Westpac Banking Corporation (ASX: WBC) has released its full-year results for 2025, reporting a net profit after tax of $6.9 billion. Westpac is one of Australia’s four major banking institutions and provides a broad range of financial services. The result represents a 1% decrease compared to the previous financial year. Despite this slight dip, the bank highlighted a strong balance sheet and momentum in target segments. Earnings per ordinary share remained flat at 204 cents.
The bank saw growth in key areas, with deposits up 7% and loans increasing by 6%. Institutional lending rose by 17%, while business lending experienced a 15% increase. Agribusiness lending was a standout, growing by 22%. Westpac’s Chief Executive Officer, Anthony Miller, expressed optimism about the Australian economy and the bank’s position, noting the progress made in improving risk culture and the removal of APRA’s enforceable undertaking and additional capital overlay.
Westpac is continuing with its UNITE program, aimed at simplifying products, processes, and systems. The bank is also investing in market-leading capabilities, such as the BizEdge business lending origination platform, which has reduced decision times by 45%. Furthermore, Westpac has entered into an agreement for the sale of the RAMS mortgage portfolio, streamlining mortgage operations and reducing costs.
The final ordinary dividend per share is 77 cents, bringing the total ordinary dividend per share to 153 cents, a 1% increase on the previous year. The bank’s CET1 level 2 capital ratio stands at 12.5%, up 4 basis points from FY24. While operating expenses increased due to investments in UNITE, people, and the brand, Westpac remains focused on reducing its cost-to-income ratio over time.
