Westpac’s capital position in Australia weakens at end of quarter

A pedestrian looks at his phone as he walks past the logo of Australia’s Westpac Banking Corp outside a branch in central Sydney, Australia November 5, 2018. REUTERS/David Gray/File Photo/ File Photo

Aug 15 (Reuters) – Westpac Banking Corp (WBC.AX) said on Monday its capital position at the end of the fiscal third quarter was weaker, hurt by the payment of an interim dividend and equity-weighted assets. higher risks (RWA) following the rise in interest rates. over the quarter.

Since May, the Reserve Bank of Australia (RBA) has raised its key cash rate by 175 basis points, which lenders in the country’s “big four” have passed on in full to their customers. Read more

Australia’s third-largest lender said the CET1 capital ratio, a measure of free cash, fell to 10.75% at the end of June, from 11.3% at the end of March.

Westpac said its total assets at risk at the end of the quarter were A$1.213 trillion, down from A$1.184 trillion at the end of March.

The lender did not disclose a profit figure for the quarter, but said cash income was partially offset by higher deductions for capitalized software and other regulatory deductions.

Last week, biggest rival Commonwealth Bank of Australia (CBA.AX) warned that soaring cost of living pressures had started to weigh on consumer confidence, while National Australia Bank (NAB. AX) has issued a new warning about rising costs. Read more

Reporting by Harish Sridharan in Bengaluru; edited by Diane Craft

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