Westpac to sell a financial advisory business, merge unit’s funds with Mercer Super Trust

A pedestrian looks at his phone as he walks past a logo for Australia’s Westpac Banking Corp. located outside a branch in central Sydney, Australia, November 5, 2018. REUTERS / David Gray

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May 26 (Reuters) – Westpac Banking Corp (WBC.AX) said on Thursday it would sell its financial advisory to businesses, Advance Asset Management, pension fund Mercer Australia, as part of its bank’s ongoing push to exit non-core businesses. General Chat Chat Lounge

The third-largest lender also said it would merge its unit with BT’s personal and corporate pension funds, which is managed by Marsh & McLennan (MMC.N) -backed Mercer Australia.

Westpac expects deals to result in a $ 225 million ($ 159.91 million) over the remainder of this fiscal year and next.

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The bank, however, did not immediately respond to a Reuters’ request to disclose the terms of the sale of its business.

The merger of BT’s funds with Mercer Super Trust will create a pension fund worth $ 65 billion, BT and Mercer said in a joint statement.

BT employees who support these funds will also be offered employment by Mercer, as part of the agreement, they said.

“This is a further step in the simplification of Westpac and the group’s focus on banking in Australia and New Zealand,” said Jason Yetton, Westpac Specialist Business CEO.

Major Australian banks have, since 2018, a regulatory inquiry into the sector, exited non-core parts of their business, with Westpac in 2021 having divested its life insurance and auto loan units. read more

Rival Commonwealth Bank of Australia (CBA.AX) also sold its general insurance unit the same year.

Westpac shares rose about 1% to A $ 24.10 in early trade.

($ 1 = 1.4071 Australian dollars)

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Reporting by Harshita Swaminathan, additional reporting by Upasana Singh; Editing by Uttaresh.V

Our Standards: The Thomson Reuters Trust Principles.

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