Westpac Banking Corporation (ASX: WBC) Investor Pack shows strong lending growth among business customers. Growth in business lending was much stronger than growth in housing lending.
This growth comes with Westpac also reporting stable profitability and a strong capital position. The FY2026 results from Westpac show net profit, excluding Notable Items, of A$6.992 billion.
Westpac Financial Results 2026: Steady Profit, Tighter Margins
Westpac held its profit steady while margins came under pressure. Revenue came in at A$22.7 billion for the period ended September 2026. Pre-provision profit rose 4% to A$10.9 billion.
Westpac’s net interest margin narrowed to 1.87%, down from 1.94% a year earlier. Both mortgage competition and deposit pricing hit margins. Impairment charges also rose to 10 basis points of average loans, from 5.
| Metric | FY2026 | Change vs FY2025 |
| Net profit excluding Notable Items | A$6.992 billion | Broadly flat |
| Statutory net profit | A$6.813 billion | Down 1% |
| Cost-to-income ratio | 51.9% | Down from 53.0% |
| Return on tangible equity | 11.1% | Up from 11.0% |
| Earnings per share | 205 cents | Up 1 cent |
Westpac Business Lending: Where the Growth Came From
Business and Wealth Leads the Segments
Westpac’s Business and Wealth segment produced the largest share of pre-provision profit at 34%. Revenue grew 7%, and pre-provision profit rose 11%. Lending revenue increased 8%.
Westpac business loan growth leaned on existing customers, who supplied 74% of new business lending. Agriculture grew 21%, health grew 16%, and professional services grew 13%.
| Segment | Share of pre-provision profit | Revenue growth | Pre-provision profit growth |
| Consumer | 33% | 2% | 5% |
| Business and Wealth | 34% | 7% | 11% |
| Institutional | 21% | 6% | 8% |
| New Zealand | 12% | Flat | 5% |
Institutional Lending and Deposits
Westpac’s Institutional lending grew 18%, and lending revenue rose 13%. About 82% of new Institutional lending was investment grade.
Westpac’s total deposits reached about A$766 billion, against loans of about A$901 billion. Business deposits grew 4%, and household deposits grew 7%.
Why Westpac Business Loan Growth Matters for Returns
Westpac business loan growth matters because housing is expected to slow. The Company forecasts house prices to fall 10.9% from March 2026 to 2027, with turnover down 25%. Business credit is forecast to grow 7.0% in FY27, against 3.8% for housing credit.
Westpac is also building tools to capture that demand. BizEdge, a digital business lending platform, carries about A$300 million of investment, with completion expected in FY29. Westpac One, for large businesses, is due in FY28.
| Credit growth forecast | FY27 | FY28 |
| Housing credit | 3.8% | 5.3% |
| Owner-occupied housing | 4.2% | 5.4% |
| Investor housing | 3.0% | 5.0% |
| Business credit | 7.0% | 6.3% |
Industry Outlook for Australian Banking
The Westpac financial results 2026 pack says business investment is becoming a key source of activity. It grew 5.9% in June 2026. Westpac expects energy transition and data centres to support activity. Westpac’s economic forecasts for Australia rest on GDP growth of 1.5% in 2026 and 1.6% in 2027.
Westpac Share Price
- Last traded price: A$36.630
- Market capitalisation: A$125.93B
- 52-week range: A$36.340 – A$37.610
- Ordinary dividends in the Westpac financial results 2026: 154 cents per share
- Dividend yield: 4.4%, or 6.3% fully franked
- Dividend payout ratio: 75%
Future Direction and Impact on Westpac Business Lending and Shareholder Returns
Westpac lists Business and Institutional momentum among its eight priorities for FY27. The others include UNITE milestones, cost discipline and service excellence. Westpac business lending remains central to that plan.
Westpac aims to move its cost-to-income ratio below the peer average and its return on tangible equity above it. It also wants Business NPS to rise from third place to first. These targets are management expectations, not guaranteed outcomes.
Colitco will keep tracking Westpac business lending as FY27 progresses.
FAQ
Q1. What do the Westpac financial results 2026 show?
Ans. Net profit excluding Notable Items was A$6.992 billion, on revenue of A$22.7 billion.
Q2. How fast did Westpac business lending grow?
Ans. It grew 12%, ahead of housing lending at 7%.
Q3. What is the forecast for Westpac business loan growth?
Ans. Business credit is forecast to grow 7.0% in FY27 and 6.3% in FY28.
Q4. What is Westpac’s CET1 capital ratio?
Ans. It was 12.5% as on 30 Sep 2026, above the target of more than 11.25%.
Disclaimer
This article is meant only for informational purposes. If you are an investor who is watching Westpac closely, all the data published in the content is sourced from ASX announcements and external sources. Kindly verify all the information related to the share price and market data. Any investment should be made at the investor’s own risk. Colitco does not hold any position in the above-mentioned Company.
Luke Carlino is a seasoned Copywriter, Content Strategist, and Social Media Manager specialising in Mining, Finance, and Business journalism. With more than a decade of industry experience, he brings rigorous editorial standards and commercial acuity to every project.
