Powered by MOMENTUM MEDIA
subscribe to our newsletter

Westpac mulls further business sale

The major bank has said that it is assessing the viability of another business arm, as part of a simplification strategy that has already seen its Asian and wealth-related businesses on the chopping block.

In a statement to the market on Wednesday (24 March), Westpac said it was “assessing the appropriate structure” for its New Zealand business and “whether a demerger would be in the best interest of shareholders”, after earlier revealing it had been instructed by the Reserve Bank of New Zealand to commission a number of reports around its risk and liquidity management processes.

“Westpac NZ is a valuable part of the Westpac Group and has been for over 160 years.

However, given the changing capital requirements in New Zealand and the RBNZ requirement to structurally separate Westpac’s NZ business operations from its operations in Australia, it is now appropriate to assess the best structure for these businesses going forward,” the bank said.

Westpac said the review formed part of its “fix, simplify and perform” strategy, which had already seen its wealth platforms, super and insurance businesses placed in a specialist division, with a view to the bank’s “ultimate exit” from these businesses.

Advertisement
Advertisement

PROMOTED CONTENT


“We have also announced the consolidation of our international operations in Asia,” the bank said. Westpac said it would provide further updates on the New Zealand review as required.

The major bank recently announced that it will sell its lender’s mortgage insurance business to a global specialist insurer, and it will also combine its consumer and business divisions into one division later this month. 

[Related: APRA closes Westpac case, EU remains]

Westpac mulls further business sale
Westpac mulls further business sale
mortgagebusiness

Are you a new-to-industry broker in the process of growing your business? Then there’s some great news: The Adviser’s New Broker Academy is back in 2021 and will provide you with essential insights into cutting-edge tools, strategies and processes to fast-track to success. Don’t miss your chance to attend. To secure your FREE place, visit newbroker.com.au now!

Reporter

If you have any news, ideas or enquiries for Mortgage Business - please contact This email address is being protected from spambots. You need JavaScript enabled to view it.

Latest News

The chief of Australia’s largest bank has said lenders should act pre-emptively and shift their floor rates for mortgage serviceability am...

Total household wealth reached a high of $13.4 trillion in the June quarter, primarily due to rising property prices, according to the Aust...

The property exchange settlement platform has been granted approval to establish an Electronic Lodgement Network in the ACT.  ...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

How long do you think it should take to discharge a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.