In a statement, Westpac said it had completed the sale of its vendor finance business to Angle Finance, almost a year after the transaction was originally announced.
“Westpac is pleased to have successfully executed the transaction, which will help Australian businesses continue to finance small ticket equipment loans to grow and be successful and help us become a simpler bank,” Westpac chief executive of specialist businesses and group strategy Jason Yetton said.
The bank said the sale would have a “negligible impact” on its balance sheet and capital ratios.
The news comes following the sale of a number of Westpac’s non-core businesses, including its New Zealand life insurance business to Fidelity Life Assurance Company last month, and the purchase of its lenders mortgage insurance arm by Arch Capital in March.
Westpac has indicated all remaining businesses in its specialist division – which was created in 2019, and includes BT and Westpac Life Insurance – will be sold off as part of a broader cost-cutting and simplification strategy.
In its half-year results presentation in May, the bank said it would target an $8 billion cost base by 2024, with the offloading of specialist businesses to form a key part of the cost cutting.