Westpac Bank New Zealand’s full-year profit increased by 13%, driven by higher revenue and a reduction in bad debts.
The company’s net profit of $1.061 billion, down from $1.197 billion in the previous period. Net income increased to $3.089 billion compared to $2.869 billion. Expenses rose to $1.471 billion from $1.369 billion. The impairment charge improved by $71 million, with a charge of $44 million versus a negative $27 million previously. Additionally, the net interest margin strengthened to 2.32%, up from 2.17%.
“This result positions us well to support customers through what we think will be an economic upturn over the coming year, and we are investing heavily in our business to deliver better services for customers and communities,” Westpac NZ chief executive Catherine McGrath said.
“Our focus on growth in key customer segments has helped drive our result. For example, we’ve increased our lending to small and medium businesses nearly five times faster than the market, highlighted by $770 million of new business lending in the September quarter – one of our strongest ever quarters of growth.”
The bank also noted an improvement in the proportion of long-term debt mortgages and consumer loan arrears, along with a 2% rise in average interest income.
“We know the economy has struggled through most of 2025, and households and businesses are still grappling with high costs; however, our data suggests some of those pressures are now easing,” McGrath said.