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Bankwest

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This article is about the Australian bank. For the Canadian bank, see Zag Bank. For the United States bank, see Bank of the West.
"Bank of Western Australia" redirects here. For its competitor, the W. A. Bank, purchased by the Bank of NSW in 1927, see Western Australian Bank.

Bankwest
FormerlyAgricultural Bank of Western Australia
Rural and Industries Bank of Western Australia
Bank of Western Australia Limited
IndustryFinancial services
Founded1895
HeadquartersBankwest Place,
Perth, Western Australia[1][2]
Area served
Australia
Key people
Jason Chan, Executive General Manager
ProductsHome loans
Transaction accounts
Savings accounts
Term deposits
Credit cards
A$752 million net profit after tax (2015)[3]
ParentBank of Scotland (1995–2001)
HBOS (2001–2008)
Commonwealth Bank (2008–present)
WebsiteBankwest

Bankwest, previously know as the Rural & Industries Bank or R&I Bank, is an Australian bank based in Perth, Western Australia. The bank was originally founded as the Agricultural Bank in 1895 by an Act of the Western Australian Colonial Government. It changed to the Rural & Industries Bank in 1916, and was privatised by the Court government in 1995. Its owner as of 6 March 2024 is the Commonwealth Bank of Australia, who purchased Bankwest for A$2.1 billion in 2008[4][5] and now operate Bankwest as a division of the parent company. After taking over Bankwest the Commonwealth Bank controversially closed Bankwest's business banking operation and moved its customers to the Commonwealth Bank, sparking a senate inquiry.[6] On 6 March 2024 it was announced that all remaining branches of Bankwest will be closed, with some branches being rebranded as Commonwealth Banks.

Bankwest previously had branches in Adelaide, Brisbane, Canberra, Melbourne and Sydney.

History

Bankwest Place headquarters in 2019
Bankwest branch in Kojonup in 2018
Bankwest branch in Mount Barker in 2018

Agricultural Bank era

In 1895, the Government of Western Australia established the Agricultural Bank of Western Australia as a rural lender to support the state's farming industries.[7] Despite its name, it was not a bank, as it did not accept deposits from the public, its liabilities being government bonds. It was a government instrumentality that lent exclusively to farmers.[8][9]

Rural & Industries Bank era

On 1 October 1945 pursuant to the Rural and Industries Bank Act 1944, the Agricultural Bank changed its name to the Rural and Industries Bank of Western Australia becoming a full trading bank.[10][11] This enabled it to expand its retail and commercial banking services throughout the state. It headquarters were at the former Agricultural Bank headquarters at 555 Hay Street, Perth.[9][12]

In 1956 it became a savings bank.[13] In March 1961, its headquarters moved to a purpose building in Barrack Street. In 1973, a 45% shareholding in Perpetual Finance Corporation was purchased increasing to 100% in 1978. A major shareholding in the Town & Country Permanent Building Society was also purchased in 1973.[9]

In 1985, the first interstate branch was opened in Sydney.[8] In June 1987, the Primary Industry Bank of Australia became a subsidiary.[14] In August 1987, the Teachers' Credit Society was taken over in a bailout.[15][16] In 1988, the headquarters moved to 108 St Georges Terrace, which was the tallest building in Perth at the time.[9]

Bankwest era

The bank was incorporated in 1990, and in 1994 changed its name to the Bank of Western Australia with the trading name Bankwest, in preparation for privatisation.[17] In December 1995, the Bank of Scotland acquired the bank, and as part of the sale agreement, offered 49 per cent of the shares in Bankwest to the public.[18][19] Bankwest was listed on the Australian Securities Exchange (ASX) on 1 February 1996.

In May 2001, Bank of Scotland merged with Halifax to form HBOS.[20] In August 2003, HBOS completed a successful takeover offer for the shares it did not own with Bankwest delisted from the ASX.[21][22]

In 2003, Bankwest acquired API Finance from Australian Pharmaceutical Industries for $300 million in line with its industry specialisation growth strategy in the business banking segment.[23]

In October 2006, Bankwest announced it would move its headquarters from 108 St Georges Terrace to 300 Murray Street.[24][25] After lengthy delays, the moved occurred in September 2012.[26] Bankwest's lease expires in 2031.[27]

In September 2008, Bankwest was included in the sale of HBOS to Lloyds TSB.[28] The following month, with significant problems of its own during the global financial crisis, Lloyds TSB agreed terms to sell Bankwest to the Commonwealth Bank for $2.1 billion.[29][30] The sale was completed in December 2008.[31][32]

Bankwest's business banking operation was closed and its customers moved to the Commonwealth Bank, sparking a senate inquiry.[33]

Products and services

In 2007, Bankwest launched the Bankwest Regular Saver account for individuals.[34]

In 2012 Bankwest launched the Student Edge debit card linked to their Student account.

In 2016, Bankwest terminated its share trading platform and all Bankwest online share trading accounts were closed on 31 May 2016.[35][36]

In February 2022, Bankwest announced it would stop offering business products and services and eventually shift existing business customers to Commonwealth Bank.[37]

Branch closures

On 18 July 2018, Bankwest announced plans to close 29 branches in New South Wales, Victoria and Queensland from 17 August to 7 September. Bankwest managing director Rowan Munchenberg said an overwhelming number of its customers were choosing to bank online, prompting the closure of the stores.[38]

In October 2022, Bankwest closed all its east coast branches.[39]

One of the branches to be closed as part the 2024 announcement

In March 2024, Bankwest announced that it will be closing all branches and automated teller machines (ATMs) by the end of 2024,[39][40] becoming a "digital bank".[40] Some regional branches will be converted to Commonwealth Bank branches.[39][40] Cash transactions will be available via other banks' ATMs and Australia Post.[39][41]

See also

Sources

  • Spillman, Ken (1989) Horizons: A History of the Rural and Industries Bank of Western Australia. (Perth: University of Western Australia Press.)

References

  1. ^ "Raine Square".
  2. ^ "New home for historic bank - The West Australian". Archived from the original on 28 August 2016.
  3. ^ "Commonwealth Bank of Australia – Annual Report 2015" (PDF). Commonwealth Bank of Australia. 30 June 2015. p. 10. Retrieved 15 October 2015.
  4. ^ Commonwealth Bank of Australia (2008). "Commonwealth Bank of Australia to acquire Bank West and St Andrew's". Archived from the original on 12 October 2008. Retrieved 8 October 2014.
  5. ^ Bank of Western Australia Limited (2008). "BankWest and St Andrew's sold to Commonwealth Bank". Archived from the original on 9 October 2008. Retrieved 9 October 2008.
  6. ^ "Senate inquiry into Commonwealth Bank over Bankwest is a slur on our biggest bank". Australian Financial Review. 1 December 2015. Retrieved 6 March 2024.
  7. ^ The claim that it was the first state/colony government entity of its type made in 1906 in an eastern states newspaper "Agricultural Bank". Bundarra & Tingha Advocate. Vol. 6, no. 305. Bundarra. 27 October 1906. p. 2. Retrieved 6 March 2024 – via National Library of Australia.
  8. ^ a b Our journey Bankwest
  9. ^ a b c d Spillman, Ken (1989). Horizons: A History of the Rural and Industries Bank of Western Australia. University of Western Australia Press. ISBN 0 85564 304 8.
  10. ^ "Rural and Industries Bank Act 1944 (No 51 of 1944)". Classic.austlii.edu.au. Retrieved 6 March 2024.
  11. ^ "Rural & Industries Bank". The Wagin Argus And Arthur, Dumbleyung, Lake Grace Express. Vol. XXXI, no. 2079. Western Australia. 25 October 1945. p. 4. Retrieved 6 March 2024 – via National Library of Australia.
  12. ^ Rural and Industries Bank of WA The Weekly Gazette 19 October 1945 page 4
  13. ^ "Rural and Industries Bank Act Amendment Act (No 31 of 1956)". Classic.austlii.edu.au: 2. Retrieved 6 March 2024.
  14. ^ Appendix 2: Australian Banks 1980 to 1990 Reserve Bank of Australia
  15. ^ Rothmans improves profit by 14.5 pc to $60.58m Canberra Times 18 August 1987 page 18
  16. ^ The Deregulated Era Reserve Bank of Australia
  17. ^ R&I Bank Act 1990 Government of Western Australia
  18. ^ BankWest launches its public float Canberra Times 21 December 1995 page 17
  19. ^ Bank of Scotland lifts holding in BankWest to 55pc Australian Financial Review 17 November 1998
  20. ^ Halifax, BoS agree merger CNN Money 4 May 2001
  21. ^ Scots turn screws on BankWest Sydney Morning Herald 9 June 2003
  22. ^ HBOS - Bank of Western Australia Scheme of Arrangement become effective Bankwest 26 August 2003
  23. ^ "API and BankWest announce alliance" (PDF) (Press release). Australian Pharmaceutical Industries. 29 April 2003. Archived from the original (PDF) on 17 March 2012. Retrieved 21 March 2012.
  24. ^ BankWest's seismic shift in Perth Australian Financial Review 20 October 2006
  25. ^ Future murky for Raine Square as Bankwest, Coles mull exit WAtoday 1 April 2021
  26. ^ Thomas, Beatrice (21 September 2012). "Pioneering bank gets a new home". The West Australian. p. 14.
  27. ^ Charter Hall secures Bankwest lease renewal at its Perth headquarters Charter Hall 15 December 2020
  28. ^ Rescue: Lloyds pulls HBOS out of the fire with £12bn merger The Guardian 18 September 2008
  29. ^ "Commonwealth Bank of Australia to acquire Bank West and St Andrew's". Commonwealth Bank. 2008. Archived from the original on 12 October 2008. Retrieved 8 October 2014.
  30. ^ Bank of Western Australia (2008). "BankWest and St Andrew's sold to Commonwealth Bank". Archived from the original on 9 October 2008. Retrieved 9 October 2008.
  31. ^ ACCC not to oppose Commonwealth Bank of Australia's proposed acquisition of Bank of Western Australia Ltd Australian Competition & Consumer Commission 10 December 2008
  32. ^ CBA completes acquisition of BankWest and St Andrews Commonwealth Bank 19 December 2008
  33. ^ Senate inquiry into Commonwealth Bank over Bankwest is a slur on our biggest bank Australian Financial Review 1 December 2015
  34. ^ "Bankwest takes aim with an 8 per cent savings account - Australia's highest and no account fees". Bankwest. 30 July 2007. Retrieved 10 July 2009.
  35. ^ "Bankwest |". Archived from the original on 3 May 2016. Retrieved 5 August 2016.
  36. ^ https://bankwest.coretrading.com.au/public/homepage/announcements.aspx?id=bkwstannouncement14[permanent dead link]
  37. ^ "Bankwest surrenders business brand to CBA, zeroes in on retail-focused tech transformation". FST Media. 23 February 2022. Retrieved 5 May 2022.
  38. ^ Yeates, Clancy (18 July 2018). "Bankwest to close 29 east coast branches, cut 200 jobs". The Sydney Morning Herald. Retrieved 28 July 2018.
  39. ^ a b c d "Commonwealth Bank subsidiary Bankwest to close all 60 branches across Perth and Western Australia". Australian Broadcasting Corporation. 6 March 2024. Retrieved 6 March 2024.
  40. ^ a b c "Bankwest branch closure information". Bankwest. Retrieved 6 March 2024.
  41. ^ "Ways to bank with us". Bankwest. Retrieved 6 March 2024.
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