Surprisingly for a bank that is very profitable Westpac comes up trumps from the December 208 pillar three disclosures of the major banks, with an overall ratio - in the Ozrisk definition for this exercise of comparing risk weighted assets to exposure at default - of 35 per cent.
Commonwealth, at 37 per cent trails slightly. ANZ and NAB are in a tie for last place at 46 per cent.
Westpac has actually reduced its ratio from the last set of reports in September 2008 (where the bank's RWA to EAD ratio was 38 per cent, second to CBA on 35 per cent and the ANZ and NAB bringing up the rear again).
The difference is due to Westpac having the smallest and safest corporate book and also doing well in mortgages.
NAB and ANZ on the other will normally get better profits during the good times.
Ozrisk