ASX-listed Westpac Banking Corporation’s (AU:WBC) shares gained 2.13%, making its investors happy after the company announced the restructuring of its business into two units, Business and Wealth. With this restructuring, one of its highly esteemed leaders, Chris de Bruin, is expected to depart from the bank. Following an impressive three-year return of 44%, the shares of Westpac have experienced a decline of 5% in the past six months.
This news came during a challenging time for Australia’s major banks, as they grapple with the impact of rising interest rates that have resulted in decelerating credit growth. Analysts have mixed opinions about the stock and have rated it a Hold.
Westpac is a prominent banking and financial services institution in Australia and New Zealand that caters to over 12 million customers.
As part of the shake-up, Jason Yetton, a seasoned executive with a long tenure, will assume the role of CEO of Westpac’s Consumer business. Meanwhile, Anthony Miller, the current head of institutional banking, will take charge of the Business and Wealth division.
Yetton’s return to a role similar to one he held in the past decade highlights the significance of retail banking for Westpac, which plays a vital role in the bank’s operations. On the other side, Miller has almost three years of experience and has been dedicated to revitalizing the division and driving it towards growth. Despite a period of stagnation over the past six months, he has been actively working to turn things around.
Following Westpac’s divestment of non-core businesses and cost-cutting measures in recent years, the announced changes are designed to accelerate the company’s growth.
What is Westpac’s Target Price?
According to TipRanks’ consensus rating, WBC stock has a Hold rating, based on one Buy, seven Hold, and two Sell recommendations.
At an average price target of AU$22.86, analysts predict an upside of 4% over the next 12 months.