Westpac (ASX:WBC) CEO Anthony Miller has signaled a "new era of disciplined growth," as the bank revealed an unaudited statutory net profit of $1.9 billion, a 5% increase over the H1 FY25 average.
The results, underpinned by a Common Equity Tier 1 capital ratio of 12.3%, highlight the bank's successful pivot toward digital-first banking and a leaner operational structure.
A standout driver for the quarter was the bank’s $22 billion in total lending growth, supported by a $12 billion increase in deposits.
The momentum was particularly visible in the business sector, where BizEdge—a rapid lending platform allowing customers to access a committed exposure limit of up to $320 million—is now saving bankers approximately 90 minutes per deal.
The bank achieved a net interest margin of 1.94%, benefiting from a second consecutive quarter of rising proprietary home lending and a surge in digital transaction account openings.
The bank recently entered an agreement to sell its $21.4 billion RAMS mortgage portfolio to a consortium led by Pepper Money and KKR.
While the sale is expected to realise a minor loss after transaction costs, it is projected to boost Westpac’s CET1 ratio by approximately 20 basis points, freeing up capital for higher-returning assets.
The lender is also doubling down on innovation, completing the discovery phase of its UNITE program and launching the region’s largest AI rollout with Microsoft 365 Copilot, aiming for $500 million in productivity gains this financial year.