COMPANY UPDATE · WESTPAC · ASX: WBC
Results released 2 November 2026 · Financial year ended 30 September 2026
Steady profit. A bigger credit bill.
Westpac’s annual credit impairment charge rose to A$864 million from A$424 million. Profit excluding Notable Items was broadly stable at A$6.992 billion; statutory profit was A$6.813 billion. These are different measures and should not be mixed.
What sits behind the headline
The bank reported a CET1 capital ratio of 12.5%, above its 11.25% target in normal operating conditions. A capital cushion helps absorb losses, but does not remove exposure to borrower stress.
The impairment charge amounted to 10 basis points of average loans, compared with 5 basis points a year earlier. An impairment charge is an accounting allowance for credit losses; it is not identical to cash already lost.
Why it matters — our interpretation
A stable profit number can hide a changing risk picture. The useful question is whether operating earnings and capital can continue to absorb credit pressure without weakening the business.
Watch the direction of arrears, new problem loans, provisions and margins together. A single housing forecast cannot establish future realised losses.
Our next research test
We are adding Westpac to our coverage with an unscored research baseline. A numeric research score or entry price needs a completed valuation and risk review.
Primary sources: Westpac FY2026 financial results, printed pages 3–4 and 16; 2 November results release.
Independent editorial research, not personalised investment advice. Capital is at risk.