Westpac
Encyclopedia
Westpac is a multinational financial services
, one of the Australian "big four
" banks and the second-largest bank in New Zealand.
As of November 2011, Westpac has 12.2 million customers, Australia's largest branch network with almost 1200 branches and a network with more than 2800 ATMs. The bank is Australia's second-largest provider of home lending and Australia's second-largest provider of wealth platforms by funds under administration. The bank is Australia's second-largest business banking lender and Australia's second-largest bank by assets.
Westpac was recognised by the Dow Jones Sustainability Index as the most sustainable bank in the world for five years running, until ANZ who shared the title in 2007 was solely awarded in 2008.
.
In the past, RBB operated as Consumer Financial Services. The name was changed when all retail products were combined into the one division.
BankSA is the largest financial institution in South Australia, and the State's main provider of housing, personal finance and rural banking services. It also provides funds management, life and general insurance, and superannuation and investment services. Westpac acquired BankSA in December 2008. It continues to be a division of St.George Bank.
Westpac acquired RAMS home loans in January 2008 and operates the RAMS distribution business and brands as part of the St.George group.
and another in Tokomaru Bay
. Today this unit offers a whole range of consumer and corporate services to clients throughout New Zealand. It is the dominant provider of banking services to small to medium business, corporate and institutional organisations, and is the banker of the New Zealand government
. Currently Westpac is the second largest bank in New Zealand, after the merger of ANZ and National Bank of New Zealand
, with around 1.5 million customers, 3,000 shareholders and 197 branches nationwide.
On 29 September 2006 Westpac was forced to pay NZ$5.1 million by the New Zealand Commerce Commission
over hidden foreign transaction fees; most of the fine is reimbursement to affected customers, in the order of 12% of the fees actually charged. All other banks operating in New Zealand have either already been fined or are awaiting a court case.
In October 2009 Westpac Banking Corporation (New Zealand branch) was ordered to pay the Inland Revenue Department (New Zealand)
NZ$961 million in avoided taxes.
, a joint venture of several major international banks that allows customers of the banks to use their ATM
card or check card
at another bank within the Global ATM Alliance with no fees when traveling internationally. Other participating banks are Barclays (United Kingdom), Bank of America
(United States), BNP Paribas
(France), Ukrsibbank
(Ukraine), China Construction Bank
(China), Deutsche Bank
(Germany), Grupo Santander
(Spain) and Scotiabank
(Canada).
s for migrants can be opened before people arrive in the country using their easy account opening process. Credit card
s and mortgages can even be approved before arrival. Westpac Migrant Banking has a representative office in London where accounts can be arranged, although the process can be done remotely from any country. Westpac plans to open a retail branch in London in 2011.
an operation. It is one of the largest banks in the country and has a 40% market share.
Established in Sydney
in 1817, the Bank of New South Wales was the first bank in Australia. Edward Smith Hall
was the first cashier and secretary. During the 19th and early 20th century, the Bank opened branches first throughout Australia and Oceania, at Moreton Bay
(Brisbane
) in 1850, then in Victoria
(1851), New Zealand (1861), South Australia
(1877), Western Australia
(1883), Fiji
(1901), Papua New Guinea
(1910) and Tasmania
(1910).
's official rate rise of 0.25%. Westpac justified the move on increased costs of funding, using an analogy with the price of bananas to explain the reasons to its customers. The move drew considerable criticism, with the Prime Minister Kevin Rudd
suggesting the bank should take "a long hard look at itself", and other major banks such as NAB
, who raised rates in line with the Reserve Bank, attacking Westpac for its move.
.
Financial services
Financial services refer to services provided by the finance industry. The finance industry encompasses a broad range of organizations that deal with the management of money. Among these organizations are credit unions, banks, credit card companies, insurance companies, consumer finance companies,...
, one of the Australian "big four
Big Four (banks)
Big Four is the colloquial name for the four main banks in several countries, where the banking industry is dominated by just four institutions and where the phrase has gained currency.-Australia:...
" banks and the second-largest bank in New Zealand.
As of November 2011, Westpac has 12.2 million customers, Australia's largest branch network with almost 1200 branches and a network with more than 2800 ATMs. The bank is Australia's second-largest provider of home lending and Australia's second-largest provider of wealth platforms by funds under administration. The bank is Australia's second-largest business banking lender and Australia's second-largest bank by assets.
Westpac was recognised by the Dow Jones Sustainability Index as the most sustainable bank in the world for five years running, until ANZ who shared the title in 2007 was solely awarded in 2008.
Core business activities
Westpac's core business consists of nine business units (five customer facing) through which it serves around 8.2 million customers. These business areas are:Westpac Retail and Business Banking (RBB)
This includes deposit taking, transaction accounts, credit cards, mortgages, and other lending. Westpac is a major home loan provider and also serves the financial needs of business customers with a turnover of up to $20 million. Investment, superannuation and general and life insurance products are also sold through the branch networkBranch (banking)
A branch, banking center or financial center is a retail location where a bank, credit union, or other financial institution offers a wide array of face-to-face and automated services to its customers....
.
In the past, RBB operated as Consumer Financial Services. The name was changed when all retail products were combined into the one division.
Westpac Institutional Bank (WIB)
The Institutional Bank, which contributed 26% of Westpac's total earnings in 2010, provides advisory and wholesale banking services to Westpac's corporate and institutional customers. Customers include governments, property, financial institutions, and medium to large corporates. In the Australian market, WIB holds a prominent position in providing banking services amongst the big four Australian banks and global investment banks, with an increasing presence in the Asia/Pacific region. Business units within WIB include Corporate and Institutional Banking, Global Transactional Services, Capital and Loan Markets, Financial Markets, Equities, Funds Management, International Operations, WIB Finance, WIB Risk, and WIB Technology.Product and Operations (P&O)
P&O provides end-to-end banking solutions to small and medium enterprises across Australia.BT Financial Group
BT Financial Group, Westpac's wealth management division, includes managed investments, life insurance, superannuation and discount broking products in Australia and New Zealand. BT also offers custody and settlement services to institutional customers and fund managers.St.George Bank Group(including BankSA, Bank of Melbourne and RAMS)
St.George was founded in 1937 as a housing-based financial institution, becoming Australia's largest building society before achieving full banking status in July 1992. Westpac merged with St.George on 1 December 2008, but has pledged to keep the branch network for a minimum of 3 years and to maintain a corporate presence in the Sydney suburb of Kogarah.BankSA is the largest financial institution in South Australia, and the State's main provider of housing, personal finance and rural banking services. It also provides funds management, life and general insurance, and superannuation and investment services. Westpac acquired BankSA in December 2008. It continues to be a division of St.George Bank.
Westpac acquired RAMS home loans in January 2008 and operates the RAMS distribution business and brands as part of the St.George group.
Westpac New Zealand
In 1861 the Bank of New South Wales opened seven branches in New Zealand. Some of the old buildings still stand, including one in OamaruOamaru
Oamaru , the largest town in North Otago, in the South Island of New Zealand, is the main town in the Waitaki District. It is 80 kilometres south of Timaru and 120 kilometres north of Dunedin, on the Pacific coast, and State Highway 1 and the railway Main South Line connects it to both...
and another in Tokomaru Bay
Tokomaru Bay
Tokomaru Bay is a small, idyllic beachside community located on the isolated East Coast of New Zealand’s North Island. It is 91 km north of Gisborne, on State Highway 35, and close to Mount Hikurangi. The district was originally known as Toka-a-Namu, which refers to the abundance of sandflies...
. Today this unit offers a whole range of consumer and corporate services to clients throughout New Zealand. It is the dominant provider of banking services to small to medium business, corporate and institutional organisations, and is the banker of the New Zealand government
Politics of New Zealand
The politics of New Zealand take place in a framework of a parliamentary representative democratic monarchy. The basic system is closely patterned on that of the Westminster System, although a number of significant modifications have been made...
. Currently Westpac is the second largest bank in New Zealand, after the merger of ANZ and National Bank of New Zealand
National Bank of New Zealand
The National Bank of New Zealand often referred to as The National Bank is one of New Zealand's largest banks. Throughout much of its history, the National Bank has provided banking services to mainly rural, personal, and small business customers. Its owner is ANZ National Bank Limited, the New...
, with around 1.5 million customers, 3,000 shareholders and 197 branches nationwide.
On 29 September 2006 Westpac was forced to pay NZ$5.1 million by the New Zealand Commerce Commission
Commerce Commission
The Commerce Commission is a New Zealand government agency charged with enforcing legislation that promotes competition in the country's markets and prohibits misleading and deceptive conduct by traders...
over hidden foreign transaction fees; most of the fine is reimbursement to affected customers, in the order of 12% of the fees actually charged. All other banks operating in New Zealand have either already been fined or are awaiting a court case.
In October 2009 Westpac Banking Corporation (New Zealand branch) was ordered to pay the Inland Revenue Department (New Zealand)
Inland Revenue Department (New Zealand)
Inland Revenue , previously known as the Inland Revenue Department, is the New Zealand government department responsible for the collection of over 80% of the Crown's revenue in New Zealand. It also collects and disburses social support programme payments and provides the government with policy...
NZ$961 million in avoided taxes.
Naming rights
- Westpac St James theatreSt. James Theatre (Wellington)The St. James Theatre, is a stage theatre located in the heart of New Zealand's capital city, Wellington. The present theatre was designed in 1912 by Australian theatre designer Henry Eli White...
in Wellington and; - Westpac StadiumWestpac StadiumWestpac Stadium, is a major sporting venue in Wellington, New Zealand. Due to its shape and silver coloured external walls, it is colloquially known as The Cake-Tin to the locals and other New Zealanders...
in WellingtonWellingtonWellington is the capital city and third most populous urban area of New Zealand, although it is likely to have surpassed Christchurch due to the exodus following the Canterbury Earthquake. It is at the southwestern tip of the North Island, between Cook Strait and the Rimutaka Range...
. - Westpac Halberg Awards
Former/defunct divisions
Business Technology Solutions and Services (BTSS) was Westpac's technology and services arm. It incorporates Westpac's internal IT business units, transformation teams, the bank's operations centres and other support services. These teams have moved to either Product & Operations, Retail and Business Banking, Corporate or to the newly created division "Westpac Technology"Other business units
Servicing the group, the three remaining business units are Group Finance, Human Resources and Group Risk. These are sometimes collectively referred to as the 'Corporate Core'.ATM Alliance
Westpac is a member of the Global ATM AllianceGlobal ATM Alliance
The Global ATM Alliance is a joint venture of several major international banks that allows customers of their banks to use their ATM card or debit card at another bank within the Global ATM Alliance with no International ATM Access fees. However, other fees, such as an international transaction or...
, a joint venture of several major international banks that allows customers of the banks to use their ATM
Automated teller machine
An automated teller machine or automatic teller machine, also known as a Cashpoint , cash machine or sometimes a hole in the wall in British English, is a computerised telecommunications device that provides the clients of a financial institution with access to financial transactions in a public...
card or check card
Check card
The term check card can refer to:* An identification card issued by a retailer allowing the holder to tender payment by check. Such cards were commonly issued in the United States by supermarkets and other retailers before the widespread use of debit cards....
at another bank within the Global ATM Alliance with no fees when traveling internationally. Other participating banks are Barclays (United Kingdom), Bank of America
Bank of America
Bank of America Corporation, an American multinational banking and financial services corporation, is the second largest bank holding company in the United States by assets, and the fourth largest bank in the U.S. by market capitalization. The bank is headquartered in Charlotte, North Carolina...
(United States), BNP Paribas
BNP Paribas
BNP Paribas S.A. is a global banking group, headquartered in Paris, with its second global headquarters in London. In October 2010 BNP Paribas was ranked by Bloomberg and Forbes as the largest bank and largest company in the world by assets with over $3.1 trillion. It was formed through the merger...
(France), Ukrsibbank
UkrSibbank
«UkrSibbank» - full name Public joint-stock company “UkrSibbank”. It was registered on June 18, 1990. As of today, JSC «UkrSibbank» is the third largest bank of Ukraine, the second among foreign-owned banks, and acts as a financial supermarket....
(Ukraine), China Construction Bank
China Construction Bank
China Construction Bank is one of the 'big four' banks in the People's Republic of China. To date, it is ranked as the nation's second largest and the second largest bank in the world by market capitalization and 12th largest company in the world. The bank has approximately 13,629 domestic branches...
(China), Deutsche Bank
Deutsche Bank
Deutsche Bank AG is a global financial service company with its headquarters in Frankfurt, Germany. It employs more than 100,000 people in over 70 countries, and has a large presence in Europe, the Americas, Asia Pacific and the emerging markets...
(Germany), Grupo Santander
Grupo Santander
The Santander Group is a banking group centered on Banco Santander, S.A., the largest bank in the Eurozone and one of the largest banks in the world in terms of market capitalisation. According to Forbes Magazine Global 2000, it is the 13th largest public company in the world...
(Spain) and Scotiabank
Scotiabank
The Bank of Nova Scotia , commonly known as Scotiabank , is the third largest bank in Canada by deposits and market capitalization. It serves some 18.6 million customers in more than 50 countries around the world and offers a broad range of products and services including personal, commercial,...
(Canada).
Westpac Migrant Banking
This unit of both the Australian and New Zealand Bank offers banking facilities to those migrating to either New Zealand or Australia. Bank accountBank account
A Bank account is a financial account recording the financial transactions between the customer and the bank and the resulting financial position of the customer with the bank .-Account types:...
s for migrants can be opened before people arrive in the country using their easy account opening process. Credit card
Credit card
A credit card is a small plastic card issued to users as a system of payment. It allows its holder to buy goods and services based on the holder's promise to pay for these goods and services...
s and mortgages can even be approved before arrival. Westpac Migrant Banking has a representative office in London where accounts can be arranged, although the process can be done remotely from any country. Westpac plans to open a retail branch in London in 2011.
Pacific Banking
Westpac operates in seven south Pacific nations; the unit is headquartered in Sydney, Australia. The financial services offered include electronic banking (via online banking, ATMs and EFTPOS), deposit, loan, transaction accounts and international trade facilities to personal and business customers. Westpac Fiji is Westpac's FijiFiji
Fiji , officially the Republic of Fiji , is an island nation in Melanesia in the South Pacific Ocean about northeast of New Zealand's North Island...
an operation. It is one of the largest banks in the country and has a 40% market share.
History
Sydney
Sydney is the most populous city in Australia and the state capital of New South Wales. Sydney is located on Australia's south-east coast of the Tasman Sea. As of June 2010, the greater metropolitan area had an approximate population of 4.6 million people...
in 1817, the Bank of New South Wales was the first bank in Australia. Edward Smith Hall
Edward Smith Hall
Edward Smith Hall was a political reformer, newspaper editor and banker in Australia.Hall was born in London, one of six sons of Smith Hall, bank manager, and his wife, Jane née Drewry...
was the first cashier and secretary. During the 19th and early 20th century, the Bank opened branches first throughout Australia and Oceania, at Moreton Bay
Moreton Bay
Moreton Bay is a bay on the eastern coast of Australia 45 km from Brisbane, Queensland. It is one of Queensland's most important coastal resources...
(Brisbane
Brisbane
Brisbane is the capital and most populous city in the Australian state of Queensland and the third most populous city in Australia. Brisbane's metropolitan area has a population of over 2 million, and the South East Queensland urban conurbation, centred around Brisbane, encompasses a population of...
) in 1850, then in Victoria
Victoria (Australia)
Victoria is the second most populous state in Australia. Geographically the smallest mainland state, Victoria is bordered by New South Wales, South Australia, and Tasmania on Boundary Islet to the north, west and south respectively....
(1851), New Zealand (1861), South Australia
South Australia
South Australia is a state of Australia in the southern central part of the country. It covers some of the most arid parts of the continent; with a total land area of , it is the fourth largest of Australia's six states and two territories.South Australia shares borders with all of the mainland...
(1877), Western Australia
Western Australia
Western Australia is a state of Australia, occupying the entire western third of the Australian continent. It is bounded by the Indian Ocean to the north and west, the Great Australian Bight and Indian Ocean to the south, the Northern Territory to the north-east and South Australia to the south-east...
(1883), Fiji
Fiji
Fiji , officially the Republic of Fiji , is an island nation in Melanesia in the South Pacific Ocean about northeast of New Zealand's North Island...
(1901), Papua New Guinea
Papua New Guinea
Papua New Guinea , officially the Independent State of Papua New Guinea, is a country in Oceania, occupying the eastern half of the island of New Guinea and numerous offshore islands...
(1910) and Tasmania
Tasmania
Tasmania is an Australian island and state. It is south of the continent, separated by Bass Strait. The state includes the island of Tasmania—the 26th largest island in the world—and the surrounding islands. The state has a population of 507,626 , of whom almost half reside in the greater Hobart...
(1910).
- 1927: BNSW acquired the Western Australian Bank.
- 1931: BNSW acquired the Australian Bank of Commerce, which had branches in both New South WalesNew South WalesNew South Wales is a state of :Australia, located in the east of the country. It is bordered by Queensland, Victoria and South Australia to the north, south and west respectively. To the east, the state is bordered by the Tasman Sea, which forms part of the Pacific Ocean. New South Wales...
and QueenslandQueenslandQueensland is a state of Australia, occupying the north-eastern section of the mainland continent. It is bordered by the Northern Territory, South Australia and New South Wales to the west, south-west and south respectively. To the east, Queensland is bordered by the Coral Sea and Pacific Ocean...
. - 1942: BNSW suspended operations in Papua New GuineaPapua New GuineaPapua New Guinea , officially the Independent State of Papua New Guinea, is a country in Oceania, occupying the eastern half of the island of New Guinea and numerous offshore islands...
as the Japanese Army captured many of the towns in which it had branches and agencies, and bombed Port MoresbyPort MoresbyPort Moresby , or Pot Mosbi in Tok Pisin, is the capital and largest city of Papua New Guinea . It is located on the shores of the Gulf of Papua, on the southeastern coast of the island of New Guinea, which made it a prime objective for conquest by the Imperial Japanese forces during 1942–43...
. It resumed operations in 1946. - 1968: BNSW joins Databank Systems LimitedDatabank Systems LimitedDatabank Systems Limited was the name of a not-for-profit "off balance sheet" company set up by a consortium of competing banks in New Zealand, to operate on what is nowadays termed a "Shared Services Agency" basis, to provide computing resources for the consortium members...
consortium to provide joint data processing services. - 1970: BNSW established a branch on TarawaTarawa AtollTarawa is an atoll in the central Pacific Ocean, previously the capital of the former British colony of the Gilbert and Ellice Islands. It is the location of the capital of the Republic of Kiribati, South Tarawa...
in KiribatiKiribatiKiribati , officially the Republic of Kiribati, is an island nation located in the central tropical Pacific Ocean. The permanent population exceeds just over 100,000 , and is composed of 32 atolls and one raised coral island, dispersed over 3.5 million square kilometres, straddling the...
(ex-Gilbert Islands), which also took over the government savings bank. Also, the company first became listed on 18 July 1970. - 1971: It established a branch in the New HebridesNew HebridesNew Hebrides was the colonial name for an island group in the South Pacific that now forms the nation of Vanuatu. The New Hebrides were colonized by both the British and French in the 18th century shortly after Captain James Cook visited the islands...
. The next year HSBCHSBCHSBC Holdings plc is a global banking and financial services company headquartered in Canary Wharf, London, United Kingdom. it is the world's second-largest banking and financial services group and second-largest public company according to a composite measure by Forbes magazine...
and Commercial Bank of AustraliaCommercial Bank of AustraliaThe Commercial Bank of Australia was an Australian retail bank which merged into the Bank of New South Wales bank in 1982, to form Westpac...
(see below) also established branches. - 1973: BNSW became the corporate sponsor of the Rescue Helicopter service started by Surf Life Saving AustraliaSurf Life Saving AustraliaSurf lifesaving is a multifaceted movement that comprises key aspects of voluntary lifeguard services and competitive surf sport. Originating in early 20th century Australia, the movement has expanded globally to other countries including New Zealand, Ireland, South Africa, and the United States...
. The service is known today as the Westpac Life Saver Rescue Helicopter ServiceWestpac Life Saver Rescue Helicopter ServiceThe Westpac Life Saver Rescue Helicopter Service was founded in 1973 by Surf Life Saving Australia. Since this time, the Service has carried out more than 50,000 flights ranging from patient transfers to search and rescue missions... - 1974: The Bank of New ZealandBank of New ZealandBank of New Zealand is one of New Zealand’s largest banks and has been operating continuously in the country since the first office was opened in Auckland in October 1861 followed shortly after by the first branch in Dunedin in December 1861...
(20%), BNSW (20%), Bank of HawaiiBank of HawaiiThe Bank of Hawaii Corporation is a regional commercial bank headquartered in Honolulu, Hawaii. It is Hawaii's second oldest bank and its largest locally owned bank in that majority of the voting stockholders reside within the state...
(20%), and the Government of TongaTongaTonga, officially the Kingdom of Tonga , is a state and an archipelago in the South Pacific Ocean, comprising 176 islands scattered over of ocean in the South Pacific...
(40%) established Bank of Tonga as a joint venture. - 1975: BNSW incorporated its local business in Papua New GuineaPapua New GuineaPapua New Guinea , officially the Independent State of Papua New Guinea, is a country in Oceania, occupying the eastern half of the island of New Guinea and numerous offshore islands...
as Bank of New South Wales(PNG). - 1977: BNSW formed Pacific Commercial Bank in SamoaSamoaSamoa , officially the Independent State of Samoa, formerly known as Western Samoa is a country encompassing the western part of the Samoan Islands in the South Pacific Ocean. It became independent from New Zealand in 1962. The two main islands of Samoa are Upolu and one of the biggest islands in...
as a joint venture with Bank of Hawaii, buying into Pacific Savings and Loan Company (est. 1969), in which Bank of Hawaii had had an ownership interest since 1971. - 1982: BNSW merged with the Commercial Bank of AustraliaCommercial Bank of AustraliaThe Commercial Bank of Australia was an Australian retail bank which merged into the Bank of New South Wales bank in 1982, to form Westpac...
to form Westpac Banking Corporation. WBC was framed with the mission to become a significant Western-Pacific bank from which the Westpac portmanteau is derived. The brandname incorporated the "W" which had been the logo of the Bank of New South Wales (popularly known as "the Wales"). - 1984: The original agreement between BNSW and the government in the Gilbert and Ellice IslandsGilbert and Ellice IslandsThe Gilbert and Ellice Islands were a British protectorate from 1892 and colony from 1916 until 1 January 1976, when the islands were divided into two different colonies which became independent nations shortly after...
expired and WBC and the government of KiribatiKiribatiKiribati , officially the Republic of Kiribati, is an island nation located in the central tropical Pacific Ocean. The permanent population exceeds just over 100,000 , and is composed of 32 atolls and one raised coral island, dispersed over 3.5 million square kilometres, straddling the...
formed Bank of Kiribati as a 51%–49% joint venture. Bank of Kiribati also fulfilled the functions of a reserve or central bank. - 1985: WBC replaced Barclays Bank in the National Bank of Tuvalu (est. 1981) in TuvaluTuvaluTuvalu , formerly known as the Ellice Islands, is a Polynesian island nation located in the Pacific Ocean, midway between Hawaii and Australia. Its nearest neighbours are Kiribati, Nauru, Samoa and Fiji. It comprises four reef islands and five true atolls...
(ex-Ellice Islands), taking 40% of the shares as well as a 10-year management contract. - 1988: WBC acquired the European Pacific Banking Corporation in the Cook IslandsCook IslandsThe Cook Islands is a self-governing parliamentary democracy in the South Pacific Ocean in free association with New Zealand...
and a HSBCHSBCHSBC Holdings plc is a global banking and financial services company headquartered in Canary Wharf, London, United Kingdom. it is the world's second-largest banking and financial services group and second-largest public company according to a composite measure by Forbes magazine...
subsidiary, the Solomon Islands Banking Corporation, which HSBC had established as a branch in 1973. WBC also acquired HSBC's operations in Fiji and the New Hebrides, and established a branch in Niue that is the only bank in that country. (HSBC had established its branch in Fiji only some 18 months earlier). - 1990: Bank of New ZealandBank of New ZealandBank of New Zealand is one of New Zealand’s largest banks and has been operating continuously in the country since the first office was opened in Auckland in October 1861 followed shortly after by the first branch in Dunedin in December 1861...
sold half its shares in Bank of Tonga to WBC and half to Bank of HawaiiBank of HawaiiThe Bank of Hawaii Corporation is a regional commercial bank headquartered in Honolulu, Hawaii. It is Hawaii's second oldest bank and its largest locally owned bank in that majority of the voting stockholders reside within the state...
, giving each of them 30%. WBC bought Banque Indosuez's operations in New Caledonia and Tahiti. (Banque de l'IndochineBanque de l'IndochineThe Banque de l'Indochine was a minting and banknote-issuing bank established in Paris on January 21, 1875, for the territories of France in Asia.-History:...
, which later merged into Banque Indosuez, had established itself in New CaledoniaNew CaledoniaNew Caledonia is a special collectivity of France located in the southwest Pacific Ocean, east of Australia and about from Metropolitan France. The archipelago, part of the Melanesia subregion, includes the main island of Grande Terre, the Loyalty Islands, the Belep archipelago, the Isle of...
in 1888 and in PapeetePapeete-Sights:* Interactive Google map of Papeete, to discover the 30 major tourist attractions in Papeete downtown.*The waterfront esplanade*Bougainville Park -Sights:* Interactive Google map of Papeete, to discover the 30 major tourist attractions in Papeete downtown.*The waterfront...
, TahitiTahitiTahiti is the largest island in the Windward group of French Polynesia, located in the archipelago of the Society Islands in the southern Pacific Ocean. It is the economic, cultural and political centre of French Polynesia. The island was formed from volcanic activity and is high and mountainous...
in 1905. In both places l'Indochine functioned as the bank of issue until 1966-7.) - 1992: WBC recorded a 1.6 billion dollar loss, which at the time, was the largest loss for an Australian corporation. In this environment, the Bank dismissed staff and raided the superannuation to sustain its viability. In the process WBC came close to insolvency, and slipped from being Australia's largest to third largest bank.
- 1995: WBC sold its shares in National Bank of Tuvalu to that country's government, which now wholly owns the bank.
- 1995: WBC acquired Challenge Bank in Western Australia.
- 1996: WBC Holdings NZ bought TrustBanks, a chain of regional banks owned by Community Trusts, for NZD1.2 billion to form NZ largest bank, WestpacTrust. The bank had promised to keep the funding to Community Trusts flowing and to keep "Trust" in its name. However, Community Trust funding has slowed to a trickle, and in 2002 the bank launched a major rebranding which included dropping the "Trust" from its name. The merger of WBC and Trustbank also saw the closure of many branches around New Zealand. In towns and cities where both WBC and Trustbank existed, the bank merged redundant branches into a single branch; also it closed down many branches in rural areas and outer suburbs.
- 1997: WBC acquired Bank of MelbourneBank of Melbourne (1989)The Bank of Melbourne was a financial institution based in Melbourne, Australia, established in 1989 and taken over by the Westpac Banking Corporation in 1997...
in VictoriaVictoria (Australia)Victoria is the second most populous state in Australia. Geographically the smallest mainland state, Victoria is bordered by New South Wales, South Australia, and Tasmania on Boundary Islet to the north, west and south respectively....
, paying an estimated price in excess of A$1.4b. WBC retained the rights to the Bank of Melbourne name and logos. It has been announced that the Bank of Melbourne brand will return in August 2011, with a network of up to 100 branches in Victoria. - 1998: WBC sold its operations in New CaledoniaNew CaledoniaNew Caledonia is a special collectivity of France located in the southwest Pacific Ocean, east of Australia and about from Metropolitan France. The archipelago, part of the Melanesia subregion, includes the main island of Grande Terre, the Loyalty Islands, the Belep archipelago, the Isle of...
and TahitiTahitiTahiti is the largest island in the Windward group of French Polynesia, located in the archipelago of the Society Islands in the southern Pacific Ocean. It is the economic, cultural and political centre of French Polynesia. The island was formed from volcanic activity and is high and mountainous...
to Société GénéraleSociété GénéraleSociété Générale S.A. is a large European Bank and a major Financial Services company that has a substantial global presence. Its registered office is on Boulevard Haussmann in the 9th arrondissement of Paris, while its head office is in the Tours Société Générale in the business district of La...
, which merged them with Société Générale Calédonienne de Banque (est. 1971) and Banque de Polynésie (est. 1973), respectively. - 2001: The government of Kiribati sought to reduce Westpac's share in Bank of Kiribati from 51 to 49%, leading WBC to sell its shares back to the government. Bank of Hawaii sold its interest in Pacific Commercial Bank (42.7%) to Westpac, which held an equal portion. WBC offered Samoan investors, who held the remaining shares, the same price it had paid Bank of Hawaii. WBC now owns 93.5% of Westpac Bank Samoa and Samoan companies and individuals own 6.5%. In Tonga, Bank of Hawaii sold its shares in Bank of Tonga to Westpac, giving WBC 60% ownership of what is now Westpac Bank of Tonga.
- 2002: WBC acquired BT Financial Group
- 2004: The Reserve Bank of New Zealand required WBC to incorporate its NZ branches network. WBC sold its branch in NiueNiueNiue , is an island country in the South Pacific Ocean. It is commonly known as the "Rock of Polynesia", and inhabitants of the island call it "the Rock" for short. Niue is northeast of New Zealand in a triangle between Tonga to the southwest, the Samoas to the northwest, and the Cook Islands to...
to Bank of South PacificBank of South PacificBank South Pacific is Papua New Guinea’s largest bank, with 35 branches throughout the country and in operation in 4 countries. BSP currently services over 650,000 business banking customers throughout the Pacific...
. - 2008: Former St.George Bank CEO Gail KellyGail KellyGail Kelly is an Australian business person of South African descent. She is the current chief executive officer of Westpac, one of Australia's big four banks. In 2002, she became the first female CEO of a major Australian bank or top 15 company and, as of 2005, was the highest paid woman in an...
appointed Chief executive officerChief executive officerA chief executive officer , managing director , Executive Director for non-profit organizations, or chief executive is the highest-ranking corporate officer or administrator in charge of total management of an organization...
and Managing director. WBC announced that it intended to acquire the 5th largest Australian bank, St.George Bank, for A$Australian dollarThe Australian dollar is the currency of the Commonwealth of Australia, including Christmas Island, Cocos Islands, and Norfolk Island, as well as the independent Pacific Island states of Kiribati, Nauru and Tuvalu...
19 billion. About 95 percent of St George shareholders voted in favor of the merger. - 2008: On 17 November, the Federal Court of AustraliaFederal Court of AustraliaThe Federal Court of Australia is an Australian superior court of record which has jurisdiction to deal with most civil disputes governed by federal law , along with some summary criminal matters. Cases are heard at first instance by single Judges...
approved the merger of Westpac and St.George. - 2008 & 2009: Secret funds are secured from the Federal Reserve of USD$1.09. (see Secret Bailout 2007 & 2008)
- 2011: During July Bank Of Melbourne started operations taking over St.George in the state of Victoria.
Controversy
In December 2009, Westpac raised its rates on variable mortgages by 0.45%, more than the Reserve BankReserve Bank of Australia
The Reserve Bank of Australia came into being on 14 January 1960 as Australia's central bank and banknote issuing authority, when the Reserve Bank Act 1959 removed the central banking functions from the Commonwealth Bank to it....
's official rate rise of 0.25%. Westpac justified the move on increased costs of funding, using an analogy with the price of bananas to explain the reasons to its customers. The move drew considerable criticism, with the Prime Minister Kevin Rudd
Kevin Rudd
Kevin Michael Rudd is an Australian politician who was the 26th Prime Minister of Australia from 2007 to 2010. He has been Minister for Foreign Affairs since 2010...
suggesting the bank should take "a long hard look at itself", and other major banks such as NAB
National Australia Bank
National Australia Bank is one of the four largest financial institutions in Australia in terms of market capitalisation and customers. NAB is ranked 17th largest bank in the world measured by market capitalisation...
, who raised rates in line with the Reserve Bank, attacking Westpac for its move.
US Federal reserve borrowings
In January 2008 and 2009 Westpac secured US$1.09 billion from the Federal Reserve in secret dealings without the knowledge of the public or the Australian government. It is believed that if the Federal Reserve did not bailout out the bank, then the bank would have been bailed out by the Reserve Bank of AustraliaReserve Bank of Australia
The Reserve Bank of Australia came into being on 14 January 1960 as Australia's central bank and banknote issuing authority, when the Reserve Bank Act 1959 removed the central banking functions from the Commonwealth Bank to it....
.
Corporate social responsibility
Westpac has been described as one of the world's most socially responsible banks, and in 2002 released a Social Impact Report that outlined the bank's plan to meet the highest international standards in the area of corporate social responsibility. This led to Westpac being assessed as the global sustainability leader for the banking sector in the Dow Jones Sustainability Index from 2004–2007.See also
- Global ATM AllianceGlobal ATM AllianceThe Global ATM Alliance is a joint venture of several major international banks that allows customers of their banks to use their ATM card or debit card at another bank within the Global ATM Alliance with no International ATM Access fees. However, other fees, such as an international transaction or...
- Westpac House
- Westpac Life Saver Rescue Helicopter ServiceWestpac Life Saver Rescue Helicopter ServiceThe Westpac Life Saver Rescue Helicopter Service was founded in 1973 by Surf Life Saving Australia. Since this time, the Service has carried out more than 50,000 flights ranging from patient transfers to search and rescue missions...
- Westpac Rescue Helicopter (New Zealand)Westpac Rescue Helicopter (New Zealand)The Auckland Westpac Rescue Helicopter is a New Zealand accident and emergency rescue and transport service operated by the Auckland Regional Rescue Helicopter Trust. The Trust operates two BK117-850 D2 helicopters on behalf of the helicopter owners - the greater Auckland community...
- Westpac StadiumWestpac StadiumWestpac Stadium, is a major sporting venue in Wellington, New Zealand. Due to its shape and silver coloured external walls, it is colloquially known as The Cake-Tin to the locals and other New Zealanders...
Sources
- Narube, S. and B.T. Whiteside. 1985. "Financial Institutions and Markets in Fiji". In M. T. Skully, ed. Financial Institutions and Markets in the Southwest Pacific. London: Macmillan Press.
- Tschoegl, A.E. 2005. Foreign Banks in the Pacific: A Note. Journal of Pacific History.