Westpac Banking Corporation reported on 5 May 2026 statutory net profit of A$3.4 billion for the six months to 31 March 2026, up 3% on the first half of 2025 and down 5% on the second half. Net profit excluding notable items was A$3.5 billion, up 1% on 1H25 and down 1% on 2H25.
The result includes a notable item for transaction costs on the sale of the RAMS mortgage portfolio, which reduced reported net profit after tax by A$75 million, as the bank had flagged in an ASX release on 14 April. Westpac said then that the sale of RAMS, agreed in November 2025 with a consortium including Pepper Money, KKR and PIMCO, was progressing, with completion expected in the second half of the 2026 financial year. RAMS has been moved from the Consumer segment to Group Businesses.
LENDING AND CAPITAL
Lending and deposits each grew 7% over the year, with loans of A$890.3 billion and customer deposits of A$745.2 billion at the end of March. Australian housing loans excluding RAMS rose 7%, and Australian business lending increased 16%. The common equity tier 1 ratio was 12.4%, above the bank's 11.25% target, equivalent to A$2.7 billion of capital above target after the interim dividend of 77 cents per share, fully franked.
PROVISIONS RAISED
Westpac said its revised economic outlook had been reflected in its base case provision scenario and that a new portfolio overlay had been added for energy-intensive sectors. Credit impairment provisions increased to A$5.2 billion, while stressed exposures as a share of total committed exposures fell to 1.16%.
“While our customers are resilient and stress levels have declined, we've taken a prudent approach and increased our provisions,” chief executive Anthony Miller said. “The war in the Middle East is presenting challenges for some customers and the economic impact of the conflict will continue through the year.”