First Read: Westpac Banking Corporation "WBC 2026 Consumer Update" (Neutral)

Research evidence excerpt

First Read: Westpac Banking Corporation "WBC 2026 Consumer Update" (Neutral)

y in the long term. UBS Cons.

09/26E 2.11 2.07

Costs and digital: Offer the biggest earnings lever 09/27E 2.30 2.18

Project UNITE (here) remains a central initiative driving cost reduction, operational 09/28E 2.42 2.27

simplification, and efficiency improvements at scale. The Consumer segment is expected

John Storey, CFA

to benefit most from this program, which focuses on streamlining products and systems

Analyst

while enhancing data quality to support digital capabilities and AI advancements. john.storey@ubs.com

+61-2-9324 3864

The initiative aims to lower both client acquisition costs and service costs within the Nicholas Sobolev

omni-channel digital environment, offering significant cost savings. For instance, Analyst

resolving a simple issue costs approximately $500 in a branch, $300 through a call nicholas.sobolev@ubs.com

center, and ~$0 via the app. Luis Uguina shared progress on the digital platform, +61-2-9324 3026

highlighting that ~74% of total sales now originate through digital channels. These

digital customers are 35% more likely to become MFI customers, with greater cross-

selling opportunities and an average of 1.3x more products per customer.

UBS View: slightly more positive on WBC's opportunity set

The addition of Luis Uguina, supported by investments and the rollout of simpler and

more efficient data utilisation and monetisation could see WBC remain competitive in a

digital banking age, while directly focusing on improving per unit economics and cost

efficiency. Further upside depends on translating franchise momentum into lower costs,

stronger returns and sustained gains in deposit and mortgage market share.