Core Insights - Westpac announced a pre-tax restructuring charge of A$273 million ($177 million) for the second half of fiscal year 2025, related to its Fit for Growth programme [1] - The Fit for Growth programme is expected to yield productivity gains that will cover its costs over the next two financial years [1] - The restructuring expense will be recorded as an operating cost and will not impact the group's net profit after tax [2] Financial Impact - Westpac's reported net profit after tax for FY25 will be reduced by A$56 million due to notable items associated with hedging, a decrease from A$123 million in the previous fiscal year [3] - The Australian Prudential Regulation Authority (APRA) confirmed that Westpac has met the requirements of a multi-year risk transformation programme, leading to the withdrawal of a A$500 million capital add-on [3][4] Capital and Risk Management - The removal of the A$500 million capital add-on is expected to increase Westpac's common equity tier 1 (CET1) capital ratio by approximately 17 basis points, reflecting a reduction in risk-weighted assets of A$6.25 billion [4] - Westpac had previously entered into a Court-Enforceable Undertaking (CEU) with APRA in December 2020 to address prudential weaknesses [5] - APRA had imposed a pre-emptive A$500 million capital add-on in July 2019, followed by another A$500 million in December 2019, which was gradually removed as Westpac demonstrated progress [6][7]