The bank is exiting operations in China and other Asian markets to focus on core domestic operations.
Hit by a money laundering scandal and a surge in charges for bad loan provisions due to the coronavirus outbreak, Westpac, Australia's second-largest lender will exit operations in Beijing, Shanghai, Hong Kong, Mumbai and Jakarta, and consolidate its international operations into branches in Singapore, London and New York, according to a «Reuters» report on Wednesday.
«Westpac’s priority is to focus on its core Australian and New Zealand customers and to support them in areas where we have scale and capability,» Westpac Institutional Bank’s acting chief executive Curt Zuber said in a statement.
Up to 200 staff, largely based in Shanghai and Hong Kong, are expected to as the changes are implemented in stages over the next two years, the report said, citing people familiar with the matter. The moves are not expected to affect earnings, but will help improve capital efficiency by reducing the bank's risk-weighted assets by over A$5 billion ($3.6 billion).
Record Fine
Last month, the bank agreed to pay a record A$1.3 billion ($920 million) – equivalent to its total first-half profits – to settle with money laundering watchdog AUSTRAC (Australian Transaction Reports and Analysis Centre) over a money laundering scandal involving 23 million breaches, including payments between known child exploiters.
