rate news page (3 November 2026).