Australian shares lifted by banks, Westpac surges to over a decade-high

Aug 14 (Reuters) – Australian shares rose on Thursday, recovering losses from the previous session after the country’s third-largest lender Westpac soared to its highest in over 10 years after delivering a steady growth in quarterly profit, boosting the banks higher.

The S&P/ASX 200 index rose 0.6% to 8,880.20 points as of 0054 GMT. The benchmark closed 0.6% lower on Wednesday.

Financials reclaimed some losses from Wednesday, climbing 1.2% on Thursday.

Westpac advanced as much as 7% to its highest level in more than a decade after posting a 5% rise in third-quarter net profit and an increase in net interest margin — the spread between interest earned from loans and what it paid to depositors.

Meanwhile, CBA extended losses, with a 0.6% decline, as investors sold off shares of one of the most expensive banks in the world. Despite reporting a record profit and dividend payout, investors failed to see the appeal of the bank’s high valuations.

ANZ and NAB rose around 2% each. ANZ Group will announce its quarterly results on Friday before market opens.

A 25-basis-point interest rate cut by the Reserve Bank of Australia earlier in the week, along with a dovish tone, has boosted market expectations of further cuts this year, a move that could potentially increase lending volumes for the banks.

Another benefactor of lower borrowing costs, real estate stocks, were up as much as 0.6%, trading near their strongest level since October.

Miners added 0.4%, with BHP and Fortescue climbing 0.3% and 0.9% respectively.

Gold stocks rose 1% to their highest level since mid-June, while energy stocks were flat.

Australian power producer Origin Energy emerged as the top performer on the benchmark as it jumped more than 7% after reporting better-than-expected annual profit and an upbeat forecast for fiscal 2026. The stock hit its highest level in nearly 11 years.

New Zealand’s benchmark S&P/NZX 50 index rose 0.4% to 12,821.67 points.

(Reporting by Sneha Kumar in Bengaluru; Editing by Alan Barona)