Westpac chief executive Anthony Miller says offloading the $21.4 billion RAMS home loan portfolio will help the bank’s long-term plan to streamline its technology and cut costs, even though the sale will reduce the bank’s market share.

As Westpac delivered a 1 per cent fall in full-year profits on Monday, it also announced it was selling the RAMS home loan portfolio to a consortium, a move that will result in Westpac losing a chunk of the mortgage market.

Westpac has about 21 per cent of the home loan market at present, but its loans are spread across three different banking systems: one for Westpac–branded loans, one for St George and regional brands such as Bank of Melbourne, and one for RAMS.

“In effect, I’ve got three small banks, three small bank cost challenges, three small bank c

See Full Page