The Australian Prudential Regulation Authority (APRA) has determined that Westpac Banking Corporation has completed the multi-year risk transformation program required under APRA’s supervision and has removed the remaining AUD 500 million capital add-on applied to the bank, with immediate effect. The action follows an APRA investigation in 2020 that led to a Court Enforceable Undertaking in December 2020, under which Westpac committed to remediate prudential weaknesses identified in culture, governance and accountability and address their root causes. Westpac responded by establishing the Customer Outcomes and Risk Excellence (CORE) Program and appointing an independent reviewer. APRA had imposed a AUD 500 million capital add-on in July 2019 and an additional AUD 500 million add-on in December 2019, removing the first tranche in July 2024 while retaining the remainder pending completion of transition work and APRA validation of the sustainability of improved risk management practices and outcomes. APRA noted it expects Westpac, as a systemically important bank, to maintain an “unquestionably strong” capital position and that effective transformation programs may continue to identify legacy issues.
Australian Prudential Regulation Authority 2025-10-15
Australian Prudential Regulation Authority removes remaining AUD 500 million capital add-on on Westpac after completion of required risk transformation program
The Australian Prudential Regulation Authority (APRA) has confirmed that Westpac Banking Corporation has completed its multi-year risk transformation program, leading to the removal of the remaining AUD 500 million capital add-on. This follows a Court Enforceable Undertaking from 2020, under which Westpac addressed prudential weaknesses in culture, governance, and accountability.