Westpac NZ CEO announces retirement
AUCKLAND: Westpac New Zealand’s chief executive David McLean is to retire as of June 25.
Mr McLean, who made the announcement as the bank revealed a halfyear cash profit of $583 million, has been with the bank for 22 years and has been CEO since June 2014.
Mr McLean said it was the right time for both the business and for him.
‘‘The industry is going through a period of change and now is an appropriate time for a new leader to take the helm, and guide the organisation into the future.’’
The bank’s cash earnings rose 98% for the six months to March 31 while its core earnings were up 14% to $709 million.
Mr McLean said the strong halfyear result had been driven by betterthanexpected economic conditions.
‘‘A year ago, the outlook was very uncertain, with health, social and economic outcomes hanging in the balance.
‘‘Thankfully, New Zealand has so far avoided the worst effects of the global pandemic, largely thanks to decisive leadership from the Government, and we are now cautiously optimistic.
‘‘Westpac NZ’s balance sheet is sound and we’re wellpositioned to support the economic recovery and the needs of households and businesses.’’
Mr McLean said although it still expected a softening of economic conditions during the rest of 2021, based on its current outlook, it was writing back $99 million in credit provisions taken last year as they were no longer needed.
The bank’s loan book increased by 4% to $90.6 billion its home loans up 10% year on year to $58.4 billion and deposits up 7% to $74.1 billion. Its margin stayed flat at 2.06%.
‘‘It’s pleasing that we’ve been able to help firsthome buyers to purchase 3512 homes during the reporting period — a lift of 35% on the prior comparable period.’’
Mr McLean said Westpac NZ was continuing to help customers coming off Covid19 repayment assistance, and other households and customers who had experienced difficulties from Covid19.
‘‘We’re working closely with our business customers to check they’re faring OK through these uncertain times.
‘‘Lending to large corporate and institutional organisations has eased off with some customers diversifying funding sources by issuing bonds, while others no longer need the same level of bank facilities that were made available in the early stages of the pandemic.’’
‘‘We remain active in the agri sector, where we grew our market share.’’
Westpac NZ’s parent, Westpac Banking Corporation, had its cash earnings rise 256% to $$3.5 billion. It will pay an interim dividend of A56c a share.
Mr McLean said Westpac NZ was working closely with its parents on the review of the New Zealand businesses.
‘‘It’s wise for all companies to regularly review the way business operations are structured and that’s what Westpac Group is doing.
‘‘The key thing for our customers to know is that Westpac NZ remains very much open for business and that will be the case as we move forward, regardless of the ownership model.’’
He said Westpac New Zealand was prioritising independent reviews of its liquidity risk management and risk governance, as required by the Reserve Bank of New Zealand.
‘‘A team has been established to work solely on these reviews. We’ve been focusing on these areas for some time and are now adding even more resources.’’
One of the things he found most satisfying during his career was the successful achievements of the bank’s customers, Mr McLean said.
‘‘I am also proud, in my time as CEO, of the work we have done championing diversity and inclusion; publishing our gender pay gap; embedding a new focus on culture and conduct; becoming the first New Zealand bank to be Living Wage accredited; and for rallying together to help the economy through the darkest days of the Covid19 pandemic. Most of all, I will miss working with the wonderful team at Westpac.’’
Simon Power, general manager institutional and business banking will act as CEO after Mr McLean departs while a global search is undertaken for his replacement.
❛ The key thing for our customers to know is
that Westpac NZ remains very much open for business