Westpac Banking Corporation posted a 2% decline in annual profit but exceeded analyst forecasts, prompting its shares to rise nearly 3% in early trade. The bank attributed the profit dip to higher operating costs and tighter margins, though improved credit quality and digital-banking adoption supported overall performance. Analysts highlighted that stable loan growth and disciplined provisioning helped offset pressures from a challenging economic backdrop. Despite the modest earnings decline, investor sentiment improved as the results demonstrated operational resilience and stronger-than-expected financial stability.