Westpac has announced a net profit of $1.9 billion for the three months ending December, marking a 5 per cent increase compared to the average of the prior two quarters in 2025. The bank’s operating income saw a modest rise of 1 per cent, reaching $5.8 billion for the period.
Both deposits and lending portfolios experienced growth. Household deposits increased by 3 per cent, while business deposits grew by 4 per cent. Lending saw a significant boost of $22 billion. This lending growth was fuelled by a 7 per cent rise in institutional lending and a 3 per cent increase in both Australian housing (excluding its former RAMS portfolio) and business lending. Westpac is one of Australia’s largest banks, providing a wide range of financial services to individuals, businesses, and institutions. Last year, Westpac divested its RAMS mortgage portfolio to a consortium that included Pepper Money, a non-bank lender.
Westpac’s net interest margin, a key profitability metric, experienced a slight decrease of 1 basis point to 1.94 per cent. The bank attributed this decrease to competitive pressures and the prevailing lower interest rate environment.
Operating expenses, excluding restructuring charges, remained stable. However, when accounting for redundancy costs, operating expenses decreased by 5 per cent. Westpac is actively pursuing productivity savings exceeding $500 million throughout the 2026 financial year.
