Westpac sells RAMS mortgage portfolio, boosts capital

Westpac Banking Corporation has agreed to sell its $21.4bn RAMS mortgage portfolio to a consortium including Pepper Money Limited, KKR, and PIMCO. The divestment is expected to generate a slight premium on gross loan value and is projected to increase Westpac's common equity Tier 1 capital ratio by approximately c.20 basis points. The bank highlighted the sale's role in simplifying operations and reducing costs, with completion anticipated in 2H26.

Concurrently, Westpac released its 2025 Pillar 3 Report, detailing capital adequacy ratios, including a Level 2 CET1 capital ratio of 12.53% as of 30 September 2025. The bank confirmed the removal of its remaining $500 million operational risk capital overlay on 15 October 2025, which will further increase its CET1 ratio by approximately 17 basis points. Additionally, Westpac provided its 2025 Risk Factors, identifying key operational, compliance, and climate-related risks, and issued its 2025 Corporate Governance Statement and AGM Notice of Meeting for 11 December 2025.