Westpac Banking Corporation Ltd chief executive Gail Kelly has elevated two members of her senior management team, which signals the start of a new phase of the bank’s transformation program.

Mrs Kelly was also unapologetic about the bank’s controversial rate hike last week that drew criticism from consumer groups and the federal Treasurer Wayne Swan.

Mrs Kelly also claimed Westpac had not lost a single customer since taking over St George Bank last year.

As part of its transformation process, BT Financial Group chief executive Rob Coombe on Monday replaced Peter Hanlon as group executive for Westpac’s retail and business banking.

BT Financial Group is Westpac’s wholly owned wealth management arm.

Mr Hanlon is to lead the bank’s transformation program, becoming group executive for people and transformation, responsible for modernising the system and processes in place to serve customers.
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The number of home loans surged in September after two straight months of decline, as first home buyers flocked to the market ahead of the October 1 roll back of the first home owner grant.

But the reprieve may be temporary, with economists expecting a sharp pull-back in the market in October and November as potential home owners grapple with rising interest rates.

Australian housing finance commitments for owner-occupied housing rose 5.1 per cent in September, seasonally adjusted, to 65,505 the Australian Bureau of Statistics (ABS) said on Monday.

This compares to a 1.9 per cent fall in August and 1.6 per cent fall in July. The September figure also beat market expectations of a three per cent rise.

Total housing finance by value was also strong, rising by 4.8 per cent in September, seasonally adjusted, to $23.847 billion - it’s highest level since June 2007 when it reached a record $24.531 billion.
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Homebuyers are facing their first rise in mortgage rates for a year in a move by banks and building societies that could extinguish the nascent recovery in the housing market.

Guardian.co.uk

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Westpac Banking Corporation, Australia’s second biggest home-loan lender, will pass on the full central bank rate cut but other banks are still reviewing their lending rates.

The bank will cut its standard variable mortgage rate by 100 basis points to 5.91 per cent, Sydney-based Westpac said in a statement on Tuesday.

Westpac will also reduce its business lending rates by 100 basis points and cut its Altitude, Altitude Business and 55-day credit card rates by the same margin.
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Federal government intervention to control mortgage rates is not a realistic option, Finance Minister Lindsay Tanner says.

Retail banks are under fire from the government after they refused to guarantee home loan rates would drop in line with an anticipated cut in the Reserve Bank’s official cash rate next month.

Mr Tanner admits there is little the government can do directly to force the banks into changing rates.
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