-- Westpac Banking (NZE:WBC, ASX:WBC) will boost credit provisions for customers in energy-intensive sectors due to the volatility and economic uncertainty created by the Middle East conflict, according to a Tuesday filing with the Australian and New Zealand bourses.
Interest rate volatility had an impact on treasury and markets net interest margin, which fell to 7 basis points in the fiscal second quarter of 2026 from 15 basis points in the fiscal first quarter, per the filing. At the same time, a 6% depreciation of the New Zealand dollar weighed on both revenue and costs.
The increase in credit provisions is expected to result in a credit impairment charge of 10 basis points of average gross loans, while the ratio of collectively assessed provisions to credit risk-weighted assets is expected to rise to around 129 basis points, the bank said.
Westpac, which reports half-year 2026 results on May 5, said a notable item related to transaction costs for the sale of its RAMS mortgage portfolio lowered its reported net profit after tax by AU$75 million.