Westpac sells custody business to HSBC
(26 July 2006 – Australia) Westpac is selling its custody business in Australia and New Zealand to HSBC for A$150 million.
The business has more than A$300 billion in assets under custody.
Westpac chief executive officer David Morgan said he believed that custody had become an increasingly international business and that "natural owners require global scale".
"Accordingly this sale continues our focus of only running businesses where we can have a sustainable comparative advantage," he said.
Westpac said it was approached to sell the custody business in early 2006 and decided to sell the business following a strategic review.
The bank said proceeds from the sale would be used to underpin other bank initiatives and that the net impact on its 2006 full year earnings was not expected to be significant.
Custody employees will be offered roles with HSBC.
Westpac chief executive officer David Morgan said he believed that custody had become an increasingly international business and that "natural owners require global scale".
"Accordingly this sale continues our focus of only running businesses where we can have a sustainable comparative advantage," he said.
Westpac said it was approached to sell the custody business in early 2006 and decided to sell the business following a strategic review.
The bank said proceeds from the sale would be used to underpin other bank initiatives and that the net impact on its 2006 full year earnings was not expected to be significant.
Custody employees will be offered roles with HSBC.
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