Westpac profit falls as chief executive Anthony Miller warns Middle East crisis will affect economy in 2026

Westpac’s chief executive Anthony Miller is expecting the Middle East crisis to continuing dampening economic activity for the rest of the year.

“The war in the Middle East is presenting challenges for some customers and the economic impact of the conflict will continue through the year,” he told the Australian Securities Exchange on Tuesday during a half-year earnings announcement.

“The disruption to energy supply chains has driven a rise in prices and we’re seeing this flow through to businesses and households, with some sectors more affected than others.”

Westpac’s net cash profit fell by 1 per cent to $3.483 billion, when the six months to March 31 was compared with the six months to September 30 last year, including the first full month of the Iran war.

With major items included, Westpac’s net statutory profit for the first half of 2025-26 was 5 per cent weaker at $3.414 billion.

Westpac, Australia’s second biggest bank, has released its half-year results ahead of the Reserve Bank of Australia’s monetary policy board meeting, which is widely expected to decide on another 25-basis point increase that would take the cash rate up to 4.35 per cent for the first time since February 2025.

The proportion of loans where borrowers are 90 days or more in arrears fell to 0.64 per cent, down from 0.83 per cent a year earlier, during a period which covered three RBA rate cuts in 2025 but two increases, so far, in 2026.

Shareholders are getting a fully-franked dividend of 77 cents a share, accounting for company tax already paid.