Bankwest a good buy: CBA
By
Ben Abbott
|
12/08/2010 5:49:00 AM
|
1
comments
CBA's chief executive has been forced to defend the bank's acquisition of Bankwest, after revelations the value of the transaction was hit by $212m worth of poor-quality loans written by the second tier lender.
The Australian reports that Ralph Norris, speaking in conjunction with CBA's profit announcement, said there were a raft of problems with loans extended prior to the financial crisis-induced acquisition in 2008.
East coast residential property, particularly in Queensland and NSW, as well as commercial property loans, emerged as problems in the Bankwest portfolio, with indications credit quality was inflated when the bank was owned by British-based HBOS.
However, Norris told the paper: "I look at it as a very successful acquisition. We have taken steps to reduce [the problems]. Some people have paid with their jobs as a result of this."
Bankwest recently took a renewed focus on credit quality, with the appointment of new heads of broker sales and origination and quality within its business division.
Bankwest's regional business development manager for commercial banking, Andrew Benham, stepped into a new role as head of origination and quality, and is responsible for quality and customer satisfaction. Aaorn Milburn meanwhile has become the bank's new head of broker sales for Bankwest Business, moving across from his former role as head of broker sales for Bankwest Retail.
Speaking with Australian Broker at the time, Bankwest head of business and private banking, Mark Reid, said the new appointments are designed to to improve broker relationships and quality of written business.
Reid said "quality has always been a concern." "I just don't think you can grow at the expense of quality, because at some point it will come back and bite you."
Related stories:
Bankwest names broker sales heads
Latest Comments
Total:
1
comment(s)
Country Broker on
12 Aug 2010 10:52 AM
It was a great pity to see this really good, easy to deal with regional bank having to be sold due to its Parent in the UK being badly effected by the GFC . It may have been great buy for the CBA, but not so good for the brokers.