Westpac Banking Corporation (ASX:WBC) Announces 1Q25 Financial Results
Financial Performance
Westpac Banking Corporation (ASX: WBC) reported a net profit of $1.7 billion for 1Q25, a 9% decrease compared to the same period last year. Excluding notable items, net profit rose by 3% to $1.9 billion. Revenue declined by 4% while excluding notable items, it increased by 2%. The net interest margin stood at 1.82%, slightly lower than the previous half-year.
Capital Position
Westpac maintained a CET1 capital ratio of 11.9%, surpassing the top of its target operating range. Risk-weighted assets increased by $14 billion or 3.2%, driven by loan growth and higher IRRBB (interest rate risk in the banking book).
Credit Quality
Total expected credit loss provisions remained flat at $5.1 billion. Credit risk metrics improved with stressed assets to TCE decreasing to 1.39% and Australian mortgage delinquencies down by 9 basis points to 1.03%. Impairment charges to average loans rose to 5 basis points from 4 basis points, reflecting continued customer resilience.
Funding and Liquidity
Westpac’s liquidity coverage ratio was 131%, and the net stable funding ratio was 113%, both well above regulatory minima. The deposit-to-loan ratio increased by 39 basis points to 83.9%.
Executive Comments
Chief Executive Officer Anthony Miller stated, “This has been a solid first quarter performance, reflecting our strong financial position, balance sheet growth and service excellence.”
Motley Fool contributor Lauren Surplice has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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