(Bloomberg) -- Westpac Banking Corp.’s new boss Anthony Miller is likely to keep the Australian bank focused on key priorities such as technology improvements and cost cuts, according to analysts.
Miller will become the next chief executive officer, succeeding Peter King, on Dec. 16. The firm’s current business and wealth division head has held senior roles at Deutsche Bank AG and Goldman Sachs Group Inc. and has been with the lender since 2020. He’ll have a fixed renumeration of A$2.5 million ($1.7 million) as well as shorter and longer term variable compensation.
He’s the second new CEO of a major bank in the country this year after National Australia Bank Ltd. picked Andrew Irvine to succeed Ross McEwan. Irvine had also helmed NAB’s business bank.
“Miller’s biggest challenge is to complete the cost cutting and restructuring that King was unable to fully execute,” said Matt Ingram, senior industry analyst at Bloomberg Intelligence in Sydney.
King steered Australia’s oldest lender through the global pandemic and is known for his drive to simplify the bank to focus on core areas. He will retire after a 30-year career at Westpac, including five years as CEO.
The banking regulator in July cited progress in Westpac’s risk management and governance when it reduced additional capital requirements on the lender. Those extra capital needs dated back to 2019 after regulatory violations led to a record fine to settle Australia’s biggest breach of anti-money laundering laws.
“There’s a lot of work to do with IT systems and legacy regulation issues,” said Matthew Haupt, a portfolio manager at Wilson Asset Management in Sydney. “It will be hard to pivot too much as these are big” issues to deal with.
Earlier in his career, Miller spent 16 years at Goldman, including as partner. Before joining Westpac, he was Deutsche Bank’s CEO of Australia and New Zealand, and co-head of APAC investment banking.
“As an internal appointment Anthony knows what needs to be done and will move at pace, ensuring a seamless transition,” Westpac Chair Steven Gregg said in the statement.
The key challenge for the new CEO will be to retain key members of his executive team and to prioritize, or add to, existing strategic goals, according to UBS Group AG analysts John Storey and Olivia Clemson.
“Miller’s experience and role in turning around the Group’s Institutional Bank but also helping to recruit key talent within the division demonstrates his track record,” the analysts wrote in a report.
What Bloomberg Intelligence Says
Westpac has telegraphed institutional banking ambitions by appointing business & wealth head and Deutsche and Goldman alumnus Anthony Miller to succeed Peter King as CEO from Dec. 16. — BI analyst Matt Ingram
Westpac shares are up about 39% this year, the best performer among Australia’s four largest banks. The stock slipped 1.1% as of 11:25 a.m. in Sydney trading, in line with broader declines on the benchmark equity gauge.
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