Sydney, Feb 18, 2026, 17:03 AEDT — Market closed
- Westpac slipped 1.2% by the close on Wednesday.
- NAB surged to a record high on the back of its quarterly results, while the rest of the sector ended up with mixed performances.
- The next data point for traders: Australia’s January CPI figures, expected Feb. 25
Westpac Banking Corp ended Wednesday down 1.17% at A$40.52. Roughly 5.9 million shares changed hands.
Despite a roughly 0.5% rise in Australia’s S&P/ASX 200, banks ended up carrying much of the load heading into Thursday. The big lenders set the tone for the local benchmarks—minor moves from them are enough to jolt the index and rattle short-term positioning.
National Australia Bank drew investor attention as first-quarter cash earnings jumped 16%, lifting shares to a record high at the open. “NAB is well placed to manage our bank for the long term and to support our customers, while delivering sustainable growth and returns for shareholders,” CEO Andrew Irvine said. Reuters
Other big banks saw mixed results. Commonwealth Bank of Australia slipped 0.46%, and ANZ Group dropped 27 Australian cents to A$39.36.
Westpac just reported its unaudited net profit hitting A$1.9 billion in last week’s quarterly update, highlighting ongoing growth in loans and deposits. “We are optimistic on the outlook for the economy and expect demand for both business and household credit to remain resilient,” CEO Anthony Miller said then. Reuters
Bank stocks remain heavily tied to the rate picture. Sure, net interest margin gets a boost when rates go up—the old spread between loan income and deposit costs widens. But any edge can vanish fast as banks start jockeying on pricing.
Inflation takes center stage next week. Australia’s January CPI lands Feb. 25, a figure traders watch closely to recalibrate bets on the Reserve Bank of Australia, funding costs, and appetite for loans.
The RBA bumped its cash rate target up 25 basis points to 3.85% at the Feb. 3 meeting, putting traders on alert for any hint that another move could come sooner than they’d penciled in.
But there’s a catch. A stronger CPI could put another hike back on the table, stirring anxiety over mortgage stress and potential credit losses. On the flip side, if the number comes in softer, rate pressure will ease—though that could just stoke fresh margin concerns, especially if banks keep up the volume chase.
Westpac heads into the next session with investors weighing if today’s drop signals simple profit-taking post-update, or if it’s the first sign of banks losing their shine. The next key date: Feb. 25, when CPI lands. RBA meets again on May 4–5.
