Australian regulator removes $324 million capital add-on on Westpac

(Reuters) -Australia's prudential regulator said on Wednesday that it has removed the additional A$500 million ($324.15 million) capital add-on on Westpac after the bank completed a required multi-year risk transformation program.

In a separate statement, Westpac said the removal of the capital add-on will increase its common equity tier 1 (CET1) capital ratio by about 17 basis points, reflecting a reduction in risk-weighted assets of A$6.25 billion.

In 2019, the Australian Prudential Regulation Authority pre-emptively imposed a A$1 billion capital add-on in two tranches on the country’s third largest lender.

This was followed by a 2020 investigation, which led Westpac to commit to remediating specific prudential weaknesses identified by APRA.

Last year, APRA halved the capital add-on requirement.

"Satisfied that this program is complete, and the specific prudential issues identified by APRA have been addressed, APRA has removed the remaining tranche of A$500 million capital add-on, with immediate effect," APRA said.

"The positive changes in how we manage risk must now be maintained and continually strengthened," Westpac CEO Anthony Miller said.

($1 = 1.5425 Australian dollars)

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

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• US defence firm Covenant plans missile production in Germany, sources say
• Stablecoins not a credible means of payment at scale, BIS chief says
• US appeals ruling requiring continued payments for $16 billion New York tunnel project