The Westpac Banking Corp (ASX: WBC) share price is in focus today after the bank reported a first quarter unaudited statutory net profit of $1.9 billion, up 5% on the prior period's average. Net profit excluding notable items also rose 6% to $1.9 billion, while CET1 capital remains well above regulatory targets.
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What did Westpac report?
- Unaudited statutory net profit: $1.9 billion, up 5% on 2H25 average
- Net profit excluding notable items: $1.9 billion, up 6% on 2H25 average
- Net operating income: $5.81 billion
- CET1 capital ratio: 12.3%, above 11.25% target
- Deposit growth: $12 billion; lending growth: $22 billion
- Net interest margin: 1.94%
What else do investors need to know?
Westpac saw solid lending and deposit growth across both business and household customers, with particular strength in digital transaction account sales. Institutional lending rose by 7%, and business lending also expanded, thanks to technology-driven improvements like the BizEdge platform.
The bank continued its transformation agenda, simplifying operations and rolling out major tech initiatives. Notably, Westpac announced the sale of its RAMS mortgage portfolio, which aims to free up capacity for higher-returning loans. Asset quality improved, with low impairment charges and reduced stressed exposures.
What did Westpac management say?
Westpac CEO Anthony Miller said:
We are optimistic on the outlook for the economy and expect demand for both business and household credit to remain resilient. Our strong financial foundations provide us with the stability and capacity to support our people, customers, shareholders and the broader economy.
What's next for Westpac?
Looking ahead, Westpac plans to continue its cost reduction drive targeting more than $500 million in productivity gains this financial year. Technology rollouts, including AI training for all staff and expansion of business banking solutions, remain central to the group's strategy.
Customer migration to the Panorama wealth management platform and the rollout of the Westpac One digital platform for institutional clients are also on track. Management's continued focus on simplification, efficiency, and customer experience supports the bank's competitive positioning in a challenging market.
Westpac share price snapshot
Over the past 12 months, the Westpac shares have risen 18%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.
