Australia’s Westpac Banking Corp Reports 2% Profit Drop Amid Home-Lending Strain

Australia’s third-largest lender, Westpac Banking Corp, announced its annual profit fell to A$6.99 billion for the year ending September 30, 2025, down from A$7.11 billion a year earlier. 

Despite the dip, the result surpassed analysts’ expectations of around A$6.83 billion. 

The bank pointed to intense competition in the home-loan market and a narrowing net interest margin, which slipped to 1.94%. 

Operating expenses rose by 9% to A$11.9 billion. The increase was largely driven by restructuring costs, tech investments and wage growth. 

On the positive side, credit quality remains resilient. Loans overdue by more than 90 days dropped to 0.83% from 1.05% the previous year. 

Looking ahead, Westpac expects credit growth to moderate through 2025, with stabilisation anticipated in 2026.