WBC - westpac

 WBC

14-07-26

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Over the last five years, ASX:WBC has traded near a 52-week high around \(\$43.32\) AUD. While the bank maintained strong structural profitability and balance-sheet discipline, revenue growth has been slow due to intense mortgage competition. [1, 2, 3]

Profitability

• Net Income: Hovering around \(\$7.01\) billion AUD in profit annually over the trailing twelve months, with the bank’s 1H 2026 results showing a further 3% increase in net profit to \(\$3.41\) billion AUD. [1, 2]
• Net Margin: Sits at a robust ~31%, with an impressive operating margin above 50%. [1, 2]
• Net Interest Margin (NIM): Currently sitting at roughly 1.93%, outperforming the major bank average despite narrowing margins industry-wide. [1, 2]

Debt & Balance Sheet

• Capital Health: Westpac’s balance sheet remains highly liquid, with a Common Equity Tier 1 (CET1) capital ratio of 12.4%, well above regulatory requirements. [1]
• Bad Debts: Provisions for bad and doubtful debts have been tightly managed, with credit impairment charges staying remarkably low as household financial stress eases. [1, 2]

Return on Equity (ROE)

• ROE: The Return on Equity has averaged around 9%–9.8% over the period. While deemed solid by traditional banking standards, it sits modestly below the 10%–12% target often achieved by some of its peers. [1, 2, 3]

Shareholder Returns

• Dividends: Westpac maintains a consistent 1H 2026 interim dividend of 77 cents per share, fully franked, providing an annual dividend yield of approximately 4.2%. [1, 2]

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The share price hasn't really kept up with inflation over the decades.

Over the years, only the dividend & franking credits have kept it in my portfolio... I bought this decades ago.

If it dropped to $20 It would probably be a buy. Current price is $36

buy when its PE is less than 10.

(this applies to all bank stocks).

As of October 2026, Westpac Banking Corporation (Westpac Banking Corporation) has a trailing price-to-earnings (P/E) ratio of approximately 17.4x to 17.5x, hovering above its 10-year median P/E of roughly 14.8x. [1, 2]

Westpac Annual P/E Ratios (Last 10 Years / Fiscal Years)

Historical P/E ratios and year-end valuations for Westpac Banking Corporation (ASX: WBC) over the past decade show a range from a low near 8.1x–10.3x up to a high around 19.3x–20.8x:

2025 (Sep 2025): ~19.26x (Trailing P/E ~18.6x–18.8x) [1, 2, 3]
2024 (Sep 2024): ~15.60x (Calendar year-end: ~14.8x) [1, 2]
2023 (Sep 2023): ~10.31x (Calendar year-end: ~9.24x) [1, 2]
2022 (Sep 2022): ~12.67x (Calendar year-end: ~11.2x) [1, 2]
2021 (Sep 2021): ~17.45x (Calendar year-end: ~13.5x) [1, 2]
2020 (Calendar year-end): ~20.8x [1]
2019 (Calendar year-end): ~11.3x [1]
2018 (Calendar year-end): ~8.08x [1]
2017 (Calendar year-end): ~8.82x [1]
2016 (Calendar year-end): ~8.25x [1]

10-Year Summary Statistics

10-Year Average / Median P/E: Median sits near 14.79x–14.8x, with mean averages reported around 15.15x–15.57x depending on trailing vs. fiscal calculation methods.
10-Year Range: Spanned a low of 7.86x to a high of 42.18x (extreme peak years), with standard operating ranges mostly bound between 6.6x and 20.8x

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