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Former Westpac New Zealand chief executive Ann Sherry has been appointed head of the group's much smaller Pacific banking division.
The move comes after Sherry presided over the local operation's lacklustre performance in recent years.
Sherry, who had just a couple of years ago been tipped as a potential successor to group chief executive David Morgan, was replaced as New Zealand boss last month after 4 1/2 years in the job.
Her replacement is former GE Money Britain and Ireland chief executive Brad Cooper.
Sherry was unavailable for comment yesterday but a spokesman confirmed her appointment as head of Pacific banking which contributed about 2.5 per cent of the group's A$3.08 billion ($3.44 billion) September-year cash earnings as opposed to the 14 per cent from New Zealand.
Under Sherry's leadership Westpac - New Zealand's second largest bank after ANZ National - blundered in hanging back from the so-called "mortgage wars" over the last three years.
It chose not to try and gain or defend market share by cutting the margins or profits it earned on home loans but that ultimately cost it overall profits and customers.
Westpac's full-year profit to September last year was down by 3.5 per cent, while its rivals grew New Zealand bottom lines between 9 and 20 per cent. At the time Sherry admitted its retail division had "gone backwards".
Cooper told analysts in Australia the New Zealand bank would take about 18 months to turn around.
Nevertheless, there are signs the bank is rebounding. It grew its mortgage lending book substantially during the December quarter although some commentators believe that may have been at the expense of margins.
Westpac reports its first-half result on Thursday and analysts expect further evidence of pressure on the New Zealand operation's interest margins in the home loan business and online savings products.
Redeployment
* Westpac's Ann Sherry has been reassigned to the bank's Pacific Island operation.
* Under Sherry, the bank lost ground against rivals by initially refusing to fight the so-called "mortgage wars".
* New chief executive Brad Cooper says the bank will take 18 months to turn around.
