Westpac has enough capital

Westpac today announced that their full year cash profit was $7.82 billion, up 3% for the year. CEO Brian Hartzer commented on the bank’s capital position saying that the $6 billion of new capital Westpac has raised this year has increased its capital levels significantly. The Murray report in financial services recommended that Australia’s banks needed to be “unquestionably strong” and Mr Hartzer said, “The capital raised responds to regulatory changes that increase the amount of capital needed to be held against mortgages by more than 50 per cent. Our capital raising allows us to meet regulatory requirements while continuing to support growth in the Australian economy.” He also said that Australia is stuck in a “lower-for-longer” environment.