Westpac Group today announced a partnership with the Clean Energy Finance Corporation (CEFC) to offer Australians a new home loan product designed to encourage energy efficiency and climate resilience.
Simultaneously, the bank reported strong quarterly financial performance, highlighting its commitment to both sustainability and profitability.
From Aug. 26, Westpac home loan customers will have access to a competitive variable interest rate of 4.49% p.a (subject to change) to fund energy-efficient upgrades such as solar panels, batteries, insulation, and double-glazed windows.
The Sustainable Upgrades loan offers up to $50,000 with a ten-year term for both owner-occupiers and investors.
Westpac is the first bank to partner with the CEFC's $1 billion Household Energy Upgrades Fund, a government initiative aimed at accelerating Australia's clean energy transition.
"We're excited to be at the forefront of sustainable finance in Australia," said Westpac Chief Executive Consumer, Jason Yetton (pictured above left).
"This partnership with the CEFC aligns with our customers' growing desire to reduce their environmental impact while improving their homes."
CEFC CEO Ian Learmonth (pictured above centre) emphasised the importance of the initiative in supporting Australia's net zero goals.
"By making it easier for homeowners to invest in energy efficiency, we can help reduce energy costs, increase grid reliability, and accelerate the shift to clean energy," he said.
Research from Westpac shows nine out of ten Australians looking to renovate within five years would consider making a sustainable upgrade to their home.
“Increasing the uptake of renewable energy, storage, and related infrastructure is critical to Australia’s net zero ambitions and clean energy transition,” said Learmonth.
“The installation of more rooftop solar, home batteries and energy efficiency equipment will help manage household energy costs and unlock additional clean energy capacity. This means we can better manage energy demand and ultimately contribute to the creation of a stronger, more reliable and cleaner grid.”
Australians are increasingly looking to upgrade their homes with energy-efficient features and technologies. Close to two in five (38%) Australians would consider installing solar panels on their home, one in four would consider putting in solar batteries (27%) or changing to solar hot water (25%), and over a fifth would consider installing insulation (23%) or put in double-glazed windows (22%).
Westpac’s sustainable upgrades loan follows the bank’s recent work being joint lead manager on the first issuance under the Australian Government Green Bond Framework, a $7 billion 10-year sovereign green bond.
This, along with several other initiatives, helped Australia’s second largest lender report a solid financial performance in its quarterly results today despite the current economic challenges.
Unaudited net profit increased by 6% to $1.8 billion compared to the first half 2024 quarterly average. Excluding the impact of notable items, profit grew by 2% to $1.8 billion.
The bank achieved strong customer growth, with deposit and loan growth outperforming the system.
Westpac also highlighted its focus on customer experience, launching new initiatives such as online ID verification for home loans and mobile notifications for savings account interest rates.
It also comes after heavy investment in scam protection, with the bank signing onto the National Cyber Intel Partnership on Friday.
Westpac CEO Peter King (pictured above right) expressed satisfaction with the results. "Our consistent focus on customer service has contributed to another solid quarter," he said. "We remain committed to supporting our customers through the current economic environment."
While acknowledging the challenges faced by many customers, King emphasised Westpac's support for those experiencing difficulties.
“The cost of living and high interest rates remain a challenge for some customers while many businesses are facing cost pressures and experiencing lower demand,” King said.
“We encourage customers to call us if they need help."
