Sydney, Feb 9, 2026, 16:57 AEDT — After-hours
- Westpac finished the day up 1.47% at A$40.01, moving in step with gains across the Australian equity market.
- Attention shifts to Westpac’s first-quarter update set for Feb. 13, with traders zeroing in on what the bank reveals about margins and credit.
- Softer household spending data has put the market’s focus back on the rate outlook and potential bank risks.
Westpac Banking Corporation (WBC.AX) finished Monday up 1.47% at A$40.01, bouncing back from the previous session and closing just below the upper end of the day’s A$39.55–A$40.10 band. The S&P/ASX 200 index moved higher by 1.85%. Westpac shares closed roughly A$1 under their 52-week peak of A$41. 1
That shift comes just four days ahead of Westpac’s First Quarter 2026 Update, set for Friday, Feb. 13. An investor call kicks off at 8 a.m. The update gives the next straightforward look at trends in loan growth, deposit pricing, and credit quality as higher borrowing costs take hold. 2
Signals from the macro side are getting harder to read. December household spending slipped 0.4%, according to Australian Bureau of Statistics numbers, with ABS’s Tom Lay noting that earlier sales may have front-loaded consumer buying. The Reserve Bank of Australia pushed its rate to 3.85% last Tuesday, and swaps are now pricing in a 74% probability of another move in May. “The RBA’s rate hike last week will weigh on spending growth in 2026,” said Ben Udy, lead economist at Oxford Economics Australia. 3
Traders in Asia showed more appetite for risk, which kept buyers active. Monday saw Japan’s Nikkei rocket 4.1% to fresh record highs—investors took the election outcome as a cue for increased government spending. Over in the U.S., chip stocks staged a late-week recovery. “Japan was long seen as a contrarian investment, but is now a reform story with meaningful momentum,” said Marc Jocum, senior investment strategist at Global X ETFs Australia. 4
The banks stuck close. Commonwealth Bank of Australia ticked up 0.62% to A$159.89. National Australia Bank advanced 1.45% to A$43.99, and ANZ Group Holdings added 1.68%, reaching A$37.63, according to pricing data. 5
Westpac’s Friday update isn’t really about the top-line figure; the attention is on the details. Investors are zeroing in on net interest margin—basically, the gap between loan earnings and deposit costs—to see if stiffer mortgage competition is forcing the bank to cut prices further.
Loan growth is part of the picture, but expect the market’s attention to settle on mix. When times are strong, housing credit turns into a volume game. But as banks scramble for share, margin pressure comes into focus—discounts and aggressive deposit rates can quickly flip the narrative.
For lenders, higher rates are a double-edged sword. Loan yields may eventually rise, sure, but there’s a catch: household budgets take a hit, and if spending cools off or job losses climb, bad debts can start piling up.
The biggest risk for the coming week? A quarterly update revealing margin pressure, softer lending, or the first signs of stress—all can easily reverse the recent rebound, particularly if global sentiment sours and bond yields spike.
