Investor loans outpace owner-occupier loans in December quarter
Banking giant Westpac has seen a decline in in-house generated home loans proportional to broker-introduced loans.
Its proprietary channel mix was 44.4% in the December quarter, down from 45.1% in the previous quarter. On a year-on-year basis, the proprietary channel loan mix fell from 47.3% to 44.4%.
Westpac, like its Big Four contemporaries, has previously signalled a renewed emphasis on proprietary lending in recent years, although its aggressive business-lending push has become a bigger focal point for chief executive Anthony Miller.
Westpac’s total mortgage portfolio balance increased by 3.8% annually to $527.9 billion, with the mix shifting modestly away from owner‑occupied loans toward investor lending.
Owner‑occupied mortgages fell from 68% of the portfolio in December 2024 to 67.2% in December 2025 (a decline of 0.8 percentage points). Investor property loans rose from 31% to 32% over the same period.
First‑home buyer exposure also edged up, with loans increasing from 12.2% of the mortgage portfolio in December 2024 to 12.6% in December 2025 (up 0.4 percentage points). The rise comes amid an expansion on the 5% Deposit Scheme
Westpac’s net interest margin (NIM), a key profitability metric in the financial services industry, fell slightly in the December quarter – from a second-quarter average of 1.95% to 1.94%.
CET1 capital maintained a stable ratio of 12.5%.
Across the whole bank, statutory net profit totalled $1.9 billion, marking a 6% increase from the second-quarter average.
"We are optimistic on the outlook for the economy and expect demand for both business and household credit to remain resilient,” said Miller. “Our strong financial foundations provide us with the stability and capacity to support our people, customers, shareholders and the broader economy.”
