Westpac falls as Citi flags weak margin outlook despite benign credit trends

Westpac Banking

11/08/2026 03:14

Updates
** Shares of Westpac WBC.AX fall as much as 1.1% to A$35.32, their lowest since July 7 
 ** Citi trims its FY2027-2028 cash earnings forecasts by about 1.5% for the lender on softer revenue expectations
 ** Adds Westpac flags tougher revenue outlook, with management warning that net interest margins face pressure from intense competition, deposit pricing and adverse deposit mix
** Brokerage 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
** Westpac's margin commentary raises the stakes for upcoming results from Australian banking peers, particularly Commonwealth Bank of Australia CBA.AX - Citi  
** Westpac down 7.7% YTD, including the day's moves

(Reporting by Roshan Thomas and Nikita Maria Jino in Bengaluru)
((Roshan.Thomas@thomsonreuters.com;))