Westpac Update: Strong Profit Holds Despite Slight Dip

Westpac New Zealand Limited (WNZL) reported a profit after income tax of NZ$1,203 million for the year ended 30 September 2025, a slight decrease from NZ$1,226 million in the prior year. Net interest income saw a modest increase to NZ$2,874 million from NZ$2,839 million, while total operating income reached NZ$3,119 million. Operating expenses rose to NZ$1,493 million, and the bank recorded an impairment benefit of NZ$44 million, a positive shift from a NZ$27 million charge in 2024.

Total assets for the Banking Group increased to NZ$128,272 million as of 30 September 2025, up from NZ$123,196 million in 2024. This growth was primarily driven by an increase in gross loans to NZ$106,772 million. The bank maintained a strong capital position, with a Common Equity Tier 1 capital ratio of 12.0%, a Tier 1 capital ratio of 14.6%, and a total capital ratio of 16.2%, all comfortably above the Reserve Bank's minimum requirements.

Total undrawn credit commitments stood at NZ$30,121 million, indicating significant potential future credit exposure. The bank's credit ratings remained stable, with Fitch at A+, Moody's at A1, and S&P at AA-, all with a stable outlook.