Westpac splits retail and business banking division

Sydney

WESTPAC Banking Corp, Australia's No 2 lender by market value, said it is splitting its most profitable retail and business banking division in the first overhaul of the organisation since new chief executive Brian Hartzer took office.

Westpac said on Wednesday it had created two new divisions - consumer banking and commercial and business banking - to simplify its organisation and improve accountability and customer service. Analysts said the move should be positive for earnings at a time when Australia's major banks are under pressure from restrictions on risky mortgage lending and expectations of tougher capital rules.