Australia · Delayed Price · Currency is AUD Westpac Banking Earnings Call Transcripts
Fiscal Year 2026
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UNITE is progressing on time and budget, with major migrations completed and foundational work underway for future phases. AI is improving efficiency, and most cost benefits will be realized after system decommissioning in 2028–2029. Customer disruption is being minimized, and the program is key to achieving cost and operational targets.
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Net profit rose 5% from 2H25 average, with strong deposit and loan growth, stable expenses, and a CET1 ratio of 12.3%. NIM declined slightly amid competitive pressures, while the RAMS sale and treasury actions are set to support capital and earnings stability.
Fiscal Year 2025
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The meeting reviewed strong capital and financial performance, advanced transformation initiatives, and addressed climate and governance concerns. Shareholders debated fossil fuel lending, board independence, and digital inclusion, with most board-backed resolutions passing but notable protest votes on director re-election and climate policy.
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Lending margins are expected to decline amid deposit spread pressure, while non-interest income and trading revenues rose strongly. Investment in transformation and productivity remains high, with capital and liquidity metrics robust and credit quality improving.
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Net profit excluding notable items fell 1% to AUD 3.5 billion, with reported profit down 9% due to hedging. CET1 ratio remains strong at 12.2%, and business and institutional lending saw double-digit growth. Expense growth is expected to rise in the second half as UNITE investment ramps up.
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A major transformation program is underway to simplify operations, reduce costs, and boost returns through the Unite initiative, targeting a below peer-average cost-income ratio and above peer-average ROTE by FY2029. Investments in digital platforms, AI, and streamlined processes are expected to deliver significant cost savings and improved customer experiences.
Fiscal Year 2024
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Net profit was AUD 7 billion, down 3% year-over-year, with strong loan and deposit growth across all segments. Margins were well managed despite competition, and the balance sheet remains robust, supporting increased share buybacks and dividends. CET1 ratio is 12.5%, with a positive outlook for 2025.