(1 February 2010 – Australia) BankWest has received a A$400 million equity increase from Commonwealth Bank, surging the lenders capital base to A$3.8 billion.The deposit from CBA was welcomed by the bank, which needed to top up its balance sheet due to the rapid recovery in Western Australia’s housing markets and a period of fast paced lending growth.
A spokesman for Commonwealth Bank confirmed the A$400 balance sheet top up, saying that the injection brings BankWest’s capital more in line with the group’s average, has had no impact on the group’s capital position and was also required partly due to growth in the BankWest business.
Commonwealth Bank acquired BankWest after HBOS started to flounder during the global financial crisis; the acquisition propelled CBA into being the largest lender in Western Australia.