Westpac Reports $6.9bn Profit with 7% Deposit Growth in FY25

Steady Financial Performance in a Competitive Market

Westpac Banking Corporation has reported a solid full-year result for 2025, with net profit after tax slipping marginally by 1-2% compared to the previous year. Despite this slight decline, the bank demonstrated resilience through growth in key lending and deposit segments, with total loans rising 6% to $851.9 billion and customer deposits increasing 7% to $723 billion. These figures underscore Westpac's ability to maintain momentum in a competitive and evolving banking environment.

Capital Strength and Dividend Confidence

The bank’s capital position remains robust, with the Common Equity Tier 1 (CET1) capital ratio edging up by 4 basis points to 12.5%, reflecting prudent risk management and regulatory compliance. Westpac’s board has also signaled confidence in future earnings by increasing the total ordinary dividend per share by 1% to 153 cents, maintaining a steady return to shareholders amid ongoing economic uncertainties.

Strategic Transformation and Operational Efficiency

Westpac continues to invest heavily in its transformation agenda, notably through the UNITE program aimed at simplifying products, processes, and systems to enhance customer experience and reduce operating costs. The bank has also initiated the sale of its RAMS mortgage portfolio, a move designed to streamline mortgage operations and improve strategic flexibility. Digital innovation remains a priority, with the rollout of platforms like BizEdge, which has cut business lending decision times by 45%, and the trial of Westpac One, a cloud-based platform targeting institutional clients.

Customer Focus and Regional Expansion

Westpac’s CEO Anthony Miller emphasized the bank’s commitment to delivering superior customer service across digital and physical channels. The bank’s expansion into regional Australia, including the opening of a new service centre in Moree, supports this goal. Growth in agribusiness lending by 22%, primarily from existing customers, highlights Westpac’s focus on regional markets and sectors with strong growth potential.

Outlook Amid Economic Uncertainty

Looking ahead, Westpac remains cautiously optimistic about the Australian economy. While interest rate relief has supported a modest recovery in private demand, challenges such as inflationary pressures and rising unemployment persist. The bank’s strong balance sheet and disciplined risk management position it well to navigate ongoing global uncertainties and domestic economic shifts.