Sydney, Feb 16, 2026, 17:09 AEDT — Market closed.
- Westpac shares closed up 0.2% at A$40.61, holding near recent highs.
- Investors are shifting from bank earnings to rates, spending signals and margin pressure.
- Next focus is RBA minutes and labour data this week, then Westpac’s interim results on May 5.
Westpac Banking Corp shares closed up 0.2% at A$40.61 on Monday, after trading between A$40.05 and A$40.77. The stock remains below its recent 52-week high of A$42.13. (StockAnalysis)
The small move still matters. Westpac has been one of the busiest “macro” trades on the Australian board this month, with investors trying to price where rates, credit growth and bad debts settle after a strong run in bank earnings.
With the cash-rate debate back in play, traders are also watching anything that hints at consumer stamina. That feeds straight into loan growth and arrears — and, ultimately, dividends.
Australian stocks finished higher. The S&P/ASX 200 rose 0.22% at the close, with gains led by IT, consumer discretionary and industrials. (Investing)
Banks were softer earlier in the session, after last week’s strong run. Financials slid 0.5%, with ANZ down 2.5% and National Australia Bank off 1% in late morning trade, a Reuters report showed. (Business Recorder)
Broker views on Westpac remain mixed, even after last week’s quarterly update. Morgan Stanley kept an “underweight” call while lifting its target price, arguing the profit beat was largely in the price and warning the stock looked vulnerable on current multiples, MarketIndex reported; JPMorgan also kept a neutral stance and said valuation looked full. (Market Index)
Westpac’s quarterly update last week pushed the stock to a record high after it beat first-quarter profit estimates, helped by loan and deposit growth, even as its net interest margin — the spread between what it earns on loans and pays on deposits — slipped 3 basis points (0.03 percentage point) to 1.79%. “We are optimistic on the outlook for the economy and expect demand for both business and household credit to remain resilient,” CEO Anthony Miller said, while Citi analysts called the quarter “solid.” (Reuters)
Fresh consumer data from Westpac’s own research arm is starting to point the other way. The Westpac-DataX Card Tracker Index has eased from its post-holiday pace, and the bank said the recent rate hike is likely to dampen some momentum even if the labour market stays resilient. (Westpaciq)
The risk for Westpac bulls is that “resilient” becomes “fine until it isn’t.” If deposit competition stays intense and households pull back harder than expected, margins can get squeezed and credit costs can turn quickly, even from low levels.
For the week ahead, focus in Australia turns to the Reserve Bank of Australia minutes, labour market data, the Westpac-MI Leading Index and the wage price index, Westpac’s economics team flagged. (Westpaciq)
On the company calendar, Westpac’s financial half-year ends March 31, with interim results and a dividend announcement due May 5 — the next hard date for investors trying to judge whether recent earnings strength can hold. (Westpac)
