RAMS mortgages declined by 28% over the year due to run off, falling to a value of $21.4 billion. Taking the RAMS portfolio into account, Westpac Australia’s home loan growth was limited to 3%.
It has now been confirmed that a consortium with members including Pepper Money and KKR has agreed to acquire the RAMS home loan portfolio off Westpac.
Westpac retained a 21% share of the Australian housing credit market, but credit growth was just 0.5-times system; in other words, Westpac struggled to keep pace with the wider market throughout the year. Excluding RAMS, mortgage growth was 0.8-times system.
Chief executive Anthony Miller said he was “pleased with the result we are delivering today”.
“With a very strong balance sheet and momentum in our target segments, the opportunity to deliver more for our customers, people and shareholders is exciting.