Westpac has set up a “specialist businesses division” to take management responsibility for a number of low-return businesses out of its core banking areas.

The businesses include superannuation, wealth platforms, investments, auto finance, general insurance, life insurance and Westpac Pacific.

Westpac chief executive Peter King said the businesses were all profitable and performing but their returns were not consistent with their risk profiles.

In total, the businesses contribute 10 per cent of the bank’s revenue and account for A$4 billion of regulatory capital.

King said no decision has been made to sell the businesses, although the bank’s life company has been on the market for some time.

He said that under the leadership of Jason Yetton, the specialist businesses division will review each business.

“We need to simplify our businesses. When we look at where we can add value our performance has been driven by banking. The other businesses have not done as well and they have absorbed significant management time,” King said.

“We will focus where we have scale and competitive advantage.”

Another of King’s management priorities is to get the bank’s mortgage origination processes working better. The Australian housing loan portfolio fell by 1 per cent to $445.7 billion during the March half.

King said: “It is an operations issue. In the short-term we need more people. In the long term we need more automation.”