Westpac CEO outlines strategy for growth, market leadership

Westpac Banking Corporation’s chief executive announced a "solid year" for the bank at its 2025 Annual General Meeting, reporting a net profit of $7 billion and a return on tangible equity of 11% excluding notable items. Revenue increased by 4%, driven by strong lending and deposit growth, including a 10% rise in consumer and institutional division deposits, a 15% increase in business lending, and 17% growth in institutional lending. Despite a 9% rise in expenses due to higher staff and technology costs, the bank is targeting a cost-to-income ratio below the peer average and a return on tangible equity above the peer average by FY29.

The chief executive emphasized a focus on becoming the "number one bank and partner through life" for customers, improving service, and investing in technology, including AI. The UNITE transformation program is underway with eight initiatives complete and 51 in progress, aiming to simplify banking and improve customer experience. The bank also highlighted its support for customers through 46,000 hardship packages and a 21% decline in scam losses this year, saving customers over $360 million through new defence measures.

Sustainability efforts include extending the regional branch closure moratorium to 2030 and piloting community banking hubs. Westpac has also removed its no-deforestation commitment in response to customer feedback, instead focusing on practical support for managing risks. The bank remains committed to addressing housing affordability and sees the Australian economy in a good position despite lingering inflation and geopolitical uncertainty.