Wealth costs still weighing on Westpac
Wealth costs still weighing on Westpac
Westpac has flagged the sale of its remaining wealth-focused businesses as a key part of its cost-cutting strategy, as the bank’s remediation expenses jumped in the first half despite strong performance in super and platforms.
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In its investor presentation around the bank’s half-year results on Monday, Westpac said it was targeting an $8 billion cost base by the 2024 financial year, and that the exit of “non-core businesses” placed in its specialist businesses arm – including BT and Westpac Life Insurance – was key to this strategy.
The bank said it was aiming to have all transactions completed on the sale of its specialist businesses by the 2024 financial year, with four of the businesses already under sale agreements since the division was created within Westpac in 2019.
Budget 2021: What advisers need to be ready for
Budget 2021: What advisers need to be ready for
A technical expert has predicted the government may choose to focus on simplifying the increasingly complex super system, and better retirement incentives for women and families, in the upcoming federal budget.
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BT head of financial literacy and advocacy Bryan Ashenden said top of the Coalition’s list to address would be the ongoing stoush around increasing the SG, with the government likely to push ahead with a rise to 10 per cent.
“At the moment indications are we will see it go up, but it’s probably an interesting question about whether there will be any announcement as to what will happen in the future,” Mr Ashenden said.
APRA warns of ‘irreversible’ climate risk By Lachlan Maddock 22 April 2021
The prudential regulator has warned businesses that they must work quickly to understand “the unprecedented nature of climate change” if they want to avoid havoc in the financial system.
APRA has urged businesses to recognise climate risks as different from those they’ve faced in the past, warning that a “strategic approach” is necessary for managing “the potential for irreversible changes in climate, leading to impacts that may not be easily mitigated or reversed”.
“Since the Australian Government became a party to the Paris Agreement, APRA has been raising awareness of climate-related risks to the financial sector. Given the unique and long-term nature of the risks, however, processes to measure, monitor and manage climate-related financial risks are still developing,” said APRA chair Wayne Byres.
Asset managers flock to net-zero pledge 21 April 2021
State Street, Russell Investments and US ESG specialist Trillium Asset Management are among 14 new investors signing up for the Net Zero Asset Managers initiative, pledging to hit net-zero emissions by 2050.
The global Net Zero Asset Managers project has now signed 87 investors managing $37 trillion (almost 40 per cent of the total assets under management worldwide).
The asset managers have committed to a net zero by 2050 goal, as well as a 50 per cent reduction in emissions by 2030. Signatories have also pledged to report their progress against the Task Force for Climate-related Financial Disclosures (TCFD) recommendations. Advertisement