Westpac posts A$6.8 billion, raises annual dividend 1%
Key Facts
Westpac Bank on November 2 reported statutory net profit of A$6.8 billion for the financial year ended September 30, down 1% from the previous year. Net profit excluding notable items was A$7.0 billion, broadly unchanged year on year. Reuters put adjusted profit more precisely at A$6.99 billion, compared with A$6.97 billion a year earlier. That figure matched Visible Alpha’s estimate of A$6.99 billion. The results showed growth in deposits and loans during the year, alongside a decline in mortgage applications in the final quarter.
Westpac’s deposits rose 6% and its loans increased 5% during the financial year, according to Reuters. Business lending grew 12%, while institutional lending rose 18%. But average monthly mortgage applications fell 15% in the fourth quarter compared with the same period a year earlier. Reuters said demand for home loans and investment credit declined after the government scrapped tax concessions for property investors earlier in the year. By contrast, Westpac’s Australian housing loans, excluding its RAMS portfolio, rose 7% during the financial year.
Full-year dividends totaled 154 Australian cents per share, up 1% on financial year 2025, the bank said. Westpac kept its final dividend at 77 Australian cents per share, fully franked, and its payout ratio was 77% of statutory net profit. The shares will trade ex-dividend from November 5, with shareholders of record determined on November 6. The dividend is scheduled to be paid on December 21, while the bank will hold its annual meeting on December 16. These dates reflect shareholders’ dividend entitlements following the release of the full-year results.
The bank ended the financial year with a common equity Tier 1 capital ratio of 12.5% on September 30, compared with a target of 11.25%. Westpac said this represented A$2.9 billion in capital above its target after payment of the 2026 final dividend. Chief Executive Anthony Miller pointed to growth in deposits and lending, while the bank said inflation remained above the Reserve Bank of Australia’s target range. Westpac added that interest rates were likely to remain high until 2027. In its statement, it said, "Inflation remains above the Reserve Bank of Australia’s target range, and interest rates are likely to remain high until 2027."
The bank’s results come as annual inflation in Australia accelerated to 4.3% in September, from 4.0% in August, according to the Australian Bureau of Statistics. Annual trimmed mean inflation rose to 3.6% in September, from 3.5% in August. The producer price index for final demand also rose 1.1% in the September quarter and 3.6% year on year. The bureau attributed the increase mainly to price growth in the construction and services sectors, with rents, labor wages, and transport and freight costs also contributing. On September 29, Australia’s monetary policy board raised the cash rate by 25 basis points to 4.60%, saying some upside inflation risks had begun to materialize.
Westpac said it helped more than 190,000 Australians buy a home during the financial year and announced a target to facilitate A$100 billion in housing-related lending by 2030. It also said 95% of its employees use artificial intelligence to help work more effectively and devote more time to customers. The bank said it would continue investing in technology and organizational transformation alongside the growth of its business. The results announcement follows the twelve months ended September 30 and was published on November 2 at 10 a.m. Sydney time. The final dividend is payable on December 21, after the record date set for November 6.