Westpac Banking Corporation Reports A$3.32 Billion Half-Year Profit as UNITE Costs Lift Expenses and Margins Narrow

Westpac Banking Corporation has reported net profit after tax of A$3.32 billion for the first half of its 2025 financial year, a 1% decline on the equivalent period a year earlier.

Return on tangible equity came in at 10.6%, while the common equity tier 1 capital ratio stood at 12.2%. Net operating income excluding notable items was stable at A$10.99 billion for the half (A$10.79 billion reported). Westpac declared an interim dividend of 76 cents per share, fully franked.

EXPENSES AND MARGIN

Operating expenses rose 3% over the half to A$5.70 billion, with management attributing the increase to the expected step-up in UNITE investment, salary and wage growth and higher software amortisation. UNITE is Westpac's multi-year technology simplification programme. The programme continues to add to reported costs.

Net interest margin narrowed by 9 basis points on a half-on-half basis to 1.88%.