Westpac Banking Corporation (ASX: WBC) today released its Third Quarter 2026 Investor Discussion Pack, offering comprehensive insights into its financial performance and operational landscape for the three months ended 30 June 2026. Westpac is a prominent Australian financial services organisation, providing banking, wealth management, and insurance services to millions of customers across Australia and New Zealand. The pack details key financial results, capital position, and credit quality, reflecting the bank’s activities during the quarter.
For the third quarter of 2026, Westpac reported an unaudited net profit, excluding Notable Items, of $1.8 billion. This figure represents a 2% increase when compared to the average quarterly performance of the first half of 2026. Net operating income for the period reached $5.7 billion, showing a 1% rise, while operating expenses also saw a 1% increase, totalling $2.9 billion. The bank’s Net Interest Margin (NIM) remained stable at 1.89%, consistent with the first half 2026 quarterly average. Both gross loans and deposits experienced robust growth, each increasing by 7% over the period.
Regarding its capital position, Westpac’s Level 2 Common Equity Tier 1 (CET1) capital ratio stood at 12.1% as of 30 June 2026, a slight decrease from 12.4% reported in March 2026. Risk-weighted assets (RWA) expanded by $6.2 billion, or 1.3%, to $464.5 billion. On the credit quality front, total provisions for expected credit losses rose to $5.298 billion from $5.199 billion in March 2026, though provisions to gross loans held steady at 58 basis points. Australian mortgage 90+ day delinquencies were recorded at 1.14%.
The announcement highlighted a current operating environment characterised by moderating average monthly mortgage application volumes and a marginal slowing in consumer spending. These trends, alongside housing credit growth forecasts of 6.8% for FY26, are part of the broader economic factors that continue to shape Westpac’s operational focus and strategic outlook.
