The Westpac Banking Corp (ASX: WBC) share price will be one to watch on Thursday after the banking giant named its new chief executive officer.
What did Westpac announce?
This morning Westpac announced that it has appointed Peter King as its chief executive officer.
Mr King has been serving the company as its acting chief executive officer since December following the unceremonious exit of former leader Brian Hartzer.
The chairman of Australia's oldest bank, John McFarlane, believes that management stability and strength are vital during moments of global stress and uncertainty.
He explained: "I believe we need a Chief Executive in place now, not later, and with full, rather than acting authority. On my recommendation, the Board has appointed Peter King as CEO. Peter has agreed to do this for two years."
Mr McFarlane, who succeeded long-time incumbent Lindsay Maxsted as the bank's chairman on April 1, appears to believe this could be the start of a winning partnership.
He added: "I have built a strong relationship with Peter since we first met. He understands the bank, its business and its finances, and has the confidence of the management team, as well as my own and that of the Board. He and I are also completely aligned on what needs to be done. He is the right person to take the company forward at the present time, and now has the full authority to make change and to see it through."
Who is Peter King?
Peter King has been with the bank for 25 years and has held several senior finance roles. This includes being its chief financial officer since 2014.
In addition to this, he held senior positions across the group including in Group Finance, Business and Consumer Banking, Business and Technology Services, Treasury and Financial Markets.
The new chief executive appears up for the challenge of navigating Westpac through the coronavirus crisis.
He commented: "We are focused on responding to the COVID-19 outbreak and supporting our customers and protecting our people. We have a critical role to play alongside Government and regulators in supporting Australians and New Zealanders and our countries' financial systems."
However, the new CEO has warned that credit provisions are likely to rise in the short term because of the coronavirus.
"Given the impact of the Coronavirus on the economy and the level of uncertainty, while it is difficult to make a reasonable assessment of its potential impact at the moment, we expect to see a rise in our credit provisioning this year and probably beyond, which will be accelerated by recently implemented accounting standards. We are currently working through this and will update shareholders in due course," he warned.
Looking further ahead, the bank's new leader is focused on simplifying its business and improving its culture.
Mr King explained: "My medium-term priorities remain to drive performance through our lines of business and sharper accountability, simplify the business through digital transformation, and lift our service culture and risk management capability."
