, Australia
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Westpac’s net profit dip 1% to $2.13b in H1 2025

The bank said it is managing their margins and working on cost management.

Westpac Banking Corporation saw its net profit after tax dip 1% year-on-year (YoY) to $2.13b (A$3.3b) in the six-month period that ended on 31 March 2025.

The Australian bank’s interim ordinary dividend is 76 Australian cents per share for the H1 2025 period; whilst earnings per ordinary share excluding notable items is 101 cents, flat compared to H1 2024.

The Australian bank’s net interest income rose 2% to $6.18b (A$9.57b) in H1, its latest financial statement showed.

Core net interest margin (NIM) was 1.8%, whilst group NIM fell 1 basis point to 1.88%.

“We’re managing margins actively in a competitive environment, achieving sustainable growth in our target areas,” Westpace CEO Anthony Miller said in a statement.

“In particular, our focus on business and institutional [lending] is delivering results with Australian business lending up 14% and institutional lending up 15% over the year,” he added.

Non-interest income (NII) decreased 3% to $917.45m (A$1.42b). Trading and other income fell by 15%, whilst net fee income remained flat at $542.87m (A$840m).

In contrast, net wealth management income grew 10% during the period, Westpac said.

Loans rose 5% to $533.2b (A$825b), on the back of Australian housing loans growing 5%.

Operating expenses rose 6% to $3.68b (A$5.7b), which Westpac said was due to their UNITE program, third party technology costs, increased software amortisation and salary and wage growth.

“Work on cost management is ongoing and UNITE will play a profound role helping reduce the cost to income ratio over time, improving service for customers and making it easier for our people to deliver,” Miller said.


Miller noted geopolitical uncertainty as a key risk that’s “as high as it has been for a very long time.”

He added that changes to global trade policies have impacted markets and funding for the bank.

However, Miller believes that Australia is well-placed to handle the instability.

“We look forward to working with the government and combining our efforts to address key challenges and opportunities, including providing more housing, guaranteeing access to cash with a sustainable long-term model and challenging ourselves as to how we compete as a nation going forward,” Miller said.

(US$1 = A$1.55; as of 5 May 2025, Google)

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