Peter King takes Westpac office with positive spin

Acting Westpac chief Peter King has committed to the bank’s strategy, saying he will stay for ‘as long as the board needs me’.

Nerida Caeser, director also in the firing line

Acting Westpac chief executive Peter King has committed to the bank’s strategy, saying he would stay at Westpac for “as long as the board needs me”.

Mr King, who was elevated from chief financial officer as part of a board clean-out announced on Tuesday, said on the bank’s website, Westpac Wire, that the bank had a big agenda.

“I am committed to our strategy,” he said.

“While we are facing challenges, our businesses remain in good shape.

“Our balance sheet is strong, we have made significant progress in improving our productivity and transforming our technology platforms. But we have more to do.”

Westpac announced in September that Mr King would retire in 2020 after a 25-year career at the bank, and that an international search would be undertaken to find his replacement.

Mr King gave 12 months’ notice, saying he would continue in his role until a successor was found. Those plans were discarded last week after Austral lodged a Federal Court statement of claim against Westpac that alleged 23 million breaches of anti-money laundering and counter-terrorism financing laws.

On Tuesday, after a board meeting the previous evening, the bank acquiesced to investor ­demands, announcing the resignation of chief executive Brian Hartzer and an earlier departure for chairman Lindsay Maxsted.

Non-executive director Ewen Crouch will not seek re-election at what is expected to be a heated ­annual meeting on December 12.

Mr King said on a conference call on Tuesday that he was committed to implementing all aspects of the Westpac response plan announced on Sunday.

“We will carry out this work with diligence and speed and we will provide public updates on our progress,” he said.

“I also want to pass on my deep sorrow for Westpac’s failings.

“I have worked for Westpac for 25 years, I know our people and I know they have the highest integrity and are committed to doing their very best for customers and the community.”

Asked if there was likely to be any interest from foreign regulators in the bank’s AML/CTF breaches, Mr King said Westpac was in contact with all its regulators around the world and they were briefed on the relevant ­matters.

“At this point, that’s what we have to do,” he said.

As to future dealings with Austral, the Westpac chief said he had work constructively with the ­financial intelligence agency and would like the matter to proceed “as quickly as we can”.

Westpac said it had already closed the LitePay product, which facilitated the payments by Westpac customers who were linked to child exploitation activities in The Philippines. The revenue earned from LitePay was “not material”, according to Mr King.

While a temporary replacement for Mr Hartzer, the investment community has a high regard for Mr King.

UBS analyst Jon Mott said he was seen as well-qualified to bid for the permanent CEO position.

Mr Maxsted has brought forward his retirement so the new chairman can appoint the next CEO. If Mr King gets the top job, it would give the board more ­freedom to blood an external chairman.