Westpac Banking Corp (ASX: WBC) has promoted chief financial officer Phil Coffey to a newly-created role of deputy chief executive officer where he will work with the long-serving Gail Kelly on "critical strategic issues".
While the move is certain to spark speculation that Kelly is on her way out after six years in the job (12 years if you include her time at St George Bank), it seems more likely that it is simply a continuation of the reshuffle amongst the top executive rankings which saw chief information officer Clive Whincup move into an innovation role in January.
Coffey is highly respected within the bank and played a key role in guiding the company through the depths of the GFC, helping the bank to build one of the strongest balance sheets in Australian banking. Despite this, analysts expect that when Kelly does move on from the bank (which could be within the next two years), it will be the boss of the bank's Australian division, Brian Hartzer, or institutional boss Rob Whitfield that will take the top job.
Kelly led Westpac to a record $6.82 billion profit for the year ending 31 September 2013, while Commonwealth Bank of Australia (ASX: CBA), Australia and New Zealand Banking Group (ASX: ANZ) and National Australia Bank Ltd (ASX: NAB) also achieved strong results. Combined, the big four posted an annual profit of $27.3 billion.
Foolish takeaway
Shares in Australia's major banks have recorded incredible gains over the last 18 months, as investors have sought out high-yielding stocks to offset low bond yields and poor returns from term deposits. Although they are likely to record even greater profits this year than they did in 2013, thanks to low borrowing costs and low bad debts, they do not represent a good buy at today's prices.
