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Westpac Banking
(Sydney:WBC)
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Rating:54Neutral
Price Target:
AU$36.00
â–¼(-3.07% Downside)
Action:Reiterated
Date:06/03/26
The score is driven mainly by mixed financial performance: solid profitability and steady ROE are offset by rising leverage and unstable cash-flow history. Technicals further weigh on the score due to a clear downtrend and weak momentum, while valuation is a partial offset supported by a reasonable P/E and a 4.26% dividend yield.
Positive Factors
Steady ROE
A consistent ROE near 9–10% indicates the franchise earns returns above many low-growth assets, supporting retained earnings, dividend capacity and capital formation. Over 2–6 months this stability reflects durable underwriting and pricing power across core lending businesses.
Negative Factors
Rising leverage
An upward trend in leverage increases sensitivity to funding costs, macro shocks and credit deterioration. Higher leverage reduces capital cushions and may constrain lending or dividend policy if regulatory buffers are stressed, raising structural downside risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Steady ROE
A consistent ROE near 9–10% indicates the franchise earns returns above many low-growth assets, supporting retained earnings, dividend capacity and capital formation. Over 2–6 months this stability reflects durable underwriting and pricing power across core lending businesses.
Read all positive factors
Westpac Banking (WBC) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$129.36B
Dividend Yield4.07%
Average Volume (3M)4.71M
Price to Earnings (P/E)18.5
Beta (1Y)1.15
Revenue Growth-3.87%
EPS Growth1.20%
CountryAU
Employees33,305
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 Ratio38.78
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$34.71Price Target Upside-6.55% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering7
EPS Forecast (FY)2.07
Revenue Forecast (FY)AU$22.95B
Westpac Banking Business Overview & Revenue Model
Company Description
Westpac Banking Corporation, an established financial institution headquartered in Sydney, Australia, has provided a comprehensive suite of banking and financial solutions since its founding in 1817 (initially as Bank of New South Wales, rebranded...
How the Company Makes Money
Westpac primarily makes money by earning interest and fees from providing banking products and financial services.
1) Net interest income (core earnings driver)
- Westpac takes deposits (e.g., savings, term deposits, transaction accounts) and oth...
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 | 11.63B | 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 | 122.64B | 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
Positive
37.14
Price Trends
36.14
Positive
37.34
Positive
37.89
Positive
Market Momentum
0.66
Negative
67.48
Neutral
84.58
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:WBC, the sentiment is Positive. The current price of 37.14 is below the 20-day moving average (MA) of 37.21, above the 50-day MA of 36.14, and below the 200-day MA of 37.89, indicating a bullish trend. The MACD of 0.66 indicates Negative momentum. The RSI at 67.48 is Neutral, neither overbought nor oversold. The STOCH value of 84.58 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | AU$112.41B | 18.84 | 8.30% | 4.55% | -5.34% | -13.04% | |
73 Outperform | AU$296.79B | 28.68 | 13.27% | 2.81% | 0.93% | 5.97% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | AU$93.14B | 19.80 | 13.72% | 2.74% | 4.80% | 30.56% | |
63 Neutral | AU$128.49B | 20.67 | 9.88% | 4.21% | -8.10% | -10.70% | |
57 Neutral | AU$6.63B | -76.40 | -1.25% | 5.70% | -2.90% | -117.39% | |
54 Neutral | AU$129.36B | 18.47 | 9.77% | 4.15% | -3.87% | 1.20% |
* Financial Sector Average
AU:WBC
Westpac Banking
38.53
5.84
17.88%
AU:ANZ
ANZ Group Holdings
38.01
8.40
28.35%
AU:BEN
Bendigo & Adelaide Bank
11.47
-0.35
-2.96%
AU:MQG
Macquarie Group Limited
267.09
59.26
28.51%
AU:NAB
National Australia Bank Limited
42.53
5.28
14.18%
AU:CBA
Commonwealth Bank of Australia
178.23
5.12
2.96%
Westpac Banking Corporate Events
Westpac Issues New Shares Following Conversion of Unquoted Securities
Jul 14, 2026
Westpac Banking Corporation has notified the market of the issue of 31,051 ordinary fully paid shares, following the conversion or exercise of previously unquoted options or other convertible securities. The new shares, recorded under the ASX code...
Westpac Issues New Unquoted Share Rights Under Staff Incentive Plan
Jul 14, 2026
Westpac Banking Corporation has notified the market of the issue of 41,732 unquoted share rights under its employee incentive scheme. The share rights, designated as WBCAB, were issued on 30 June 2026 and are not intended to be quoted on the ASX.T...
Westpac Reports Lapse of 584 Conditional Share Rights
Jul 14, 2026
Westpac Banking Corporation has notified the market of a minor adjustment to its issued capital, following the lapse of 584 share rights. The rights, designated as WBCAB securities, ceased on 30 June 2026 after the conditional requirements attache...
Westpac Issues JPY 13bn Tier 2 Subordinated Notes to Bolster Regulatory Capital
Jun 10, 2026
Westpac Banking Corporation has issued JPY 13 billion of 2.708% fixed-to-fixed rate reset callable subordinated instruments due June 2036, structured to qualify as Tier 2 regulatory capital under the Basel III framework as applied by APRA. The ins...
Westpac Discloses 0.27% Voting Stake Held by Controlled Entities
Jun 10, 2026
Westpac Banking Corporation has disclosed that its controlled entities collectively hold or control 0.27% of the bank’s voting shares, under an exemption granted by the Australian Securities and Investments Commission. This position is sprea...
Westpac Redeems $5 Hybrid Debt Tranche at Scheduled Maturity
Jun 10, 2026
Westpac Banking Corporation has notified the market of the cessation of a tranche of its quoted debt securities, following the scheduled repayment or redemption of 1,000,000 units of its 0.76% notes maturing on June 9, 2026. The move reflects the ...
Westpac Updates Details of March 2026 Dividend and DRP Terms
Jun 4, 2026
Westpac Banking Corporation has updated its previously announced dividend notification for ordinary fully paid shares relating to the six‑month period ended 31 March 2026. The update, dated 4 June 2026, confirms key parameters of the distrib...
Westpac Releases New Zealand Banking Group Half-Year Disclosure
May 12, 2026
Westpac Banking Corporation has released the Westpac New Zealand Banking Group Disclosure Statement for the six months ended 31 March 2026, providing investors and regulators with updated financial and operational information on its New Zealand bu...
Westpac Releases Half-Year Disclosure Statement for New Zealand Unit
May 4, 2026
Westpac Banking Corporation has released the Westpac New Zealand Limited Disclosure Statement for the six months ended 31 March 2026, providing updated financial and regulatory information on its New Zealand operations. The publication of this dis...
Westpac Releases First-Half 2026 Risk Factors Update
May 4, 2026
Westpac Banking Corporation has released its First Half 2026 Risk Factors, outlining key risks relevant to its operations and financial position for the period. The publication signals the bank’s ongoing efforts to provide transparency to in...
Westpac Publishes March 2026 Pillar 3 Capital and Risk Report
May 4, 2026
Westpac Banking Corporation has released its Pillar 3 Report as at 31 March 2026, meeting regulatory disclosure requirements under APS 330. The report provides stakeholders with detailed information on the bank’s capital adequacy and risk pr...
Westpac posts steady 1H26 profit and boosts regional banking push
May 4, 2026
Westpac 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 and a CET1 capital ratio of 12.4%. T...
Westpac Releases 1H26 Interim Results Presentation for Investors
May 4, 2026
Westpac Banking Corporation, a leading Australian banking and financial services provider, has released its 2026 interim financial results presentation and investor discussion pack for the six months ended 31 March 2026. The materials are intended...
Westpac posts solid 1H26 profit as regional focus and UNITE program drive momentum
May 4, 2026
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’...
Westpac Declares Interim Dividend of AUD 0.77 Per Share
May 4, 2026
Westpac Banking Corporation has declared an interim dividend of AUD 0.77 per ordinary fully paid share, reflecting its performance for the six months to 31 March 2026. The dividend will trade ex‑dividend on 8 May 2026, with a record date of ...
Westpac Releases 2026 Interim Financial Results for Half Year to March 31
May 4, 2026
Westpac Banking Corporation has released its 2026 Interim Financial Results for the six months ended 31 March 2026, fulfilling its reporting obligations under ASX Appendix 4D. The announcement formalises the bank’s half‑year disclosure...
Westpac Deregisters U.S. Dollar Wholesale Debt From SEC Oversight
May 3, 2026
Westpac Banking Corporation has filed a Form 15F with the U.S. Securities and Exchange Commission to voluntarily deregister a range of its U.S. dollar-denominated long-term wholesale debt securities. The move follows the bank’s earlier annou...
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.