Westpac posts $6.8 billion in 2026, lifts annual dividend 1%
Key Facts
Westpac reported its 2026 financial year results on 2 November, posting statutory net profit of $6.8 billion, down 1% from fiscal 2025. At the same time, the bank declared total dividends of 154 cents a share for the year, up 1% from the previous year. The final dividend was 77 cents a share, fully franked. The figures present a mixed picture of the bank's performance: a modest decline in statutory profit offset by an increase in total shareholder distributions. The results cover the financial year ended 30 September 2026.
Excluding notable items, net profit was $7.0 billion, broadly stable compared with the previous year, Westpac said. Profit before credit impairment charges also rose 4% to $10.9 billion. This measure reflects the bank's earnings before provisions, while statutory net profit shows the result after accounting for items included in statutory accounts. Chief Executive Anthony Miller said growth in deposits and lending was among the key developments, with deposits up 6% and loans up 5%. He added that the bank maintained a strong balance sheet.
On capital, the Common Equity Tier 1 ratio was 12.5% at the end of the financial year, above the bank's target of 11.25%. Westpac said the surplus amounted to $2.9 billion of capital above target after payment of the final 2026 dividend. The results also showed a year-on-year increase in shareholder distributions, with the bank setting the record and payment dates. The shares trade ex-dividend from 5 November, and eligible shareholders will be recorded on 6 November. The dividend is scheduled to be paid on 21 December, while the bank will hold its annual meeting on 16 December.
The results come ahead of the Reserve Bank of Australia's monetary policy board meeting on 2 and 3 November, as annual inflation accelerated to 4.3% in the 12 months to September, from 4.0% to August. The consumer price index rose 0.8% in September. Trimmed mean inflation was 3.6% annually in September; the previously published August reading was 3.6%, then revised to 3.5% after seasonal factors were changed. Housing was the largest contributor to annual inflation, with transport in second place, rising 8.7% in the 12 months to September. Automotive fuel prices also rose 9.4% in September, compared with an increase of 14.8% in August, amid higher global oil prices.
Producer price data showed the final demand index rose 1.1% in the September quarter and 3.6% in the 12 months to that quarter. The Australian Bureau of Statistics attributed the increase mainly to higher prices in construction and services. In an earlier decision, the central bank raised the cash rate by 25 basis points to 4.60% on 29 September and said some upside inflation risks were beginning to materialise. The board cited further disruptions to global oil supplies and higher fuel prices, and said it was prepared to raise rates again if needed. The decision statement and monetary policy statement are due on 3 November at 2:30 p.m. Sydney daylight saving time, followed by a news conference at 3:30 p.m.
Westpac said inflation remains above the central bank's target range and interest rates are likely to stay elevated through 2027, as households and businesses continue to face cost-of-living challenges. Central bank minutes showed market pricing pointed to a further increase of about 15 basis points by the end of 2026, followed by another 30 basis points in the first half of 2027. The November meeting follows September's decision to raise the cash rate to 4.60%. For Westpac shareholders, the next dividend milestone is days away, with the shares going ex-dividend on 5 November. The final dividend is due to be paid on 21 December.