Westpac urged to set out plan for cost reductions
Westpac is reportedly being urged to come up with a strategy to cut costs and reduce its number of branches, which was inflated following the acquisition of St George in 2008; this follows disappointing 1H2015 results in May, which missed expectations.
Westpac Banking Corp's chief executive Brian Hartzer has been urged to set out a plan for cost reductions at the bank's strategy update on Monday, including reducing the number of branches, which has been inflated since the acquisition of St George during the financial crisis.

Monday morning's briefing will be Mr Hartzer's first public fronting of the market since the disappointing first-half results in May, which missed expectations for dividends and profits. Westpac shares closed at $30.19 on Thursday, 11 per cent below their level in May; they are down 4.5 per cent this week in a banking sector that remains volatile.

Analysts say Westpac needs to get its costs down. Credit: Michel O'Sullivan

"The Westpac strategy day [on Monday] couldn't come at a better time to address the market's emerging performance concerns," Citi analyst Craig Williams said in a note to clients on Thursday.

He pointed to Westpac's cost-to-income ratio, which is between 5 and 7 percentage points above its competitors and a function of its larger branch network. "Despite having a smaller mortgage, household deposit and small business books, Westpac has 10 per cent more branches than Commonwealth Bank," said Mr Williams, who has maintained a "neutral" recommendation.