Should I buy Westpac Banking Corporation stock in 2025?

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At HelloSafe, our expert has been monitoring the performance of Westpac Banking Corporation for over three years. Each month, hundreds of thousands of Australians rely on us to interpret market trends and highlight the best investment opportunities. Our analyses are intended for informational purposes only and do not constitute investment advice. In line with our ethical charter, we have never received, and will never accept, any compensation from Westpac Banking Corporation.

What is Westpac Banking Corporation?

How much is Westpac Banking Corporation stock?

The price of Westpac Banking Corporation stock is rising this week. As of now, WBC is trading at AUD 33.45, showing a 1.92% gain over the past 24 hours and a strong increase of 5.39% over the last week. The company’s market capitalization stands at AUD 115.01 billion, with an average three-month daily trading volume of 5.31 million shares. Westpac currently has a P/E ratio of 17.45, a dividend yield of 4.51%, and a stock beta of 0.69. This combination of moderate volatility and attractive dividends positions WBC as a compelling option for investors seeking both income and stability in the Australian market.

Our full analysis on Westpac Banking Corporation stock

We have undertaken a rigorous review of Westpac Banking Corporation’s FY2024 financial results and critically assessed the stock’s performance across the past three years. By triangulating insights from comprehensive financial indicators, technical signal analysis, sectoral market data, and competitive benchmarking—integrated through our proprietary analytics platform—we aim to present a robust perspective. So, why might Westpac Banking Corporation stock once again become a strategic entry point into the Australasian financial sector in 2025?

Recent Performance and Market Context

Westpac’s share price has staged a convincing rally over the last year, advancing 26.61% to AUD 33.45 as of May 3, 2025, and posting a robust +5.39% gain just this past week—well ahead of many regional peers. Underpinning this dynamic are several positive developments: a resumption of dividend growth, further share buybacks, and ongoing operational improvements. Notably, the bank demonstrated considerable resilience during a challenging macroeconomic backdrop, with a robust capital position and rising loan and deposit growth.

The broader context for Westpac is highly favourable. The Reserve Bank of Australia’s anticipated interest rate cuts in 2025 are poised to support borrowing demand at both consumer and business levels. In tandem, a chronic undersupply in the local housing market and strong immigration trends are set to underpin demand for mortgage lending. At the same time, Australian consumer sentiment recently reached its highest level in two and a half years, and the labour market continues to display strength. Sector-wide, major Australian banks have reclaimed investor confidence following a period of regulatory and operational overhaul, further amplifying momentum for heavyweight names such as Westpac.

Technical Analysis

The technical indicators for Westpac are signalling a strongly positive short- and medium-term setup rarely seen at this stage of a major bank’s cycle. The 14-day Relative Strength Index (RSI) stands at 70.06—traditionally viewed near overbought territory, but in this instance reinforced by notable momentum in buy-side flows. The MACD (12,26,9) at 0.305 continues to favour the bulls, confirming bullish structure.

All monitored moving averages (20-day, 50-day, 100-day, and 200-day SMAs) are below the prevailing share price, each printing a buy signal. Such uniform upward alignment is rare in the current banking landscape and supports the view that the trend remains robustly intact. Immediate support is seen at AUD 32.90, with a lower safety zone at AUD 32.38. Resistance levels to monitor now stand at AUD 33.73, and the 52-week peak at AUD 35.27. The overall technical consensus, reflecting these indicators and the broader trend, is “strong buy.” While the rising RSI may imply short-term consolidation, the structural momentum appears distinctly positive, suggesting that potential dips could represent attractive accumulation windows for new entrants and existing holders alike.

Fundamental Analysis

From a fundamental perspective, Westpac delivers a compelling profile of growth and value. Despite a marginal year-on-year dip in FY2024 net profit to AUD 7 billion, the bank posted an impressive 4% expansion in loans (to AUD 807 billion) and a 5% rise in deposits (to AUD 674 billion). Strategic divisions continue to generate strong contributions—business and wealth net profit rose 13%, and the New Zealand segment posted a 10% profit rise.

Valuations remain attractive. At a P/E ratio of 17.45, Westpac trades at a reasonable premium to the historical median but is justified by its yield curve positioning, market share gains, and capital strength. The dividend yield of 4.51%, supported by 151 cents per share payout (up 6% year-on-year and 100% franked), stands out as one of the most attractive among ASX blue-chips. The bank’s robust CET1 capital ratio of 12.5%—among the highest in three decades—confirms Westpac’s structural resilience and capacity for sustained capital return.

Strategically, Westpac is positioning itself ahead of peers through aggressive technology and service initiatives. Recognition of its consumer app as the best in Australia for the second consecutive year underscores brand strength and customer stickiness, while accelerated digital simplification (39 of 61 UNITE initiatives completed) is driving ongoing cost and operational efficiency. On a system-wide basis, Australian housing loans for Westpac grew at 1.2x the industry rate, representing clear market share gains in a highly competitive environment.

Volume and Liquidity

The average three-month daily trading volume of 5.31 million shares exemplifies the sustained institutional and retail confidence in the name. This consistently high liquidity allows dynamic valuation, increased ease of entry/exit for investors, and enables the stock to efficiently absorb both macro and stock-specific news events. Meanwhile, a substantial free float supports continual market activity and price discovery, permitting efficient realisation of upside should investor sentiment drive renewed inflows.

Catalysts and Positive Outlook

Multiple catalysts line up to reinforce a positive outlook for Westpac as we move into 2025:

• Resilient Leadership and Managed Transition: The appointment of Anthony Miller, who steered the high-performing Business & Wealth division, as CEO from December 2025 augurs fresh strategic impetus and continuity in operational improvement.
• Completion of Major Risk and Simplification Programs: The reduction in APRA’s risk capital overlay, following completion of the Customer Outcomes and Risk Excellence program, has freed up significant capital—enabling capacity for further lending, dividends, or buybacks.
• Technology and Service Excellence: Industry-leading app capability and halved mortgage approval times position Westpac at the forefront of customer experience innovation.
• Housing Market Dynamics: Solid demand for housing credit, amplified by population growth and persistent property undersupply, establishes a firm runway for loan book expansion.
• Macro Tailwinds: Anticipated RBA rate cuts, a buoyant labour market, and improved consumer sentiment all reinforce upside to core lending and fee income.
• Active Capital Management: A further AUD 1 billion share buyback signals strong confidence from management in underlying value and capacity for future capital returns.
• Sustained ESG Focus: Westpac’s forward-facing environmental and social strategies support long-term franchise durability and align with evolving investor expectations.

These factors combine to forge a compelling context for value creation, particularly as the bank continues to translate operational initiatives into hard financial and reputational gains.

Investment Strategies

Current technical and macro positioning appear advantageous across multiple investment horizons:

• Short-Term: Strong technical momentum and buy signals on major indicators suggest that Westpac could extend its rally, particularly if upcoming results or macro data continue to beat expectations. Entry near support levels (AUD 32.90–33.45) offers a tactical positioning window, while rapid buybacks and dividend progression may catalyse further spikes.
• Medium-Term: Investors seeking a core financial exposure may find Westpac’s improving dividend stream, resilient profitability, and capital management attractive against a backdrop of expected RBA rate cuts and housing credit growth.
• Long-Term: Westpac’s balance sheet strength, digital transformation agenda, and structural tailwinds in Australian/New Zealand banking provide a solid foundation for sustainable wealth compounding. New leadership and ongoing technological advancements offer the prospect of multiple expansion and growing market share through 2025 and beyond.

The convergence of favourable technical, fundamental, and sectoral dynamics enables a broad spectrum of entry strategies—whether timing a technical low, taking advantage ahead of anticipated RBA actions, or positioning for leadership-driven growth.

Is it the Right Time to Buy Westpac Banking Corporation?

In summary, Westpac Banking Corporation combines a robust capital base, resilient earnings, sector-leading digital execution, and clear strategic momentum. Its current valuation, elevated dividend yield, and visible operational catalysts seem to justify renewed interest from both income-focused and growth-oriented investors. Technical strength and strong market sentiment suggest the stock may be entering a new bullish phase, supported by macro tailwinds and active capital management.

As the banking sector pivots toward structural growth underpinned by favourable monetary policy and revitalized credit demand, Westpac’s blend of financial solidity and innovation stands out. While prudent risk management remains essential given ongoing sector competition and shifting global dynamics, the outlook for 2025 positions this ASX heavyweight as an excellent opportunity for inclusion in a well-constructed portfolio.

In this context, Westpac Banking Corporation appears exceptionally well-placed to harness emerging growth avenues, sustaining its historic role as a foundational asset in the Australian investment landscape—offering both stability and the potential for compelling upside as the new year unfolds.

How to buy Westpac Banking Corporation stock in Australia?

Buying Westpac Banking Corporation (WBC) shares online is straightforward, secure, and increasingly popular among Australian investors. By choosing a regulated broker, you can access the ASX and buy WBC stock either directly (spot buying) or speculate on price movements through Contracts for Difference (CFDs). Spot buying lets you own the shares outright, while CFDs offer exposure with leverage—magnifying both potential gains and losses. Below, we explain both methods in detail to help you choose the approach that best fits your objectives. For a side-by-side comparison of leading brokers, check the table further down the page.

Spot buying

A cash (spot) purchase means you buy Westpac Banking Corporation shares directly on the Australian Securities Exchange (ASX) and become a shareholder, eligible for dividends and voting rights. You’ll typically pay a fixed commission per order, usually between AUD 5 and AUD 20, depending on your broker.

Important Example

For example, if WBC shares are trading at AUD 33.45 and your stake is AUD 1,000, you could buy about 29 shares (AUD 1,000 less a typical AUD 5 brokerage fee).

Gain scenario:
If the share price rises by 10%, your holding is now worth AUD 1,100.
Result: That’s a gross gain of AUD 100, meaning a +10% return on your initial investment (before any additional fees or tax).

Trading via CFD

CFD (Contract for Difference) trading allows you to speculate on the price movements of WBC shares without owning them. CFDs are leveraged products, so you can gain larger market exposure with a smaller upfront deposit. When trading CFDs, you’ll face costs such as the spread (the difference between buy/sell prices) and overnight financing fees if you hold positions beyond a day.

Important Example

For example, with a AUD 1,000 deposit and 5x leverage, you control a AUD 5,000 position on WBC.

Gain scenario:
If the share price rises by 8%, the position earns 8% × 5 = 40%.
Result: That’s a AUD 400 gain on your AUD 1,000 deposit (excluding spread and financing costs). Remember, leverage also amplifies potential losses.

Final advice

Before investing, it’s wise to compare brokers’ fee structures, trading platforms, and available features, as these can significantly impact your returns. Your choice between spot buying and CFD trading should reflect your risk appetite, financial goals, and preferred investment time horizon. For a clear overview of Australia’s most reputable brokers and their fees, see the comparator further down the page. The right broker—and the right method—depends on what you want to achieve as an investor.

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Our 7 tips for buying Westpac Banking Corporation stock

The latest news about Westpac Banking Corporation

Westpac shares have climbed 5.39% in the past week, outperforming the ASX 200 and peers. The stock reached AUD 33.45, up 1.92% on the day, buoyed by strong buying interest and bullish momentum, and has now delivered a one-year return of 26.61%. Technical signals—including the RSI at 70.06 and MACD in positive territory—underscore a strong "Buy" consensus among analysts and a sustained upward trend, with the price significantly above all major moving averages.

Westpac’s FY2024 results met market expectations, supported by robust loan and deposit growth. The bank reported a net profit of AUD 7 billion and revenue of AUD 10.62 billion, with a 4% increase in lending and 5% deposit growth, highlighting expanding market share in the Australian housing loan segment. The Board declared a fully franked final dividend of 76 cents per share, bringing the annual total to 151 cents—up 6% year-on-year—delivering attractive income with tax credits for Australian investors.

Leadership succession is on track as Westpac enters a critical phase of business transformation. Current CEO Peter King will step down on December 16, 2025, to be replaced by Anthony Miller, who has demonstrated strong performance leading the Business & Wealth division. The transition is seen as orderly, with continuity ensured for investors and stakeholders; market reaction has been stable and constructive following confirmation of Miller’s appointment.

Regulatory confidence has strengthened following successful completion of risk and compliance programs. The bank finalized its Customer Outcomes and Risk Excellence initiatives, prompting APRA to reduce Westpac’s operational risk capital overlay by AUD 500 million. At the same time, the UNITE simplification program is progressing, mortgage approval times have halved, and the bank has achieved a 29% reduction in customer scam losses—clear markers of improved operational efficiency and risk management.

Favorable macroeconomic conditions and strategic positioning point to continued growth potential in 2025. With consumer sentiment at a two-and-a-half-year high, low unemployment, and inflation approaching target levels, Westpac is set to benefit from anticipated Reserve Bank interest rate cuts, an undersupplied housing market, and strong business credit demand. The bank’s CET1 capital ratio of 12.5%—one of its strongest in decades—further underpins confidence in its outlook and capacity to support both future dividends and strategic investments.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.