Westpac pre-empts results with strategy
(16 April 2012 – Australia) Westpac Banking Corporation (Westpac) is set to target SME business lending and wealth management, as the bank looks for areas of "higher growth" and target spots that they are "under-penetrated" to deliver revenue in a slower paced banking environment.
The bank’s chief executive, Gail Kelly, is expected to reveal the strategy when she announces the bank’s first-half results next month, according to BusinessDay.
Peter Hanlon, one of Mrs Kelly’s key senior staffers and interim chief executive of the bank’s newly formed Australian Financial Services group, is expected to oversee the project, which will aim to increase the bank’s market share across a range of key products to fall in-line with the bank’s 25 percent footprint target across the Australian market.
The bank’s targets are said to include boosting its share of deposits, and to lift its small business lending market share from 20 to 25 percent. Small business transactions will also be targeted under the strategy.
Mr Hanlon told BusinessDay that by accepting the fact there is low growth in some areas there are two things the bank can do, which include looking for areas of higher growth and looking for areas where the bank is under-penetrated.
The bank has also set the hefty target of 15 percent share of the nation's A$1.3 trillion-plus superannuation and investment market over time from a current share of 5 percent.
Peter Hanlon, one of Mrs Kelly’s key senior staffers and interim chief executive of the bank’s newly formed Australian Financial Services group, is expected to oversee the project, which will aim to increase the bank’s market share across a range of key products to fall in-line with the bank’s 25 percent footprint target across the Australian market.
The bank’s targets are said to include boosting its share of deposits, and to lift its small business lending market share from 20 to 25 percent. Small business transactions will also be targeted under the strategy.
Mr Hanlon told BusinessDay that by accepting the fact there is low growth in some areas there are two things the bank can do, which include looking for areas of higher growth and looking for areas where the bank is under-penetrated.
The bank has also set the hefty target of 15 percent share of the nation's A$1.3 trillion-plus superannuation and investment market over time from a current share of 5 percent.
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