Westpac FY26 Net Profit ex Notable Items Flat at $7.0bn

Westpac (ASX:WBC) reported its full year 2026 result, with net profit excluding Notable Items flat as balance sheet growth and lower costs were offset by a lower net interest margin and a higher impairment charge.

Statutory net profit was $6.8bn, down 1% on FY25, and net profit excluding Notable Items was $6,992m against $6,972m. Pre-provision profit increased 4% to $10.9 billion. Net interest income was $19,687m and NIM fell 7 basis points to 1.87%. Operating expenses were $11,781m and the expense to income ratio improved 116 basis points to 51.88%. Impairment charges were $864m against $424m, and credit impairment provisions increased to $5.2 billion after new overlays for energy-intensive sectors and discretionary spending. Customer deposits grew 6% and loans 5%, with Business lending up 12% and Institutional lending up 18%. The CET1 capital ratio was 12.5%, above the 11.25% target, which Westpac says equates to $2.9 billion of capital above target after the final dividend. The final dividend is 77 cents per share, fully franked, taking 2026 dividends to 154 cents per share.

Figures excluding Notable Items are non-AAS measures used for internal management reporting and are not audited. The media release does not itemise the Notable Items or give FY27 earnings guidance, and Westpac says interest rates are likely to remain elevated into 2027.