• Revenue down 4%, excluding Notable Items up 2%
• CET1 capital ratio of 11.9%, above top of target operating range
• Total expected credit loss provisions $5.1bn, flat

Westpac's 1Q25 results show a solid financial performance, with revenue down 4% but up 2% excluding Notable Items. Net interest margin (NIM) was 1.82%, with core NIM at 1.81%, down 1bp from 2H24 excluding a provision release. Expenses increased 1% with wage and salary growth partly offset by seasonally lower investment spend. Impairment charges to average loans were 5bps, up from 4bps but remaining low reflecting continued customer resilience. Net profit was $1.7bn, down 9%, but excluding Notable Items it was $1.9bn, up 3%. The CET1 capital ratio was 11.9%, above the top of the target operating range of 11.0-11.5%. Risk-weighted assets (RWA) were up $14.0bn or 3.2% due to loan growth and higher interest rate risk in the banking book (IRRBB). Credit quality remained resilient, with total expected credit loss provisions flat at $5.1bn. The collectively assessed provisions to credit RWA ratio was 128bps, down 4bps. The bank's liquidity position also remained strong, with the liquidity coverage ratio (LCR) at 131% and the net stable funding ratio (NSFR) at 113%, both well above regulatory minimums.

Westpac expects net profit for the full year 2025 to be in the range of $6.8 billion to $7.2 billion, with net interest margin for the year expected to be in the range of 1.80% to 1.85%.

Westpac remains cautiously optimistic about the economic outlook, with continued low unemployment and moderate growth expected. The bank is focused on maintaining a strong balance sheet and prudent risk management to navigate any potential challenges.