Macquarie Stays Cautious on Westpac Margins After Weak Quarter
Macquarie analysts stay wary of Westpac's margin after its September-quarter net interest margin fell 6bp, below expectations, Market Talk reports.
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what happened
Market Talk reports that Macquarie analysts remain wary of Westpac's margin outlook after the lender's net interest margin for the September quarter came in below expectations. The 6 basis point drop from three months earlier is the main disappointment, the analysts said in a note to clients.
Management expects pressure, including from deposit mix, to ease in the first half of fiscal 2027. Macquarie, however, points to smaller benefits from the replicating portfolio, ongoing competition and persistent deposit mix pressure. The note carries an underperform rating and a target price of 30.00 Australian dollars. Shares rose 1.4% to A$37.35.
why it matters
Pressure on net interest margins matters for Australia's big banks, since margins drive most of their earnings. Shares still rose, suggesting the cautious view was partly priced in.
market impact
Westpac and Australian banks: weaker margins weigh on sector profitability
tags
instruments
sources
- Westpac's Margin Outlook Keeps Bears Cautious — Market Talk, 2 November 2026 at 00:26 UTC
prepared by the newsmetry newsroom with ai assistance from the sources listed below. not investment advice.
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