{"id":55459,"date":"2025-11-02T17:08:35","date_gmt":"2025-11-02T21:08:35","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/westpac-reports-fy25-earnings-boosts-capital-with-a21-4-billion-rams-portfolio-sale\/55459\/"},"modified":"2025-11-02T17:08:35","modified_gmt":"2025-11-02T21:08:35","slug":"westpac-reports-fy25-earnings-boosts-capital-with-a21-4-billion-rams-portfolio-sale","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/westpac-reports-fy25-earnings-boosts-capital-with-a21-4-billion-rams-portfolio-sale\/55459\/","title":{"rendered":"Westpac Reports FY25 Earnings, Boosts Capital with A$21.4 Billion RAMS Portfolio Sale"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Westpac (<a href=\"\/stock\/WBC\">WBC<\/a>) reported a full-year 2025 net income of A$6.92 billion, slightly below analyst estimates, with a strong second-half performance of A$3.60 billion.<\/strong><\/li>\n<li><strong>The bank&#39;s CET1 ratio stood at a robust 12.5%, exceeding expectations, and is set to further improve by approximately 20 basis points following the announced sale of its RAMS mortgage portfolio.<\/strong><\/li>\n<li><strong>Westpac (<a href=\"\/stock\/WBC\">WBC<\/a>) will sell its A$21.4 billion RAMS mortgage portfolio to a consortium including Pepper Money (<a href=\"\/stock\/PPM\">PPM<\/a>), KKR, and PIMCO, with completion anticipated in the second half of 2026.<\/strong><\/li>\n<li><strong>A final dividend per share of A$0.77 was declared, alongside core and group net interest margins (NIM) excluding items of 1.81% and 1.94% respectively.<\/strong><\/li>\n<\/ul>\n<p><strong>Westpac Banking Corporation (<a href=\"\/stock\/WBC\">WBC<\/a>)<\/strong> has announced its full-year 2025 financial results, reporting a net income of <strong>A$6.92 billion<\/strong>, marginally below the estimated A$6.93 billion. The second half of the fiscal year saw a net income of <strong>A$3.60 billion<\/strong>, slightly surpassing analyst projections of A$3.58 billion.<\/p>\n<p>The Australian banking giant also revealed a strong Common Equity Tier 1 (CET1) ratio of <strong>12.5%<\/strong>, exceeding the estimated 12.4%. This robust capital position is expected to strengthen further, with an anticipated rise of approximately <strong>20 basis points<\/strong> following the completion of its RAMS mortgage portfolio sale.<\/p>\n<p>In a significant strategic move, Westpac (<a href=\"\/stock\/WBC\">WBC<\/a>) confirmed the sale of its <strong>A$21.4 billion RAMS mortgage portfolio<\/strong>. The portfolio will be acquired by a consortium that includes non-bank lender <strong>Pepper Money (<a href=\"\/stock\/PPM\">PPM<\/a>)<\/strong>, along with global investment firms <strong>KKR<\/strong> and <strong>PIMCO<\/strong>. This divestment aligns with Westpac&#39;s ongoing simplification strategy.<\/p>\n<p>The transaction is expected to finalize in the <strong>second half of 2026<\/strong>. <em>This sale marks a notable development in the Australian mortgage market, signaling continued consolidation and strategic adjustments among major lenders.<\/em><\/p>\n<p>Further details from the earnings report indicate a core net interest margin (NIM) excluding significant items of <strong>1.81%<\/strong>, while the group NIM excluding items stood at <strong>1.94%<\/strong>. Shareholders will receive a final dividend per share of <strong>A$0.77<\/strong>.<\/p>\n<p>The RAMS brand, acquired by Westpac in 2007, has faced challenges in recent years, including the closure of its franchise network in 2024 due to compliance failures and a A$20 million fine from the Federal Court for systemic breaches of the National Consumer Credit Protection Act. <em>The sale to the consortium represents a strategic exit for Westpac from this non-core lending brand.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Westpac (WBC) reported a full-year 2025 net income of A$6.92 billion, slightly below analyst estimates, with a strong 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