Sydney, Feb 23, 2026, 16:55 AEDT — After hours.
- Westpac (ASX:WBC) shed 1.18%, trading at A$42.04, slipping back from an earlier high of A$43.05.
- Australia’s S&P/ASX 200 slipped roughly 0.61% by the close.
- Market participants are looking ahead to Australia’s January CPI print, plus an appearance by the RBA governor, both expected later this week.
Westpac Banking Corp dropped about 1.2% to A$42.04 on Monday, backing off an earlier session high as traders lightened up on banks ahead of a packed week for local economic data and central bank cues. The shares moved between A$41.86 and A$43.05.
Why now? Big banks are once again swaying interest-rate bets, and the schedule’s filling up fast. Westpac’s economics crew points to a packed stretch of local data drops — the monthly CPI landed on their radar, plus an RBA governor fireside chat — both shaping up as significant for traders eyeing the next rate move.
Global sentiment provided little relief. After the U.S. Supreme Court invalidated segments of President Donald Trump’s tariff initiative, Trump hit back—slapping a flat 15% tariff on all imports and rattling traders. “This decision is another chip away at Trump’s power,” said Jason Wong, strategist at BNZ in Wellington. Reuters
Australian shares slipped, falling roughly 0.6%, as local investors reacted to tariff news and a lackluster showing from Wall Street futures. The market closed lower, caught up in the broader risk-off move.
Westpac shares stepped back after a robust February run sparked by its quarterly update. The bank’s first-quarter report showed net profit, excluding notable items, up 6% to A$1.9 billion. Deposits added A$12 billion, and lending climbed A$22 billion. Core net interest margin slipped three basis points to 1.79%. “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. Westpac
Rival banks kept up demand in the sector during the February reporting period. After National Australia Bank’s results last week, Citi analysts described the outcome as a “very strong headline beat,” yet flagged that questions around its capital position might still weigh on the shares. Reuters
Westpac joined ANZ and NAB as ASX 200 financials notching new 52-week highs over the past week, according to MarketIndex. Through the previous close, Westpac shares had gained roughly 36% in the last year.
Everything hinges on rates. The Reserve Bank of Australia just bumped them up for the first time in two years earlier this month, responding to hotter inflation—a move that could boost banks’ bottom lines, but also threatens to cool lending if consumers and businesses get cautious.
The simple gains look done for now. Westpac’s latest quarterly update points to margin strain as rivals dig in, while a fresh surge in inflation could stiffen bets on more RBA hikes. That’s the kind of setup that usually chills housing and starts to stress-test credit quality on the margins.
Focus now shifts to Australia’s January CPI, due Feb. 25 at 11:30 a.m. AEDT. Later that day, Governor Michele Bullock sits down for a fireside chat at 7:40 p.m. AEDT. Looking ahead, Westpac’s interim results and dividend call are set for May 5.
