Sydney, Feb 15, 2026, 17:09 AEDT — Market closed.
- Westpac shares last closed at A$40.52, down 1.2%, after touching a record A$42.13.
- A first-quarter update showed A$1.9 billion profit and steady loan and deposit growth, but margins eased again.
- Investors now watch margin pressure, Australia’s jobs data on Feb. 19 and Westpac’s May 5 interim results.
Westpac Banking Corp shares head into Monday’s session after a volatile finish to last week that left the stock off a fresh record. The shares closed at A$40.52 on Friday, down 1.2%, after hitting an intraday high of A$42.13. (Market Index)
The move matters because big bank updates are setting the tone for Australia’s reporting season, and the sector has outsized weight in the index. Commonwealth Bank this week posted record first-half cash earnings on market share gains, even as margin pressure from competition stayed in view. (Reuters)
Westpac, Australia’s third-largest bank by market value, reported unaudited first-quarter net profit of A$1.9 billion and beat estimates by about 5%, Reuters reported. CEO Anthony Miller said: “We are optimistic on the outlook for the economy and expect demand for both business and household credit to remain resilient.” (Reuters)
Westpac said it added A$12 billion in deposits and A$22 billion in new loans over the quarter, with institutional lending up 7%. Core net interest margin — the spread between what a bank earns on loans and pays on deposits — slipped 3 basis points (0.03 percentage point) to 1.79%, while the bank’s CET1 capital ratio, a key measure of capital buffers, stood at 12.3%. (Company Announcements)
Citi analyst Thomas Strong said the quarter looked steady and flagged the balance between earnings momentum and margin squeeze. “With costs well managed, asset quality benign and capital strong, we think the result will be well received,” he wrote. (The Australian)
But the risk case has not gone away. Competition for loans and deposits can keep dragging on margins, and any turn in arrears would force banks to lift provisions and cool earnings momentum.
Next up, traders get a key macro read on Feb. 19 when the Australian Bureau of Statistics releases January labour force data. Bank stocks tend to track shifts in rate expectations and the labour market’s pulse on household cash flow. (Australian Bureau of Statistics)
Inflation is close behind. The ABS is due to publish January consumer prices on Feb. 25, a print that can quickly reset views on the next move in interest rates. (Australian Bureau of Statistics)
The Reserve Bank of Australia’s next monetary policy meeting is scheduled for March 16–17, another waypoint for the rate path that feeds directly into bank funding costs and margins. (Reserve Bank of Australia)
For Westpac, the next company marker is its interim results and dividend announcement on May 5, with the half-year ending March 31. That report will be the next hard test of whether loan growth and cost control can keep offsetting thinner margins. (Westpac)
