Westpac Reverses Regional Branch Closures with Focus on Agribusiness and Rural Communities

Westpac's shift in focus towards agriculture and regional development is set to contribute significantly to the national economy. The bank's growth in agribusiness lending has been substantial, with a 21 percent increase in its local lending book in 2024-25. This is attributed to customers expanding their investment activities and the bank's efforts to rebuild its presence in rural communities. Westpac chief executive Anthony Miller acknowledged the bank's previous mistakes in branch closures and expressed a commitment to face-to-face interaction and community support.

Key Takeaways:

• Westpac's agribusiness lending growth reached 21 percent in 2024-25, with most of the growth coming from customers expanding their investment activities and an increase in its family farmer base.
• The bank's share of the farm lending segment rose by 1 percent to 14 percent, despite being behind market leader National Australia Bank.
• Westpac is reopening shuttered branches, including a $1 million main street "service centre" in Moree, and plans to return to Leongatha, Victoria, and Smithton, Tasmania.
• The bank is adding 150 new business banking jobs in the next three years to strengthen its regional network.
• Westpac's regional business enthusiasm comes as the bank's home loan category faces tightening margins and increased competition.
• The bank's growth in regional Australia is seen as a strategic move, with the agribusiness lending figures jumping ahead of last year's industry average.
• Westpac's submission to Canberra's economic and productivity summit highlighted the benefits of supporting regional Australia, which generates 30 percent of the country's GDP.
• The bank's focus on agriculture and regional development is driven by the opportunity for more intensive agriculture and service industries in northern Australia, close to growing Asian markets.

Statistics:

• Westpac's local agribusiness lending increased by 21 percent in 2024-25.
• The bank's share of the farm lending segment rose by 1 percent to 14 percent.
• Regional customers account for 96 percent of transaction activity carried out online.
• Westpac plans to add 150 new business banking jobs in the next three years to strengthen its regional network.
• Regional Australia generates 30 percent of the country's GDP.

Sources:

• [Westpac's chief executive, Anthony Miller]