Slide 1: 2019 Full Year Financial Results
Westpac Group (@) Presentation and Investor Discussion Pack SOMOS Help when it matters. Westpac Banking Corporation ABN 33 007 457 141 2019 Full Year Financial Results
Slide 2: Results Index
Westpac 2019 Full Year For personal use only Results Index 2019 Full Year Result Presentation 3 Investor Discussion Pack of 2019 Full Year Result 34 Strategy 35 Overview 40 Performance discipline 45 Service leadership 47 Digital transformation 50 Governance and Culture 62 Earnings drivers 72 Revenue
Slide 3: Brian Hartzer, Chief Executive Officer
Brian Hartzer Chief Executive Officer For personal use only Financial results throughout this presentation are in Australian dollars and are based on cash earnings unless otherwise stated. Refer page 42 for definition. Results principally cover the 2H19, 1H19 and 2H18 periods. Comparison of 2H19 ver
Slide 4: 2019 Results – Overview
2019 Results – Overview 4 For personal use only • Result reflects the challenging environment • Prioritising strength • Acting decisively to reshape our business • Delivering on our strategic priorities • Positioning for the digital future Westpac Group 2019 Full Year Results Presentation & Investor
Slide 5: FY19 earnings snapshot
FY19 earnings snapshot 5 Change Change For personal use only FY19 FY19 – FY181 2H19 – 1H191 Reported net profit $6,784m (16%) 14% Cash earnings2 $6,849m (15%) 8% Cash EPS3 198.2c (16%) 7% Return on equity4,5 10.8% (225bps) 63bps Margin (excl. Treasury & Markets)5 2.04% (7bps) – Expense to income rat
Slide 6: FY19 divisional snapshot
FY19 divisional snapshot 6 For personal use only % Change FY19 – FY18 Cash earnings FY19 ($m) As reported Excl. notable items1 Consumer $3,288 (4%) (6%) Business $2,431 (12%) (2%) Westpac Institutional Bank $1,014 (7%) (7%) New Zealand (NZ$) $1,042 3% 4% Group Businesses ($869) Large Large 1 Notable
Slide 7: Prioritising strength – Key ratios
Prioritising strength – Key ratios 7 For personal use only Common equity tier 1 (ratio % and $bn) Liquidity ratios1 (%) 55 $bn Ratio (%) 12 LCR NSFR 10.6 10.6 10.6 10.7 11 50 9.5 9.5 45 9.1 9.0 10 40 8.2 9 8 35 7 133 138 30 43 45 45 46 127 39 6 124 25 34 5 109 114 113 112 28 30 20 25 4 15 3 Sep-12 S
Slide 8: Prioritising strength – Capital
Prioritising strength – Capital 8 For personal use only • CET1 capital ratio was little changed over FY19 (up 4bps). Common equity Tier 1 capital – However, CET1 capital ratio was impacted by ~75 bps from Pro forma (%) ‒ Operational risk overlays (CGA self-assessment, 0.58 11.25 standardised model t
Slide 9: Prioritising strength – Reset dividend
Prioritising strength – Reset dividend 9 For personal use only Dividend considerations Dividends per ordinary share (cents) • Reset dividend to reflect capital raising, increase in 94 94 94 94 94 94 94 shares on issue, and lower earnings per share 80 • Final dividend of 80 cents per share, down 14 c
Slide 10: Acting decisively to reshape our business
Acting decisively to reshape our business 10 • Exited our financial planning business For personal use only Wealth reset • BT integrated into Consumer and Business Portfolio • Consolidated 61 branches and 349 ATMs1 actions • Agreement to sell most Australian offsite ATMs Distribution • New State bas
Slide 11: Delivering on our strategic priorities
Delivering on our strategic priorities 11 For personal use only • New State based structure reinforces accountability Performance • New operating rhythm focused on execution to drive performance metrics disciplines • Significant investment in risk, compliance, financial crime and customer complaints
Slide 12: Positioning for the digital future – Innovation
Positioning for the digital future – Innovation 12 For personal use only Digital experience Automation Fintech partnerships Customer Service Hub 3 4 • Digital sales now ~40% of total1 • St.George digital mortgage • Digital Institutional Bank (DIB) • Customer Service Hub rolled out • Reinventure port
Slide 13: Positioning for the digital future – Technology
Positioning for the digital future – Technology 13 For personal use only In production (examples) To be done • Mobile Banking • Human Digital • Mobile banking 2.0 (2020) Channel Connections (call centre) • Banker dashboard • Digital mortgage (Westpac) Systems • St.George digital • ‘Red’ (AI chatbot)
Slide 14: Peter King, Chief Financial Officer
Peter King Chief Financial Officer For personal use only Financial results throughout this presentation are in Australian dollars and are based on cash earnings unless otherwise stated. Refer page 42 for definition. Results principally cover the 2H19, 1H19 and 2H18 periods. Comparison of 2H19 versus
Slide 15: Results down 15%
Results down 15% 15 For personal use only Cash earnings movements ($m) FY19 – FY18 1. Hastings, Advice & Ascalon $308m 2. Lower insurance income $116m 281 8,346 5 (619) 3. Lower super, platforms and investments $91m 8,065 213 7,979 (1,130) 16 18 Down 4% 6,849 Down 15% FY18 FY18 FY18 excl. Net intere
Slide 16: 2H19 earnings up 8%, down 3% excl. notable items
2H19 earnings up 8%, down 3% excl. notable items1 16 For personal use only Cash earnings movements ($m) 2H19 – 1H19 95 (106) 753 4,049 (36) (128) 56 3,930 (377) 3,553 3,296 Down 3% Up 8% 1H19 1H19 1H19 excl. 1 Net interest Non-interest Expenses Impairment Tax 2 2H19 excl. 1 2H19 1 2H19 1 notable ite
Slide 17: Notable/infrequent/volatile items
Notable/infrequent/volatile items 17 For personal use only Notable items1 – by area ($m after tax) Infrequent/volatile items ($m after tax) 2H18 1H19 2H19 2H18 1H19 2H19 Wealth (141) (484) (194) Asset sales – 41 42 Banking (140) (133) (147) Fund manager revaluations (13) – – Wealth reset – (136) (36
Slide 18: Australian mortgage growth slowed
Australian mortgage growth slowed 18 For personal use only Net mortgage growth ($bn) Mortgage growth (%) 1H18 2H18 1H19 2H19 10.1 7.5 Owner occupied 3 3 2 2 Investor 2 1 – (1) 2.5 2.0 Fixed rate (% of flow) 30 23 36 35 1H18 2H18 1H19 2H19 Mortgage flows ($bn) Mortgage portfolio mix (%) New flows Run
Slide 19: Margins well managed
Margins well managed 19 For personal use only Net interest margin (bps) Treasury & Markets impact on NIM NIM excl. Treasury & Markets 5bps 2.17 1bp (6bps) 6bps (1bp) (2bps) 1bp 2.16 (3bps) 2.12 2.13 0.08 0.09 0.08 0.09 2.04 2.09 Down 1bp 2.07 2.04 1H19 1H19 1H19 excl. Loans Customer Short term Capit
Slide 20: Markets & Treasury income up 6% in 2H19
Markets & Treasury1 income up 6% in 2H19 20 For personal use only Markets non-customer and Treasury income ($m) Markets customer income ($m) Markets non-customer Treasury 653 574 546 247 484 162 142 89 395 396 349 362 60 114 72 127 465 482 447 436 448 448 438 455 404 395 406 412 335 277 282 235 1H16
Slide 21: Non-interest income up 16%, down 5% excl. notable items
Non-interest income up 16%, down 5% excl. notable items1 21 For personal use only Net Fees 4%1 Wealth and Insurance 6%1 Trading and Other 19%1 • Cards and merchants (down $28m); higher • General insurance (up $94m) from lower • Lower trading income from CVA reward program costs and lower claims meth
Slide 22: FY19 expenses up 3%, excl. notable items & FX down 1%
FY19 expenses up 3%, excl. notable items1 & FX down 1% 22 For personal use only Expense movements ($m) FY19 – FY18 220 10,031 241 340 (405) 9,698 (112) 9,586 (158) 37 9,570 91 72 7 Down 1% excl. FX Up 3% FY18 FY18 FY18 excl. Hastings BAU Structural Reg & Investment Software FX FY19 excl. Wealth FY19
Slide 23: 2H19 expenses excl. notable items up 1%
2H19 expenses excl. notable items1 up 1% 23 For personal use only Expense movements ($m) 2H19 – 1H19 5,041 (274) 187 4,990 135 (259) 59 3 4,803 4,767 95 3 Up 1% Down 1% 1H19 1H19 1H19 excl. BAU Structural Reg & Investment Software FX 2H19 excl. 2H19 2H19 notable notable productivity compliance amort
Slide 24: Credit quality
Credit quality 24 For personal use only Stressed exposures as a % of TCE1 Corporate/business stressed exposure by sector ($bn) 2.0 Watchlist & substandard Sep-18 2.17 90+ day past due and not impaired 1.8 Mar-19 Sep-19 Impaired 1.6 1.4 1.60 1.2 1.24 1.0 1.24 1.20 1.20 0.8 0.85 1.09 1.08 1.10 1.05 0.
Slide 25: Australian mortgage credit quality
Australian mortgage credit quality 25 For personal use only Australian mortgage portfolio characteristics Australian mortgage portfolio delinquencies (%) 3.0 Sep-18 Mar-19 Sep-19 90+ day past due total 90+ day past due investor 30+ day past due total 30+ day delinquencies 140bps 159bps 161bps 2.0 90
Slide 26: 2H19 Impairment charge 13bps of gross loans
2H19 Impairment charge 13bps of gross loans 26 For personal use only Individually assessed provisions ($m) Collectively assessed provisions ($m) Total ($m) Other movement Write-backs Write-offs New IAPs in Collective & recoveries direct provisions 535 1 26 509 461 430 428 444 418 368 333 198 173 173
Slide 27: CET1 ratio 10.67%
CET1 ratio 10.67% 27 For personal use only CET1 capital ratio (% and bps) 92 (75) 27 (4) 17 (6) (13) (14) 584 ~11.25 10.63 10.64 (16) (5) 10.67 Organic 51bps Other (48bps) Up 3 bps Sep-18 Mar-19 Cash 1H19 Dividend Ordinary IRRBB Other capital Notable Derivative Op Risk Op Risk Sep-19 $2.5bn Sep-19 e
Slide 28: Considerations for FY20
Considerations for FY201 28 For personal use only • Average lending expected to be relatively flat over FY20 as a likely decline in Average lending mortgage balances in 1H20 is offset by expected growth in 2H20 Net interest margin (excl. Treasury & • Margin for September 2019 (exit margin) of 2.04%3
Slide 29: Considerations for FY20 continued
Considerations for FY201… continued 29 FY20 expenses are expected to be 1% higher, excluding potential notable2 items For personal use only (based on FY19 expenses excluding notable2 items of $9,570m) • Increase in amortisation of capitalised software of ~$170m expected in FY20 following Increase in
Slide 30: Brian Hartzer, Chief Executive Officer
Brian Hartzer Chief Executive Officer For personal use only Financial results throughout this presentation are in Australian dollars and are based on cash earnings unless otherwise stated. Refer page 42 for definition. Results principally cover the 2H19, 1H19 and 2H18 periods. Comparison of 2H19 ver
Slide 31: Operating environment
Operating environment 31 For personal use only • Economic activity expected to improve through the year but remain subdued (GDP growth ending calendar 2020 at 2.4%) • Housing expected to continue its recovery in Sydney and Melbourne • Expect credit to increase moderately across both business and con
Slide 32: Building a bank for the future
Building a bank for the future 32 Key service factors Westpac position For personal use only • Navigate economic cycle • Number 1 or 2 across all key segments1 Scale & • Maintain funding sources • 14.2m customers strength • Spread cost of technology • Credit ratings2 AA-/Aa3/AA- and compliance • Unq
Slide 33: Measures of success
Measures of success 33 2020 Aspiration For personal use only • ~$500m in productivity savings • <40% Cost to income ratio Performance ($700m including Wealth Reset) disciplines • Restore mortgage growth to ~1X system1 • Further reshape network • Navigate low interest rate environment • Extend lead i
Slide 34: Investor Discussion Pack
Investor Discussion Pack For personal use only Financial results throughout this presentation are in Australian dollars and are based on cash earnings unless otherwise stated. Refer page 42 for definition. Results principally cover the 2H19, 1H19 and 2H18 periods. Comparison of 2H19 versus 1H19 (unl
Slide 35: Strategy
For personal use only Strategy
Slide 36: Westpac Group at a glance: Australia's First Bank
WBC listed on Westpac Group at a glance: Australia’s First Bank ASX & NZX Strategy 36 For personal use only • In its 203rd year, Australia’s first bank and first company, opened 1817 Four operating divisions • Australia’s 2nd largest bank and 20th largest bank in the world; ranked by market capitali
Slide 37: Framing our strategic agenda
Framing our strategic agenda Strategy 37 For personal use only To be one of the world’s great service companies, Our Vision helping our customers, communities and people, to prosper and grow Strategic Customer Franchise Performance Discipline Digital Transformation Priorities • Great customer outcom
Slide 38: Progress on our 2019 priorities
Progress on our 2019 priorities1 Strategy 38 For personal use only Deal with outstanding issues Momentum in customer franchise2 Structural cost reduction • Reset Wealth: • Increased Australian banking customer numbers by • $405m in productivity savings delivered in FY19 124k to 11.2m over FY19 − Exi
Slide 39: What sets Westpac apart
What sets Westpac apart Strategy 39 For personal use only Strong strategic position – consistent strategy Conservative financial management • No. 1 or 2 position across key markets1 – all divisions well placed • Strong credit quality with low Impaired assets to gross loans2 (%) impaired assets to gr
Slide 40: Overview
For personal use only Overview
Slide 41: Notable items in FY19 and FY18 Results
Notable items in FY19 and FY18 Results 41 Remediation For personal use only Wealth reset In FY19 and FY18, the Group raised certain FY19 notable items ($m) Consumer Business NZ GB1 GB1 Group provisions known throughout this document as “notable items” which relate to the following: Net interest inco
Slide 42: Cash earnings and reported net profit reconciliation
Cash earnings and reported net profit reconciliation Results 42 For personal use only Cash earnings1 policy Reported net profit and cash earnings adjustments ($m) • Westpac Group uses a measure of performance referred to as cash earnings to assess financial performance at both a Group and divisional
Slide 43: FY19 financial snapshot
FY19 financial snapshot Results 43 For personal use only Change Change Change Change FY19 FY19- FY18 2H19- 1H19 FY19 FY19- FY18 2H19- 1H19 Earnings1 Balance sheet Total assets ($bn) 906.6 3% 2% Earnings per share (cents) 198.2 (16) 7 Common equity Tier 1 (CET1) capital ratio 10.7 4bps 3bps Core earn
Slide 44: Reset dividend
Reset dividend Results 44 For personal use only Dividend considerations Dividends per ordinary share (cents) • Reset the dividend given capital raising, increase in shares on issue and lower earnings 93 94 94 94 94 94 94 94 94 • Sustainability of the payout ratio over the medium term 80 • 2H19 payou
Slide 45: FY19 cash earnings impacted by notable items of $1,130m
FY19 cash earnings impacted by notable items of $1,130m Performance discipline 45 For personal use only % % Change Change Cash earnings features of FY19 – FY18 ($m) FY19 FY19- 2H19- AIEA1 up 3%, No Hastings revenue, lower wealth income, lower insurance income $m FY18 1H19 margin 7bps lower (higher c
Slide 46: Divisional contributions
Divisional1 contributions Performance discipline 46 For personal use only 2H19 divisional core earnings movements ($m) 2H19 divisional cash earnings movements ($m) 190 (71) 103 (135) 1,086 6,148 (93) (76) 3 6,101 (539) 753 4,049 (74) 5,562 (40) 27 3,930 (377) 5,062 3,553 Down 1% ex notable items 3,2
Slide 47: More customers, deeper relationships and strong balance sheet
More customers, deeper relationships and strong balance sheet Service leadership 47 For personal use only Grow customers Deepen relationships Maintain balance sheet strength Customer numbers (#m) Transaction account balances ($bn) CET1 capital ratio (%) and capital ($bn) 3 4 5 Australian banking 1 N
Slide 48: Building long term franchise value – customer service
Building long term franchise value – customer service Service leadership 48 For personal use only Customer satisfaction1 Net Promotor Score (NPS) Consumer and Business (mean), New Zealand (%) Westpac St.George brands Peers Westpac St.George brands Peers 1.4 Consumer Consumer 7.5 -6.0 7.4 7.2 -7.6 7.
Slide 49: Transforming our workforce
Transforming our workforce Workforce revolution 49 For personal use only Service leadership Learning and development Simplification • The Navigate program continues to embed ‘Our • Over 2,130 leaders participated in leadership • Released PeopleHQ, a cloud based HR system, with Compass’, providing ou
Slide 50: Four pillars of our digital strategy
Four pillars of our digital strategy Digital transformation 50 For personal use only Reducing cost3to serve and Secure and reliable Giving customers control Investing in Fintech cost to change • Protecting both the Group • Refining digital services to • Replacing aging infrastructure • Direct invest
Slide 51: Investment in stability and fraud protection
Investment in stability and fraud protection Digital transformation 51 For personal use only Strengthening technology infrastructure Severity 1 IT incidents (Australia) • Simpler modern core systems through Customer Service Hub (CSH), Panorama, New Payments Platform (NPP) and cloud based human capit
Slide 52: Giving customers more control
Giving customers more control Digital transformation 52 For personal use only Customer control features Westpac Red interactions (AI chatbot) Continuing to develop and implement services which allow customers Conversations (#'000s) Resolved by Red (%) to control their finances including: 76 73 68 69
Slide 53: Reducing cost to serve
Reducing cost to serve Digital transformation 53 For personal use only Accounts with eStatements Progress on key initiatives Number (#m) eStatements (%) Digitising processes to improve productivity and enhance the 55 49 52 customer experience 43 45 • More digital communication such as eConveyancing,
Slide 54: Customers preferring digital channels
Customers preferring digital channels1 Digital transformation 54 For personal use only Digitally active customers (#m) Sales via digital (%) 4.9 5.0 4.8 39 4.7 38 4.5 36 37 4.3 29 29 Up 2% Up 1ppt Up 4% Up 2ppts Mar-17 Sep-17 Mar-18 Sep-18 Mar-19 Sep-19 1H17 2H17 1H18 2H18 1H19 2H19 Branch transacti
Slide 55: Customer Service Hub
Customer Service Hub Westpac 1st Party roll-out largely complete with significant improvements in the customer and banker experience Digital transformation 55 Strategy For personal use only Re-engineering the home ownership process: Digitising the end-to-end home loan origination experience by 2020
Slide 56: Reinventure – Investing in fintech businesses
Reinventure – Investing in fintech businesses1 Digital transformation 56 For personal use only Westpac Westpac has committed $150m is actively to fintech responding venture to Reinventure. capital fund, digital threats and opportunities. Reinventure enables Westpac to access insights We encourage di
Slide 57: New digital offers for customers
New digital offers for customers1 Digital transformation 57 For personal use only Examples of how Westpac’s and Reinventure’s investments are delivering 2 Investing in Building on Presto Smart for Westpac customers merchant • Based on software built by Assembly, propositions Presto Smart enables a b
Slide 58: Continued sustainability leadership
Continued sustainability leadership Sustainable futures 58 United Nations Sustainable Westpac’s sustainability Development Goals alignment priority areas FY19 outcomes (unless otherwise stated) For personal use only • Delivered financial capability communications for different demographic segments i
Slide 59: Delivering sustainable value for all stakeholders
Delivering sustainable value for all stakeholders1 Sustainable futures 59 For personal use only Customers Employees Community Suppliers Investors Economy Environment 14.2m 36,311 ~500 $5.9bn 10.7% $3.0bn $9.3bn Customers Employees2 relief packages for Spent with suppliers Cash return Income tax Comm
Slide 60: Climate-related metrics
Climate-related metrics Sustainable futures 60 Climate change solutions exposure Electricity generation exposure Total scope 1, 2 and 3 emissions For personal use only (TCE $bn) (% of TCE)1 at 30 September 2019 (tCO2e, 000s)2 0.9 1.4 220 9.3 203 194 9.1 183 Renewable energy 7.0 8.7 6.2 Gas 13.7 TCE
Slide 61: Climate-related disclosures – scenario analysis
Climate-related disclosures – scenario analysis Sustainable futures 61 For personal use only Alignment with the TCFD Transition risk – key points • Westpac continues to integrate the consideration of climate-related risks • Westpac assessed potential transition risks (policy, legal, technology and a
Slide 62: Governance & Culture
For personal use only & Culture Governance
Slide 63: Strengthening governance and non-financial risk management
Strengthening governance and non-financial risk management Conduct and governance 63 For personal use only Addressing shortcomings The Royal Commission, as well as our Culture, Board and Governance and Accountability (CGA) self- executive assessment, uncovered shortcomings in our governance manageme
Slide 64: CGA self-assessment action plan progressing well
CGA self-assessment action plan progressing well Conduct and governance 64 For personal use only Westpac completed a Culture, Governance and Accountability (CGA) self-assessment in 2018 at the request of the Australian Prudential Regulation Authority (APRA). It examined the Group’s risk culture, gov
Slide 65: Enhancing governance
Board and Enhancing governance executive governance 65 For personal use only Governance is being strengthened by enhancing Board and executive reporting, meeting effectiveness, management of non-financial risks and enhancing the Group’s governance structures Enhance governance practices and improve
Slide 66: Solving customer complaints with care
Customer Solving customer complaints with care experience 66 For personal use only Through our centralised Customer and Corporate Relations division and complaints strategy, we are changing our complaints culture and making things better for our customers • Resetting perception of complaints through
Slide 67: Get it right, put it right
Customer Get it right, put it right experience 67 For personal use only • Completed extensive product reviews Analysis of where we have not got it right • Reviewing matters identified through the Royal Commission Provisioning for • Provisioned $977 million (after tax) in FY19 for estimated customer
Slide 68: Strengthening non-financial risk management
Risk and Strengthening non-financial risk management Compliance 68 For personal use only Stronger ‘three lines of defence’ and risk operating models • New Risk Management Framework with three lines of defence and risk culture at its centre Risk infrastructure • Introducing a more comprehensive risk
Slide 69: Remuneration and accountability
Remuneration and accountability Remuneration and accountability 69 For personal use only Sharpening accountability and strengthening conduct • New business structure focused on customer segments Structure and leadership • Selective centralisation including remediation and customer complaints • Banki
Slide 70: Building a stronger culture of service
Building a stronger culture of service Culture 70 For personal use only Our CGA self-assessment found that Westpac’s culture is analytical and highly consultative. While beneficial at times, this characteristic has slowed down decision making, created undue complexity and diluted accountability. We’
Slide 71: Royal Commission response plan underway
Royal Commission Royal Commission response plan underway Response Plan 71 For personal use only Implementation TCE AT 30 SEPTEMBERunderway 2018 $3.5BN Progress Executive accountability • Dedicated team managing our Royal Commission response Division # • Group Executive accountability and Board overs
Slide 72: Earnings Drivers
For personal use only Drivers Earnings
Slide 73: Composition of lending and deposits
Composition of lending and deposits Revenue 73 For personal use only Composition of lending (% of total) Net loans ($bn) Australian mortgage lending1 ($bn) +3% in NZ$ 31 (29) 2 Aust. mortgages 445 447 449 710 714 2 1 (1) (1) 715 11 Aust. business 3 Aust. institutional 8 Flat Aust. other consumer 13
Slide 74: NIM excluding Treasury & Markets and notable items, down 2bps
NIM excluding Treasury & Markets and notable items, down 2bps Revenue 74 For personal use only Net interest margin (NIM) movement (%) Net interest margin (%) Treasury & Markets impact on NIM NIM excl. Treasury & Markets NIM NIM excl. Treasury & Markets Restated for 6bps 1bp (6bps) adoption of AASB 5
Slide 75: Non-interest income impacted by notable items
Non-interest income impacted by notable items Revenue 75 For personal use only Non-interest income contributors ($m) Net fee income ($m) Fees Wealth and insurance Trading Other Facility fees Net transaction fees Other non-risk fee income Notable items 2,522 2,456 69 56 1,017 893 826 507 419 1,988 82
Slide 76: Expenses well managed ex notable items
Expenses well managed ex notable items Expenses 76 For personal use only Productivity savings ($m) Expense movements FY19 – FY18 ($m) 405 9,698 340 (405) 461 10,031 (112) 9,586 (158) 99 71 37 9,570 304 263 262 239 Down 1% excl. FX Up 3% FY18 FY18 ex notable expenses FY19 ex notable FY19 ex notable R
Slide 77: Investment spend focused on growth, productivity, risk and compliance
Investment spend focused on growth, productivity, risk and compliance Expenses 77 For personal use only Investment spend mix ($m) Investment spend ($m) Capitalised software2 Other technology FY17 FY18 FY19 Capitalised software balance ($bn) Regulatory change Amortisation ($bn) Expensed 517 583 608 G
Slide 78: Impairment charges remain low
Impairment charges remain low Impairments 78 For personal use only Impairment charges ($m) Individually assessed Collectively assessed 1 New IAPs Write-backs & recoveries Write-offs direct Other movements in CAP 1,2 Total 535 430 428 418 444 461 368 333 173 198 173 170 15 (90) (108) (74) (174) (168)
Slide 79: Credit Quality
For personal use only Quality Credit
Slide 80: High quality portfolio with bias to residential mortgage lending
High quality portfolio with bias to residential mortgage lending Credit quality 80 For personal use only Asset composition (%) Lending composition at 30 September 2019 (% of total) Total assets ($907bn) Sep-17 Sep-18 Sep-19 Total loans of $715bn Loans 80 81 79 Available-for-sale securities and inves
Slide 81: Loan portfolio composition
Loan portfolio composition Credit quality 81 For personal use only Exposures at default1 by sector ($bn) Top 10 exposures to corporations and NBFIs5 (% of TCE) Finance & insurance 2 The single largest corporation/NBFI Government admin. & defence exposure represents 0.2% of TCE 1.4 1.3 1.3 Property 3
Slide 82: Well provisioned, sound credit quality
Well provisioned, sound credit quality Credit quality 82 For personal use only Provisioning ratios Total impairment provisions ($m) Sep-18 1-Oct-18 Mar-19 Sep-19 Overlay Collectively assessed provisions Individually assessed provisions Loan provisions1 to gross loans (bps) 43 57 56 54 4,241 Impaired
Slide 83: Provision cover by portfolio category
Provision cover by portfolio category Credit quality 83 For personal use only Exposures as a % of TCE Provisioning to TCE (%) Mar-18 Sep-18 Mar-19 Sep-19 Fully performing portfolio provisions Small cover as low probability of default (PD) 0.20 0.18 0.09 0.09 Stage 1 95.66 95.77 Fully performing 98.9
Slide 84: Stressed exposures modest rise in FY19
Stressed exposures modest rise in FY19 Credit quality 84 For personal use only Stressed exposures as a % of TCE Movement in stress categories (bps) 7 120 4 (2) (3) 5 (2) 108 3 110 0 Watchlist & substandard 90+ day past due (dpd) and not impaired 1 Impaired 2.17 Mar-19 Watchlist Watchlist Impaired Im
Slide 85: Overall corporate and business stressed exposures increased modestly
Overall corporate and business stressed exposures increased modestly over 2H19 Credit quality 85 For personal use only Corporate and business portfolio stressed exposures by industry ($bn) 2.0 A number of business Sep-18 Mar-19 Sep-19 exposures migrated to 1.8 Watchlist, in particular within motor v
Slide 86: Areas of interest: Commercial property
Areas of interest: Commercial property Credit quality 86 For personal use only Commercial property portfolio Commercial property exposures % of TCE and % in stress Sep-18 Mar-19 Sep-19 Commercial property as % of TCE (lhs) 10 20 Total committed exposures (TCE) $67.6bn $66.9bn $66.9bn Commercial prop
Slide 87: Areas of interest: Inner city apartments
Areas of interest: Inner city apartments Credit quality 87 For personal use only Commercial property portfolio TCE ($bn) Sep-18 Mar-19 Sep- 19 TCE (%)1 Residential apartment development >$20m 4.1 3.3 3.4 5.1 • Approvals and new starts lower and expected to slow further. • Tightened risk appetite for
Slide 88: Areas of interest: Retail trade
Areas of interest: Retail trade Motor vehicle retailing stress increasing Credit quality 88 For personal use only Retail trade portfolio Retail trade exposure (TCE) ($bn) Sep-18 Mar-19 Sep-19 Total committed exposures (TCE) $16.2bn $16.0bn $16.0bn 16.3 15.5 16.2 16.0 16.0 Lending $11.6bn $11.5bn $11
Slide 89: Areas of interest: Mining and Australian Agriculture
Areas of interest: Mining and Australian Agriculture Credit quality 89 For personal use only Mining (inc. oil and gas) portfolio Mining portfolio (TCE) Iron Ore and Oil prices ($)3 by sector (%) Sep-18 Mar-19 Sep-19 Iron ore (USD/t) 4 Crude oil (USD/bbl) 5 Westpac Total committed 140 Economics $10.7
Slide 90: Australian consumer unsecured lending, 3% of Group loans
Australian consumer unsecured lending, 3% of Group loans Credit quality 90 For personal use only Australian consumer unsecured lending portfolio1 Unsecured portfolio ($bn) Unsecured performing loans balance ($bn lhs) Sep-18 Mar-19 Sep-19 25 3 Unsecured 90+ day delinquencies balance ($bn rhs) 23 Lend
Slide 91: Australian mortgage portfolio performance
Australian mortgage portfolio performance Credit quality 91 For personal use only Australian mortgage portfolio Sep- 18 Mar- 19 Sep- 19 Major banks’ total residential mortgage impaired and past due loans ≥ 90days ($bn and %)2 30+ day delinquencies (bps) 140 159 161 $bn 0.89 % 6 0.82 0.77 0.75 90+ da
Slide 92: Australian mortgage portfolio composition
Australian mortgage portfolio composition Credit quality 92 For personal use only Sep-18 Mar-19 Sep-19 2H19 Australian mortgage portfolio balance balance balance Flow1 Australian mortgage portfolio by State (%) Total portfolio ($bn) 444.7 447.2 449.2 30.6 Australian banking system5 41 43 Westpac Gro
Slide 93: Australian mortgage portfolio – borrower equity sound
Australian mortgage portfolio – borrower equity sound Credit quality 93 For personal use only Australian housing loan-to-value ratios (LVRs) (%) Australian housing loan-to-value ratios (LVRs) (%) 100 FY19 drawdowns LVR at origination % of total portfolio 90 Portfolio LVR at origination % of total po
Slide 94: Australian mortgage portfolio underwriting
Australian mortgage portfolio underwriting Credit quality 94 For personal use only Notable changes to Westpac mortgage lending standards in FY19 Australian mortgage portfolio by • Increase in minimum assessment (‘floor’) rate to 7.25% and increase in serviceability assessment buffer year of originat
Slide 95: Australian mortgage portfolio repayment buffers
Australian mortgage portfolio repayment buffers Credit quality 95 For personal use only Variable mortgage interest rates1 (%) Westpac Australian offset account balances2 ($bn) Owner occupied Investor Buffer . Loans assessed at the Linked to I/O mortgages Linked to P&I mortgages . Serviceability high
Slide 96: Interest only mortgages
Interest only mortgages Credit quality 96 • 73% weighted average LVR of interest only loans at For personal use only origination1 Australian I/O loan portfolio ($bn) Australian mortgage delinquencies (%) • 62% of customers ahead of repayments (including I/O performing loans balance (lhs) I/O P&I off
Slide 97: Australian investment property portfolio
Australian investment property portfolio Credit quality 97 For personal use only Investment property lending (IPL) portfolio Sep-18 Mar-19 Sep-19 Investment property portfolio by number of properties per Weighted LVR of IPL loans at origination (%) 73 73 72 customer (%) averages1 1 1 1 LVR of new IP
Slide 98: Australian mortgage deep dive
Australian mortgage deep dive Credit quality 98 For personal use only Australian mortgage lending1 by origination date, dynamic LVR2 and income bands (%) Chart may not add due to rounding Year of origination <2011 2011-14 2015+ Gross income bands 79 >$250k 7 66 $100k - $250k 11 <$100k 33 41 37 34 7
Slide 99: Lenders mortgage insurance arrangements
Lenders mortgage insurance arrangements Credit quality 99 For personal use only Lenders mortgage insurance (LMI) Lenders mortgage insurance arrangements • Where mortgage insurance is required, mortgages LVR Band insurance are insured through Westpac’s captive mortgage insurer, Westpac Lenders Mortga
Slide 100: Mortgage portfolio stress testing outcomes
Mortgage portfolio stress testing outcomes Credit quality 100 For personal use only • Westpac regularly conducts a range of portfolio stress tests as part of its Australian mortgage portfolio stress testing regulatory and risk management activities • The Australian mortgage portfolio stress testing
Slide 101: Capital, Funding and Liquidity
Capital, Funding and Liquidity For personal use only
Slide 102: CET1 ratio of 10.7%, increasing to ~11.25% on a pro forma basis
CET1 ratio of 10.7%, increasing to ~11.25% on a pro forma basis Capital, Funding and Liquidity 102 For personal use only Capital update Future developments • CET1 ratio of 10.67%, up 3bps from 31 March 2019 • AASB16 leasing accounting standard applies from 1 October 2019 (~8bps reduction to the CET1
Slide 103: Key capital ratios
Key capital ratios Capital, Funding and Liquidity 103 For personal use only Capital ratios CET1 capital ratio (%) and CET1 capital ($bn) Westpac CET1 capital (lhs, $bn) Westpac CET1 capital ratio (rhs, %) % Sep-18 Mar-19 Sep-19 ~11.25 55 10.6 10.5 10.6 10.6 10.7 12 10.0 CET1 capital ratio 10.6 10.6
Slide 104: Well placed to respond to New Zealand changes
Well placed to respond to New Zealand changes Capital, Funding and Liquidity 104 For personal use only Level 1 and New Zealand Capital Review Level 1 CET1 capital ratio (%, bps) • APRA has proposed changes to the capital treatment of a parent ADI’s (“Level 1”) equity investments in subsidiary bankin
Slide 105: RWA higher from operational risk overlays and new derivative capital standard
RWA higher from operational risk overlays and new derivative capital standard Capital, Funding and Liquidity 105 For personal use only Risk weighted assets ($bn) 425.4 5.1 1.0 (6.5) 9.0 0.4 428.8 • Credit risk weighted assets up due to the introduction of a 419.8 new derivative capital standard • Op
Slide 106: Expected timetable on various regulatory changes
Expected timetable on various regulatory changes1 Capital, Funding and Liquidity 106 Second half First half Second half For personal use only 2021 2022 2019 2020 2020 Standardised approach to Consult, additional quantitative impact study Finalise Implementation credit risk Advanced approach to Consu
Slide 107: Well placed on internationally comparable CET1 and leverage ratios
Well placed on internationally comparable CET1 and leverage ratios Capital, Funding and Liquidity 107 Common equity Tier 1 ratio (%)1 For personal use only 20% 15% Standard Chartered China Construction Bank Royal Bank of Canada Credit Agricole SA Toronto Dominion Bank China Merchants Bank Norinchuki
Slide 108: Internationally comparable capital ratio reconciliation
Internationally comparable capital ratio reconciliation Capital, Funding and Liquidity 108 For personal use only APRA’s Basel III capital requirements are more conservative than those of the Basel Committee on Banking Supervision (BCBS), leading to lower reported capital ratios by Australian banks.
Slide 109: Long term wholesale funding
Long term wholesale funding Capital, Funding and Liquidity 109 For personal use only • A$33.5bn new term wholesale funding raised in FY19 Term debt issuance and maturity profile1,2,3 ($bn) • Majority of new issuance in senior unsecured bonds (51%) and covered bonds (24%) in line with prior Covered b
Slide 110: Funding and liquidity metrics
Funding and liquidity metrics Capital, Funding and Liquidity 110 For personal use only Funding composition by residual maturity (%) Liquidity coverage ratio (LCR)3 ($bn and %) Bars may not add to 100 due to rounding LCR 138% LCR 127% 143.9 133.7 1 Wholesale Onshore <1yr 113.4 5 5 97.0 16 7 7 Wholesa
Slide 111: Divisional Results
For personal use only Results Divisional
Slide 112: Consumer earnings up 6% (excluding notable items)
Consumer earnings up 6% (excluding notable items) Consumer 112 For personal use only Cash earnings ($m) Key financial metrics AIEA up 1%, higher margin Lower weather Higher unsecured Change from lower short term related insurance write-offs and lower 2H18 1H19 2H19 on 1H19 wholesale funding costs cl
Slide 113: 2H19 performance reflects disciplined management
2H19 performance reflects disciplined management Consumer 113 For personal use only Revenue ($m) Core earnings ($m) Cash earnings ($m) Revenue reduced by notable Core earnings reduced by Cash earnings reduced by notable items of 1H19:($47m) notable items of items of 1H19:($2m) 2H19:($31m) 2H19:($40m
Slide 114: Insurance fundamentals
Insurance fundamentals Consumer 114 For personal use only Insurance premiums ($m) Insurance claims rates (%) General Insurance GWP Retail Life in-force premiums General Insurance Life Insurance Group Life in-force premiums 1,527 1,529 1,518 81 1,491 276 283 280 252 54 53 48 44 42 43 37 1,000 994 979
Slide 115: Making banking easy
Making banking easy Consumer 115 For personal use only Simplify Digitising Connecting General Insurance Personalising the online Online Home Loan app experience • Enhanced online claims • Paperless application experience with 40% • Relevant, timely offers with document upload quicker lodgement time
Slide 116: Business 2H19 performance impacted by notable items and higher impairments
Business 2H19 performance impacted by notable items and higher impairments Business 116 For personal use only Cash earnings ($m) Key financial metrics AIEA flat. Margins down 6bps Change Higher stressed exposures 2H18 1H19 2H19 on 1H19 (ex notable items) from reduced Lower wealth revenue and an incr
Slide 117: 2H19 key metrics
2H19 key metrics Business 117 For personal use only Revenue ($m) Core earnings ($m) Cash earnings ($m) Core earnings lower from Cash earnings lower from Revenue lower from notable items of notable items of notable items of 1H19:($217m) 2H19:($171m) 1H19:($151m) 2H19:($119m) 1H19 ($197m) 2H19 ($104m)
Slide 118: Transforming Business
Transforming Business Business 118 For personal use only Digital Transformation Performance Disciplines Customer Franchise Building a simpler and better Investing in banker capacity and Empowering customers with business for the future by embracing capability to provide world class enhanced online a
Slide 119: Platforms – Supporting advisers and investors
Platforms – Supporting advisers and investors Business 119 For personal use only Platforms FUA on Panorama ($m) Investors on Panorama (#) New pricing structure success measures 23,387 44,314 since 1st October 2018: 17,041 32,444 • an increase of 719 active advisers on Panorama 12,402 23,462 • 13,285
Slide 120: Super, Investments & Platforms – Sound fundamentals
Super, Investments & Platforms – Sound fundamentals Business 120 For personal use only Funds ($bn) Retail platforms market share1 (%) Platforms Superannuation Packaged funds Other WBC Peer 1 Peer 2 Average next top 4 215.4 197.7 205.6 203.1 191.4 3.6 4.7 3.7 3.8 3.5 39.6 43.6 18.2 38.0 39.8 36.4 39.
Slide 121: WIB delivers a disciplined performance
WIB delivers a disciplined performance Westpac Institutional Bank 121 For personal use only Cash earnings ($m) Key financial metrics Change Net loans down 1% $42m movement in Reduction of FTE 2H18 1H19 2H19 on 1H19 and NIM down 3bps DVA1 and lower and lower syndication fees variable rewards Revenue
Slide 122: Prioritising returns over growth
Prioritising returns over growth Westpac Institutional Bank 122 For personal use only Deposits ($bn) Net loans ($bn) Margin (%) Lower deposit spreads in line Higher government balances with low interest rate Prioritised return over growth environment and competition 104.9 101.3 1.74 95.7 77.4 76.5 7
Slide 123: Well placed for opportunities in Institutional banking
Well placed for opportunities in Institutional banking Westpac Institutional Bank 123 For personal use only Westpac • Leading financial markets, financing and transactional banking product capability • Deep expertise and industry insights Institutional Bank • Digital and banker-led service aligned t
Slide 124: NZ 2H19 earnings impacted by lower margins and higher investment
NZ 2H19 earnings impacted by lower margins and higher investment1 New Zealand 124 For personal use only Cash earnings ($m) Key financial metrics AIEA up 3%, margin $40m gain on sale Change down 11bps (ex of Paymark in 1H19 Turnaround from a 2H18 1H19 2H19 on 1H19 notable items) from $14m impairment
Slide 125: New Zealand key metrics
New Zealand key metrics1 New Zealand 125 For personal use only Revenue ($m) Core earnings ($m) Cash earnings ($m) Notable items Notable items Notable items impact ($18m) impact ($34m) impact ($24m) 1,248 768 555 726 534 1,190 708 1,174 1,167 487 654 482 1H18 2H18 1H19 2H19 1H18 2H18 1H19 2H19 1H18 2
Slide 126: Investing in the customer experience through innovation and digital offerings
Investing in the customer experience through innovation and digital offerings New Zealand 126 For personal use only Digital for customers Making banking easier Deeper customer relationships Digital sales1 (%) Westpac Way of Working Creating ongoing value for customers • Reconfigured key • Value Me h
Slide 127: Balance sheet drivers
Balance sheet drivers New Zealand 127 For personal use only New Zealand net loans (NZ$bn) New Zealand deposits (NZ$bn) 82.1 1.9 0.2 84.2 80.4 64.2 0.3 0.0 64.5 61.9 Up 3% Flat Sep-18 Mar-19 Consumer Business Sep-19 Sep-18 Mar-19 Consumer Business Sep-19 New Zealand customer loans (NZ$bn) and % of to
Slide 128: Stressed exposures remain low
Stressed exposures remain low New Zealand 128 For personal use only Business stressed exposures as a % of New Zealand business TCE Watchlist & substandard Property 90+ day past due (dpd) and not impaired 6.8 Impaired 11 13 Manufacturing 5.5 5 4.9 9 4.4 6 Agriculture, 4.4 forestry & fishing 3.3 3.4 3
Slide 129: Consumer portfolio
Consumer portfolio New Zealand 129 For personal use only Mortgage 90+ Mortgages 90+day daydelinquencies daysdelinquencies past due (%)(%) Unsecured consumer 90+ day delinquencies (%) 1.0 1.5 Portfolio runoff and operational changes 1.0 0.5 0.82 0.5 0.13 0.0 0.0 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar
Slide 130: Economics
For personal use only Economics
Slide 131: Australian and New Zealand economic forecasts
Australian and New Zealand economic forecasts Economics 131 For personal use only Calendar year Key economic indicators (%) as at October 2019 2017 2018 2019F 2020F World GDP1 3.8 3.6 3.0 3.2 Australia GDP2 2.5 2.2 2.3 2.4 Private consumption2 2.8 2.0 1.9 2.3 Business investment2,3 7.3 –0.8 –0.4 2.8
Slide 132: The Australian economy
The Australian economy Economics 132 For personal use only NSW and Victoria 58% of population and employment Services employ a large part of the Australian workforce Output 2018 - sector contribution to GDP (%)1 Services Mining 54% Manufacturing 9 18 Construction 7 Transport, Utilities 9 Wholesale,
Slide 133: Australian economic snapshot
Australian economic snapshot Economics 133 For personal use only Australian economy key statistics Inflation remains subdued1 Labour market slack (latest available as at October 2019) Avg RBA core CPI %qtr (rhs) %qtr % % %yr Unemployment rate (lhs)* 7.5 7.5 8 Headline CPI %yr (lhs) 3.2 RBA – Aug 201
Slide 134: Australian economic outlook: growth to remain below trend
Australian economic outlook: growth to remain below trend Economics 134 For personal use only Australia: 28 years of uninterrupted growth %ann %ann Quarterly GDP Annual GDP period averages 8 8 6 6 4 4 2 2 0 0 -2 -2 1989 1993 1997 2001 2005 2009 2013 2017 Sources: ABS, Westpac Economics. Australian g
Slide 135: Ongoing weakness centred on consumer and housing construction
Ongoing weakness centred on consumer and housing construction Economics 135 For personal use only Australian wage inflation remains low Consumer sentiment remains weak %yr Australian wage inflation (% ann) Index Index 8 Aus private sector wages 140 140 Westpac-MI Consumer Sentiment Index 7 Mining in
Slide 136: Some offset from infrastructure, Government spending and population growth
Some offset from infrastructure, Government spending and population growth Economics 136 For personal use only Infrastructure pipeline ($bn, rolling annual) Household incomes: one off policy support $bn $bn %ann %ann Work done 9 Household disposable income 9 160 160 Without tax cuts Commencements 8
Slide 137: Australian housing market trends
Australian housing market trends Economics 137 For personal use only Consumer housing sentiment Auction clearance rates3 ann ch ann ch % Sydney Melbourne % Westpac Consumer Housing Sentiment Index 1 Sales 2 95 95 2.5 2.5 weekly monthly 85 85 1.5 1.5 75 75 0.5 0.5 65 65 -0.5 -0.5 55 55 latest -1.5 mo
Slide 138: Australian dwelling prices
Australian dwelling prices: Sydney, Melbourne prices recovering; Turnover remains low Economics 138 For personal use only Australian dwelling prices Finance approvals by segment (%, value of housing finance) Index All dwellings (index, Jan 2004 = 100) % % Index 'Upgraders' Investor Foreign buyers 1
Slide 139: Physical supply/demand fundamentals
Physical supply/demand fundamentals Economics 139 For personal use only Dwelling supply has not kept pace with stronger demand Rental vacancy rates Population versus dwelling stock (annual average change ‘000) ‘000 Rental vacancy rates (%, quarterly, annual average) ‘000 % 450 Population Total incre
Slide 140: Trends in Australian home lending
Trends in Australian home lending Economics 140 For personal use only Change in composition of housing credit Introduction of differentiated mortgage pricing Australian housing credit growth (6mth % change annualised) % Mortgage interest rates (major bank average) % 7.5 10% limit on investment 30% l
Slide 141: Australian household balance sheets
Australian household balance sheets Economics 141 For personal use only Australian household debt to income ratio Australian household net wealth Australian households debt to income ratio (%) % Annual household disposable income % % Total (gross) debt Forecasts Total assets 200 Total debt net of of
Slide 142: The New Zealand economy
The New Zealand economy Economics 142 For personal use only Regional GDP NZ output and employment Total nominal GDP 2018: $293bn Output 2019 - sector shares of GDP (%) Population 4.9 mil Primary industries Northland, $7bn 9 7 Construction 4% of population 6 Electricity, gas, and water 11 3 3 Food ma
Slide 143: New Zealand economic snapshot – growth has taken a step down
New Zealand economic snapshot – growth has taken a step down Economics 143 For personal use only New Zealand economy key statistics GDP growth has cooled Housing slowdown a drag on spending (latest available as at October 2019) GDP (%) House prices and household spending % % % % 40 House price infla
Slide 144: New Zealand economic indicators – policy to support a firming in growth
New Zealand economic indicators – policy to support a firming in growth Economics 144 For personal use only Inflation off its lows, still moderate The RBNZ to hold the cash rate at low levels for some time % Inflation (%) % % Interest rates (%) % 10 10 6 6 90 day bank bill rate Forecast CPI inflatio
Slide 145: New Zealand economic indicators
New Zealand economic indicators Economics 145 For personal use only Labour market has tightened Export prices still remainfirmfavourable Unemployment rate and wage growth (%) NZ export commodity price index (world prices) % %yr Index Index 7 4.5 450 450 6 4.0 400 400 3.5 350 350 5 3.0 300 300 4 2.5
Slide 146: Appendix and Disclaimer
Appendix and Disclaimer For personal use only
Slide 147: Appendix 1: Cash earnings adjustments
Appendix 1: Cash earnings adjustments Appendix and Disclaimer 147 For personal use only Cash earnings 2H18 1H19 2H19 adjustment $m $m $m Description Reported net profit 3,897 3,173 3,611 Net profit attributable to owners of Westpac Banking Corporation Identifiable intangible assets arising from busi
Slide 148: Appendix 2: Sustainability
Appendix 2: Sustainability Appendix and Disclaimer 148 For personal use only Industry awards1 Sustainability indexes1 Inclusion and diversity recognition1 Received “B” rating in the 2018 Australia’s most sustainable bank and a member of DJSI Included in the 2019 CDP for our response to climate World
Slide 149: Appendix 2: Sustainability
Appendix 2: Sustainability Appendix and Disclaimer 149 For personal use only Key commitments and partnerships1 Principles for Responsible Banking Principles for Responsible Investment UN Sustainable Development Goals Paris Climate Agreement Founding bank of the PRBs, and first to report Signatory (2
Slide 150: Appendix 3: Definitions – Divisions
Appendix 3: Definitions – Divisions Appendix and Disclaimer 150 For personal use only Westpac Institutional Bank (WIB) delivers a broad range of financial Consumer is responsible for sales and service to consumer customers in products and services to commercial, corporate, institutional and Australi
Slide 151: Appendix 3: Definitions – Credit quality
Appendix 3: Definitions – Credit quality Appendix and Disclaimer 151 Includes facilities where: For financial assets where there has been a significant increase in credit risk For personal use only • contractual payments of interest and / or principal are 90 or more Stage 2: since origination but wh
Slide 152: Appendix 3: Definitions – Earnings, capital and liquidity
Appendix 3: Definitions – Earnings, capital and liquidity Appendix and Disclaimer 152 For personal use only Earnings Drivers As defined by APRA (unless stated otherwise). Tier 1 capital divided by ‘exposure measure’ and expressed as a percentage. ‘Exposure measure’ Leverage ratio is the sum of on-ba
Slide 153: Appendix 3: Definitions – Other
Appendix 3: Definitions – Other Appendix and Disclaimer 153 For personal use only Data based on DBM Consultants, Respondents aged 18+ and 12 month 3 month rolling Retail Market Monitor data (survey conducted by Camorra rolling. Wealth penetration is defined as the proportion of Australians who Resea
Slide 154: Appendix 3: Definitions – Other
Appendix 3: Definitions – Other Appendix and Disclaimer 154 For personal use only Source: DBM Consultants Business Financial Services Monitor, 12 months Commercial to August 2019. MFI customers, Commercial businesses. Commercial NPS – overall Source: DBM Consultants Consumer Atlas, August 2017 – Aug
Slide 155: Investor Relations Team
Investor Relations Team Contact us 155 For personal use only Investor Relations Team www.westpac.com.au/investorcentre Andrew Bowden Nicole Mehalski Annual reports Presentations and webcasts Head of Investor Relations Director +61 2 8253 4008 +61 2 8253 1667 5 year financial summary andrewbowden@wes
Slide 156: Disclaimer
Disclaimer 156 For personal use only The material contained in this presentation is intended to be general background information on Westpac Banking Corporation (Westpac) and its activities. The information is supplied in summary form and is therefore not necessarily complete. It is not intended tha