Westpac Banking (WBC) Q3 2025 earnings summary

Executive summary

• Statutory net profit for 3Q25 was $1.9bn, up 14% year-over-year, with strong business and institutional banking growth.

• Revenue increased 4% due to disciplined growth and favorable market conditions.

• Net interest margin (NIM) rose to 1.99%, with core NIM up 5bps to 1.85% on improved loan and deposit margins.

• Expenses increased 3% driven by higher investment spend and wage growth.

• Customer service improved with new branches and AI-driven scam detection pilots.

Financial highlights

• Net interest income for 3Q25 was $5.0bn, up from $4.8bn in 1H25 average.

• Non-interest income was $0.8bn, up from $0.7bn in 1H25 average, supported by stronger Markets revenue.

• Pre-provision profit reached $2.8bn, up from $2.6bn in 1H25 average.

• Return on equity (ROE) improved to 10.5% from 9.4% in 1H25 average; ROTE excluding Notable Items at 11.7%, up 57bps.

• Gross loans increased to $829bn, up $16bn from March 2025.

Outlook and guidance

• Management notes positive market conditions and disciplined growth supporting revenue.

• Lower interest rates and moderated inflation expected to support private sector recovery and lending growth.

• Transformation agenda focused on simplifying operations and accelerating innovation.

• Commitment to supporting productivity improvements in Australia, with policy priorities in housing, regions, and energy transition.

• Weighting to downside scenario in credit loss provisioning increased to 47.5%.