Westpac reported first-half 2026 results Tuesday morning, revealing its home loan book grew faster than the overall market, alongside rising deposits and a solid capital position.
The bank grew its share of proprietary loans from 32% to 34% during the first half, underscoring a broader shift as major lenders doubled down on in-house origination. National Australia Bank (NAB) revealed similar results on Monday, with propriety loans rising to 47.7% of all new drawdowns, up from 41.4%, during the previous six month period.
Meanwhile, statutory net profit for the half was $3.4 billion, down 5% on 2H25 but up 3% on the prior corresponding period. Net profit excluding notable items was $3.5 billion, down 1% on 2H25 and up 1% on 1H25.
“This half, we’ve delivered solid operating momentum while investing for the future,” Chief Executive Officer Anthony Miller said.
Total loans rose to $890.3 billion at 31 March 2026, from $856.4 billion in September and $829.4 billion a year earlier. Australian housing loans, excluding RAMS, increased 7% over the year, with growth in the half running at 1.2 times system.
“We grew Australian mortgages, excluding RAMS, in the half at 1.2x system, with the proportion of new first party lending increasing,” Miller said.
Customer deposits reached $745.2 billion, up from $723.0 billion at September and $696.8 billion a year earlier, with growth across household and business segments. The deposit-to-loan ratio was 84.2%.
The Level 2 Common Equity Tier 1 capital ratio was 12.4%, above Westpac’s target ratio of 11.25% in normal operating conditions. This equates to around $2.7 billion of capital above target after payment of the interim dividend. The CET1 ratio fell 11 basis points over the half as profit was more than offset by the 2025 final dividend and higher risk‑weighted assets.
Funding and liquidity metrics remained above regulatory minimums, with a quarterly average liquidity coverage ratio of 132% and a net stable funding ratio of 112%. The group raised $24 billion of new long-term wholesale funding in the financial year to date.
Credit quality indicators improved, with stressed exposures as a percentage of total committed exposures down to 1.16%. Credit impairment provisions increased to $5.2 billion, including a new portfolio overlay for energy‑intensive sectors, and collectively assessed provisions were 1.29% of credit risk‑weighted assets.
Westpac reported a 15% increase in its agribusiness book over the year and has opened three regional service centres, with another to come, while maintaining a moratorium on regional branch closures through to 2030.
The bank said it provided an additional $68 billion in new home lending in the half and is progressing its UNITE program, including a major migration to BT Panorama and steps towards a single commercial banking platform.
“Across the company, we’ve started to execute with real momentum,” Miller said, adding that the focus is now “very simply on delivery.”
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