Bulletin: Westpac Lapses Aggravate Challenges Facing Major Australian Banks

MELBOURNE (S&P Global Ratings) Nov. 26, 2019--S&P Global Ratings today said that recent regulator-initiated civil proceedings against Westpac Banking Corp. (Westpac; AA-/Stable/A-1+) indicate that compliance and conduct issues are likely to remain a drag on the business and earnings for the Australian major banks in the next two years. On Nov. 22, 2019, AUSTRAC (Australia's anti money-laundering and terrorism financing regulator) announced that it has applied to the Federal Court of Australia for civil penalty orders against Westpac. AUSTRAC has alleged that Westpac contravened the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 on over 23 million occasions. On Nov. 26, 2019, Westpac announced the departure of its group CEO and that the Chairman will bring forward his retirement to the

...November 25, 2019 MELBOURNE (S&P Global Ratings) Nov. 26, 2019--S&P Global Ratings today said that recent regulator-initiated civil proceedings against Westpac Banking Corp. (Westpac; ##-/Stable/A-1+) indicate that compliance and conduct issues are likely to remain a drag on the business and earnings for the Australian major banks in the next two years. On Nov. 22, 2019, AUSTRAC (Australia's anti money-laundering and terrorism financing regulator) announced that it has applied to the Federal Court of Australia for civil penalty orders against Westpac. AUSTRAC has alleged that Westpac contravened the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 on over 23 million occasions. On Nov. 26, 2019, Westpac announced the departure of its group CEO and that the Chairman will bring forward his retirement to the first half of 2020. Although significant, announced board and management changes should, in our view, stabilize stakeholder discontent, which has continued to mount since...

Bulletin