Sydney, Feb 17, 2026, 17:23 AEDT — After the bell
- Westpac edged up 0.3% to A$40.74 at the close, sticking to a tight range during the session.
- The RBA minutes left the door open on policy, keeping traders fixed on May as the next meeting that could bring action.
- Australia’s labour force report lands Thursday, shaping up as the next short-term driver for bank shares.
Westpac Banking Corp (WBC.AX) edged 0.3% higher to A$40.74 by Tuesday’s close, having moved in a tight A$40.50–A$40.98 range. It was a subdued day for the big banks. Shares of ANZ and National Australia Bank slipped slightly.
This shift is significant—most of the gains in local stocks this month have come from the major banks, leaving few surprises for investors. According to Market Index, the “Big Four” hit new year-to-date highs last week, thanks to robust earnings and trading updates, though those gains have started to make valuations look pricey. Market Index
Rates remain the big variable here. The Reserve Bank of Australia’s February meeting minutes revealed policymakers aren’t committing to a specific cash rate trajectory after this month’s increase, and they pointed out that the risks around inflation and jobs had “shifted materially”. Traders are still betting on a possible hike in May, with Q1 CPI figures expected late April. Reuters
The Reserve Bank of Australia holds its cash rate target steady at 3.85% as of Feb. 4, with the next policy decision due on March 17, the central bank’s website shows.
Westpac Group chief economist Luci Ellis pointed out that the minutes echoed worries about inflation and capacity, but brushed aside the idea that a U.S. dollar sell-off was a major factor in the Australian dollar’s strength. Ellis added that Westpac still expects the next cash rate hike in May, rather than March.
Westpac’s shares are still moving to the beat of last week’s trading update. The bank reported a first-quarter unaudited net profit of A$1.9 billion, crediting steady growth in both deposits and loans. Its core net interest margin edged down 3 basis points to 1.79%. CEO Anthony Miller pointed to “resilient” demand for both household and business credit. Reuters
The labour market takes the spotlight next. On Thursday, Feb. 19, at 11:30 a.m. AEDT, the Australian Bureau of Statistics will drop January labour force data—a release known for jolting rate bets and hitting bank stocks.
Still, it’s not a simple trade-off. Extra tightening may keep bank margins firm up top, but it can dampen credit growth and, if the cycle sours, push up bad-debt risk — a risk markets usually recognize after the fact.
