Westpac hits $1.27b net profit in Q3 on more lending activity

NIM benefited from a high-interest rate environment, offsetting competitive pressures.

Westpac Banking Corporation’s unaudited net profit hit $1.27b (A$1.8b) for the Q3 2026 period, up 2% compared to the H1 average, the Australian bank said in its third quarter update.

Pre-provisioning profit rose 1% during the quarter, whilst revenue rose 1%.

Net interest margin (NIM) is 1.78%, which Westpac called stable, citing benefits from a higher interest rate environment and liquid assets. This reportedly offset competitive pressures in lending, deposits, and the higher proportion of customers qualifying for saving bonus rates.

Lending rose by 2%, with business loans rising 4%, institutional loans rising 3%, and housing loans up by 2%.

Operating expenses rose 1% due to salary and wage growth, and investment in the business, Westpac said.

The bank said that it continues to pursue productivity savings of over $388.25m (A$550m) in FY2026.

Common equity tier 1 (CET1) ratio is 12.1% as of 30 June 2026. Average liquidity ratio is 134%.

Westpac’s sale of its RAMS mortgages portfolio added 23 basis points to its CET1 capital ratio, and reduced the bank’s home loan portfolio by $10.87b (A$15.4b), it said.

(US$1 = A$1.42, as of 12 August 2026)