Westpac Banking Corporation (AU:WBC)
ASX:WBC
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Westpac Banking
(Sydney:WBC)
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Rating:61Neutral
Price Target:
AU$41.00
â–¼(-3.87% Downside)
Action:ReiteratedDate:12/30/25
The score is driven primarily by mid-level financial quality: solid profitability/ROE but offset by rising leverage and multi-year cash-flow volatility. Technicals are supportive with price above key moving averages and positive MACD, while valuation is moderate with a decent dividend. Earnings-call takeaways are mixed due to profit pressure and higher costs/transform execution risk despite strong deposit and lending growth.
Positive Factors
Deposit franchise and funding growth
A 10% increase in consumer deposits strengthens Westpac’s low‑cost funding base, reducing reliance on wholesale markets and supporting net interest income durability. Over months, a deeper deposit book enhances liquidity resilience and pricing flexibility across lending cycles.
Negative Factors
Rising leverage on balance sheet
The material increase in leverage raises sensitivity to funding cost shocks and credit stress; higher asset growth relative to equity tightens capital buffers. Over 2–6 months, elevated leverage can limit strategic flexibility and increase regulatory and market scrutiny if conditions worsen.
Read all positive and negative factors
Positive Factors
Negative Factors
Deposit franchise and funding growth
A 10% increase in consumer deposits strengthens Westpac’s low‑cost funding base, reducing reliance on wholesale markets and supporting net interest income durability. Over months, a deeper deposit book enhances liquidity resilience and pricing flexibility across lending cycles.
Read all positive factors
Westpac Banking (WBC) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$127.89B
Dividend Yield3.9%
Average Volume (3M)4.71M
Price to Earnings (P/E)9.9
Beta (1Y)1.16
Revenue Growth-3.87%
EPS Growth1.20%
CountryAU
Employees34,168
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)2.05
Shares Outstanding3,420,303,200
10 Day Avg. Volume5,088,098
30 Day Avg. Volume4,707,401
Financial Highlights & Ratios
PEG Ratio38.79
Price to Book (P/B)1.83
Price to Sales (P/S)2.30
P/FCF Ratio9.84
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$34.52Price Target Upside-19.07% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering9
EPS Forecast (FY)2.07
Revenue Forecast (FY)AU$22.99B
Westpac Banking Business Overview & Revenue Model
Company Description
Westpac Banking Corporation provides various banking and financial services in Australia, New Zealand, and internationally. It offers savings, term deposit, business transaction, not-for-profit transaction, foreign currency, farm management deposi...
How the Company Makes Money
Westpac makes money primarily through its interest income, which is the difference between the interest it earns on loans and mortgages and the interest it pays on deposits. Another significant revenue stream is non-interest income, which comes fr...
Westpac Banking Earnings Call Summary
Earnings Call Date:Nov 02, 2025
(Q4-2025)
| Next Earnings Date:Nov 02, 2026
Earnings Call Sentiment Neutral
Westpac demonstrated strong growth in deposits and business lending, and launched significant digital innovations. However, the company faced challenges with decreased net profit, increased expenses, and delays in the UNITE program. Customer and brand advocacy continue to require attention.Positive Updates
Strong Deposit Growth
Consumer deposits grew by 10%, reflecting the effectiveness of Westpac's banking app and competitive product suite.
Negative Updates
Decrease in Net Profit
Net profit, excluding notables, decreased by 2% to $7 billion, and statutory net profit fell by 1% to $6.9 billion.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Deposit Growth
Consumer deposits grew by 10%, reflecting the effectiveness of Westpac's banking app and competitive product suite.
Read all positive updates
Company Guidance
During Westpac's Full Year 2025 Results Briefing, the company provided guidance on various financial metrics and strategic initiatives. Net profit, excluding notable items, decreased by 2% to $7 billion, while statutory net profit fell by 1% to $6.9 billion. The return on tangible equity experienced a slight contraction, partly cushioned by a share buyback. The cost-to-income ratio rose to 53% due to higher expenses driven by their transformation agenda, although efforts under the Fit for Growth program aim to offset this in FY '26. The Board declared a second half dividend of $0.77, contributing to a full-year dividend of $1.53 per share, equating to a payout ratio of 75% of profit after tax, excluding notable items. The company continues to focus on streamlining operations through the UNITE program, with an investment of $660 million in FY '25, slightly above guidance, and plans to invest between $850 million and $950 million in FY '26. Westpac also highlighted improvements in customer service metrics, such as a 30% reduction in financial market clients' time to trade in the Commercial division and a 21% decline in reported customer scam losses, thanks to new initiatives like SafeCall and SafeBlock. Additionally, the company sees promising growth in consumer deposits, which grew by 10%, supported by their award-winning banking app and competitive product suite.Westpac Banking Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
58
Neutral
Cash Flow
47
Neutral
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 56.26B | 57.90B | 21.05B | 21.00B | 19.27B | 21.81B |
| Gross Profit | 22.18B | 21.81B | 21.05B | 20.73B | 20.09B | 21.59B |
| EBITDA | 10.61B | 10.59B | 0.00 | 11.55B | 10.06B | -1.06B |
| Net Income | 7.01B | 6.91B | 6.98B | 7.20B | 5.69B | 5.46B |
Balance Sheet | ||||||
| Total Assets | 1.17T | 1.13T | 1.08T | 1.03T | 1.01T | 935.88B |
| Cash, Cash Equivalents and Short-Term Investments | 53.49B | 0.00 | 168.07B | 176.87B | 181.02B | 70.91B |
| Total Debt | 225.71B | 232.44B | 207.17B | 138.20B | 126.71B | 113.17B |
| Total Liabilities | 1.10T | 1.05T | 1.01T | 957.24B | 943.69B | 863.78B |
| Stockholders Equity | 70.76B | 72.77B | 71.70B | 72.50B | 70.45B | 72.03B |
Cash Flow | ||||||
| Free Cash Flow | 18.23B | 13.55B | -1.17B | -35.73B | -18.27B | 16.44B |
| Operating Cash Flow | 18.57B | 13.93B | -933.00M | -35.49B | -18.10B | 16.67B |
| Investing Cash Flow | -102.49B | -68.45B | -80.24B | 1.71B | 2.81B | 5.62B |
| Financing Cash Flow | 80.27B | 39.20B | 45.08B | 30.35B | 48.29B | 18.64B |
Westpac Banking Technical Analysis
Negative
42.65
Price Trends
40.98
Negative
39.69
Positive
38.10
Positive
Market Momentum
<0.01
Positive
42.07
Neutral
17.95
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:WBC, the sentiment is Negative. The current price of 42.65 is above the 20-day moving average (MA) of 40.73, above the 50-day MA of 40.98, and above the 200-day MA of 38.10, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 42.07 is Neutral, neither overbought nor oversold. The STOCH value of 17.95 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:WBC.
Westpac Banking Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | AU$110.73B | 7.39 | 8.30% | 4.53% | -5.34% | -13.04% | |
70 Outperform | AU$294.09B | 12.51 | 13.27% | 3.00% | 0.93% | 5.97% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
61 Neutral | AU$127.89B | 9.87 | 9.55% | 3.90% | -3.87% | 1.20% | |
57 Neutral | AU$6.17B | 6.45 | -1.25% | 5.99% | -2.90% | -117.39% | |
56 Neutral | AU$87.44B | 15.81 | 10.75% | 3.27% | -12.60% | 30.24% | |
54 Neutral | AU$117.34B | 11.52 | 9.88% | 4.00% | -8.10% | -10.70% |
* Financial Sector Average
AU:WBC
Westpac Banking
37.44
7.55
25.27%
AU:ANZ
ANZ Group Holdings
36.79
9.02
32.47%
AU:BEN
Bendigo & Adelaide Bank
10.67
-0.49
-4.36%
AU:MQG
Macquarie Group Limited
239.23
38.30
19.06%
AU:NAB
National Australia Bank Limited
38.36
4.12
12.02%
AU:CBA
Commonwealth Bank of Australia
175.91
13.44
8.28%
Westpac Banking Corporate Events
Westpac strengthens balance sheet and provisions amid geopolitical uncertainty
Apr 13, 2026
Westpac Banking Corporation reported that it remains in a strong financial position to support customers despite heightened geopolitical uncertainty and energy-driven inflation pressures. In the first half of 2026, the bank delivered solid balance...
Westpac Sets June 2026 Quarterly Distribution for Capital Notes 10
Mar 26, 2026
Westpac Banking Corporation has announced a quarterly distribution for its Westpac Capital Notes 10 (ASX: WBCPM), a perpetual, non-cumulative, floating-rate hybrid security linked to the three-month BBSW. The distribution amount is set at AUD 1.30...
Westpac Sets June 2026 Distribution on Capital Notes 9
Mar 26, 2026
Westpac Banking Corporation has announced a quarterly distribution on its Westpac Capital Notes 9 (ASX: WBCPL), a listed hybrid security that pays a variable rate linked to the three‑month bank bill swap rate plus a fixed margin. The notes a...
Westpac Sets June 2026 Distribution on Capital Notes 7
Mar 26, 2026
Westpac Banking Corporation has announced a quarterly distribution on its Westpac Capital Notes 7, listed as WBCPJ, with a fully franked cash payment of AUD 1.3609 per note to be paid on 22 June 2026. The distribution covers the period from 23 Mar...
Westpac Sets June 2026 Distribution for Capital Notes 8
Mar 26, 2026
Westpac Banking Corporation has declared a fully franked quarterly distribution of AUD 1.2726 per Westpac Capital Notes 8 security, trading under ASX code WBCPK. The payment, based on a 5.0491% per annum distribution rate derived from the three...
Westpac Issues Brief Update on UNITE Transformation Program
Mar 25, 2026
Westpac has issued an update on its UNITE program, signalling ongoing internal initiatives within the bank. While specific details are not disclosed, the release indicates continued focus on strategic transformation, which may affect operational e...
Westpac Discloses 0.27% Internal Voting Stake Under ASIC Exemption
Mar 11, 2026
Westpac Banking Corporation has disclosed that its controlled entities collectively hold and can exercise voting or disposal power over 0.27% of the bank’s total issued voting shares. This notice is provided under an exemption granted by the...
Westpac Issues New Shares on Conversion of Unquoted Securities
Feb 27, 2026
Westpac Banking Corporation has notified the market of the issuance of 65,427 ordinary fully paid shares following the exercise or conversion of previously unquoted options or other convertible securities. The new shares, issued on 23 February 202...
Westpac CIO Scott Collary to Retire After Six-Year Technology Overhaul
Feb 9, 2026
Westpac Banking Corporation announced that Chief Information Officer Scott Collary will retire later this year after six years with the bank and a long career in financial services. During his tenure, Collary led a broad technology modernisation p...
Westpac Issues 498,125 Unquoted Share Rights Under Employee Incentive Scheme
Jan 20, 2026
Westpac Banking Corporation has notified the market of the issue of 498,125 unquoted share rights under its employee incentive scheme, effective 13 January 2026. These equity awards, which will not be quoted on the ASX, reflect Westpac’s ong...
Westpac Issues 91,383 Unquoted Share Rights Under Employee Incentive Scheme
Jan 20, 2026
Westpac Banking Corporation has notified the market of the issue of 91,383 unquoted share rights under an employee incentive scheme, effective 13 January 2026. The additional equity-based awards, which are not intended to be quoted on the ASX, ref...
Westpac Director Anthony Miller Increases Equity Holding Through Incentive Plan
Jan 20, 2026
Westpac Banking Corporation has disclosed a change in the interests of director Anthony James Miller, notifying the ASX that his holdings in Westpac securities increased following the grant of additional equity under the Westpac Group Equity Incen...
Westpac Issues 640,065 New Shares on Conversion of Unquoted Securities
Jan 15, 2026
Westpac Banking Corporation has notified the market of the issue of 640,065 new ordinary fully paid shares following the exercise or conversion of previously unquoted equity securities. The new shares, dated 31 December 2025, represent the convers...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.