Westpac Banking Corp. CEO Anthony Miller's total compensation climbed 21% to A$7.5 million for the 2026 financial year, despite the bank's net income dipping 1% to A$6.8 billion. The result fell short of the A$6.9 billion analyst estimate, reflecting a challenging economic backdrop. Miller cited slowing home lending growth and rising interest rates as key headwinds, noting that household budgets are being squeezed by inflation and a prolonged decline in property values. The Sydney-based lender flagged an uncertain outlook for Australia's economy, with home prices on track for their biggest drop in four decades.
The bank's financial performance showed mixed results. While institutional banking profit rose 8% to A$2.3 billion on strong credit demand, consumer banking profit pre-provisions increased 5% to A$3.6 billion. However, impairment charges more than doubled to A$864 million, reflecting a more severe downside scenario. Miller emphasized that 95% of staff are now using AI tools to improve efficiency, even as the bank plans to cut around 240 jobs to manage costs. Westpac also highlighted significant investments in artificial intelligence adoption amid ongoing technology improvements.
Despite the profit miss, Westpac will pay a final dividend of 77 Australian cents. The results underscore the difficulty facing Australia's major banks as they navigate a slowing housing market and contending with rising rates that are weakening household borrowing capacity across the economy.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing