Westpac Banking Corp (ASX: WBC) shares have surged since the bank reported its third quarter results on 14 August.
In late morning trade today, shares in the S&P/ASX 200 Index (ASX: XJO) bank stock are up 1.8%, changing hands for $37.83 apiece.
That saw shares up 11.6% since the closing bell on 13 August, with the stock closing at 10-year highs of $39.01 a share on 28 August.
To put that performance in perspective, the ASX 200 was down 0.4% over this same period. And shares in chief rival Commonwealth Bank of Australia (ASX: CBA) – Australia's biggest bank and the biggest stock on the ASX by market cap – are down 0.8% since the 13 August close.
Taking a step back, Westpac shares have gained 21.5% over the last 12 months.
And that's not including the $1.52 a share in fully franked dividends the bank paid out over the full year. At the current share price, this sees Westpac trading on a fully franked trailing dividend yield of 4.0%.
Which brings us back to our headline question.
Is the ASX 200 bank stock still a good buy today?
Should you buy Westpac shares today?
Morgans' Damien Nguyen sounded suitably impressed by Westpac's third quarter results (courtesy of The Bull).
"The bank continues to show resilience in its core operations, with recent updates highlighting improving net interest margins, strong capital buffers and stable asset quality," Nguyen said.
"Westpac reported a stronger than expected third quarter result in fiscal year 2025," he added.
But with a hold recommendation on Westpac shares, he's not ready to pull the trigger today.
"However, despite operational improvements and capital management initiatives, the share price appears to already reflect much of the good news," he said.
Nguyen concluded:
While Westpac remains a preferred name among the majors, the valuation looks full, and further upside may be constrained unless there is a material uplift in earnings or return on equity.
At the price, Westpac shares trade on a price to earnings (P/E) ratio of just over 19 times.
What did the ASX 200 bank stock report?
Westpac grabbed investor interest on 14 August when it reported Q3 unaudited statutory net profit of $1.9 billion. That was an increase of 14% from the bank's first half FY 2025 average.
Profit growth was aided by an improving net interest margin (NIM). Westpac's core NIM of 1.85% was up 0.05%.
And as at 30 June, Westpac had completed 71% of its $3.5 billion on market share buyback.
Westpac shares closed up 6.3% on the day.
