The Australian Prudential Regulation Authority (APRA) has determined that Westpac Banking Corporation has completed the multi-year risk transformation program required under APRA supervision and has removed the remaining AUD 500 million capital add-on, with immediate effect. The action follows an APRA investigation in 2020 that led Westpac to enter a Court Enforceable Undertaking in December 2020 to remediate prudential weaknesses 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 pre-emptive AUD 500 million capital add-on in July 2019 and a further AUD 500 million add-on in December 2019; the first tranche was removed in July 2024, with the balance retained pending completion of transition work and APRA validation of the sustainability of improvements in prudent risk management practices and outcomes.
Australian Prudential Regulation Authority 2025-10-15
Australian Prudential Regulation Authority removes Westpac’s remaining AUD 500 million capital add-on after completion of APRA-required risk transformation program
The Australian Prudential Regulation Authority (APRA) has removed the remaining AUD 500 million capital add-on for Westpac Banking Corporation, completing its risk transformation program. This follows a 2020 investigation leading to a Court Enforceable Undertaking. Westpac implemented the CORE Program and appointed an independent reviewer. The initial AUD 500 million add-on was imposed in July 2019, with an additional AUD 500 million in December 2019; the first tranche was removed in July 2024 after APRA validated improvements.