The merger of Westpac and St George Bank came into effect on December 1. Heading the new institution are mainly Westpac managers, with St George Bank’s former CEO Paul Fegan and head of retail banking Les Matheson leaving the bank. Greg Bartlett is the only one of Fegan’s nine top executives to find places in the new Westpac executive. A 25-year veteran of St George who most recently headed its institutional and business banking division, Bartlett is now in charge of St George’s retail and business banking operations.
ANZ Bank reportedly has the highest level of on-balance sheet credit exposure, according to its credit exposure submission to the Australian Prudential Regulation Authority. It declared $348.5 billion, while Commonwealth Bank of Australia showed $345.7 billion. At the end of September, the tier 1 ratios of the major Australian banks were 7.35% for NAB, 7.54% for Commonwealth Bank of Australia, 7.7% for ANZ, 7.8% for Westpac and 11% for Macquarie.
NAB will reportedly use a government guarantee on banks’ term funding to seek new capital in international credit markets. The guarantee charges a fee of between 70-150 basis points, for banks’ deposits and term wholesale funding over $648,201.
ANZ Price at posting:
$14.38 Sentiment: Sell Disclosure: Held
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