Should I buy Westpac Banking Corporation stock in 2025?

What is the Westpac Banking Corporation?

How much is the Westpac Banking Corporation stock?

The price of Westpac Banking Corporation stock is rising this week. As of now, shares are trading at 32.56 AUD, with a daily increase of 0.85 AUD (+2.68%) and a solid 3.96% gain over the last week.

Westpac holds a market capitalisation of 111.43 billion AUD and sees an average daily volume of 5.62 million shares over the past three months.

The company posts a P/E ratio of 16.60, offers a dividend yield of 4.67%, and shows a beta of 1.31. With recent strong momentum, investors should note the stock’s moderate volatility and its potential appeal in a diversified NZ portfolio.

Our full analysis on the stock of Westpac Banking Corporation

Having closely reviewed Westpac Banking Corporation’s latest financial results, alongside the stock’s trajectory over the past three years, our proprietary algorithm has synthesized in-depth financial, technical, and market data—benchmarked against global peers—to generate a uniquely refined perspective. With fresh leadership, robust financial indicators, and clear technical buy signals, the current context for Westpac Banking Corporation is particularly dynamic. So, why might Westpac once again become a strategic entry point into the Australasian banking sector in 2025?

Recent Performance and Market Context

Westpac Banking Corporation (ASX: WBC) has demonstrated a notable resurgence through 2024 and into 2025, propelled by an impressive +25.6% gain in its share price over the past year and a further uptick of +2.7% in the most recent trading session. The stock is currently trading at 32.56 AUD, with a market capitalization of AUD 111.4 billion, solidifying its standing as a leading financial institution in the region. This sustained rally is particularly significant when compared with the broader ASX 200, where Westpac has outperformed many of its peers—affirming market confidence in its revamped strategy and execution.

Key recent events underpinning market sentiment include the appointment of Anthony Miller as CEO and Andrew McMullan as Chief Data, Digital and AI Officer, each of whom brings a forward-looking approach to digital transformation. The ongoing share buyback programme further signals management’s confidence in Westpac’s intrinsic value, and is supportive of both earnings per share and shareholder returns.

The sector backdrop is also becoming increasingly favourable. Macroeconomic conditions in Australia and the wider Asia-Pacific region point to a stable lending environment and robust residential property markets. Paired with moderate economic expansion, a persistently low unemployment rate, and prudent management of credit quality, Westpac is well-positioned for continued growth.

Technical Analysis

Technical indicators for Westpac currently reflect a transition into a bullish phase:

• Relative Strength Index (RSI): 52.8, indicating neither overbought nor oversold conditions, and leaving considerable room for further upside.
• MACD (12,26,9): +0.17, issuing a firm buy signal with positive momentum building.
• Moving averages: All significant timeframes (20/50/100/200 days) remain below the current price, with the 20-day at 31.44 AUD and the 200-day at 30.99 AUD, both providing solid support levels.
• Support/Resistance: Key technical support sits at 31.58 AUD. The next major resistance, and a potential breakout target, is 35.27 AUD (the 52-week high).

Recent price activity, reinforced by strong momentum and positive technical signals, suggests a possible entry into a new bullish structure. The convergence of moving averages below the current price is classic confirmation of a healthy uptrend, further validated by the uptick in volumes.

Fundamental Analysis

From a fundamental perspective, Westpac’s latest six-month revenues (to 31 March 2025) stand at 10.79 billion AUD, supporting a semi-annual net profit of 3.31 billion AUD. While this marks a marginal 1% decline year-on-year, it is important to note that results met consensus expectations, speaking to the bank’s ability to deliver under varied conditions. Annualized, 2025 forecasts point to stable top-line growth, with management maintaining a clear focus on profitability improvements and cost discipline.

Valuation remains highly attractive in the context of sector comparatives:

• P/E Ratio: 16.6, justifiable for a major bank entering a digital transformation phase and well within sector averages.
• Dividend Yield: 4.67%—fully franked—remains a significant drawcard for income-oriented investors.
• Market Position: As Australia’s fifth-largest capitalisation and one of New Zealand’s principal foreign-owned lenders, Westpac enjoys a strong and durable franchise with deep client relationships.

Strategically, Westpac’s investments in digital innovation and analytics, underlined by the new Chief Data, Digital and AI Officer, are expected to drive medium-term profitability and operational leverage. The brand’s historical strength (established 1817), dominant market share, and proven adaptability amidst disruptive industry shifts signal structural resilience and future potential.

Volume and Liquidity

Trading liquidity for Westpac is robust, with a four-week average daily volume of 5.62 million shares—a testament to ongoing investor engagement and ease of entry/exit. This high liquidity profile not only encourages efficient price discovery but also enables dynamic valuation adjustments as new information becomes available.

The float is also well distributed, supported by major global institutional investors (State Street Corporation, BlackRock, Vanguard), indicating that considerable professional confidence is being placed in Westpac’s outlook. Such trading characteristics frequently precede new valuation cycles and can be supportive in periods of rising sentiment.

Catalysts and Positive Outlook

Several prospective catalysts have the potential to drive upside in Westpac’s valuation over the coming quarters:

• Digital and AI Transformation: Substantial ongoing investment in artificial intelligence, data, and digital platforms under the new executive team is expected to yield marked improvements in cost efficiency and client engagement.
• Return on Tangible Equity (ROTE): Management’s focus on raising ROTE should support both capital returns and share price growth.
• Operational Simplification: A clear strategy to streamline workflows and reduce cost bases could unlock further profits and margin expansion for the bank.
• Favourable Regulatory and Macroeconomic Environment: A supportive regulatory climate in Australia and New Zealand, coupled with a stable interest rate outlook and resilient consumer demand, sets the stage for steady earnings growth.
• ESG Initiatives: Emphasis on responsible banking and sustainability further enhances Westpac’s long-term value proposition, increasingly sought after by global investors.

The overall market sentiment—currently rated “Strong Buy” by technical consensus—reinforces the active bullish narrative, especially as legacy banks embrace digital innovations to drive next-generation growth.

Investment Strategies

For NZ-based investors, potential entry strategies into Westpac’s stock are well supported across various horizons:

• Short-Term: Recent technical signals, particularly the above-average price momentum and strong moving average support, suggest tactical traders may benefit from capturing near-term upside as the next resistance at 35.27 AUD approaches.
• Medium-Term: With digital transformation initiatives gaining traction and cost optimisation strategies expected to accelerate, medium-term holders may capture value well ahead of consensus upgrades.
• Long-Term: The convergence of a solid dividend stream (4.67% yield, fully franked), robust market share, and an attractively valued multiple, means long-term investors could position for steady compounding returns as Westpac solidifies its leadership in Australasian banking innovation.

Positioning after a technical retracement—ideally near support levels around 31.58 AUD—or before upcoming earnings and digital transformation updates could be especially strategic, as market recognition of the bank’s new trajectory grows.

Is it the Right Time to Buy Westpac Banking Corporation?

In summary, Westpac Banking Corporation demonstrates a confluence of technical momentum, sector-leading fundamentals, and forward-thinking leadership—factors that, in aggregate, identify it as a compelling consideration for new capital allocation. The current macroeconomic backdrop, commitment to digital innovation, healthy liquidity, and solid financial performance all underline the potential for a fresh upside cycle.

Although the consensus analyst rating currently trails market momentum, our integrated technical and fundamental review suggests the stock seems to represent an excellent opportunity at current levels, especially for those seeking exposure to stable, dividend-rich franchises that are investing proactively for long-term relevance. As the bank executes on its digital agenda and benefits further from favourable economic and sectoral tailwinds, Westpac’s share price may be entering a new bullish phase.

For NZ and Australasian investors seeking conviction, the Westpac narrative aligns strongly with structural growth themes and reliable income, making now a moment that justifies renewed interest. The coming quarters—marked by ongoing transformation and robust market dynamics—may well reward those who look past the surface and recognise the positive inflections already under way.

Westpac Banking Corporation stands at the intersection of proven resilience and next-era opportunity, making it one of the region’s most compelling blue-chip banking stocks for investors aiming to combine security with growth prospects.

How to buy Westpac Banking Corporation stock in New Zealand?

Buying shares in Westpac Banking Corporation (ASX: WBC) online is both straightforward and secure when you use a regulated broker based in New Zealand. Today, you have two main options: you can buy the shares outright for long-term ownership (spot/cash buying), or you can trade contracts for difference (CFDs), which allow you to speculate on price movements with leverage. Both methods are accessible through reputable platforms that protect your funds and personal data. The right choice for you will depend on your financial goals and risk profile—a detailed broker comparison is available further down the page to help you decide.

Spot Buying

A cash purchase means you are buying real Westpac Banking Corporation shares in your name via a broker. In NZ, most online brokers charge a flat trade commission, usually between NZD $5 and $20 per order, depending on the platform.

Example

Let’s say Westpac shares are trading at 32.56 AUD (approx. 35.60 NZD at recent exchange rates). With NZD $1,000 to invest and a NZD $5 brokerage fee, you can buy about 27 shares ([($1,000–$5)/$35.60] ≈ 27 shares).

Gain scenario:
If the Westpac share price rises by 10% (to 39.16 NZD), those shares are now worth NZD $1,080.
Result: +NZD $100 gross gain, +10% on your investment (before currency impact and taxes).

CFD Trading

CFD (Contract for Difference) trading lets you speculate on the price movement of Westpac Banking Corporation shares without owning the actual stock. With CFDs, the key fees are the spread (the broker’s small markup between buy and sell prices) and overnight financing costs if you hold positions beyond a day.

Example

You open a NZD $1,000 CFD position with 5× leverage. You’re now exposed to $5,000 worth of Westpac shares.

Gain scenario:
If the share price rises by 8%, your CFD position gains 8% × 5 = 40%.
Result: +NZD $400 gain (on a $1,000 margin), not including spread and overnight costs.

Final Advice

Before investing, always compare each broker’s fees, platform features, and regulatory protections to find the best fit. Think carefully about your own objectives: spot buying suits long-term investors seeking ownership and dividends, while CFDs can be attractive for short-term, high-risk strategies. A comprehensive comparison tool is available further down the page to help you review your options—choose the method that best matches your investment style and risk appetite.

Our 7 tips for buying Westpac Banking Corporation stock

The latest news about Westpac Banking Corporation

Westpac Banking Corporation shares posted a strong weekly gain of nearly 4% on the ASX. This robust advance stands out for New Zealand-based analysts closely tracking the performance of major Australian banks with operations and transactional links in NZ. The sustained positive momentum, fueled by a +2.68% intraday jump, reflects renewed investor confidence, likely influenced by stable recent financial results and a technically bullish environment. The strength is further emphasized by heavy daily trading volumes, indicating increased institutional activity and sustained market interest.

Technical indicators suggest a continued "Strong Buy" signal, reinforced by moving averages and a neutral RSI. The 20-, 50-, 100-, and 200-day moving averages have all turned upward, aligning above key support levels, which supports a constructive technical outlook. The MACD remains in positive territory, and the Relative Strength Index (RSI) at 52.8 does not suggest overbought conditions. For New Zealand investors who track ASX-listed bank exposure within their portfolios, these technical signals support potential upside, especially given the proximity of Westpac’s share price to its 52-week highs.

Westpac’s first-half 2025 financial results were solid and matched analyst expectations, supporting earnings stability. Revenue for the half-year ending 31 March 2025 came in at AUD 10.79 billion, and net profit at AUD 3.31 billion, only 1% lower year-on-year, demonstrating resilience in a challenging environment. With earnings per share at 101 cents and dividend yield at 4.67%, the payout remains an attractive component for yield-focused New Zealand investors, especially in comparison to local banking sector rates and regional peers. The company’s results were in line with consensus, limiting negative surprises and ensuring income predictability.

Strategic investments in digital transformation and AI—now backed by new C-suite leadership—signal constructive, future-oriented momentum. Recent appointments of Anthony Miller as CEO and Andrew McMullan as Chief Data, Digital, and AI Officer provide clear leadership for the bank’s transformation. This strategic focus aligns with broader industry moves toward digitalisation, which is particularly relevant to the NZ market, where digital banking adoption and cross-Tasman integration are critical for customer engagement and operational efficiency. Westpac’s commitment in this space enhances its competitive positioning in both Australia and New Zealand and is likely to bring operational benefits and improved client offerings.

Westpac’s position as a leading, well-capitalised bank with strong brand recognition provides stability and confidence for investors in the New Zealand context. As the fifth largest company on the ASX, Westpac operates with a solid capital base and a historical presence dating back to 1817, ensuring operational continuity. The bank's ongoing share buyback programme and fully franked dividends cement its appeal, especially for cross-border NZ-AU investors seeking reliable returns with potential tax efficiency. For New Zealand residents indirectly exposed to Westpac through investments or pensions, these structural strengths and prudent governance measures point to a constructive medium-term outlook.

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.