Westpac share price on watch after naming new CEO

The Westpac Banking Corp (ASX:WBC) share price will be on watch on Thursday after naming its new chief executive officer…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Westpac Banking Corp (ASX: WBC) share price will be one to watch on Thursday after the banking giant named its new chief executive officer.

What did Westpac announce?

This morning Westpac announced that it has appointed Peter King as its chief executive officer.

Mr King has been serving the company as its acting chief executive officer since December following the unceremonious exit of former leader Brian Hartzer.

The chairman of Australia's oldest bank, John McFarlane, believes that management stability and strength are vital during moments of global stress and uncertainty.

He explained: "I believe we need a Chief Executive in place now, not later, and with full, rather than acting authority. On my recommendation, the Board has appointed Peter King as CEO. Peter has agreed to do this for two years."

Mr McFarlane, who succeeded long-time incumbent Lindsay Maxsted as the bank's chairman on April 1, appears to believe this could be the start of a winning partnership.

He added: "I have built a strong relationship with Peter since we first met. He understands the bank, its business and its finances, and has the confidence of the management team, as well as my own and that of the Board. He and I are also completely aligned on what needs to be done. He is the right person to take the company forward at the present time, and now has the full authority to make change and to see it through."

Who is Peter King?

Peter King has been with the bank for 25 years and has held several senior finance roles. This includes being its chief financial officer since 2014.

In addition to this, he held senior positions across the group including in Group Finance, Business and Consumer Banking, Business and Technology Services, Treasury and Financial Markets.

The new chief executive appears up for the challenge of navigating Westpac through the coronavirus crisis.

He commented: "We are focused on responding to the COVID-19 outbreak and supporting our customers and protecting our people. We have a critical role to play alongside Government and regulators in supporting Australians and New Zealanders and our countries' financial systems."

However, the new CEO has warned that credit provisions are likely to rise in the short term because of the coronavirus.

"Given the impact of the Coronavirus on the economy and the level of uncertainty, while it is difficult to make a reasonable assessment of its potential impact at the moment, we expect to see a rise in our credit provisioning this year and probably beyond, which will be accelerated by recently implemented accounting standards. We are currently working through this and will update shareholders in due course," he warned.

Looking further ahead, the bank's new leader is focused on simplifying its business and improving its culture.

Mr King explained: "My medium-term priorities remain to drive performance through our lines of business and sharper accountability, simplify the business through digital transformation, and lift our service culture and risk management capability."

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

A happy young couple lie on a wooden deck using a skateboard for a pillow.
Broker Notes

Bell Potter says this growing ASX 200 stock can rise over 40%

Big returns could be on the cards for buyers of this stock.

Read more »

Broker written in white with a man drawing a yellow underline.
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A couple makes silly chip moustache faces and take a selfie on their phone.
Share Market News

Which delivered superior returns in FY25: CSL, A2 Milk, or Telstra shares?

We review the share price growth and dividend income delivered to investors in FY25.

Read more »

Woman with an amazed expression has her hands and arms out with a laptop in front of her.
Share Gainers

Why IGO, Johns Lyng, Lynas, and Web Travel shares are pushing higher today

These shares are ending the week on a high. But why?

Read more »

Person with thumbs down and a red sad face poster covering the face.
Share Fallers

Why Imricor, Ora Banda, Ventia, and Vulcan shares are dropping today

These shares are ending the week in the red. But why?

Read more »

Man with rocket wings which have flames coming out of them.
Resources Shares

Up 23% today, why Macquarie forecasts this ASX 200 mining stock could rocket another 33%

Macquarie forecasts more outsized gains to come for this surging ASX 200 mining stock.

Read more »

two men shake hands on a deal.
Mergers & Acquisitions

Guess which ASX 300 stock is rocketing 23% on $1.1b takeover deal

This stock has accepted a takeover offer but it is a deep discount to its 52-week high.

Read more »

A man sits in deep thought with a pen held to his lips as he ponders his computer screen with a laptop open next to him on his desk in a home office environment.
Bank Shares

ASX banking sector: Is it time to consider a regional bank?

The big 4 banks are widely considered to be overvalued.

Read more »