Slide 1: Westpac Banking Corporation
For personal use only Westpac Banking Corporation ABN 33 007 457 141.
Slide 2: Westpac Full Year 2014 result index
Westpac Full Year 2014 result index For personal use only Presentation of Full Year 2014 Result 1 Investor Discussion Pack of Full Year 2014 Result 33 Overview 34 Features 48 Net interest income 49 Non-interest income 53 Markets and Treasury income 54 Expenses, investment and productivity 55 Impairm
Slide 3: Full Year 2014 Result - Gail Kelly
For personal use only FULL YEAR 2014 RESULT GAIL KELLY CHIEF EXECUTIVE OFFICER NOVEMBER 2014
Slide 4: A year of delivery
A year of delivery For personal use only Strong result with all divisions executing well Service revolution well underway, a step-up in STRENGTH RETURN our strategy Strong Maintain company discipline More satisfied customers and deeper relationships PRODUCTIVITY GROWTH Sector Investment leading driv
Slide 5: Delivered sustainable result for shareholders
Delivered sustainable result for shareholders For personal use only Change FY14 FY14 - FY13 Reported NPAT $7,561m 12% Cash earnings $7,628m 8% Cash EPS1 245.4c 8% Core earnings2 $11,574m 5% Impairment charges to average gross loans 12bps (4bps) Return on equity3 16.4% 48bps Common equity tier 1 rati
Slide 6: Stepped up our customer centric strategy
Stepped up our customer centric strategy For personal use only Service revolution 2014-2017+ Sustainable growth • Reinventing the customer experience • Transforming distribution • Simplifying the business • Revolutionising the way we work • Accelerating the pace of change 6 | Westpac Group Full Year
Slide 7: Our service revolution for customers is underway
Our service revolution for customers is underway For personal use only Know Personalised Empower Customers in Bank Innovate and service control simplify Me Me Wow Using data and insights to Customers managing their Reinventing the customer provide personalised finances when and where experience solu
Slide 8: Customers are seeing the difference
Customers are seeing the difference For personal use only Total consumer satisfaction1 Total business satisfaction1 AFS customer numbers (#m) (%) (mean) WRBB SGB Peers WRBB SGB Peers WRBB SGB 9.89 9.18 9.37 6% 86.6 7.7 7.5 3.16 3.26 3.61 83.8 7.4 82.6 82.4 7.1 82.1 6.02 6.11 6.28 Sep-12 Sep-13 Sep-1
Slide 9: Deepening customer relationships
Deepening customer relationships For personal use only Customer return1 (%) Customers with a wealth product3 (%) 3.98 4.00 WRBB SGB Peers 3.89 21.9 19.5 FY12 FY13 FY14 17.1 MyBank2 customers (%) WRBB SGB 14.2 25.6 26.1 24.8 13.3 22.1 22.7 21.2 FY12 FY13 FY14 Sep-11 Sep-12 Sep-13 Sep-14 1 Customer re
Slide 10: Growing at or above system in all key markets in 2H14
Growing at or above system in all key markets in 2H14 For personal use only Housing lending growth Australian business lending versus system1 (x) Credit card market share2 (%) ($bn) 133.2 136.9 1.0 22.9 126.3 0.9 0.7 22.0 2H13 1H14 2H14 Sep-13 Mar-14 Sep-14 2H13 1H14 2H14 Household deposit growth FU
Slide 11: Achieving a good return on investments
Achieving a good return on investments For personal use only WRBB revenue per FTE ($’000) Lloyds cash earnings ($m) Bank of Melbourne market share1 (%) 748 Up 10% adjusting 700 4.3 4.6 620 for 3 months 44 3.8 566 ownership in 1H14 3.5 20 FY11 FY12 FY13 FY14 1H14 2H14 FY11 FY12 FY13 FY14 WIB trade vo
Slide 12: Maintained disciplines of strength, return, and productivity
Maintained disciplines of strength, return, and productivity For personal use only Strength Return Productivity Common equity tier 1 capital ratios (%) Return on equity4 (%) Revenue per FTE ($’000) # CET1 ratio excluding wealth leverage1 16.4 547 15.9 15.4 525 0.2 0.7 0.5 495 9.0 8.6 8.6 8.2 2 WBC P
Slide 13: Strong operating performance across all divisions
Strong operating performance across all divisions1 (cash earnings $m) For personal use only Australian Financial Services Westpac RBB St.George 5,057 12% 4,520 10% 2,582 2,355 14% 2,158 1,580 4,032 1,392 1,189 FY12 FY13 FY14 FY12 FY13 FY14 FY12 FY13 FY14 BT Financial Group Westpac Institutional Bank
Slide 14: Delivered for all stakeholders
Delivered for all stakeholders For personal use only Shareholders Customers Cash earnings and $87bn in new lending in AFS cash EPS up 8% WRBB No. 1 customer satisfaction4 ROE up 48bps to 16.4% of major banks and SGB leads majors on customer satisfaction4 Dividends per share 182 cents (dividend yield
Slide 15: Full Year 2014 Result - Peter King
For personal use only FULL YEAR 2014 RESULT PETER KING CHIEF FINANCIAL OFFICER COMPARISON OF 2H14 VERSUS 1H14 CASH EARNINGS BASIS (UNLESS OTHERWISE STATED) NOVEMBER 2014
Slide 16: A consistent, high quality performance
A consistent, high quality performance For personal use only • Effective management of capital sees Cash earnings 2H14 – 1H14 ($m) cash EPS and cash earnings growth 324 (222) aligned 3,772 (116) 32 66 3,856 • Quality result reflecting – Strong divisional contributions and risk disciplines Market ris
Slide 17: Reported profit growth higher than cash earnings growth
Reported profit growth higher than cash earnings growth For personal use only Cash earnings / reported profit drivers Cash earnings vs reported profit ($bn) • We believe cash earnings continues to more Reported profit Cash earnings accurately reflect value to shareholders 7.6 7.6 • In FY14 7.0 7.1 ‒
Slide 18: Infrequent and volatile items had little impact on cash earnings growth
Infrequent and volatile items had little impact on cash earnings growth For personal use only Infrequent and volatile items Cash earnings impact 2H14 – 2H13 ($m) • 2H14 $12m higher than 1H14 2H13 1H14 2H14 • FY14 $33m lower than FY13 Asset sales 21 30 29 Performance fees 43 29 17 Group CVA1 47 2 (19
Slide 19: Areas of interest within result
Areas of interest within result For personal use only Challenging conditions led to Expense and lower Market risk Customer margins investment income well managed trends Liquidity Coverage Asset quality Ratio (LCR) on track Preferred capital remains a highlight for introduction range revised 19 | Wes
Slide 20: Customer business higher, Markets risk income lower
Customer business higher, Markets risk income lower For personal use only • 2H14 Markets risk related Market risk related income ($m) income down $222m Markets CVA Market risk income Treasury 506 • More challenging 442 conditions from reduced 352 (50%) volatility including 376 303 220 201 – FX rates
Slide 21: NIM excluding Treasury and Markets steady in 2H14
NIM excluding Treasury and Markets steady in 2H14 For personal use only Net interest margin (NIM) movement (%) NIM excl. Treasury & Markets Treasury & Markets impact on NIM NIM down 5bps 2.12 2.11 (5bps) 5bps 2bps 0 (2bps) (5bps) 2.06 0.06 0.10 0.05 2.06 2.01 NIM excl. Treasury & Markets flat 2.01 2
Slide 22: Expense growth reflecting investment
Expense growth reflecting investment For personal use only Components of expense growth YoY (%) Capitalised software balance2 ($bn) 1 Ordinary expenses Amortisation Lloyds FX 5.5 5.9 6.8 4.1 ## 6.3 Avg amortisation 4.5 1.3 period (excluding 3.8 1.3 0.6 write-offs)2 (years) 1.0 0.8 1 2.5 1.9 2.1 2.1
Slide 23: Investment supporting growth
Investment supporting growth For personal use only Investment spend ($bn) and composition (%) 0.94 1.15 1.07 Investment spend ($bn) • Program now complete with residual SIPs work rolled into other technology 18 24 • Data centre consolidation 32 Other • Various institutional and customer 11 technolog
Slide 24: Asset quality a highlight
Asset quality a highlight For personal use only Stressed exposures as a % of TCE New and increased gross impaired assets ($m) Watchlist & substandard 1,748 90 days past due well secured Impaired 1,519 3.20 3.09 1,343 1,218 1,194 2.48 1,060 2.17 997 958 1.94 1.60 708 1.30 1.37 609 1.24 0.88 2007 2008
Slide 25: Lower impairments, strong provisioning cover
Lower impairments, strong provisioning cover For personal use only Impairment charge movements ($m) New IAPs Write-backs Write-offs direct Other movements in Total 557 555 & recoveries collective provisions 438 409 349 335 326 382 331 371 341 309 (47) (179) (150) (266) (289)(292)(247) (239) 1H13 2H1
Slide 26: On track for introduction of LCR
On track for introduction of LCR1 For personal use only • LCR rules apply from 1 January 2015 Pro forma liquidity coverage 30 Sept 14 ($bn) • Minimum LCR of 100% required High Quality Liquid Assets2 (HQLA) 59 • Westpac’s pro-forma Group LCR was 103% at 30 September 2014 Committed Liquidity Facility
Slide 27: Effectively deployed capital
Effectively deployed capital For personal use only Westpac common equity tier 1 ratio (% and bps) Cash earnings net of 13.1 dividends and other Effectively movements. deployed 83bps of No additional share capital issuance 9.1 (37) 70 9.0 (10) (36) Sep-13 Lloyds 2H13 special Credit RWA Other1 Sep-14
Slide 28: Revised preferred range
Revised preferred range For personal use only Common equity tier 1 ratio considerations Preferred range Westpac CET1 ratio 9.0% 8.75 – 9.25% 8.0% - includes APRA minimum 4th Quartile and CCB/D-SIB buffers 3.5% capital conservation 3rd Quartile buffer including 2nd Quartile Management buffer consider
Slide 29: Considerations for FY15
Considerations for FY15 For personal use only Achieving good balance of strength, growth and return Expected to carry second half momentum in housing, household deposits, business and wealth across 2015 Margin disciplines to remain. Asset competition expected to continue with lower funding costs hel
Slide 30: Full Year 2014 Result - Gail Kelly
For personal use only FULL YEAR 2014 RESULT GAIL KELLY CHIEF EXECUTIVE OFFICER NOVEMBER 2014
Slide 31: FSI considerations
FSI considerations For personal use only A strong and efficient banking system is good for all Australian banks have materially strengthened their balance sheets since the GFC and are strongly capitalised today A risk-based approach to assessing/managing capital, complemented by strong supervision,
Slide 32: Looking ahead
Looking ahead For personal use only A period of fundamental change – customers, technology, regulation Global economic conditions mixed. Domestically, conditions expected to gradually improve although caution remains Our service revolution, a step-up in our strategy, is well underway Strong financia
Slide 33: Full Year 2014 Investor Discussion Pack
For personal use only FULL YEAR 2014 INVESTOR DISCUSSION PACK COMPARISON OF 2H14 VERSUS 1H14 CASH EARNINGS BASIS (UNLESS OTHERWISE STATED) NOVEMBER 2014
Slide 34: Overview
For personal use only FULL YEAR 2014 OVERVIEW COMPARISON OF 2H14 VERSUS 1H14 CASH EARNINGS BASIS (UNLESS OTHERWISE STATED) NOVEMBER 2014
Slide 35: Westpac Group at a glance, Australia's First Bank
Westpac Group at a glance, Australia’s First Bank For personal use only • Australia’s first bank and first company, opened in 1817 Westpac Australian Financial Services (AFS) WIB • Australia’s 2nd largest bank, and 15th largest bank in the world, ranked NZ by market capitalisation1 Westpac Retail St
Slide 36: FY14 financial snapshot
FY14 financial snapshot For personal use only Change1 Change1 Change1 Change1 FY14 2H14 – 1H14 FY14 – FY13 FY14 2H14 – 1H14 FY14 – FY13 Earnings2 Balance sheet EPS3 (cents) 245.4 2% 8% Total assets ($bn) 771 6% 10% Common equity tier 1 capital Core earnings ($m) 11,574 Flat 5% 9.0 15bps (13bps) rati
Slide 37: Cash earnings and reported net profit reconciliation
Cash earnings and reported net profit reconciliation For personal use only Cash earnings policy1 Reported net profit and cash earnings1 adjustments ($m) • Westpac Group uses a measure of performance referred to as cash earnings to assess financial FY13 FY14 performance at both a Group and divisional
Slide 38: Managing for a balanced performance
Managing for a balanced performance For personal use only FY14 outcomes Strategic priorities Remain • Common equity tier 1 capital ratio at 9.0% strong • Stable fund ratio at 83% Remain strong • Stressed exposures to TCE down 36bps, to 1.24% • Ranked most sustainable company in world by Corporate Kn
Slide 39: Westpac Group service revolution building a leadership position
Westpac Group service revolution building a leadership position For personal use only Westpac Live At or above WRBB No. 1 WRBB No. 1 global leading system growth of majors for highest World’s most Australian Australian in all consumer wealth sustainable Bank for FX, mobile categories1,2 and business
Slide 40: FY14 cash earnings up 8%
FY14 cash earnings up 8% For personal use only Cash earnings Cash earnings 2H14 – 1H14 ($m) Cash earnings FY14 - FY13 ($m) FY14 % chg1 % chg1 403 (487) ($m) 2H14-1H14 FY14-FY13 142 (40) 584 197 (132) 7,628 (116) 32 66 3,856 3,772 7,063 Net interest income 13,496 2 5 Non-interest income 6,324 (1) 7 E
Slide 41: Strong growth in cash earnings and core earnings
Strong growth in cash earnings and core earnings For personal use only FY14 divisional contribution to cash earnings1 ($m) FY14 divisional contribution to core earnings1 ($m) AFS 537 AFS 704 227 188 122 (107) 158 (23) 7,628 212 215 (194) 144 (154) 11,574 7,063 11,074 277 Up 8% Up 5% Other 2 Other 2
Slide 42: Differentiated by our strong portfolio of brands
Differentiated by our strong portfolio of brands For personal use only Westpac Retail & Business Banking Westpac Group Contribution to FY14 cash earnings (%) Australian national brand for consumer and business banking, SMEs and commercial Australian Financial Services customers under the Westpac bra
Slide 43: Lloyds delivering ahead of plan
Lloyds delivering ahead of plan For personal use only • On 31 December 2013, Westpac acquired selected assets of Achievements in 2H14 Lloyds Banking Group’s Australian business • $7.6bn of net loans at 30 September 2014 • Cash earnings contribution of $44m (taking 9 months of ownership to $64m) and
Slide 44: Consistent dividend growth path
Consistent dividend growth path For personal use only • FY14 ordinary dividends of 182 cents, up 5% on FY13 Dividends per share (cents) – Interim dividend of 90 cents and final dividend of 92 cents • Payout ratio at 74% for FY14 (74% for 2H14) Special dividends 20 – Issuing shares to satisfy the DRP
Slide 45: Continued sustainability leadership
Continued sustainability leadership For personal use only Sustainability strategic priorities Progress FY14 – FY13 Priority Objectives FY14 achievements 1 Help improve the way people work and live as our society changes • Increased women in leadership to 44%, up from 42% • Ensure our workforce is 1
Slide 46: Helping communities prosper and grow
Helping communities prosper and grow For personal use only Supporting communities1 FY13 FY14 Income tax expense on a cash earnings basis $m $m $87bn Funding Provide loans to help millions of new lending2 Notional income tax based on the Australian economic Australians own their home or grow company
Slide 47: Australia's Financial System Inquiry, the story so far
Australia’s Financial System Inquiry (FSI), the story so far For personal use only Westpac’s view FSI interim report Recommendations should take a key focus areas principles-based approach, to stand the test of time • Growth and stability are interconnected, and July 2014 should have equal focus • B
Slide 48: Features
For personal use only SECOND HALF 2014 FEATURES COMPARISON OF 2H14 VERSUS 1H14 CASH EARNINGS BASIS (UNLESS OTHERWISE STATED) NOVEMBER 2014
Slide 49: Net operating income up 1% in 2H14
Net operating income up 1% in 2H14 For personal use only • Net operating income up 1% (up 5% FY14/FY13) Net operating income movement half on half ($m) • Net interest income up 2% (up 5% FY14/FY13) – AIEA1 growth of 4% (up 8% FY14/FY13) from strong Australian 245 5 (108) 10 (77) (7) 9,961 34 housing
Slide 50: Loan growth from Australian housing and institutional
Loan growth from Australian housing and institutional For personal use only • Westpac Group loans up 3% (up 8% FY14/FY13) Net loans ($bn) • Australian housing loans up 4% – Growth in new lending (up 11%) partly offset by continued high run-off 13.1 4.0 0.6 (1.6) (0.4) 580.3 as low rates enable custo
Slide 51: High quality deposit focus
High quality deposit focus, deposit growth fully funded loan growth in 2H14 For personal use only • Customer deposits up $20.4bn or 5% (up 7% FY14/FY13) Australian household deposits annual growth1 (%) – Fully funded loan growth in 2H14 – Focus has been on higher quality deposits WBC All Banks – Hou
Slide 52: Flat net interest margin excluding Treasury and Markets
Flat net interest margin excluding Treasury and Markets For personal use only • Net interest margin (NIM) down 5bps to 2.06% (down 7bps FY14/FY13) Net interest margin (%) • NIM firmer in AFS (up 3bps), slightly weaker in NZ down 1bp and WIB down 6bps NIM NIM excl. Treasury and Markets • NIM excludin
Slide 53: Non-interest income impacted by lower trading
Non-interest income impacted by lower trading For personal use only • Non-interest income down 1% (up 7% FY14/FY13) Non-interest income ($m) – Fees and commissions up 1% to $1,468m, with higher business lending fee income due to full period impact of Lloyds. Card income Fees and commissions was unch
Slide 54: Markets and Treasury income
Markets and Treasury income: customer business higher, risk related income lower For personal use only • Markets income down 11% (down 2% FY14/FY13), as more challenging Markets income by activity ($m) market conditions and a negative CVA movement saw market risk related income materially lower • Cu
Slide 55: Expenses well managed while continuing to invest
Expenses well managed while continuing to invest For personal use only • Expenses up 2.9% (up 2.2% excluding Lloyds) Components of expense growth (%) – Expenses up 6.3% FY14/FY13 (up 3.7% excluding FX and Lloyds) • Expense to income ratio up 74bps to 42.0% Ordinary expenses Amortisation1 FX Lloyds •
Slide 56: Disciplined investment spend, focused on growth and productivity
Disciplined investment spend, focused on growth and productivity For personal use only Investment spend Investment spend Investment spend 2H13 1H14 2H14 2H13 1H14 2H14 2H13 1H14 2H14 capitalised ($m) expensed ($m) capitalised ($m) Capitalised software Growth and productivity 251 169 166 Growth and p
Slide 57: Australia's most efficient bank
Australia’s most efficient bank, continued focus on productivity through FY14 For personal use only $1.3bn saved from efficiency programs since FY09 ($m) Global peer comparison of expense to income ratios2 (%) 69.0 219 1,326 62.7 60.1 59.2 55.3 53.8 225 45.3 44.7 44.0 42.9 41.6 238 289 212 US region
Slide 58: Improvements in asset quality leading to lower impairment charges
Improvements in asset quality leading to lower impairment charges For personal use only Impairment charges to average gross loans1 (bps) Impairment charge movements ($m) Impairment charge Impairment charge inc. interest adjustment 18 (99) 44 100 341 (15) 20 309 80 57 New IAPs, New IAPs, write-backs
Slide 59: Capital, Funding and Liquidity
For personal use only FULL YEAR 2014 CAPITAL, FUNDING AND LIQUIDITY COMPARISON OF 2H14 VERSUS 1H14 CASH EARNINGS BASIS (UNLESS OTHERWISE STATED) NOVEMBER 2014
Slide 60: Westpac's preferred capital range
Westpac’s preferred capital range For personal use only Westpac preferred capital range Capital conservation buffer operation • APRA have imposed a D-SIB1 requirement of 1% to be met by CET1 capital. Implementation of the D-SIB requirement is through an extension 9.0 of the capital conservation buff
Slide 61: Capital strength maintained whilst supporting business growth
Capital strength maintained whilst supporting business growth For personal use only Key movements in capital Key capital ratios (%) • Capital deployed over FY14 included 2H13 1H14 2H14 – Special dividend to shareholders (10bps) – Acquisition of Lloyds (37bps) Common equity tier 1 capital ratio 9.1 8
Slide 62: Internationally comparable CET1 capital ratio
Internationally comparable CET1 capital ratio at upper end of top quartile of global peers For personal use only Global peer comparison of Basel III pro forma CET1 capital ratios1 (%) 13.1 1 2 3 4 5 WBC 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 4
Slide 63: Internationally comparable capital ratio
Internationally comparable capital ratio For personal use only • APRA has maintained its conservative stance in setting capital standards, resulting in a significant variance between capital measured under APRA and the Basel III Framework • In August 2014 the Australian Bankers Association released
Slide 64: RWA increase from good business growth
RWA increase from good business growth For personal use only RWA movements RWA movements ($bn) • Total RWA increased 2.8% 9.4 (1.6) 0.9 (1.1) 1.3 331.4 • Credit RWA increased 3.5% or $9.4bn, from growth in lending (primarily 322.5 mortgage, corporate and property portfolios), the impact of the lower
Slide 65: RWA conservatively determined
RWA conservatively determined For personal use only Basis for determining RWA • Internal models are based on through-the cycle estimates for default rates and downturn estimates for LGD • Conservatism is built into risk models as observed rates significantly better than those predicted by risk model
Slide 66: Actively managing capital to optimise returns
Actively managing capital across Group and business units to optimise returns For personal use only Actively managing returns ROE and CET1 (%) Return on average interest-earning assets (AIEA) (%) • Returns improved while increasing capital CET1 ROE 16.4 FY12 FY13 FY14 • Rise in ROE in FY14 achieved
Slide 67: Stable Funding Ratio 83%
Stable Funding Ratio 83% For personal use only • Stable Funding Ratio 83%, down 28bps (down 73bps FY14/FY13) Funding composition by residual maturity (%) ‒ Asset growth over the year, including the acquisition of the Lloyds business in December 2013 was funded primarily through customer deposits and
Slide 68: Strong liquidity position on track for introduction of LCR
Strong liquidity position on track for introduction of LCR For personal use only • Westpac is well positioned for the introduction of the Liquidity Coverage Group pro-forma Liquidity Coverage Ratio1 ($bn) Ratio (LCR) – Westpac Group pro-forma LCR1 103% at 30 September 2014 High Quality Liquid Assets
Slide 69: New term issuance well diversified
New term issuance well diversified, benefit from broad product capabilities For personal use only FY14 new term issuance composition1 (%) Australian covered bond issuance5 2,3 Remaining capacity By type By tenor By currency (8% cap & over- % Capacity utilised collateralisation) ($bn) 4 7 313 34 3 18
Slide 70: Asset Quality
For personal use only FULL YEAR 2014 ASSET QUALITY COMPARISON OF 2H14 VERSUS 1H14 CASH EARNINGS BASIS (UNLESS OTHERWISE STATED) NOVEMBER 2014
Slide 71: High quality portfolio bias to secured consumer lending
High quality portfolio bias to secured consumer lending For personal use only Asset composition as at 30 September 2014 (%) Cash and balances with central banks Total assets On balance sheet lending Receivables due from other financial institutions Housing Trading securities, financial assets at fai
Slide 72: A well diversified portfolio across industries and large exposures
A well diversified portfolio across industries and large exposures For personal use only Exposures at default1 by sector ($m) Top 10 exposures to corporations and NBFIs5 as a % of TCE6 (%) 2 Largest corporation/NBFI single Finance & insurance name exposure represents less than 0.2% of TCE 3 Property
Slide 73: Commercial property portfolio well diversified, low levels of stress
Commercial property portfolio well diversified, low levels of stress For personal use only Commercial property exposures size ($bn) and % of TCE Commercial property portfolio (TCE) classified as stressed (%) Commercial property exposure ($bn) 9.6 9.1 Commercial property as % of TCE 8.0 7.7 15.5 7.1
Slide 74: Portfolio stress continues to reduce
Portfolio stress continues to reduce For personal use only Stressed exposures as a % of TCE and provisions1 ($bn) Provisioning coverage ratios 2H13 1H14 2H14 Impaired (lhs) 90+ days past due well secured (lhs) Watchlist & substandard (lhs) IAP (rhs) Collectively assessed provisions to credit 99bps 9
Slide 75: Improvement in portfolio quality across most sectors
For personal use only 75 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 Property & business services Retail lending Wholesale & Retail Trade Agriculture, forestry & fishing Manufacturing across most sectors Stressed exposures by industry ($bn) 2H13 Transport & storage Accommodation, cafes & restaurants 1H14 | West
Slide 76: Provision cover by portfolio category
Provision cover by portfolio category For personal use only Exposures as a % of TCE Provisioning to TCE (%) 1H13 2H13 1H14 2H14 Fully performing portfolio • Small cover as low probability of default (PD) 0.24 0.23 0.23 0.22 98.06 • Includes economic overlay 98.40 98.63 Collective provisions 98.76 Fu
Slide 77: Australian unsecured lending portfolio continues to perform well
Australian unsecured lending portfolio continues to perform well For personal use only • Unsecured consumer asset quality has remained strong as continuing low interest Australian unsecured lending 90+ days delinquencies (%) rates have assisted debt serviceability Credit cards Personal loans (excl A
Slide 78: Australian mortgage portfolio high levels of borrower equity
Australian mortgage portfolio high levels of borrower equity For personal use only 2H13 1H14 2H14 2H14 Australian housing portfolio Australian housing loan-to-value (LVR) ratios (%) balance balance balance flow1 Total portfolio ($bn) 328.5 338.0 351.0 36.9 FY14 drawdowns LVR at origination Portfolio
Slide 79: Mortgage customers continuing to repay ahead of schedule
Mortgage customers continuing to repay ahead of schedule For personal use only • Australian mortgage customers continue to display a cautious approach to debt levels, taking advantage of historically low Australian home loan customers ahead on repayments1,2 (%) mortgage rates to pay down debt Sep-13
Slide 80: Australian investment property portfolio sound origination profile
Australian investment property portfolio sound origination profile For personal use only • Investment property loans (IPLs) are 45.2% of Westpac’s Australian mortgage portfolio Strong origination standards • Compared to owner-occupied applicants, IPL applicants on average are • All IPLs are full rec
Slide 81: Australian mortgage delinquencies at low levels
Australian mortgage delinquencies at low levels For personal use only Delinquencies Australian mortgages delinquencies (%) • Sustained period of low interest rates and a continued conservative approach to debt by borrowers has supported very strong credit quality 90+ Past Due Total 90+ First Home Bu
Slide 82: Lenders mortgage insurance
Lenders mortgage insurance For personal use only • Lenders mortgage insurance (LMI) provides benefits to the Westpac Group Lenders mortgage insurance – Risk transfer / loss mitigation • LVR ≤80% • LVR >80% to ≤ 90% LVR Band • LVR >90% • Low Doc LVR ≤60% • Low Doc LVR >60% to ≤ 80% – Improvement in t
Slide 83: Mortgage portfolio stress testing outcomes
Mortgage portfolio stress testing outcomes For personal use only • Westpac regularly conducts a range of portfolio stress tests as part Australian mortgage portfolio stress testing of its regulatory and risk management activities as at 30 September 2014 • The Australian mortgage portfolio stress tes
Slide 84: Business Units
For personal use only FULL YEAR 2014 BUSINESS UNITS COMPARISON OF 2H14 VERSUS 1H14 CASH EARNINGS BASIS (UNLESS OTHERWISE STATED) NOVEMBER 2014
Slide 85: AFS consistent track record of cash earnings growth
AFS AFS consistent track record of cash earnings growth For personal use only Cash earnings movement ($m) Key features of AFS in 2H14 47 (91) • AFS represents 67% of Group cash earnings 243 (11) (53) • Cash earnings up 5% to $2,596m 142 (120) 84 2,596 (91) • All AFS businesses contributed to the str
Slide 86: AFS: All divisions contributing to growth
AFS All divisions contributing to growth For personal use only All business units delivering sustainable cash earnings growth ($m) Core earnings growth ($m) 1H12 2H12 1H13 2H13 1H14 2H14 4,077 3,734 3,878 1,331 1,213 1,251 3,400 3,517 1,127 1,142 3,187 1,031 772 808 701 635 691 554 410 438 457 317 3
Slide 87: AFS: Digital transformation continues
AFS Digital transformation continues For personal use only Digital growth deepening relationships and improving Continuing to roll-out new products service • AFS active digital customers now at 4 million up from 3.7m last year Mobile Tap & Pay and Mobile Payway – Percentage of total customers base u
Slide 88: AFS: A service revolution for customers is underway
AFS A service revolution for customers is underway with more to come For personal use only WIB/AFS partnership Smart Contactless New wealth payments platform IMPROVING ATMs CUSTOMER EXPERIENCE Enhanced • 24/7 access Private wealth offer tailored messages to • Emergency cash better support sales • Gl
Slide 89: AFS: Structural change improving productivity
AFS Structural change improving productivity For personal use only • Expenses increased 3% (up 2% excluding Lloyds) Disciplined expense management ($m) – Expenses up 7% FY14/FY13 (up 5% excluding Lloyds FY14/FY13) • Simplification and service revolution continues to deliver structural 1H14 up 3% 2H1
Slide 90: AFS: Lifted mortgage growth in sustainable way
AFS Lifted mortgage growth in sustainable way For personal use only • AFS mortgage market share1 of 23.2% AFS net mortgage lending volumes2 ($bn) – Grew at 1.0x system1 (up from 0.9x 1H14) • 4% lift in balances 36.9 (24.0) – 11% uplift in new lending, through both proprietary and 3rd 33.1 (23.6) par
Slide 91: AFS: Growth in business banking
AFS Growth in business banking For personal use only • AFS business lending up 2% (up 6% FY14/FY13 or 1% excluding Lloyds) Business banking customers2 (#’000) – Business customers up 2% – Stressed business to TCE down 38bps to 4.8% (stressed balances down $301m) Lloyds – New lending volumes up 2% fo
Slide 92: AFS: Consumer finance delivering growth ahead of market
AFS Consumer finance delivering growth ahead of market For personal use only • Total consumer finance up 3% to $22.6bn (up 20% FY14/FY13 including Credit card and personal loan applications (#’000) Lloyds transaction) • Good growth across both personal lending and credit cards Credit cards Personal
Slide 93: AFS: Continuing to grow quality deposits
AFS Continuing to grow quality deposits For personal use only • Deposit to loan ratio up 154bps to 61.4%, with a focus on originating high AFS customer deposit to loan ratio (%) quality deposits • Household deposits Lloyds reduced deposit to loan – Increased household deposit market share to 23.3%,
Slide 94: AFS: Delivering our customer's total financial service needs
AFS Delivering our customer’s total financial service needs For personal use only • Leading the industry in adopting transparent practices including Customer with wealth products2 change over last year and last 4 years (bps) ‒ Establishment of “Adviser View”, our online adviser register with details
Slide 95: AFS high quality portfolio, significant improvement in business
AFS AFS high quality portfolio, significant improvement in business For personal use only • AFS stressed exposures as a % of TCE reduced 12bps to 1.28% (down Movement in impairment charges ($m) 33bps FY14/FY13) • Impaired assets down 7bps to 25bps of TCE (down 14bps FY14/FY13) 330 (31) 51 6 341 16 (
Slide 96: WRBB: Strong operating performance
WRBB Strong operating performance For personal use only FY14 % of Group Cash earnings movement ($m) Key financial metrics FY14 - FY13 cash earnings 83 (109) Cash 303 49 (99) 10% • Up $227m to $2,582m 2,582 earnings 2,355 Core 7% • Up $277m to $4,128m with 6% revenue growth earnings 34 • Up $303m
Slide 97: WRBB: 2H14 delivered across growth, return, strength and productivity
WRBB 2H14 delivered across growth, return, strength and productivity For personal use only Cash earnings movement 2H14 - 2H13 ($m) Key financial metrics 2H14 – 1H14 Cash 122 21 (43) 15 (35) 1,331 6% • Up $80m to $1,331m 8 (21) 16 (14) 1,251 Earnings 1,213 49 Core • Up $100m to $2,114m with 4% reve
Slide 98: WRBB: Relationship based customer franchise driving growth
WRBB Relationship based customer franchise driving growth For personal use only Consumer banking highlights Key performance metrics • Customer service revolution delivering improved customer experience. Change Complaints improved 24% and consumer satisfaction1 lifted to #1 of majors 2H13 1H14 2H14 o
Slide 99: WRBB consistently delivering high quality results
WRBB WRBB consistently delivering high quality results For personal use only Cash earnings ($m) Core earnings ($m) Customers with a wealth product1 (%) 4,128 21.9 2,582 3,851 2,355 3,472 21.2 2,158 3,231 20.8 3,041 1,878 1,708 19.8 18.8 FY10 FY11 FY12 FY13 FY14 FY10 FY11 FY12 FY13 FY14 FY10 FY11 FY1
Slide 100: St.George delivering growth and customer choice
St.George delivering growth and customer choice For personal use only Cash earnings movement ($m) FY14 % of Group Key financial metrics FY14 - FY13 cash earnings 49 (158) • Up $188m to $1,580m with all brands 321 Cash contributing 57 (81) 1,580 14% earnings • Up 10% excluding Lloyds 1,392 Core • U
Slide 101: 2H14 momentum delivered 6% core earnings growth
2H14 momentum delivered 6% core earnings growth For personal use only Cash earnings movement 2H14 – 2H13 ($m) Key financial metrics 2H14 – 1H14 121 14 (66) Cash 5% • Up $36m to $808m 63 (34) 772 (20) (13) 808 earnings 69 11 (38) 701 Core 6% • Up $69m to $1,282m with 7% revenue growth earnings •
Slide 102: St.George delivering across all metrics
St.George delivering across all metrics For personal use only Consumer banking highlights Key performance metrics • Above system growth across housing1 and household deposits2 Change • Customer service revolution and continued innovation is delivering a 2H13 1H14 2H14 on 1H14 better customer experie
Slide 103: Investment, innovation and customer focus delivering growth across all brands
Investment, innovation and customer focus delivering growth across all brands For personal use only Positive cash earnings across all Quality improvement – reduced brands ($m) Excellent customer growth (#’000) stressed assets to TCE (%) 16 1,580 3,613 3.9 96 17 12 Lloyds 3.7 1,392 47 240 3.2 3,260 3
Slide 104: Strong BT cash earnings growth up 16%
Strong BT cash earnings growth up 16% For personal use only Cash earnings movement ($m) Cash earnings ($m) Movement FY14 – FY13 Revenue up 331 (14%) Expenses up 116 (10%) Cash earnings • Asset markets stronger, positively impacting up 122 (16%) Markets 4% FUM and FUA related revenue across platfor
Slide 105: Leading wealth provider and investing for the future
Leading wealth provider and investing for the future BTFG’s cash earnings tend to be seasonal – given insurance claims and fund For personal use only activity – and are best compared annually or to prior corresponding period (2H13) Cash earnings movement ($m) Cash earnings ($m) Movement 2H14 – 2H13
Slide 106: Continued growth across business drivers
Continued growth across business drivers For personal use only Key features of 2H14 Key performance metrics • Solid growth across all earnings drivers – FUM and FUA up 8% and 6% respectively Change 2H13 1H14 2H14 on 1H14 – Insurance businesses continue to offer a range of solutions to help customers
Slide 107: Strong value creation across wealth business
Strong value creation across wealth business For personal use only Planner numbers (#) FUM ($bn) FUA ($bn) Salaried planners Aligned planners BTIM (exc. JOHCM) JOHCM Up 10% Aligned planners up 8% Advance Retail Super/Other Up 17% 112.7 89.0 82.1 Up 76.2 106.8 18.0 Up 2% 667 65.7 18.0 564 619 651 17.
Slide 108: Solid WIB performance up 4% in FY14 excluding significant items
Solid WIB performance up 4% in FY14 excluding significant items For personal use only Cash earnings movement ($m) Movement FY14 – FY13 1,575 (61) • FY13 included a large benefit from CVA and (81) 110 (92) 47 (27) 1,484 (16) 1,468 13 revenue associated with Hastings’ exit of listed 1,433 Cash infrast
Slide 109: 2H14 impairment benefit and market risk income lower
2H14 impairment benefit and market risk income lower sound operating performance, good customer flows For personal use only Cash earnings movement ($m) Movement 2H14 – 1H14 • Cash earnings lower mainly due to an 752 21 (22) (27) (44) 716 impairment benefit of $90m in 1H14 compared 36 Cash 5% to a
Slide 110: Customer revenue up 6%
Customer revenue up 6% reflecting focus on customer relationships For personal use only • Customer revenue1 $1,301m, up 6% (up 6% Customer revenue1 ($m) FY14/FY13). Supported by ‒ Lift in FX and Debt Markets sales from 1,301 meeting customers’ risk management (3) 40 32 needs in interest rates and fo
Slide 111: Institutional market leadership
Institutional market leadership 11 years as Number 1 Lead Domestic Transactional Bank1 For personal use only Global Transactional Foreign Debt Services. Exchange. Markets. Relationship. Insight. No.1 Lead No.1 Australian Bank No.1 Debt House in No.2 Lead Relationship No.1 Most Useful Transactional B
Slide 112: Service revolution delivering solutions and new capabilities
Service revolution delivering solutions and new capabilities to help customers prosper and grow For personal use only Delivering growth in targeted areas Delivering solutions and new Positioned strongly for future growth capabilities for customers % Mov’t WIBS for Service Bureaus – Revenue end to en
Slide 113: Connecting our customers to trade, capital and people flows
Connecting our customers to the trade, capital and people flows between Asia and Australasia For personal use only Building capabilities in Asia in key product and Key milestones in FY14 – Focus on China customer areas First Half 2014 Second Half 2014 Trade Finance Sub-branch China FX Derivative pre
Slide 114: Risk management continues to be a competitive advantage
Risk management continues to be a competitive advantage For personal use only Impairments: (charges) / benefits ($m) Stressed exposures as a % of TCE New IAPs Write-backs Change in CAP Total impairment Impaired 90+ days past due well secured Watchlist & substandard benefit 125 4.6 104 98 93 4.3 90 5
Slide 115: New Zealand delivers a strong performance
New Zealand NZ delivers a strong performance across return, growth, productivity and strength For personal use only FY14 % of Group Cash earnings movement (NZ$m) Key financial metrics FY14 - FY13 (NZ$m) cash earnings 91 (35) Cash 864 13% • Up $96m to $864m earnings 38 6 (4) 768 10 Core • Up $40m t
Slide 116: New Zealand: Improved core earnings growth with low impairments
New Zealand Improved core earnings growth with continued low impairments For personal use only Cash earnings movement (NZ$m) Key financial metrics 2H14 – 1H14m (NZ$m) Cash - Flat • Cash earnings of $432m flat on 1H14 26 1 (5) (18) earnings 46 (12) 432 (4) 432 Core • Up $22m to $622m driven by 3% inc
Slide 117: New Zealand: Investment delivering improvement in key operating metrics
New Zealand Investment delivering improvement in key operating metrics For personal use only Building deeper customer relationships Key performance metrics • Deepening customer relationships continues to be a key area of focus with good growth in MyBank customers (now 27.7% of customer base, up Chan
Slide 118: New Zealand: Delivering returns through growth and productivity
New Zealand Delivering returns through growth and productivity whilst strengthening the balance sheet For personal use only Cash earnings (NZ$m) Core earnings (NZ$m) FUA and FUM (NZ$bn) 864 1,222 5.5 FUA FUM 1,181 1,182 4.4 768 3.6 714 2.7 1,066 1.7 1.2 1.4 578 1.1 FY11 FY12 FY13 FY14 FY11 FY12 FY13
Slide 119: New Zealand: Delivered above system performance in target markets
New Zealand Delivered above system performance in target markets For personal use only • Housing growth of 3% (up 6% FY14/FY13), ahead of system1 Balance sheet (NZ$bn) – Transition to new >80% LVR lending restrictions well managed delivering above market average new flows (and below RBNZ limit) Chan
Slide 120: New Zealand: Mortgage portfolio quality significantly improved
New Zealand Mortgage portfolio quality significantly improved For personal use only Portfolio highlights New Zealand mortgage portfolio by region (%) • Mortgage portfolio NZ$39.6bn, up 3% (up 6% FY14/FY13) Auckland Wellington Christchurch Rest of New Zealand • The distribution of the mortgage portfo
Slide 121: New Zealand: Improving asset quality
New Zealand Improving asset quality with a reduction in business stressed assets For personal use only • Total business stressed exposures as a % of business TCE is at 3.26%, Movement in impairment charges (NZ$m) down 51bps (down 165bps FY14/FY13) – Improvements across property, agriculture and manu
Slide 122: Westpac Pacific
Westpac Pacific solid earnings contribution despite regional headwinds For personal use only Cash Earnings movement ($m) Movement 2H14 – 1H14 • Cash earnings down $8m, impacted by foreign 79 (3) (10) exchange controls introduced in Papua New (2) (5) 6 65 flat (22) Cash Guinea (PNG) 6 57 12% 5 3 ea
Slide 123: Technology
For personal use only FULL YEAR 2014 TECHNOLOGY NOVEMBER 2014
Slide 124: Our investment in technology will continue at current levels
Our investment in technology will continue at current levels as we progress Phase II of our modernisation journey For personal use only Progress in 2014 Channels: helping customers to bank their way • Westpac Live – our market-leading integrated mobile and digital system is the foundation of transfo
Slide 125: Our customer first technology strategy is delivering
Our customer first technology strategy is delivering leading functionality and capabilities… For personal use only Enabling customers to submit Westpac Live - New digital banking experience with $18.7 billion of payments award winning design and user friendly features across Market leading mobile ca
Slide 126: Supporting our customers' shift to the digital economy
…which is supporting our customers’ shift to the digital economy For personal use only Global 2.7m #1 >10% 79% >200% customers leading mobile customer Digital sales % year on year increase in Westpac Live digital gross migrated onto satisfaction for of overall retail increase in Australian productiv
Slide 127: Technology around a Customer Service Hub
Our strategy orients the Group’s technology around a Customer Service Hub… For personal use only The Customer Service Hub enables us to know our customer, anticipate their needs and empower them to bank how and when they want. It is a combination of technology infrastructure, data, tools and new pro
Slide 128: Elevating customer experiences with modular upgrades
…which elevates customer experiences and enables modular upgrades to best-in-class processing systems For personal use only Banks of today Banks of the future Customer Channel Systems Channel Systems Channels Processing Customer Service Hub Systems Today banks Customer Data In the Customer Data typi
Slide 129: Earlier investments in infrastructure platforms
Our earlier investments in infrastructure platforms are now supporting and accelerating our strategy For personal use only A robust, stable and secure infrastructure environment... …enables Consolidated Enhanced Modern data centres enterprise security desktop fleet Resource shift to • An additional
Slide 130: Economics
For personal use only FULL YEAR 2014 ECONOMICS COMPARISON OF 2H14 VERSUS 1H14 CASH EARNINGS BASIS (UNLESS OTHERWISE STATED) NOVEMBER 2014
Slide 131: Australian and New Zealand economic forecasts
Australian and New Zealand economic forecasts For personal use only Calendar year Key economic indicators1 (%) as at October 2014 2012 2013 2014f 2015f World GDP 3.4 3.3 2.9 3.7 Australia GDP 3.6 2.3 3.2 3.2 Private consumption 2.6 2.0 2.5 3.2 Business investment2,3 16.4 –2.2 –4.0 –2.0 Unemployment
Slide 132: Australia remains well-placed relative to developed economies
Australia remains well-placed relative to developed economies For personal use only Net public debt levels as a % of GDP 2013 Australia’s economy: diversified and flexible 110.7 Sector contribution to GDP (%)1 83.1 87.6 Manufacturing 81.3 5.7 8.4 Construction 60.4 55.7 11.9 8.6 Mining Rural 38.5 5.6
Slide 133: Australia's economic transition from mining to non-mining
Australia’s economic transition from mining to non-mining For personal use only Australian growth mix: Contributions to GDP growth (%) Investment: share of Australian economy (% of GDP) % % of GDP 4 2012 2013 2014f 2015f 15 Forecasts mining, CAPEX end 2015 housing investment 3 business investment (e
Slide 134: Labour market showing some signs of improvement
Labour market showing some signs of improvement For personal use only Unemployment rates (%) Personal bankruptcies vs company insolvencies (%) % % Company insolvencies (rhs) % Australia Canada UK US Euro 3.5 1.6 14 Personal bankruptcies (lhs) 3.0 1.4 12 1.2 2.5 10 1.0 2.0 0.8 8 1.5 0.6 6 1.0 *season
Slide 135: Interest rates to remain low, AUD remains high
Interest rates to remain low AUD remains high by historical standards For personal use only Major countries’ policy rates (%) Australian dollar (AUD/USD) % Australia UK Canada US Euro USD USD 8 1.20 Fair value band 1.20 AUD/USD actual & forecast Fore- 7 1.10 1.10 casts 6 1.00 1.00 5 0.90 0.90 4 0.80
Slide 136: Credit growth picking up at a modest pace
Credit growth picking up at a modest pace For personal use only Business confidence and consumer confidence (net balance) Australian private sector credit growth (% ann) Consumer (lhs) Business * (rhs) % annual % annual monthly Housing Total credit Business 140 20 25 Forecasts 25 end 2015 130 20 20
Slide 137: Chinese growth remains a positive for Australia
Chinese growth remains a positive for Australia For personal use only • As a $US7 trillion economy, China grew at 10%. As a $US10 trillion Real GDP % ann 2012 2013 2014f 2015f economy, Westpac expects China to grow at 7% China 7.7 7.7 7.4 7.5 • Represents an equivalent incremental contribution to gl
Slide 138: New Zealand a mixed economic picture
New Zealand a mixed economic picture For personal use only • New Zealand economic growth accelerated to around 3.5% per annum in New Zealand GDP growth and forecast (%) response to post-earthquake reconstruction activity in Canterbury, strong net immigration, the lagged effect of rising house prices
Slide 139: New Zealand housing market recovering
New Zealand housing market recovering, but expected to remain subdued For personal use only • House price inflation reached 10% per annum in 2013, with the strongest New Zealand house price inflation (annual %) gains concentrated in the two biggest cities, Auckland and Christchurch • In late 2013 th
Slide 140: Australian housing market sound fundamentals
Australian housing market sound fundamentals For personal use only • Australian housing market continues to face a significant structural Population versus dwelling stock (annual average change ‘000) undersupply population dwelling stock* 373 • A persistently low level of new building over the last
Slide 141: Price growth and activity some moderation
Price growth and activity some moderation since the start of 2014 For personal use only • Price growth and activity have moderated somewhat since the Housing credit momentum start of 2014 • Housing credit growth is currently tracking at 6.7%yr 6mth %change, annualised 36 Total • Price growth nationa
Slide 142: Investment property lending remains buoyant
Investment property lending remains buoyant For personal use only • Investor housing activity is buoyant, responding to low vacancy Dwelling turnover rates, solid rental yields, and low interest rates, including low fixed rates that also offer the opportunity to hedge interest rate risk. thousands e
Slide 143: Australian households a cautious approach to finances
Australian households a cautious approach to household finances For personal use only Australian households: debt to income ratio (%) Consumer survey: ‘Wisest place for savings’ % total (gross) debt 70 % shares % 50 180 housing debt real estate 60 deposits 130 total debt net of deposits* 40 includes
Slide 144: Appendix & Disclaimer
For personal use only FULL YEAR 2014 APPENDIX & DISCLAIMER NOVEMBER 2014
Slide 145: Appendix 1: Cash earnings adjustments
Appendix 1: Cash earnings adjustments For personal use only Cash earnings adjustment 2H13 1H14 2H14 Description Reported net profit 3,464 3,622 3,939 Reported net profit after tax attributable to owners of Westpac Group TPS revaluations 1 - - The TPS hybrid instrument is not fair valued however the
Slide 146: Appendix 2: Definitions
Appendix 2: Definitions For personal use only Westpac’s business units Financial performance Is a measure of the level of profit that is generated by ongoing operation and Australian Financial Services is responsible for the Westpac Group’s Australian is therefore available for distribution to share
Slide 147: Appendix 2: Definitions (continued)
Appendix 2: Definitions (continued) For personal use only Asset quality Key metrics TCE Total committed exposures Net Promoter Score measures the net likelihood of recommendation to others of the customer’s main financial institution for retail or business banking. Net Stressed loans are the total o
Slide 148: Appendix 2: Definitions (continued)
Appendix 2: Definitions (continued) For personal use only Key metrics (continued) Key metrics (continued) Source: DBM Consultants Business Financial Services Monitor, September Source: Roy Morgan Research, 6 month rolling average, September 2014. Customer 2014, 6MMA. MFI customers, all businesses. T
Slide 149: Investor Relations Team
Investor Relations Team For personal use only Equity Investor Relations For further information on Westpac Andrew Bowden Leigh Short www.westpac.com.au/investorcentre click on ‘Analysts’ Centre’ Head of Investor Relations Senior Manager • Annual reports +61 2 8253 4008 +61 2 8253 1667 • Presentation
Slide 150: Disclaimer
Disclaimer 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 that it