Westpac profit target challenging for Hartzer
The 15 per cent ROE target may test Westpac's custodians, who are at present basking in a 2015 return of nearly 16 per cent."The first priority is to maintain our performance disciplines," Brian Hartzer told the bank's AGM on Friday."Westpac is already recognised for its disciplined financial management and strong balance sheet," he said."While our overall goal is to grow the long-term value of the franchise, we know that it is also important to deliver strong financial performance, year-in and year-out. "To that end we seek to maintain our return on equity above 15 per cent, which is a challenging target in the context of increasing capital requirements," Hartzer concluded.A superlative profit did not deter a charge on the wrongs and rights of the bonuses paid, a discussion centred on the idiosyncrasies of cash profit.Sixteen and a half per cent of shares voted turned down the remuneration report, a rare bloody nose for any bank board and a first for a major bank.This crowded out a Paris-linked environmental policy shift. Westpac must thank Greenpeace for the PR.Westpac promised to adopt a policy of investment that would aim to keep average global temperature increase to two degrees celsius, a common measure put as the maximum rise allowable to avoid the most disturbing levels of climate change.Greenpeace said Westpac's fossil fuel policy was "a step in the right direction" and said they "would keep a close watch on the projects that Westpac finances to ensure that the policy is properly implemented."The Carmichael coal project, sponsored by Indian conglomerate Adani, is one mine that greenies believe banks will simply shun as an aid to meeting the goal.