Westpac posts solid 1H26 profit as regional focus and UNITE program drive momentum

Westpac Banking ( (AU:WBC) ) has provided an announcement.

Westpac Banking Corporation reported a statutory net profit of $3.4 billion for the first half of 2026, down 5% on the prior half but up 3% on the prior corresponding period, with net profit excluding notable items at $3.5 billion. The bank’s capital position remains robust, with a CET1 ratio of 12.4% above its target, and it declared a fully franked interim dividend of 77 cents per share.

Management highlighted solid lending and deposit growth, with Australian mortgages excluding RAMS growing at 1.2 times system and business and institutional lending up over the year. Costs have fallen from the prior half as Westpac continues to invest in its UNITE transformation program, including a major platform migration, which is intended to simplify operations and “do things one way” across the organisation.

Westpac underscored its strategic focus on regional Australia, opening new regional service centres, expanding its Community Banking Service and growing its agribusiness book by 15% over the year. The bank reiterated its stance as the only major lender with a moratorium on regional branch closures to 2030, positioning itself as a key financial partner for regional communities.

Against a backdrop of global unrest and the war in the Middle East, the bank has increased provisions despite noting that customer stress levels have declined. Management said Westpac is prepared to support customers through energy price shocks and broader economic impacts, while advocating for national reforms to boost productivity, skills and the responsible adoption of AI and emerging technologies.

The most recent analyst rating on (AU:WBC) stock is a Sell with a A$34.06 price target. To see the full list of analyst forecasts on Westpac Banking stock, see the AU:WBC Stock Forecast page.

More about Westpac Banking

Westpac Banking Corporation is one of Australia’s major banks, providing retail, business, institutional and wealth management services across consumer, corporate and agribusiness segments. The bank maintains a strong presence in regional Australia, including agribusiness lending and regional service centres, and has committed to a moratorium on regional branch closures through 2030.

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