Westpac (ASX:WBC) share price lower despite Consumer and Business changes

The Westpac Banking Corp (ASX:WBC) share price is lower on Wednesday despite announcing changes to its Consumer and Business divisions…

| 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 is trading lower on Wednesday despite the release of a positive announcement.

In afternoon trade the banking giant's shares are down 0.25% to $24.67.

What did Westpac announce?

Late this morning, Westpac announced a further initiative which aims to simplify its business.

According to the release, the bank is combining its Consumer and Business divisions into a new Consumer & Business Banking division. This change will happen from the start of next week on 22 March.

Leading the new division will be Chris de Bruin. He is currently the Chief Executive of the Westpac Consumer division.

One person that won't be sticking around, though, is Guil Lima. The current Chief Executive of the Business division will be leaving Westpac following the changes.

Why are the changes being made?

Westpac's CEO, Peter King, explained that the bank's new lines of business operating model had enabled it to consolidate divisional management and simplify the business.

He said: "Our new lines of business operating model has given us a solid foundation for this change, with greater clarity on accountability and a common management approach across each of the six business lines."

Mr King expects the changes to simplify things and also help reduce costs.

The CEO added: "The combined division will drive simplification of banking and help to reduce cost, including by consolidating support functions. The change will enable more efficient utilisation of common assets such as branches and call centres, and better capitalise on the work underway to improve our capabilities, particularly in service, digital and data."

Positively, the chief executive believes the division is in safe hands with Chris de Bruin.

"Mr de Bruin has significant experience running both consumer and business banking functions at a large multinational bank, as well as a strong background in fintech and digital banking, which will be particularly valuable as we better support customers' needs," said Mr King.

The Westpac share price is up almost 26% year to date.

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

A young woman sits with her hand to her chin staring off to the side thinking about her investments.
Share Market News

Does this broker prefer Treasury Wine or A2 Milk shares?

These consumer staples companies are comparable in size but not in upside according to this broker. 

Read more »

Broker looking at the share price.
Share Market News

5 things to watch on the ASX 200 on Wednesday

The Australian share market looks set to give back yesterday's gains.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Opinions

Why I'm buying more of these 2 ASX stocks ahead of earnings season

I've been excited about buying these investments.

Read more »

Ten smiling business people wave to the camera after receiving some winning company news.
Share Gainers

Here are the top 10 ASX 200 shares today

The ASX was back in the black this Tuesday.

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why Cromwell Property, Metcash, Pilbara Minerals, and Tyro shares are falling today

Let's see why these shares are under pressure on Tuesday.

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Share Gainers

Why DroneShield, Hansen, Hub24, and Paladin Energy shares are racing higher today

These shares are having a strong session. Let's find out why.

Read more »

A man in a dark blue suit walks through an airport past floor-to-ceiling windows with a Qantas plane flying in the distance
Travel Shares

Up 16% this year, does Macquarie rate Corporate Travel Management shares a buy, hold or sell?

Does the travel stock have further to fly?

Read more »

Business women working from home with stock market chart showing per cent change on her laptop screen.
Opinions

1 month until ASX earnings season begins: how I'm preparing

It’s almost reporting time. Here’s what I’m looking at.

Read more »