Outgoing Westpac CEO Peter King thanks staff and customers in final address

Westpac’s outgoing chief has told investors more needed to be done to tackle climate change as a coalition of shareholders demanded action at the AGM.

Outgoing Westpac chief executive Peter King has conceded that more needs to be done to tackle climate change as a coalition of shareholders and activists demanded the end of financing companies expanding coal, oil and gas production.

Mr King recognised climate change posed a risk to the economy and Westpac’s customers, making it a challenge that it must manage as he added that all clients should be ambitious on transitioning to net zero.

Mr King said Westpac engaged with 150 highest emitting customers this year to help them, and 84 per cent of them had public transition plans on oil and gas.

“We have a requirement that oil and gas customers have a plan in place by 2025. We believe we’ve set the policy, and we need to give clients the time to respond now, if they don’t get there by that date, then we will need to reassess our relationship,” he said.

“It is important that we have customers that are transitioning. Upstream emissions, we had a target of 2030 to be down by 23 per cent, we’re down by 45 per cent and have achieved the 2030 target already.”

The marathon annual meeting that ran for four hours in Sydney was the final for Mr King who finishes up as CEO on Sunday after five years in the role and three decades at the bank. He will be replaced by Anthony Miller on Monday who has been chief executive, business & wealth.

Incoming Westpac chief executive Anthony Miller with outgoing boss Peter King. Picture: John Feder

Mr King, who has been at Westpac for three decades, thanked staff for turning the financial services group into a “simpler and stronger bank” and its 13 million customers for its loyalty in his final address to shareholders at the bank’s annual meeting in Sydney.

“Our bank is much simpler following the exit of 10 businesses. The next step in simplifying the bank for customers and bankers is completing the UNITE program, which we started this year and will set us up for future success.”

“I want to thank our people for making us a simpler and stronger bank. I also thank our 13 million customers for their loyalty and shareholders for your continued support. It has been a privilege to serve you as the 26th CEO of this great company.”

Westpac has financed companies like Santos, APA Group and JERA. Market Forces CEO Will van de Pol addressed investors at the meeting, saying investors have no clarity as to whether the bank will continue financing companies like Santos and their oil and gas expansion strategy beyond next year.

He added that the resolution lodged by over 100 shareholders and Market Forces offered Westpac the chance to be a global leader on climate in the finance sector during this critical decade. The resolution was not put to the meeting, but of the 1.6 million that voted, 34.2 per cent were in favour of transition plans assessment, while 1.04 million or 62.5 per cent against.

Mr King said Westpac was committed to being part of the solution and recognised that there was more to be done and supporting customers to transition was a priority.

“We have more than halved Westpac’s scope 1 and 2 emissions since 2021 and that’s seen us achieve the 2030 target six years ahead of schedule. We also play an important role in supporting customers with their transitions,” he said.

Westpac’s AGM ran for four hours amid extensive questioning from shareholders, particularly around climate action. Picture: John Feder.

“We provided an additional $10bn in sustainable finance and a further $5bn in bond issuance. This highlights the opportunity that acting on climate change presents.”

The past financial year saw the bank posted a $7bn full-year profit, in line with expectations, but down three per cent on the previous year amid competition in mortgages and higher technology costs. It also noted that while some mortgage holders were under pressure from higher rates and inflation, those seeking hardship support peaked in June.

Mr King said that Westpac was committed to keeping regional branches open until at least 2027 and recognised that cash remains an important part of the Australian financial system and was here to stay. He added that the economics of supplying cash are challenged, and it was working with government and industry to find a long-term solution.

In June, a rescue package was announced between Armaguard and major banks and retailers, to ensure its services are easily accessed for at least another 12 months.

Westpac chairman Steven Gregg thanked Mr King for his three-decade career at the bank and five years as chief executive.

“Peter’s leadership, Westpac made significant strides in digital innovation, scams protection and customer advocacy … We are undoubtedly in a better position than we were five years ago,” he said.

“Our business is simpler; we’ve reset our risk culture, and our operations are now more closely aligned with our core banking strengths in Australia and New Zealand. On behalf of the Board, we thank you Peter and offer our heartfelt congratulations on an outstanding career.”

Mr Gregg said Anthony Miller has a clear vision to return Westpac to a leadership position and to build on the strategy and momentum of the past few years.

“The Board and I look forward to working closely with Anthony and the Executive Team to drive strategy and in doing so, grow the business and create long-term value for all shareholders,” he said.

Shares in Westpac closed 0.7 per cent higher at $32.17 on Friday.

Originally published as Outgoing Westpac CEO Peter King thanks staff and customers in final address