Westpac posts $1.9bn profit in 1Q26 as digital push and lending gains continue

The Westpac Banking Corp (ASX: WBC) share price is in focus today after the bank reported a first quarter unaudited statutory net profit of $1.9 billion, up 5% on the prior period’s average. Net profit excluding notable items also rose 6% to $1.9 billion, while CET1 capital remains well above regulatory targets.

What did Westpac report?

• Unaudited statutory net profit: $1.9 billion, up 5% on 2H25 average
• Net profit excluding notable items: $1.9 billion, up 6% on 2H25 average
• Net operating income: $5.81 billion
• CET1 capital ratio: 12.3%, above 11.25% target
• Deposit growth: $12 billion; lending growth: $22 billion
• Net interest margin: 1.94%

What else do investors need to know?

Westpac saw solid lending and deposit growth across both business and household customers, with particular strength in digital transaction account sales. Institutional lending rose by 7%, and business lending also expanded, thanks to technology-driven improvements like the BizEdge platform.

The bank continued its transformation agenda, simplifying operations and rolling out major tech initiatives. Notably, Westpac announced the sale of its RAMS mortgage portfolio, which aims to free up capacity for higher-returning loans. Asset quality improved, with low impairment charges and reduced stressed exposures.

What did Westpac management say?

Westpac CEO Anthony Miller said:

We are optimistic on the outlook for the economy and expect demand for both business and household credit to remain resilient. Our strong financial foundations provide us with the stability and capacity to support our people, customers, shareholders and the broader economy.

What’s next for Westpac?

Looking ahead, Westpac plans to continue its cost reduction drive targeting more than $500 million in productivity gains this financial year. Technology rollouts, including AI training for all staff and expansion of business banking solutions, remain central to the group’s strategy.

Customer migration to the Panorama wealth management platform and the rollout of the Westpac One digital platform for institutional clients are also on track. Management’s continued focus on simplification, efficiency, and customer experience supports the bank’s competitive positioning in a challenging market.

Westpac share price snapshot

Over the past 12 months, the Westpac shares have risen 18%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

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The post Westpac posts $1.9bn profit in 1Q26 as digital push and lending gains continue appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.