Westpac Banking Corporation
ASX: WBC · Financials · Diversified Banks
- Market cap
- A$137.0B
- P/E (trailing)
- 18.6
- P/B ratio
- 1.87
- Dividend / share
- $1.41
- 52-week range
- –
- Intrinsic value
- A$19.16
Share price
ASX: WBC · AUD
Valuation
Full valuation analysis →Fair-value estimate per share, updated 26 Jul 2026
A$19.16 The median of our 4 model estimates
93.8% above fair value Against the A$37.14 price.
- Dividend discount model
- A$14.13
- P/B multiple
- A$22.78
- P/E multiple
- A$27.00
- EPS growth model
- A$15.54
Total revenue
As reported · financial years
Earnings per share
Diluted · as reported
Net interest margin
As reported: the spread between lending and funding rates
Average NIM of 1.81% in FY25: in line with Australian major banks.
Shares outstanding
Diluted · falling means buybacks, rising means dilution
Strong buybacks -5.3% year-on-year, +1.1% a year over 10 years: share count has been stable over the long run.
Deposits & loans
Customer deposits vs net loans: funding stability at a glance
Financial health
Latest financial year (FY25)
- Net interest margin
- 1.81%
- Average
- Return on equity
- 9.5%
- Below peers
- Cost-to-income
- 53.2%
- Average
- CET1 capital
- 12.5%
- Strong
Verdicts are graded against what's normal for the sector (Financials), not a one-size-fits-all bar. Hover a tile for the reasoning.
Cost-to-income ratio
Operating costs as a share of income: lower is leaner
Average 53.2% in FY25: in line with peers.
CET1 capital ratio
Core equity capital buffer against losses, vs APRA's "unquestionably strong" 10.25%
Strong 12.5% in FY25: a thick capital buffer, well above the APRA benchmark.
Loan impairment expense
Provisions for bad loans: spikes mark credit-cycle stress; below zero means write-backs
Dividends per share
Full dividend history →Per financial year, as reported in the accounts
Typical for AU banks 71% of FY25 earnings paid out: in line with big-four payout norms.
Five-year snapshot
Figures as reported in the company's filings
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Net interest income | $16.9B | $17.2B | $18.3B | $18.8B | $19.4B |
| Total revenue | $21.2B | $19.6B | $21.6B | $21.6B | $22.4B |
| Net profit | $5.5B | $5.7B | $7.2B | $7.0B | $6.9B |
| EPS (diluted) | $1.38 | $1.52 | $1.95 | $1.92 | $1.99 |
| Dividend / share | $0.69 | $1.12 | $1.16 | $1.45 | $1.41 |
What does Westpac (WBC) do?
Westpac Banking Corporation is a Sydney-headquartered bank whose history stretches back to 1817, when it began life as the Bank of New South Wales before adopting the Westpac name in October 1982. Its business is centred on Australia and New Zealand, with a further presence in other international markets. For everyday and small-business customers it supplies savings and term deposit accounts alongside dedicated business, trust and foreign-currency accounts, home, personal, business and commercial loans, financing for vehicles and equipment, overdraft facilities and bank guarantees, plus debit and credit cards, travel-related banking, and share trading and investment products.
Beyond retail banking, Westpac serves larger clients through transaction banking, treasury and financial markets services, structured and corporate financing, and financing for trade and supply chains, with banking arrangements tailored to particular industries and supported by online banking access. It also sells insurance covering home, vehicle, travel, life and business risks. Customers range from individuals and micro, small and medium enterprises through to private wealth clients and large corporate, institutional and government bodies. Anthony James Miller is chief executive, the group had 34,168 full-time employees, and it has traded on the ASX since 1988.
Book value per share
Net assets per share: the base a bank's P/B multiple is paid on
Slow growth +2.0% a year over 10 years: book value edges up as most earnings go out as dividends.
Common questions about WBC
Is WBC undervalued right now? +–
The median of our 4 model estimates puts Westpac Banking Corporation's fair value at A$19.16 per share against a price of A$37.14, 93.8% above the estimate as at 26 Jul 2026. Model estimates are a starting point, not advice. See the full valuation breakdown.
Does WBC pay a dividend? +–
Westpac Banking Corporation paid $1.41 per share in its most recent financial year with a recorded dividend. The dividend history chart above shows the full payout record.
How fast is WBC growing? +–
Net profit has compounded at 24.7% a year over the last five financial years, and -1.5% a year over ten.
What is WBC's P/E ratio? +–
Westpac Banking Corporation trades on a trailing price-to-earnings ratio of 18.6, based on diluted earnings of $1.99 per share in FY25.
Compare WBC with peers
How has Westpac Banking Corporation (WBC) performed financially, and what do valuation models say about its share price?
Westpac Banking Corporation's reported net income has fluctuated across the years covered in its filings, from $7.4B in FY2016 to a high of $8.1B in FY2018, before falling sharply to $2.3B in FY2020 as loan-loss provisions swung to a $3.2B charge that year. Earnings recovered to $7.2B in FY2023 and stood at $6.9B in FY2025. Diluted earnings per share followed the same path, peaking at $2.30 in FY2018, dropping to $0.64 in FY2020, and recovering to $1.99 by FY2025.
Profitability by other measures shows a mixed picture: net interest margin narrowed from 2.1% in FY2016 to 1.81% in FY2025, having been as high as 2.13% in FY2018, even as net interest income grew from $15.1B to $19.4B over the same span. Capital strength improved substantially over the period, with the CET1 capital ratio rising from 9.48% in FY2016 to 12.53% in FY2025.
Westpac shares closed at $35.69 on 3 July 2026, putting the stock on a current price-to-earnings ratio of 17.9, above its own five-year median of 13.54. Valuation models applied to the latest reported figures, as of 5 July 2026, each point to a lower figure than the current price: the PE ratio model estimates $27.00, the price-to-book model $22.39, the EPS growth model $15.54, and the dividend discount model $14.13. These are model-based estimates drawn from historical reported figures, not forecasts of future price.
AI-assisted analysis generated from Craytheon's verified financial data · Updated 6 Jul 2026 · How this works
Data is general information only, not financial advice. Figures are as reported in company filings (some ASX companies report in USD); share prices are AUD.