As Westpac announced its half-year result, it also revealed that it was transferring its wealth platforms, superannuation and retirement products, investments, and general and life insurances to a ‘Specialist Business Division’.
“We have several businesses where we don’t have sufficient scale or where the returns are insufficient for the risk,” said CEO Peter King, adding that some of the businesses “may ultimately be more successful under different ownership”.
Jason Yetton has been appointed chief executive for specialists businesses, and will commence the new role on 18 May 2020.
“Jason is a proven executive who held senior positions at Westpac for many years, including Group Executive, Westpac Retail & Business Banking and General Manager, BT Customer Solutions, and was most recently an executive at CBA,” Mr King said.
The Westpac Pacific business will also be managed in this division to “simplify the institutional bank portfolio”.
Westpac’s net profit was $1.190 billion at the half year, a decrease of $1.983 million (62 per cent) compared to first half 2019. The fall was due to a significant increase in impairment charges due to the expected impacts of COVID-19, costs associated with AUSTRAC proceedings, and the impact of costs related to remediation and litigation.
Westpac announced an impairment charge of $2.2 billion and followed ANZ’s lead by deferring a decision on its dividend.
In the same way as it treated its Dealer Groups, If you can’t make money legitimately and ethically, jettison the business no matter what the ramifications are for its customers whom they have received substantial fees from ………..
You would think that being….”most recently an executive at CBA” – would automatically preclude someone from holding any Senior position in a wealth management business.
Ken Oath
So I’m guessing that Westpac will offload BT Insurance & all of its superannuation and investment platforms??
Yes
Here we go again. KPIs – why did you not get a first interview sale
Wait for the inevitable – despite the reassurances, “that we have been supporting Advisers for ..50 years” – the sale by Westpac of BT.
So you have a senior banker in charge of wealth division.The board goes to the effort to recognise there needs to be separation but put a lending expert in charge of investments.They just do not get it and that is after a royal commission.
Yeah mate you have no idea TONY
Yep, agree. This appointment has no wealth experience
He was head of Colonial First State. For about 5 minutes.
True, though he also had a bunch of senior roles with BT for 10 years before Westpac.
Not on his LinkedIn CV, so yeah 5 maybe minutes
I think you need to do a little more research Jason have far more wealth experience than banking experience. Agree it will be for sale within 12 months but he is a good choice.
Ok, if he has so much Wealth experience, he can sit the FASEA exam then. Cool
I wonder if Jason Yetton’s favourite meal is bubble & squeak?