-- Westpac Banking (ASX:WBC) has "meaningfully" boosted its growth and risk appetite to achieve a larger balance sheet and higher revenue base to increase earnings, Jarden said in a note on Tuesday.
The bank's total capital in the three months to March came in at AU$98.54 billion, up from the AU$97.14 billion it reported in the year-ago period. Its CET1 capital for the period clocked in at AU$56.94 billion, rising from the AU$55.01 billion it reported for the March 2025 quarter, according to a Tuesday Australian bourse filing.
The investment firm said Westpac's UNITE program, aimed at optimizing its internal technology systems, is the right move but may not be easy. It is expected to cost more, take longer and could lead to write offs.
Analysts at the brokerage also cautioned that accelerating growth and the company's increased risk appetite could prove ill-timed if the current Middle East conflict sets off a credit cycle.
Jarden provided an underweight rating and price target of AU$32.