Westpac's 1Q Profit Rises on Higher Revenue, Lower Costs

By Stuart Condie

SYDNEY--Westpac Banking Corp reported a higher first-quarter profit on increased revenue and lower costs.

Australia's second-largest bank by market capitalization on Friday reported an unaudited net profit for the three months through December of 1.9 billion Australian dollars, equivalent to US$1.35 billion.

That was up 5% on the average of the prior two fiscal quarters, and about 12% on the A$1.7 billion unaudited profit reported a year earlier.

Westpac said that net operating income rose by 1% on the average of the prior two fiscal quarters to A$5.8 billion, supported by a 2% rise in net interest income. Net interest income was driven by balance-sheet growth and a stronger performance from its Treasury division.

Its core net interest margin fell to 1.79% from 1.82% amid increased competition.

Westpac, which is pursuing productivity savings of more than A$500 million across the whole of its current fiscal year, said that first-quarter operating expenses were 5% lower than the average of the last fiscal half.

Excluding restructuring charges recorded in the second half of its 2025 fiscal year, operating expenses were stable.

Write to Stuart Condie at stuart.condie@wsj.com

(END) Dow Jones Newswires

February 12, 2026 16:30 ET (21:30 GMT)