Westpac Banking Corp reported a 6% rise in first-quarter profit to A$1.9 billion ($1.2 billion), driven by balance sheet growth and stronger treasury income that offset softer markets revenue and margin pressure. The results sent shares to record highs as Australia's second-largest lender demonstrated resilience despite competitive pressures and a lower interest rate environment.

Net interest income climbed 2% supported by A$22 billion in new lending, with institutional lending growing 7% and both Australian housing and business lending increasing 3%. However, the bank's net interest margin slipped to 1.94%, while non-interest income fell 4% due to reduced markets revenue, reflecting ongoing challenges in the current economic climate.

Westpac maintained robust capital metrics with a common equity tier 1 ratio of 12.3%, well above its 11.25% target, even after paying its full-year dividend. CEO Anthony Miller expressed optimism about the economic outlook, projecting continued resilience in demand for business and household credit as the bank positions itself for sustained growth in the coming quarters.