Westpac Banking Corporation · ASX:WBC
Westpac Banking — Debt Investor Presentation (January 2013)
24 slides from Westpac Banking's debt investor presentation, Jan 30, 2013
Slide 1: Westpac Capital Notes Offer
For personal use only WESTPAC CAPITAL NOTES OFFER January 2013 Structuring Adviser Joint Lead Managers Westpac Banking Corporation ABN 33 007 457 141.
Slide 2: Disclaimer
Disclaimer For personal use only THIS PRESENTATION IS NOT FOR DISTRIBUTION TO ANY US PERSON This presentation has been authorised by Westpac Banking Corporation (ABN 33 007 457 141) (“Westpac”) in connection with a proposed offer of Westpac Capital Notes (“Offer”) . The Offer is made under a prospec
Slide 3: Westpac Capital Notes summary
Westpac Capital Notes summary For personal use only • Fully paid, non-cumulative, convertible, transferable, redeemable, subordinated, perpetual, unsecured Westpac Capital Notes notes issued by Westpac • Notes will qualify as Additional Tier 1 Capital under APRA’s Basel III capital adequacy standard
Slide 4: Distributions
Distributions For personal use only • Floating rate, expected to be paid quarterly in arrear and fully franked. First Distribution is scheduled for 8 June 2013 • Distributions are at Westpac’s discretion and subject to the Distribution Payment Conditions. Distributions Distributions may not always b
Slide 5: Scheduled Conversion
Scheduled Conversion For personal use only • On the Scheduled Conversion Date, Holders will receive for each Note they hold a variable number of Ordinary Shares, provided the Scheduled Conversion Conditions are satisfied • The Scheduled Conversion Date will be the earlier of: S h d l d Conversion Sc
Slide 6: Early Redemption, Transfer or Conversion
Early Redemption, Transfer or Conversion For personal use only • Westpac may elect to Redeem or Transfer some or all of the Notes on the Optional Redemption/Transfer Date (8 March 2019) Early Redemption or Transfer • Westpac may Redeem all (but not some) of the Notes following a Tax Event, Franking
Slide 7: Capital Trigger Event and Non-Viability Trigger Event
Capital Trigger Event and Non-Viability Trigger Event For personal use only • A Capital Trigger Event will occur if Westpac’s Common Equity Tier 1 Capital Ratio is equal to or Capital Trigger Event less than 5.125% (on either a Level 1 or Level 2 basis) • A Non-Viability Trigger Event will occur whe
Slide 8: Westpac's Common Equity Tier 1 Capital Ratio
Westpac’s Common Equity Tier 1 Capital Ratio For personal use only • Effective from 1 January 2013, the Common Equity Tier 1 Westpac Common Equity Tier 1 Capital Ratio (%) (Level 2 basis) Capital Ratio is determined under APRA’s new Basel III capital adequacy standards 8.38 8 09 8.09 8.16 • As of 30
Slide 9: Subordination and ranking of Westpac Capital Notes
Subordination and ranking of Westpac Capital Notes For personal use only • In a Winding Up of Westpac, Westpac Capital Notes (if they are on issue at the time) rank for payment: – ahead of Ordinary Shares – equally with Equal Ranking Capital Securities (which currently include TPS 2003, TPS 2004, We
Slide 10: Offer summary
Offer summary For personal use only • The Offer is for the issue of Westpac Capital Notes at a Face Value of A$100 each to raise Offer approximately A$500 million with the ability to raise more or less • The Offer consists of: – Securityholder Offer – an offer to registered holders of Ordinary Share
Slide 11: Comparison to other Westpac Tier 1 Hybrids
Comparison to other Westpac Tier 1 Hybrids For personal use only Westpac Capital Notes Westpac CPS Westpac SPS II Westpac SPS Westpac TPS ASX code WBCPD WBCPC WBCPB WBCPA WCTPA Preferred unit in the Legal form Note Preference share Stapled security1 Stapled security1 p TPS Trust Westpac Floating rat
Slide 12: Key dates for the Offer
Key dates for the Offer For personal use only Key dates for the Offer Record date for determining Eligible Securityholders (7.00pm Sydney time) 21 January 2013 Announcement of Offer and lodgement of Prospectus with ASIC 30 January 2013 Bookbuild 6 February 2013 Announcement of Margin 6 February 2013
Slide 13: Westpac Group
For personal use only WESTPAC GROUP Westpac Banking Corporation ABN 33 007 457 141.
Slide 14: FY12 snapshot – A strong financial result
FY12 snapshot – A strong financial result For personal use only change change Earnings FY12 FY12 FY12– FY11 FY12 – FY11 Net profit after tax $5,970m Down 15% Balance sheet Cash earnings $6,598m Up 5% Total assets $674.9bn Up 1% Cash EPS 215.9c 3% Loans $514.4bn Up 4% Revenue, reported $17,983m Up 6%
Slide 15: Balance sheet strength a key focus
Balance sheet strength a key focus For personal use only Common equity ratio1 (APRA Basel III) (%) Liquid assets ($bn) Cash, goverment and semi-government bonds 8.2 Private securities and government guaranteed paper 8.0 79 7.9 110 Self securitisation 103 7.5 82 43 33 74 35 45 34 31 25 29 38 29 39 42
Slide 16: Strong capital position, up on all measures
Strong capital position, up on all measures For personal use only • Westpac’s new preferred range for common equity ratio of 8.0% to Key capital ratios1 (%) 2H11 1H12 2H12 8.5%, based on APRA Basel III standards1 – Range takes into consideration Common equity ratio (APRA Basel 2.5) 8.1 8.0 8.4 – Reg
Slide 17: Strong common equity ratio against global peers
Strong common equity ratio against global peers For personal use only Global peer comparison of Basel III pro-forma common equity ratios1 (%) 15.7 15.4 13.3 11.0 11.0 10.6 10.6 10.5 10.0 9.8 Average 9.7% 9.3 9.3 9.3 9.3 9.3 9.2 9.1 9.0 8.7 8.7 8.6 8.6 8.5 8.4 82 8.2 81 8.1 8.0 7.9 7.8 7.8 2 BKIR CIB
Slide 18: Funding profile materially improved
Funding profile materially improved For personal use only Westpac deposit growth funding loan growth Funding composition by residual maturity (%) Customer deposit growth (lhs) Net loan growth (lhs) ($bn) Customer deposits to net loans ratio (%) SFR3 64% SFR3 77% SFR3 83% 30 67 6 67.6 70 63.2 9 7 Who
Slide 19: A well-balanced approach to funding
A well-balanced approach to funding For personal use only Term debt issuance and maturity profile1 ($bn) Short term wholesale funding2 ($bn) Covered Bond Hybrid Senior Govt Guaranteed Sub Debt 200 40 Issuance I Maturities M t iti $150bn $ 150 $134bn 30 $28bn $23bn $103bn $104bn $21bn 100 20 $18bn $1
Slide 20: Strong asset quality and provisioning coverage
Strong asset quality and provisioning coverage For personal use only change Australian mortgages delinquencies and loss rates (%) Asset Quality FY12 FY12 – FY11 90+ Past Due Total 90+ First Home Buyer p Stressed exposures to total committed 2.5 90+ Low Doc 2.17% 2 17% Down D 31bps 31b 90+ Investor I
Slide 21: Joint Lead Managers
Joint Lead Managers For personal use only Westpac Institutional Bank • Allan O’Sullivan (02) 8254 1425 ANZ • Tariq Holdich (02) 9226 6946 Commonwealth Bank of • Truong Le (02) 9118 1205 Australia Deutsche Bank • Mozammel Ali (02) 8258 1845 Macquarie • Jacqui Vanzella (02) 8232 4904 Morgan Stanley •
Slide 22: Contacts
Contacts For personal use only For further information contact For further information on Westpac, please visit our investor website: Group Treasury www.westpac.com.au/investorcentre Curt Zuber Group Treasurer, Westpac Banking Corporation See ‘Latest news’ for the link to Westpac Capital Notes +61 2
Slide 23: Key risks of Westpac Capital Notes
Key risks of Westpac Capital Notes For personal use only • In the unlikely event of a Winding Up, if the Notes are still on issue they will rank ahead of Ordinary Shares, equally with all Equal Ranking Capital Securities and behind Senior Creditors. • If there is a shortfall of funds on a Winding Up
Slide 24: Important Information
Important Information For personal use only The information in this presentation is an overview and does not contain all information necessary to make an investment decision. It is intended to constitute a summary of certain information relating to Westpac and does not purport to be a complete descr
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