SYDNEY, March 28, 2026, 09:18 AEDT
Westpac Banking Corp closed out Friday at A$40.74, gaining 0.69%. The move followed the bank’s fresh UNITE overhaul update, coupled with a 1 billion euro covered-bond deal—showing offshore funding is still accessible for the highest-rated issuers.
Westpac has shifted gears, putting its cross-business overhaul—spanning mortgages, commercial banking, and legacy tech—into action. Chief Executive Anthony Miller, speaking to Capital Brief, called the UNITE program “on track, on budget and on scope” as the transition kicked off for commercial clients from St. George, Bank of Melbourne, and BankSA to Westpac’s main platform. Capital Brief
Westpac has wrapped up the discovery stage on 57 initiatives and has now moved to delivering the program through 10 work packages. In the first quarter of fiscal 2026, the bank put A$195 million into the effort, with 73% booked as an expense for the period.
The focus has shifted to the businesses under the investor microscope. Westpac expects its One Commercial Bank project to shift around 75,000 commercial customer accounts over to Westpac itself, with the process wrapping up in fiscal 2028. Mortgage simplification is on a separate timeline, taking it out to fiscal 2029.
For now, banks are finding some breathing space in funding markets. On Thursday, Westpac managed to sell a 1 billion euro AAA-rated covered bond, Reuters reported, while Macquarie Bank came out with a senior U.S. dollar deal. Covered bonds—bank debt secured by a bundle of mortgages—are considered among the safest ways to raise funds in capital markets. “Covered bonds are the safest asset class and there is always demand – these are AAA-rated,” said CreditSights analyst Pramod Shenoi to Reuters. Citi’s Daeil Ahn added that investors are making a marked “flight to quality,” gravitating toward top-rated issuers. Reuters
One figure, though, headed in the opposite direction: Westpac’s projected spend for its unified mortgage technology system climbed to roughly A$285 million, up from the A$265 million it pointed to back in November. That jump underscores a stubborn reality—the trickiest parts of the program keep finding ways to cost more, even without bumping up the total budget.
Conditions have gotten shakier. The Reserve Bank of Australia hiked its cash rate to 4.1% this month, cautioning that the war in the Middle East might fuel inflation. Luci Ellis, chief economist at Westpac, described the odds of another rate rise in May as “less certain.” She emphasized the path of the conflict will be a key factor. Reuters
Rising rates may bolster lending margins in the short term, though borrowers feel the squeeze and banks face tough deposit competition. On March 16, Miller noted that arrears and non-performing loans were “as low as we have seen for a very long time,” describing it as “remarkable how well people are navigating this environment.” Westpac
Westpac, Australia’s third-biggest bank by market value, logged an unaudited A$1.9 billion net profit for the first quarter in February—roughly 5% above Visible Alpha consensus, Citigroup noted. The bank pulled in A$12 billion in fresh deposits and wrote A$22 billion in new loans. Earlier that same week, Commonwealth Bank, which is larger, said it was picking up share in home loans, business lending, and deposits. For Westpac, it’s no longer just about profit growth; investors are also focused on the delivery.
