The country’s third-biggest creditor has also said it will merge its BT unit’s personal and corporate pension funds with Mercer Super Trust, which is run by Mercer Australia, backed by Marsh & McLennan.
Westpac expects the transactions to result in an after-tax gain of A$225 million ($159.91 million) over the remainder of this financial year and next.
The bank, however, did not immediately respond to a request from Reuters to disclose the terms of the sale of its business.
The merger of BT’s funds with Mercer Super Trust will create a pension fund worth A$65 billion, BT and Mercer said in a joint statement.
BT employees who support the funds will also be offered employment with Mercer as part of the deal, they said.
“This is another step in simplifying Westpac and supports the group’s focus on banking services in Australia and New Zealand,” said Jason Yetton, managing director of Westpac Specialist Businesses.
Australia’s big banks have, since a 2018 regulatory probe into the sector, divested non-core parts of their business, with Westpac divesting its life insurance and car loan units in 2021.
Its rival Commonwealth Bank of Australia also sold its general insurance unit in the same year.
Westpac shares rose about 1% to A$24.10 in early trading.
($1 = 1.4071 Australian dollars)