Banks set for reckoning as housing storm builds

Westpac Banking Corp reported a 1% decline in FY net profit to A$6.81B, with higher credit charges offsetting growth. Net interest income rose 1% to A$19.69B. The bank declared a 154c final dividend, up 1%. CEO Miller cited inflation and elevated rates as 2027 challenges. CET1 ratio is 12.5%.

Australia's Big Four banks (Commonwealth, Westpac, ANZ, NAB) raised variable home loan rates by 0.25% from October, following the RBA's cash rate hike to 4.60%. The RBA cited persistent inflation, now at 4.0% annually, for the increase. The banks hold over 70% of household mortgages in Australia.

Fitch revised the outlook on New Zealand's big four banks (ANZ NZ, BNZ, Westpac NZ, ASB) to positive, citing expected Reserve Bank capital rules that will allow issuance of loss-absorbing capacity (LAC) instruments to Australian parents. This is expected to bolster the banks' positions within their parent groups. ASB's AA- rating is higher due to its parent, Commonwealth Bank of Australia's, AA rating. The Reserve Bank plans to consult on LAC requirements next year, with implementation from late

Westpac Banking Corp. reported Q3 net profit of A$1.8 billion, up 3% versus the first-half quarterly average, and adjusted net profit up 2%. Pre-provision profit rose 1% to A$2.8 billion. Revenue was A$5.7 billion (+1%), with net interest income up 2% to A$5.0 billion. Shares fell 5.14% to A$35.98.

Benchmark Electronics (BHE) reported Q3 revenue of $810.9M, beating estimates by 4.6%, with adjusted EPS of $0.84, a 6.8% beat. Q4 2026 guidance was raised above estimates. Key growth areas were Semi-Cap and AC&C, with Medical and Industrial segments also showing improvement. The company is expanding capacity and managing costs to support future growth.

Waystar (WAY) updated its 2026 revenue forecast to $1.277B-$1.287B, raising its adjusted EBITDA outlook to $543M-$549M. The company provided these insights during its Q3 2026 earnings call, according to Seeking Alpha.