Westpac Q3 2026 Update: Strong Performance and Resilience
Key points
- Unaudited statutory net profit increased by 3% to $1.8bn
- Net profit excluding notable items up 2% to $1.8bn
- CET1 capital ratio at 12.1%, above target of 11.25%
Full summary
Westpac Banking Corporation released its Third Quarter 2026 Update, highlighting a 3% increase in unaudited statutory net profit to $1.8 billion. Net profit excluding notable items rose by 2% to $1.8 billion, reflecting strong customer deposit and loan growth. Deposit growth of 2% was driven by increases in transaction and term balances, while lending increased by 2% across all segments. Revenue increased by 1%, with a 2% rise in net interest income offsetting a 3% decline in non-interest income. The CET1 capital ratio stood at 12.1%, well above the target ratio of 11.25%, indicating a strong financial position. The sale of the RAMS mortgages portfolio added 23 basis points to the CET1 capital ratio and reduced the home loan portfolio by $15.4 billion. Households and businesses continued to demonstrate resilience, with stressed exposures remaining low.
Guidance
Statutory net profit up 3% to $1.8bn, excluding notable items up 2% to $1.8bn
Outlook
Westpac expects housing credit growth to moderate from 6.8% in FY26 to 4.7% in FY27, with continued investment in customer products and services.
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