Westpac Banking Corp (ASX: WBC) will release its first-quarter results for the 2025 financial year on Monday (17 February).
Westpac is one of Australia's big four banks. While Westpac also offers retail banking, it has a strong emphasis on corporate and business banking compared to some of its competitors.
According to its 2024 Annual Report, the bank delivered a net profit of $6.99 billion in 2024. This was a 3% decline on the prior corresponding period.
Other key aspects of the annual report last November included:
- Net interest income increased 3% to $18.9 billion
- Net interest margin (NIM), excluding notable items, decreased to 1.95%
- Non-interest income decreased 15% to $2.84 billion
- Operating expenses increased 7% to $10.94 billion
- Fully franked final dividend of 76 cents per share
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Earnings
Some key metrics to watch from the big four bank's report next week will be net profit after tax (NPAT) and net interest margin (NIM).
NPAT shows the money a company has left over after it accounts for all costs and expenses, including tax.
NIM measures how much the interest that Westpac receives on its loans exceeds the interest it pays to its depositors. This number can help reveal any pressures from funding costs or loan pricing changes.
Dividends
Unlike some other companies reporting in February, the next expected dividend announcement for Westpac will come with its half-yearly results in May 2025.
However, according to the CommSec trading platform, Westpac is forecast to provide a dividend yield of 4.77% in 2025.
This would be the second-highest yield offered by the big four but would be a decrease from the current fully franked trailing dividend yield of 4.9%.
Is it time to sell Westpac shares?
Holders of Westpac stocks over the last 12 months have enjoyed strong returns. The share price is up 38.9% over that period.
Westpac shares even hit a 52-week high last week.
Despite these strong returns, The Motley Fool's Bernd Struben reported on Monday that one expert believes it could be time to sell before an RBA interest rate cut.
