Morningstar sees Australia's Westpac H2 revenue rising on loan growth, RBA hikes

Westpac Banking

05/05/2026 20:37

** Morningstar sees lender Westpac’s WBC.AX consumer and business lending momentum underpinning stronger H2 revenue, boosted by a larger loan balance and modest rate tailwinds as cash‑rate hikes filter through

** Investment research firm says investments in customer onboarding, among other reasons, drove solid loan growth in H1, but flags weakening consumer confidence citing a second‑half drag in business lending

    ** Adds expenses are unlikely to hold with rising tech spend and other reasons should lift FY costs, but sees the cost‑income ratio easing to 46% from 51.6% over five years as major project spendings wind down and tech gains yield benefits

    ** Interim fully franked dividend edged up to A$0.77 per share, topping the payout range, with Morningstar pencilling in a modest rise to A$0.79 in H2, barring a sharp deterioration in unemployment

    ** WBC down 2.5% YTD, as of last close

(Reporting by Kumar Tanishk in Bengaluru)

((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk http://www.x.com/thatstanishk;))