Westpac to sell $21.4bn RAMS portfolio; CET1 +20 bps post-close
Westpac Banking Corporation announced an agreement to sell its $21.4bn RAMS-branded mortgage portfolio to a consortium including Pepper Money Limited, KKR and PIMCO.
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Rhea-AI Filing Summary
Westpac Banking Corporation announced an agreement to sell its $21.4bn RAMS-branded mortgage portfolio to a consortium including Pepper Money Limited, KKR and PIMCO. The sale covers the entire RAMS mortgage portfolio and is described as being at a slight premium to the gross loan value to be transferred at completion.
After transaction costs and adjustments, Westpac expects a loss on sale. Following completion, the bank estimates its common equity Tier 1 (CET1) capital ratio will increase by c.20% bps. Completion is subject to conditions and regulatory approvals and is expected to occur in 2H26.
Insights
Large portfolio sale with modest CET1 uplift and expected loss.
Westpac agreed to sell the entire $21.4bn RAMS mortgage portfolio to a buyer group including Pepper Money, KKR and PIMCO. The price is at a slight premium to the gross loan value to be transferred at completion, but the company expects a loss after transaction costs and adjustments.
Management estimates a post-completion increase in the CET1 ratio of around 20 bps, indicating balance sheet optimization despite the income statement loss. The effect depends on closing and final transfer values, both conditioned by regulatory approvals.
Closing is expected in 2H26. Until completion, impacts remain indicative; actual results will reflect closing adjustments and regulatory outcomes.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What did Westpac (WBKCY) announce in this 6-K?
Will Westpac record a gain or loss on the RAMS portfolio sale?
How will the sale affect Westpac’s capital ratios?
When is the RAMS portfolio sale expected to close?
What portion of RAMS mortgages is included in the deal?
Who is in the buyer consortium for the RAMS portfolio?
AI-generated analysis. How Rhea-AI works. Not financial advice.