Westpac announces 1H26 Result
HIGHLIGHTS
- $3.4bn statutory net profit - down 5% on 2H25, up 3% on 1H25
- $3.5bn net profit ex Notable Items - down 1% on 2H25, up 1% on 1H25
- 12.4% CET1 capital ratio above target ratio of 11.25% in normal operating conditions
- 77cents interim ordinary dividend per share, fully franked
DISCIPLINED EXECUTION THROUGH GLOBAL UNREST
Anthony Miller, Chief Executive Officer
This half, we've delivered solid operating momentum while investing for the future. Our strong balance sheet and disciplined focus will allow us to support customers through global uncertainty.
Westpac is well positioned to deal with the impacts of ongoing conflict. Our role is to stay close to customers, back them through current challenges and make sure help is there when it's needed. While our customers are resilient and stress levels have declined, we've taken a prudent approach and increased our provisions.
Across the company, we've started to execute with real momentum. We've got the team in place, we're clear on what needs to be done and the focus now is very simply on delivery. There's a strong sense of ownership and you can see that coming through in how we're performing and serving customers.
Growth is solid across lending and deposits, with several highlights. We grew Australian mortgages, excluding RAMS, in the half at 1.2x system, with the proportion of new first party lending increasing. We are supporting Australian businesses with lending up across both business and institutional over the past year. At the same time we are managing costs, which are down from the prior half.
Westpac believes in the growth potential of regional Australia. We've opened three regional service centres with another to come. We've also launched our Community Banking Service in several regional locations. Our agribusiness book has grown 15% during the year and we remain the only bank with a moratorium on regional branch closures through to 2030.
We know we must execute well across the board and nowhere is this more true than in our UNITE program. We're now solidly in implement phase. In March we completed our first large-scale migration, creating a single wealth platform for advisers on BT Panorama, and work is progressing well on creating one commercial bank.
Getting UNITE done will help unlock the potential of this organisation and ensure we do things one way. I'm confident in the plan and I'm encouraged by the progress we're making as a team.
Outlook
The war in the Middle East is presenting challenges for some customers and the economic impact of the conflict will continue through the year. The disruption to energy supply chains has driven a rise in prices and we're seeing this flow through to businesses and households, with some sectors more affected than others.
We're ready to work with the Government to ensure Australia is better prepared for future events, including through ongoing investment in a reliable, sustainable energy system. As a country, we must embrace the opportunity for genuine reform to ensure the nation remains competitive. Our stability sets us apart, but only when combined with more efficient and effective regulation. Boosting productivity must be the country's priority, particularly through an uplift in skills and training alongside a committed and inclusive adoption of AI and other emerging technologies.
