Westpac announced today plans for a strategic review of its non-banking operations that could include selling the life business.

The strategic review will take place in the coming months and is part of the lender’s set of immediate priorities to return to its core banking business.

Ahead of the strategic review, Westpac says the life business and other non-core operations such as superannuation and general insurance arms will be moved into a new Specialist Businesses division. Former Westpac executive Jason Yetton has been recruited to lead the division as Chief Executive Specialist Businesses and he starts on May 18.

“We have several businesses where we don’t have sufficient scale or where the returns are insufficient for the risk,” Westpac CEO Peter King said. “These include wealth platforms, superannuation and retirement products, investments, general and life insurance and auto finance.

“These are good businesses with strong franchises. Over the coming months we will conduct a detailed strategic review on the best options for these businesses. This will include considering whether they would ultimately be more successful under different ownership.”

Westpac revealed the plans in its financial results for the half-year to March, which saw the lender reporting a 70% decline in cash earnings to $993 million as virus-related impairment charges partly eroded the bottomline.

Life insurance made a cash earnings loss of $19 million, compared with a $77 million surplus a year earlier.