Westpac Banking Corporation · ASX:WBC
Westpac Banking — Debt Investor Presentation (July 2012)
15 slides from Westpac Banking's debt investor presentation, Jul 16, 2012
Slide 1: Westpac Subordinated Notes Offer
For personal use only WESTPAC SUBORDINATED NOTES OFFER July 2012 Westpac Banking Corporation ABN 33 007 457 141.
Slide 2: Disclaimer
Disclaimer For personal use only THIS PRESENTATION IS NOT FOR DISTRIBUTION TO ANY U.S. PERSON OR ADDRESS IN THE UNITED STATES. General disclaimer This presentation has been prepared and authorised by Westpac Banking Corporation (ABN 33 007 457 141, AFSL 233714) in connection with a proposed offer of
Slide 3: Westpac Subordinated Notes summary
Westpac Subordinated Notes summary For personal use only Issuer • Westpac Banking Corporation (“Westpac”) Issue Size • A$500 million with the ability to raise more or less • Fully paid, registered, unsecured, subordinated debt obligations of Westpac with a Face Value of A$100 each • Pay interest qua
Slide 4: Westpac Subordinated Notes summary (cont.)
Westpac Subordinated Notes summary (cont.) For personal use only • Floating Interest Rate (Interest Rate = 90 day Bank Bill Rate + Margin) Interest Rate • Fixed Margin to be determined under the Bookbuild and expected to be in the range of 2.75% and 2.95% p.a. • The 90 day Bank Bill Rate is set on t
Slide 5: Subordination and ranking of Westpac Subordinated Notes
Subordination and ranking of Westpac Subordinated Notes For personal use only • In a Winding-Up of Westpac, Westpac Subordinated Notes rank for payment: – Before Ordinary Shares and any other shares of Westpac; – Before the Westpac Hybrids (Westpac TPS 2003, Westpac TPS 2004, Westpac TPS, Westpac SP
Slide 6: How Westpac Subordinated Notes differ from term deposits and Westpac CPS
How Westpac Subordinated Notes differ from term deposits and Westpac CPS For personal use only Features Term deposits Westpac Subordinated Notes Westpac CPS ASX code Not quoted on ASX WBCHA WBCPC Legal form Deposit Unsecured subordinated debt obligation Preference share Protection under the Australi
Slide 7: Key dates for the Offer
Key dates for the Offer For personal use only Key dates for the Offer1 and Westpac Subordinated Notes Record date for determining Eligible Securityholders (7.00pm Sydney time) 9 July 2012 Announcement of Offer and issue of Information Memorandum 16 July 2012 Bookbuild 20 July 2012 Announcement of Ma
Slide 8: 1H12 Financial snapshot
1H12 Financial snapshot For personal use only change Earnings profile1 (net profit after tax, A$bn) Reported Earnings 1H12 2H11 2H11 – 1H12 Net profit after tax ($m) 2,967 3,030 (2%) 7.0 6.3 Earnings per share (cents) 98 101 (3%) Profit before impairments and 4,936 4,813 3% 3.9 tax ($m) 3.5 3.4 3.1
Slide 9: Balance sheet strength a key focus
Balance sheet strength a key focus For personal use only Common Equity ratio (%) Liquid assets ($bn) Basel II Basel 2.52 103 101 Common Equity Residual Tier 1 9.7 9.8 9.1 82 74 8.1 1.6 1.8 7.8 1.6 1.5 45 1.8 7.5 8.1 8.0 6.0 6.6 Sep-081 Sep-09 Sep-10 Sep-11 Mar-12 Sept 08 1 Sept 09 Sept 10 Sept 11 Ma
Slide 10: Capital position - well placed for Basel III
Capital position - well placed for Basel III For personal use only Common equity ratio – estimated APRA Basel III at Mar 122 (%) 1H12 1H11 2H11 Key capital ratios (%) (Basel (Basel II) (Basel II) 7.96 (53bps) 7.74 2.5) 67bps (25bps) (1bp) (10bps) Common equity ratio 8.0 8.1 8.0 Down 22bps under APRA
Slide 11: Funding position
Funding position For personal use only Funding composition by residual maturity (%) Customer deposits, net loan growth and deposit to loan ratio Customer deposits growth (lhs) ($bn) Net loan growth (lhs) (%) 63.2 30 Customer deposits to net loans ratio (rhs) 62.5 64 Wholesale Onshore <1Yr 9 9 25 62
Slide 12: Liquidity position
Liquidity position For personal use only • Liquid assets portfolio provides a source of reserve liquidity as eligible Liquid assets ($bn) collateral under the Central Bank (RBA) repurchase facility 1 Cash, goverment and semi-government bonds • Unencumbered liquid assets remains strong at $101bn Priv
Slide 13: Asset quality
Asset quality For personal use only • Asset quality continues to improve, although the rate of change improvement has slowed Asset quality 1H12 2H11 1H11– 1H12 • Stressed exposures to TCE1 down 22bps (down 59bps from Impairment charges to average 1H11) to 2.26%, due to gross loans 24bps 22bps 2bps –
Slide 14: Syndicate details
Syndicate details For personal use only Westpac Institutional Bank Allan O‟Sullivan, (02) 8254 -1425 ANZ Securities Limited Tariq Holdich, (02) 9226 – 6946 Deutsche Bank Rupert Daly, (02) 8258 – 1408 J.P. Morgan Duncan Beattie, (02) 9003 – 8358 UBS Andrew Buchanan, (02) 9324 - 2617 Westpac Subordina
Slide 15: Contacts
Contacts For personal use only For further information contact For further information on Westpac, please visit our investor website: Capital Management www.westpac.com.au/investorcentre Curt Zuber Group Treasurer, Westpac Banking Corporation See „Latest news‟ for the link to Westpac Subordinated +6
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