Westpac (ASX: WBC) today announced the sale of its $21.4 billion RAMS mortgage portfolio to a consortium including Pepper Money, KKR, and PIMCO. Westpac is one of Australia’s largest banking and financial services organisations. They provide a broad range of banking and financial services in Australia, New Zealand and internationally.
The sale agreement is at a slight premium to the gross loan value of the portfolio at completion, however, after transaction costs and other adjustments, Westpac anticipates a loss on the sale. The bank estimates that its Common Equity Tier 1 (CET1) capital ratio will increase by approximately 20 basis points following the completion of the transaction.
Westpac Chief Executive Anthony Miller stated that the sale aligns with the bank’s strategy to simplify its operations, following the closure of RAMS to new business in August 2024. According to Mr. Miller, this move will significantly streamline Westpac’s mortgage operations, reduce run costs, and enhance strategic flexibility. He reassured RAMS customers that they can continue managing their loans through the existing RAMS app, website, and call centre without any immediate changes.
The transaction is subject to customary conditions and regulatory approvals and is expected to be completed in the second half of 2026. Pepper Money is one of Australia and New Zealand’s leading non-bank lenders that was established in 2000. KKR is a leading global investment firm. PIMCO is a global leader in active fixed income.
