Westpac New Zealand Economic and Sustainability Strategy Update
Significant developments
NZ Review
•
External Reviews
(Section 95)
•
•
•
Westpac Banking Corporation is reviewing the most appropriate ownership structure for its New Zealand
operations.
Rationale: Banking is increasingly a local business; BS11 – operational separation limits synergies
Considerations: Potential value uplift from two locally focused businesses; separation and independence costs;
impact of RBNZ reviews
Status: Regulator engagement required; determining potential split of balance sheet in a demerger; progressing
analysis
The RBNZ has required WNZL to undertake 2 independent reports to address risk governance processes. These
reports relate to:
1. The effectiveness of actions to improve liquidity risk management and risk culture; and
2. The effectiveness of risk governance at WNZL, with a focus on the Board
Work has been underway to address these issues for some time, but more work is needed to meet expectations
A selection process is underway to appoint Independent Reviewers, subject to RBNZ approval
WNZL must hold a liquidity overlay of ~$2b from 31 March 21 until completion
Management
WNZL CEO, David McLean retiring on 25 June 2021. Simon Power, General Manager Institutional & Business
Banking, acting CEO while a global search is completed
7View entire presentation