Westpac not to form local subsidiary

Press, 4 October 1982, Page 34

Westpac not to form local subsidiary

PA Wellington The new Westpac Banking Corporation — result of the merger of the Bank of New South Wales and the Commercial Bank of Australia — was launched on Friday with ribbon cutting cermonies outside many branches. At a press gathering the New Zealand manager. Mr Reg Humphries, said the merged bank was already looking at broadening its base in this country and to I expand some of its business outside the "straight" banking system. But the initial effort would be aimed at consolidating the existing business, he said. The bank would not follow the example of the ANZ and form a local subsidiary. It believed there was more financial strength in having a larger capital base and being fully part of a larger Australian and New Zealand entity. It would also give the company greater scope to raise offshore loans for the energy

projects, for example, he said. The new group would have a capital base of $1,600,000,000 — far greater than any locally incorporated subsidiary could hope for. It fully met the necessary conditions in the implementing bill recently passed through Parliament. Mr Humphreys said that the New Zealand branch still retained considerable autonomy. and still funded itself locally. "New Zealand has a different economy. We have a New Zealand board of directors. headed by Mr John Fair. This will allow us to adopt a higher New Zealand profile with local directors." He said that ultimately Mr Fair might be appointed to the Australian board. “But he's an extremely busy man." The group has under its umbrella AGC Finance, which is 76 per cent owned by the parent company, and

CBA Finance which is to operate as a merchant bank within New Zealand. To date, the "Wales" did not have a local merchant banking operation. Mr Humphreys emphasised that the recent controversy over women tellers was because a circular had slipped through from Australia. "It was a memo designed for Australia where ’conditions are different." he said. The law involving the Human Rights Commission was different in New Zealand. he said. But he added that banking was a career occupation, and noted the bank had a separation rate of 20 per cent a year for females compared with only 10 per cent for men. The merger results in a bank with assets of more than $Au5t25,500,000,000, a staff of more than 36.000, and initially more than 2000 offices in 16 courftries.