Key facts
- Westpac's CVA and CCR charges increased by A$1.5 billion in the June quarter.
- The surge was attributed to Australian dollar rate movements affecting derivative values.
- CVA risk-weighted assets increased by 23% to A$3.3 billion.
Westpac recorded significant increases in its credit valuation adjustment (CVA) and counterparty credit risk (CCR) charges during the three months ending June 2026. The combined charges surged by A$1.5 billion, primarily due to fluctuations in Australian dollar rates that elevated the mark-to-market value of derivatives held by the bank. Consequently, CVA risk-weighted assets saw a substantial rise of 23%, adding A$615 million to reach a total of A$3.3 billion.