Westpac Banking Corp (ASX: WBC) shares are down again today following the release of the bank's 1H FY25 results yesterday.

Westpac shares finished 3% lower yesterday and are currently down another 1.59% to $31.94 on Tuesday.

The big four bank share is underperforming the market today, with the S&P/ASX 200 Index (ASX: XJO) down just 0.12%.

As for dividends, Westpac announced an interim dividend of 76 cents per share, with 100% franking, to be paid on 27 June.

This is the same as last year's interim dividend.

If you don't already own Westpac shares and want to snap up the next dividend, you'll have to be quick.

The ASX 200 bank share goes ex-dividend on Thursday. So, you only have til tomorrow's market close to buy Westpac shares.

Current Westpac investors who would prefer to receive more shares instead of a cash dividend payment have until 5pm AEST on 12 May to submit their dividend reinvestment plan (DRP) elections.

The DRP share price has not yet been determined but we know how the bank will calculate it.

The bank will use the average of the daily volume weighted average market price of Westpac shares sold on the ASX and Cboe Australia between 14 May and 5 June.

How did Westpac's 1H FY25 report look?

For the six months ended 31 March, Westpac reported net interest income of $9,569 million, up 2% compared to the prior corresponding period (pcp).

Westpac's core net interest margin (NIM) was steady at 1.8% amid persistent competition in lending and term deposits. The group NIM fell one basis point to 1.88%.

Non-interest income decreased 3% to $1,442 million.

There was 5% growth in loans to $825 billion. This included 5% growth in Australian housing loans, 14% growth in business lending, and 15% growth in institutional lending.

Customer deposits grew 7% to $697 billion. This included 9% growth in Australian household deposits.

Westpac's operating expenses increased 6% to $5,698 million.

The net profit after tax (NPAT) came in at $3,457 million, down 1% on the pcp.

Westpac's CEO, Anthony Miller, said:

Westpac's very strong balance sheet is important given global uncertainty.

Our capital, liquidity and deposit-based funding enable us to support our customers and our community.

We're managing margins actively in a competitive environment, achieving sustainable growth in our target areas.

Are Westpac shares a buy?

Macquarie has an underperform rating on Westpac with a 12-month price target of $27.50.

In a recent note, Macquarie commented on the 1H FY25 result:

While WBC's 1H25 result was only a slight miss to expectations, it provided a catalyst for the market to review its bullish assumptions on margins, expenses, and dividends.

We expect to see consensus revisions towards our more conservative FY26-27 forecasts, noting that we reduced our numbers by ~1%.

The broker explained its underperform rating on Westpac shares:

WBC remains expensive, trading at ~17x FY26E P/E (6-26% premium to ANZ and NAB).

With execution risks around the UNITE program, in addition to headwinds from rate cuts, we continue to see risk to WBC's earnings and multiple.