Sydney, Feb 20, 2026, 17:12 AEDT — Market shut down for the day
Westpac Banking Corp (WBC.AX) finished Friday at A$42.54, up 1.6% and touching its highest level in a year. Investors kept piling into the big Australian banks, pushing Westpac up roughly 4.3% across the last two sessions after Thursday’s 2.7% gain.
This shift carries weight—banks have been propping up the benchmark lately, and when traders rush for quick “Australia” exposure, Westpac stands out as a go-to pick. With a few big banks and miners driving the gains, the whole market is now more exposed if those leaders slip. Market Index
The real test comes when the macro calendar gets crowded again. With the inflation print on deck next week, that’s the key local event. It could easily move the dial on where rates land — crucial for banks, since their earnings ride on interest margins.
The S&P/ASX 200 dipped roughly 0.2% to finish at 9,069.5 this Friday. Westpac stood out with stronger gains.
Westpac’s latest update hasn’t faded into the background just yet. The bank’s first-quarter investor pack last week showed an unaudited statutory net profit of A$1.9 billion. Core net interest margin? Down 3 basis points to 1.79%. That’s the gap between loan earnings and deposit payouts. “We are optimistic on the outlook for the economy and expect demand for both business and household credit to remain resilient,” said chief executive Anthony Miller. Westpac
Thursday brought fresh labor market numbers for those tracking rates. January’s jobless rate stuck at 4.1%, employment climbed by 18,000, according to the Australian Bureau of Statistics. Full-time positions added 50,000; part-time jobs slipped by 33,000. “The unemployment rate remained steady at 4.1 per cent in January,” said Sean Crick, head of labour statistics at the ABS. Australian Bureau of Statistics
Westpac economists stuck to a more upbeat view on growth Friday, shrugging off the turbulence in last year’s data. “Overall, the signal is clear: leading indicators are outperforming and point to further gains in activity,” wrote senior economist Pat Bustamante. The bank’s nowcast suggests GDP climbed about 0.9% in the December quarter. Westpac IQ
Still, there’s a vulnerability here—funding and deposit costs. According to a recent Jarden note highlighted by FNArena, major banks might be exaggerating how much they gain from those cheaper retail deposits. Repricing could squeeze net interest margins. Jarden has Westpac at “Underweight”—that’s less than the benchmark position. FNArena.com
Westpac’s next key update won’t hit until further down the track. Its financial half closes out on March 31, and the bank has slated May 5 for both interim earnings and its dividend release, the investor calendar shows.
Traders are eyeing the inflation calendar. The ABS schedules January CPI for Feb. 25, 11:30 a.m. AEDT. A curveball in those numbers could force a fast rethink on rates, shaking up the bid for banks.
