Westpac chairman announces departure after 2-year tenure

“This delivers on my commitment to shareholders when I first took on the role in 2020 to create a leaner, more agile, and better performing company. It also ensures the board has time to appoint a new chair in an orderly way,” Mr McFarlane said.

“In the meantime, there remains much to be done and I can assure shareholders of my commitment to see the job through this year, and to support the Company in what will invariably be a challenging year.”

The bank had started the process of identifying a new chair and was looking for new directors to bring additional skills to the board.

Mr McFarlane added that he was leaving the bank in “good strategic and financial shape for the future”.

“We have successfully strategically repositioned the Company to focus on our natural strengths in commercial banking, focused on Australia and New Zealand,” Mr McFarlane said.

He said the bank had announced the exit of nine out of 11 businesses and completed the sale of seven, with two remaining businesses to exit.

“We also made significant progress on the journey to create a digital bank for consumers and small businesses,” Mr McFarlane said.

This included completing the roll-out of Westpac’s consumer app and digital mortgage, which is expected to roll out to brokers next year.

“We are also working to enable customers from any brand to transact in any of our Australian branches,” Mr McFarlane said.

Mr McFarlane also remarked on female representation in the bank was now 40 per cent, meeting the bank’s commitment to shareholders.

Westpac director, Peter Marriott, will also retire from the bank’s board at Wednesday’s (14 December) AGM having completed the maximum three terms.

Westpac chief executive officer, Peter King, told shareholders that the combination of rising interest rates and the increase in cost of living would be felt more fully by consumers and businesses after Christmas.

“We’re well placed to support customers through what will be a tougher period,” Mr King said.

However, while the bank delivered better loan growth through the year, it was behind the plan, he added.

“Our net interest margin was lower compared to 2021, particularly weighed down by the impact of ultra-low interest rates,” Mr McFarlane said.

“However, margins increased in the second half benefiting from the impact of higher interest rates.

“The trends of better growth, higher margins and improved efficiency, position us well for the year ahead.”

While lending had been “positive”, he noted the bank was watching “carefully” the impacts of eight consecutive rate hike on borrowers.

“There is no doubt that tighter monetary policy and slowing economic growth will impact some customers in the year ahead,” Mr McFarlane said.

“We are prepared for this cycle given the quality of the loan portfolio and the strength of our balance sheet and provisioning.”

 [Related: Westpac to roll out digital loan to brokers next year]