Westpac Banking Corporation · ASX:WBC
Westpac Banking — Debt Investor Presentation (August 2021)
27 slides from Westpac Banking's debt investor presentation, Aug 17, 2021
Slide 1: Westpac Capital Notes 8 (WCN 8) Offer – Investor Presentation
ASX Release Level 18, 275 Kent Street Sydney, NSW, 2000 For personal use only 17 August 2021 NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Westpac Capital Notes 8 (WCN 8) Offer – Investor Presentation Westpac Banking Corporation today released an investor presentation regarding its offer for
Slide 2: Westpac Capital Notes 8 Investor Presentation
Westpac For personal use only Capital Notes 8 Investor Presentation Not for distribution in the United States Westpac Banking Corporation ABN 33 007 457 141 CAUTION – Westpac Capital Notes 8 are not deposit liabilities of Westpac, are riskier than bank deposits and may not be suitable for some inves
Slide 3: Disclaimer
Disclaimer 2 THIS PRESENTATION IS NOT FOR DISTRIBUTION IN THE UNITED STATES. For personal use only YOU SHOULD CONSIDER AND READ THE PROSPECTUS IN FULL BEFORE DECIDING WHETHER TO INVEST IN WESTPAC CAPITAL NOTES 8. This presentation has been prepared and authorised by Westpac Banking Corporation (ABN
Slide 4: Disclaimer (continued)
Disclaimer (continued) 3 No representation or warranty, express or implied, is made as to the accuracy, adequacy, currency, completeness or reliability of any statements, estimates or opinions or other For personal use only information contained in this presentation. To the maximum extent permitted
Slide 5: Summary of terms and conditions and Offer structure
Summary of terms and conditions and Offer structure 4 Issuer • Westpac Banking Corporation (“Westpac”) For personal use only Quotation • Expected that the Notes will trade on ASX under the code WBCPK Size • Approximately $1.0 billion with the ability to raise more or less • Notes will qualify as Add
Slide 6: Certain events that may affect Holders
Certain events that may affect Holders 5 OPTION FOR WESTPAC TO CONVERT, REDEEM OR TRANSFER SCHEDULED CONVERSION DATE For personal use only 15 September Each Distribution Payment Date 21 September 21 December 21 March 21 June 21 June 2032, the first possible 2021, after the first possible 2029 2029 2
Slide 7: Comparison to other Westpac Group ASX listed Additional Tier 1 securities
Comparison to other Westpac Group ASX listed Additional Tier 1 securities1 6 Westpac Capital Notes 8 Westpac Capital Notes 7 Westpac Capital Notes 4 For personal use only ASX code WBCPK2 WBCPJ WBCPG Issue date • 15 September 2021 • 4 December 2020 • 30 June 2016 Term • Perpetual with the first possi
Slide 8: Offer summary
Offer summary 7 For personal use only • The Offer is for the issue of Westpac Capital Notes 8 at an Issue Price of $100 to raise approximately $1.0 billion, with the ability to raise more or less • The Offer includes a Reinvestment Offer, which is a priority offer to Eligible Westpac Capital Notes 4
Slide 9: Priority Reinvestment Offer for Eligible Westpac Capital Notes 4 Holders
Priority Reinvestment Offer for Eligible Westpac Capital Notes 4 Holders 8 • A priority offer to Eligible Westpac Capital Notes 4 Holders to apply to reinvest all or some of their Westpac Capital Notes 4 in Notes through For personal use only Reinvestment Offer the Reinvestment Offer • An Eligible W
Slide 10: Key dates
Key dates 9 Key dates for the Offer Key dates for Westpac Capital Notes 8 For personal use only Record date for determining Eligible Securityholders Record Date for first Distribution 13 December 2021 10 August 2021 (7.00pm Sydney time) First Distribution Payment Date1 21 December 2021 Announcement
Slide 11: Westpac overview
Westpac overview 10 For personal use only Earnings • Cash earnings $3.5bn, up $1.9bn on 2H20 as at • Cash ROE 10% 31 March 2021 • Net interest margin 2.09%, up 6bps on 2H20 Balance sheet • CET1 capital ratio of 12.0% strength • Announced divestments expected to add ~50bps to the CET1 capital ratio1
Slide 12: Credit quality
Credit quality 11 Stressed exposures as a % of TCE For personal use only 3.20 1 Impaired 90+ day past due and not impaired Watchlist & substandard 3.0 Increase in impaired Reduction in watchlist and Increase in 90+ day past due and not in 3Q21 mainly driven impaired in 3Q21 driven by migration subst
Slide 13: Australian mortgage delinquencies
Australian mortgage delinquencies 12 Australian mortgages Sep-20 Mar-21 Jun-21 Australian mortgage delinquencies (%) For personal use only Total portfolio 30+ day delinquencies (bps) 214 179 176 4.0 90+ day past due total 30+ day past due total Total portfolio 90+ day delinquencies (bps) 162 120 111
Slide 14: Funding and liquidity
Funding and liquidity 13 Key funding and liquidity measures For personal use only Net stable funding ratio (%) Liquidity coverage ratio (%) Deposits to net loans ratio (%) Term Funding Facility1 (TFF) ($bn) Quarterly average 30 151 Supplementary 80.1 79.8 80.2 allowance 122 123 123 12 (Drawn down 12
Slide 15: Additional Tier 1 profile
Additional Tier 1 profile 14 Annual issuance in the range of AUD1.3bn - 1.7bn1 For personal use only Westpac Basel III AT1 issuance from FY13 (notional amount, AUD m) AUD issuance (securityholder/general reinvestment) USD issuance 1,7022 1,6902 1,7232 1,5761 1,384 248 230 1,4232 324 1,3112 1,324 131
Slide 16: Key capital ratios
Key capital ratios 15 For personal use only Key capital ratios (%) Sep-20 Mar-21 Jun-21 CET1 capital ratio (%)2 CET1 capital ratio 11.1 12.3 12.0 12.3 (0.5) 4.0% Buffer 0.4 12.0 (0.2) 11.1 1.0% D-SIB Additional Tier 1 capital ratio 2.1 2.2 2.2 1.0% D-SIB 1.0% D-SIB 4.0% CCB Tier 1 capital ratio 13.2
Slide 17: Capital buffers
Capital buffers 16 Potential measures available to For personal use only Distribution Restriction Trigger1 Indicative Level 2 buffers3 Westpac to strengthen capital • Asset sales, including the businesses within the CET1 capital ratio 12.3% as at Specialist Business division 31 March 2021 • DRP disc
Slide 18: Key risks
Key risks 17 Caution - Westpac Capital Notes 8 are not deposit liabilities of Westpac, are riskier than bank deposits and may not be suitable for some investors. Their complexity may For personal use only make them difficult to understand and the risks associated with the Notes could result in the l
Slide 19: Key risks (continued)
Key risks (continued) 18 Caution - Westpac Capital Notes 8 are not deposit liabilities of Westpac, are riskier than bank deposits and may not be suitable for some investors. Their complexity may For personal use only make them difficult to understand and the risks associated with the Notes could res
Slide 20: Additional Information and Appendices
Additional Information and Appendices For personal use only Distributions Scheduled Conversion Capital Trigger Event and Non-Viability Trigger Event Optional Exchange and Acquisition Event Summary of certain events that may occur Appendix 1: Joint Lead Managers
Slide 21: Distributions
Westpac Capital Notes 8 Additional information Distributions 20 For personal use only • Non-cumulative, floating rate Distributions paid quarterly in arrear • Expected to be fully franked (if not fully franked the cash amount of the Distribution will be increased to compensate for the unfranked port
Slide 22: Scheduled Conversion
Westpac Capital Notes 8 Additional information Scheduled Conversion 21 For personal use only • On 21 June 2032, the first possible Scheduled Conversion Date and subject to the Scheduled Conversion Conditions being satisfied, the Notes Scheduled will mandatorily Convert into Ordinary Shares Conversio
Slide 23: Capital Trigger Event and Non-Viability Trigger Event
Westpac Capital Notes 8 Additional information Capital Trigger Event and Non-Viability Trigger Event 22 • A Capital Trigger Event occurs if Westpac determines, or APRA notifies Westpac in writing that it believes, that Westpac’s Common Equity Tier 1 For personal use only Capital Trigger Event Capita
Slide 24: Optional Conversion, Redemption or Transfer and Acquisition Event
Westpac Capital Notes 8 Additional information Optional Conversion, Redemption or Transfer and 23 Acquisition Event For personal use only • Westpac may elect to Convert into Ordinary Shares (subject to certain conditions), Redeem or Transfer: – all or some of the Notes on 21 September 2029, 21 Decem
Slide 25: Summary of certain events that may occur
Westpac Capital Notes 8 Additional information Summary of certain events that may occur 24 The table below is a summary of certain events that may occur while the Notes are on issue and what Holders may receive under the Westpac Capital Notes 8 Terms. The events may not occur as their occurrence is
Slide 26: Appendix 1: Joint Lead Managers
Appendix 1: Joint Lead Managers 25 ARRANGER AND JOINT LEAD MANAGER For personal use only • Allan O’Sullivan +61 424 575 938 Westpac Institutional Bank • Tyler O’Brien +61 419 881 284 JOINT LEAD MANAGERS • Tariq Holdich +61 403 445 535 ANZ Securities Limited • Brenton Smith +61 413 854 575 Citigroup
Slide 27: More information
More information 26 westpac.com.au/investorcentre For personal use only + - X Contact our team Joanne Dawson Guy Volpicella Treasurer, Westpac Banking Corporation Managing Director, Structured Funding and Capital +61 408 192 742 +61 458 265 917 joannedawson@westpac.com.au gvolpicella@westpac.com.au
Westpac Banking — Debt Investor Presentation (August 2021) on 6ix