Westpac Banking Corp (ASX: WBC) shares have delivered solid returns over the last several years since COVID-19, and investors have also received plenty of passive income in that time.
The ASX bank share has focused on residential lending, and this has served it well over the years, with largely stable bad debts and pleasing demand.
At the time of writing, the Westpac share price has risen 38% over the past five years, as the chart below shows.
If an investor had invested $10,000 into the ASX bank share five years ago, they would have been able to buy 389 Westpac shares.
Image source: Getty Images
How many Westpac shares could we buy now?
Following that pleasing rise of the ASX bank share, investors can't buy as much of the business as they could a few years ago.
Investing $10,000 in the ASX bank share now would mean investors could get 281 Westpac shares.
What's the likelihood of further gains from here?
One of the best drivers for a rising Westpac share price is growing earnings.
The latest we've heard from the ASX bank share is the FY26 half-year result, which didn't have strong growth.
It generated $3.5 billion in net profit (excluding notable items), down 1%. It also reported $3.4 billion in statutory net profit, down 3% year over year and 5% half over half.
The business actually reported a solid level of underlying growth, with both lending and deposit growth of 7%.
One of the main positives was the 7% growth in Australian housing loans, with the proportion of new loans originated through the proprietary channel rising during the year. That means the business was less reliant on brokers for growth, enabling it to capture more of the lending margin.
Even more impressively, Australian business lending increased by 16% – it reported solid growth in its target sectors of agriculture, health, and professional services. Over time, that could be a larger driver of growth.
Two of the most important measures of the ASX bank share's success over the rest of the decade are its costs and profitability compared to its peers.
By the end of FY29, it's targeting a cost-to-income ratio below its peer average and a return on tangible equity (ROTE) above the peer average.
If Westpac can achieve those targets, its shareholder returns could be pleasing.
But analysts are not exactly positive on the business right now. According to CommSec's collation of analyst opinions, there are currently seven hold ratings and nine sell ratings.
It looks like there are better opportunities out there than Westpac shares.
