Westpac CFO to quit post
Search begins for successor to retiring veteran
WESTPAC will launch an international search for a new chief financial officer after Peter King said he would retire next year following 25 years with the bank.
Mr King, who has been in the key numbers role since 2014, has given 12 months notice, Westpac said yesterday.
He will continue in the position until a successor is appointed, the nation’s second largest bank said.
Westpac chief executive Brian Hartzer praised Mr King, saying he had served in a senior position during a period of substantial change for the industry.
“Peter has played a critical role during a period of major change in Australian banking and as a result of his expertise and dedication, Westpac is a better and stronger bank,” Mr Hartzer said.
“During his time as CFO Peter has overseen a significant increase in the strength of our balance sheet, including the implementation of new capital, funding and liquidity requirements. In addition, he has helped deliver a significant increase in investment to modernise and digitise our business, a reshaping of our business portfolio, and terial improvements in ductivity.”
Mr King (pictured) said the bank had transformed into a more customer-focused organisation during his time with it.
“While we have more work to do, I believe Westpac is on the right track to not only continue to be financially successful but to be an organisation that customers want to bank with and staff are proud to work for,” he said. mapro
The looming change at Westpac came as Commonwealth Bank issued $US2.5 billion ($3.6 billion) worth of bonds amid a regulatory push to increase capital reserves.
The Australian Prudential Regulation Authority has ordered banks to lift their total capital by three percentage points of risk-weighted assets by 2024 in order to better insulate themselves from a crisis.
The change means banks need to raise an extra $50 billion. A number of banks have issued bonds in recent months.
National Australia Bank raised $US1.5 billion through subordinated notes – unsecured loans that rank below other, more senior loans or securities with respect to claims on assets or earnings.
APRA last month said Australian banks would only be allowed to have 25 per cent of their tier-one capital – core funds held to help absorb losses – exposed to international operations or related parties from January 2021. That is down from the current 50 per cent.