Key Points
- Net profit: $3.5 billion, down 1% from last year.
- Interim dividend: 76 cents per share.
- Total loans: $825 billion, up 5%.
- Customer deposits: $697 billion, up 7%.
- CET1 capital ratio: 12.2%.
Westpac Banking Corporation posted a $3.5 billion net profit for the first half of 2025, down 1% from last year, CEO Anthony Miller announced Monday. In his first results since replacing Peter King in December 2024, Miller focused on the bank’s strength. “This result demonstrates our achievements and ensures we are ready for the challenges ahead,” he said.
Westpac will pay a 76-cent-per-share interim dividend. Its balance sheet shows a CET1 capital ratio of 12.2% and a deposit-to-loan ratio of 84%. “Westpac’s very strong balance sheet is important given global uncertainty,” Miller said. “Our capital, liquidity and deposit-based funding enables us to support our customers and our community.”
Global trade policies and geopolitical risks disrupt markets. “Geopolitical uncertainty is a key risk that’s as high as it has been for a very long time,” Miller said. “Despite the volatility, it’s important that we look through the noise and avoid reacting to the headlines.”
Westpac Institutional Bank led with an 11% net profit rise and 15% lending growth from 2024. Australian business lending grew 14%. Total loans hit $825 billion, up 5%. Deposits reached $697 billion, up 7%. “We’re managing margins actively in a competitive environment achieving sustainable growth in our target areas,” Miller said.
Cost-of-living pressures eased. Mortgage delinquencies dropped. Credit quality held firm. “I’m impressed by the resilience of Westpac customers,” Miller said. He noted signs the economy’s low point may have passed. The bank’s app, scam-prevention tools, and platforms like Westpac One and BizEdge aim to improve customer satisfaction.
Westpac’s economists expect three rate cuts by December, starting with a 25-basis-point cut in May. After the federal election, Miller pledged to work with the government on housing, cash access, and national competitiveness. “I’m looking forward to working with the Government on the challenges and opportunities ahead, including providing more housing, guaranteeing access to cash with a sustainable long-term model and challenging ourselves as to how we compete as a nation going forward,” he said.
Westpac operates in Papua New Guinea, Fiji, Vanuatu, and the Cook Islands. Digital banking and community programs drive growth. Fiji’s economy shows strength with higher tax revenue, per Westpac’s update. The bank’s focus on institutional lending and Pacific markets reflects confidence despite margin pressures.
