Westpac New Zealand’s full-year profit is down 9% on the previous year due to stiff competition and narrower interest margins.<\/p>\n
The company posted a $1,087m net profit for the 12 months to September, down from $1,197m the previous year.<\/p>\n
Westpac’s interest margin – the difference between what it charges for loans and pays for deposits – fell to 2.23%, from 2.32% in 2025.<\/p>\n
The bank said this reflected intense competition, particularly for new home lending, and the declining interest rate cycle in 2025.<\/p>\n
There was a net impairment charge of $33m this year, compared with an impairment benefit of $44m in the previous period.<\/p>\n
Net operating income of $3,074m was flat for the year, while home lending was up 4% to $74.5b.<\/p>\n
Business lending was up 6% to $36.3b, while deposits were up 4% to $84.4b.<\/p>\n
Westpac NZ chief executive Catherine McGrath said the result shows it is supporting its customers by growing its lending and investing strongly in its people, products and systems.<\/p>\n
McGrath stressed that Westpac was also doing its bit to help drive economic growth, with lending to medium and large business customers growing faster than the market average in 2026.<\/p>\n
“SMEs are the engine room of the economy and we’re backing them to succeed. We’ve lent $86m out of our $100m commitment for start-ups and delivered a new programme helping women-led businesses.<\/p>\n
“More than 25,000 businesses are now on the new Westpac One Business platform.”<\/p>\n