UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934
July 11, 2019
Commission File Number 1-10167
WESTPAC BANKING CORPORATION
(Translation of registrants name into English)
275 KENT STREET, SYDNEY, NEW SOUTH WALES 2000, AUSTRALIA
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F x Form 40-F o
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o
Incorporation by Reference
The information contained in this Report on Form 6-K, excluding the information set forth in Exhibit No. 1, shall be incorporated by reference in the prospectuses relating to the Registrants securities contained in the Registrants Registration Statements on Form F-3 (File Nos. 333-228295 , 333-228294 and 333-220373 ), as such prospectuses may be amended or supplemented from time to time.
On July 11, 2019, Westpac Group received APRAs response to its Culture, Governance and Accountability (CGA) self-assessment process. In its response, APRA has decided to apply an additional $500 million to Westpacs operational risk capital requirement.
The $500m requirement, to be applied through an increase in risk weighted assets, will apply from 30 September 2019. This change is expected to reduce Westpacs Level 2 common equity tier 1 (CET1) capital ratio by approximately 16 basis points. Westpacs CET1 capital ratio at 31 March 2019 was 10.64%.
Index to Exhibits
Exhibit
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Description |
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Disclosure regarding forward-looking statements
The information contained in this Report on Form 6-K contains statements that constitute forward-looking statements within the meaning of section 21E of the U.S. Securities Exchange Act of 1934. Forward-looking statements are statements about matters that are not historical facts. Forward-looking statements appear in a number of places in this Report and include statements regarding our intent, belief or current expectations with respect to our business and operations, market conditions, results of operations and financial condition.
We use words such as will, may, expect, indicative, intend, seek, would, should, could, continue, plan, aim, probability, risk, forecast, likely, estimate, anticipate, believe or other similar words to identify forward-looking statements. These forward-looking statements reflect our current views with respect to future events and are subject to change, certain risks, uncertainties and assumptions which are, in many instances, beyond our control and have been made based upon managements expectations and beliefs concerning future developments and their potential effect upon us. There can be no assurance that future developments will be in accordance with our expectations or that the effect of future developments on us will be those anticipated. Should one or more of the risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results could differ materially from the expectations described in this Report. Factors that may impact on the forward-looking statements made include, but are not limited to, those described in the section entitled Risk factors in Westpacs 2019 Interim Financial Results on Form 6-K filed with the U.S. Securities and Exchange Commission. When relying on forward-looking statements to make decisions with respect to us, investors and others should carefully consider such factors and other uncertainties and events. We are under no obligation, and do not intend, to update any forward-looking statements contained in this Report, whether as a result of new information, future events or otherwise, after the date of this Report.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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WESTPAC BANKING CORPORATION |
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(Registrant) |
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Date: July 11, 2019 |
By: |
/s/ Yvette Adiguzel |
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Yvette Adiguzel |
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Associate Director |
11 JULY 2019
WESTPAC RECEIVES APRA RESPONSE TO ITS CULTURE, GOVERNANCE AND ACCOUNTABILITY SELF-ASSESSMENT PROCESS
Westpac Group today received APRAs response to its Culture, Governance and Accountability (CGA) self-assessment process. In its response, APRA has decided to apply an additional $500 million to Westpacs operational risk capital requirement.
This follows APRA concluding that Westpac was required to improve its management and oversight of non-financial risk. The additional capital requirement will remain in place until APRA is satisfied that Westpac has completed its action plan.
A summary of the CGA self-assessments findings was included in Westpacs 2019 Interim Results Presentation and Investor Discussion Pack. The summary included key findings and outlined Westpacs action plans across five areas: Board and executive governance, risk and compliance, customer, remuneration and accountability, and culture.
Westpacs CGA self-assessment was undertaken by a joint team of Westpac employees and consultants from global management consulting firm, Oliver Wyman, and was submitted to APRA in November 2018. Westpac has today released a full copy of its CGA self-assessment on its website: www.westpac.com.au/about- westpac/media/
The $500m requirement, to be applied through an increase in risk weighted assets, will apply from 30 September 2019. This change is expected to reduce Westpacs Level 2 common equity tier 1 (CET1) capital ratio by approximately 16 basis points. Westpacs CET1 capital ratio at 31 March 2019 was 10.64%.
Westpac Group CEO Brian Hartzer, said: The CGA self-assessment was a valuable exercise. We acknowledge the need to improve non-financial risk management and oversight and we are working to resolve the issues raised.
Our Board and senior executives are committed to addressing the shortfalls identified in the report and will continue to provide regular updates on our progress.
Westpac Group Chief Risk Officer, David Stephen, is leading a program of work, overseen by the Board, to implement the self-assessments recommendations. To date, around 20% of the recommendations have been implemented.
For Further Information
David Lording |
Andrew Bowden |
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Media Relations |
Investor Relations |
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M. 0419 683 411 |
T. 02 8253 4008 |
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M. 0438 284 863 |