Westpac share price: where to next after $1.5 million fine from APRA

Here’s everything you need to know about the $1.5 million infringement penalty APRA has just handed down to banking giant Westpac.

On Thursday, APRA, the prudential regulator of Australian financial service companies, announced that it had served banking giant Westpac Banking Corp and two of its associated entities with infringement notices carrying penalties totalling A$1.5 million.

What did Westpac do, exactly?

According to the regulator, Westpac Banking Corp was as much as 20 days late in submitting key financial reports to APRA’s offices, for the 2019 March month.

In addition to this, two of Westpac’s subsidiaries: St George Finance Holdings and Capital Finance Australia, submitted their filings even later, coming in 37 days overdue.

Westpac’s subsidiaries were also late in submitting their filings for the 2019 April month.

The prudential regulator noted that a failure to submit these filings in a timely manner carried with it strict liabilities.

Indeed, that was the case when APRA issued infringement notices to Westpac and its subsidiaries, carrying a total penalty of A$1,501,500.

This is the maximum financial penalty APRA has the capacity to issue, for matters of this kind.

APRA’s Deputy Chair weighs in

In response to the A$1.5m fine, APRA’s Deputy Chair, John Lonsdale, commented that:

‘Access to accurate and timely data is critical for APRA to monitor effectively the safety and stability of the banking, insurance and superannuation sectors.’

Mr Lonsdale further stressed that:

‘By issuing these infringement notices, APRA wants to send a strong message to industry that compliance with our reporting standards is mandatory, and cannot be considered secondary to other business priorities.’

Westpac share price: how did investors respond?

Unsurprisingly, investors seemed unworried by news of APRA’s A$1.5m fine.

In fact, as of 13:24 AEST, Westpac traded almost half a percent higher at A$28.18 per share.

In the scheme of things and when compared to the impact of the Hayne Royal Commission, a A$1.5m fine represents little more than a slap on the wrist for the A$99.8 billion Westpac.

Indeed, with cash earnings of A$3.2bn in the first-half of 2019 alone, APRA’s fine is likely to have little long, or for that matter, short-term impact on the bank.

According to the APRA website, Westpac has until September 6 to pay the $1.5m fine.

Westpac Banking Corp has yet to release an official statement on the matter.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.


Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.