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Westpac posts $6.8 billion profit, expects house prices to fall further
Australia's second largest bank has warned that it expects house prices to plunge by almost 11 per cent by March next year, as it revealed its annual profit dropped by 1 per cent.
- Australia’s second-biggest bank has posted a $6.8 billion full-year profit, down one per cent year-on-year.
- In its results, Westpac warned that it forecasts house prices to drop by 11 per cent in the 12 months to March 2027, and interest rates will remain “elevated.”
- Despite this, the bank’s full-year dividend was 1 per cent higher year-on-year, up to 77 cents per share.
Australia’s second-largest bank warned Monday that it expects house prices to plunge by almost 11 per cent by March next year, as it revealed its annual profit fell by 1 per cent.
Westpac reported a $6.8 billion statutory net profit, down from the prior year but above analysts’ expectations.
In its results, the bank warned that Australia faces an “uncertain economic environment” as stress rises across households.
“In a time of global uncertainty, the Australian economy is holding up relatively well with strong business investment supporting the medium-term outlook,” the bank’s CEO Anthony Miller said.
“However, inflation remains above the Reserve Bank’s target range and interest rates are likely to remain elevated into 2027.
“This is presenting challenges for many households and businesses, although impacts are uneven across the economy. As households adjust to ongoing cost of living pressures, we remain ready to help those who need it.”
Net profit excluding notable items was $7 billion, flat on FY25, and just 1.17 per cent of the bank’s loans were defined as stressed.
The bank said it helped 190,000 Australians purchase their first property in the past 12 months, and customer lending rose by 5 per cent.
Amid banking sector layoffs, including an estimated 250 redundancies at Westpac this year, Miller said the bank was looking to capitalise on its customer services in the regions.
“We are investing in our people and technology to support future growth, while taking a disciplined approach to costs,” Miller said.
“This included hiring more bankers to support businesses, opening three new regional service centres and introducing our Community Banking Service to 14 locations, helping us to reach more than 65,000 people living in these communities.”
Despite the profit fall, Westpac declared a fully franked dividend of 77 cents per share, up 1 per cent from the prior year.
Topics: House prices, Westpac