Lender Westpac's margin outlook weakens despite benign credit trends, Citi says

Commonwealth Bank of Australia

10/08/2026 19:33

** Australia's Westpac WBC.AX flags tougher revenue outlook, with management warning that net interest margins face pressure from intense competition, deposit pricing and adverse deposit mix, brokerage Citi says
** Broker says the bank's third-quarter result on Monday was broadly in line, but outlook commentary points to a more challenging top-line environment
** Citi notes mortgage applications have weakened since the federal budget, adding to concerns around revenue growth
** Brokerage trims its FY2027-2028 cash earnings forecasts by about 1.5% on softer revenue expectations
** Westpac's margin commentary raises the stakes for upcoming results from Australian banking peers, particularly Commonwealth Bank of Australia CBA.AX - Citi  
** One of 14 analysts rates the stock "hold" and 13 "sell" or lower; their median PT is A$129.00, LSEG data shows
** WBC stock down 7.5% YTD, as of last close

 (Reporting by Roshan Thomas in Bengaluru)
 ((Roshan.Thomas@thomsonreuters.com;))