• Westpac sells $21.4bn RAMS mortgage portfolio to consortium
• Sale at a slight premium to gross loan value
• Westpac's CET1 ratio estimated to increase by ~20bps

Westpac today announced it has entered into an agreement to sell its $21.4bn RAMS mortgage portfolio to a consortium which includes Pepper Money Limited, KKR and PIMCO. The sale is at a slight premium to the gross loan value of the portfolio to be transferred at completion. After transaction costs and other adjustments, a loss on sale is expected. Following completion, Westpac's common equity Tier 1 capital ratio is estimated to increase by approximately 20 basis points. Westpac Chief Executive Anthony Miller said the sale further simplifies the bank following the closure of RAMS to new business in August 2024. 'This transaction will significantly streamline Westpac's mortgage operations, reduce run costs across the business and provide further strategic flexibility,' Miller said. 'Importantly, RAMS customers can continue managing their loans through the RAMS app, website, and call centre and do not need to do anything following today's announcement,' he said. Customers will be supported with any transitional requirements over the coming months. Completion of the transaction is subject to various conditions and regulatory approvals and is expected to occur in the second half of 2026.