Merger leader departs WestpacTrust

By KEVIN TAYLOR

WestpacTrust chief executive Tom Gallagher has resigned as head of New Zealand's largest bank.

He leaves at the end of next month, but a statement yesterday from the bank did not reveal why he was going.

A WestpacTrust spokeswoman said his departure had nothing to do with dissatisfaction.

He would "take some time" to choose what to do next after 37 years in the banking industry.

Gallagher headed WestpacTrust for nearly three years.

He said in the statement that he was confident WestpacTrust had in place the "right platform for growth".

The bank, owned by Australia's Westpac, has continued to increase its profitability.

In the half-year to March, it made a $231 million net profit, up 7 per cent on the same period last year.

"The continued improvement of WestpacTrust's result is strong endorsement that our customers also believe we are on the right track," Gallagher said.

Last month Westpac appointed Mike Pratt, former chief executive of the BNZ, to head the bank's New Zealand and Pacific banking business.

Pratt said Gallagher would leave the business with a solid foundation on which the business could grow.

Gallagher had successfully led the bank through its "post-merger consolidation" with Trust Bank, which Westpac acquired in 1996.

Pratt, based in Australia, would assume day-to-day responsibility for WestpacTrust until a successor for Gallagher was appointed.

Before joining WestpacTrust, Gallagher worked at National Australia Bank, Westpac in Australia, Yorkshire Bank and the BNZ.

He started his banking career at the BNZ, joining in 1965.

The spokeswoman said Gallagher was not available to comment on the announcement.