Westpac New Zealand will remain part of the Westpac Group after a decision not to demerge with its Australian counterpart.
Westpac Group chief executive officer Peter King says the decision was made "after a detailed review".
"We believe a demerger of the Westpac New Zealand Limited (WNZL) business would not be in the best interests of shareholders.
“Our review identified opportunities to improve service for customers and value across the WNZL business and we will progress these with the WNZL Board and management team.
“WNZL is a strong business that has been serving New Zealand for 160 years. We remain committed to delivering for customers and fulfilling our purpose of helping Australians and New Zealanders succeed,” King said.
He said Westpac Group and the WNZL Board will appoint a new CEO to replace David McLean, who retires tomorrow.
General manager of institutional and business banking Simon Power will act as CEO.
Power said for customers there is no change, and the bank will continue to focus on delivering great service and supporting the New Zealand economy through the pandemic recovery.
“Westpac New Zealand continues to have strong support for what it is delivering for customers and its role in the Westpac Group.
“Our team of more than 4000 Kiwis will remain focused on delivering great outcomes for our 1.3 million customers, many of whom are our families, friends and neighbours,” Power said.