As the country's oldest bank works through a period of change in its top management ranks,Ms Cobley on Friday said she intended to step back from executive jobs and pursue other positions,including as a board director.
Westpac institutional bank CEO Lyn Cobley said now is the time to step back.Janie Barrett
The departure of Ms Cobley,who has been in banking for more than three decades,means that three of the most senior roles in the bank,all of which report directly to newly-installed chief executive Peter King,are set to be vacant.
Last week Westpac's head of retail banking David Lindberg,who had been seen as a potential future CEO,and chief information officer Craig Bright,both.
Mr King paid credit to Ms Cobley's leadership of the institutional bank,which deals with very large clients such as corporations and governments,during a period of change following the global financial crisis and the market chaos sparked by coronavirus.
“Under Lyn’s leadership the Westpac Institutional Bank team has worked tirelessly to meet the needs of the bank’s government,corporate and institutional customers,most particularly during the COVID-19 pandemic,” Mr King said.
Ms Cobley said:"I have thoroughly enjoyed a long and varied banking career. However,having held executive positions through a number of significant events,including the GFC and this year the COVID-19 pandemic,it is now time to step back and develop a portfolio career,including board positions."
The institutional division led by Ms Cobley featured in last year's explosive lawsuit against,including failures to adequately monitor highly suspicious patterns that may have financed child exploitation.
The bank is carrying out an accountability review into the scandal,as it tries to broker a settlement with AUSTRAC.
Westpac treasurer Curt Zuber will act as CEO of Westpac's institutional bank,its third-largest division,from July while the bank runs a global search.
Ms Cobley's departure comes at a time of change for Westpac,the country's oldest bank,after Mr King took the reins as permanent CEO last month,following a management shakeup last year due to the money-laundering scandal. Chairman John McFarlane,a banking veteran,has also been in the role since early April.
Managing director of White Funds Management,Angus Gluskie,said executive changes such as the recent departures at Westpac were more likely after a change in CEO.
Commonwealth Bank also experienced a raft of senior executive changes after it faced a 2017 lawsuit alleging mass breaches of anti-money laundering laws.