Westpac Banking Corporation · ASX:WBC
Westpac Banking — H1 2014 Earnings Presentation
137 slides from Westpac Banking's earnings presentation, May 5, 2014
Slide 1: First Half 2014 Financial Result
For personal use only FIRST HALF 2014 FINANCIAL RESULT
Slide 2: Index
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Index For personal use only Presentation of First Half 2014 Result 3 CEO summary 4 CFO details 14 Investor Discussion Pack of First Half 2014 Result 29 Overview 30 Features 45 Net interest income 46 Non-interest income 50 Markets and Treasury income 51 Expenses, i
Slide 3: First Half 2014 Financial Result - CEO
For personal use only FIRST HALF 2014 FINANCIAL RESULT GAIL KELLY CHIEF EXECUTIVE OFFICER
Slide 4: A high quality, consistent performance
11.90 4.28 3.79 0.0 3.79 4.28 11.90 A high quality, consistent performance For personal use only Change Change 1H14 1H13-1H14 2H13-1H14 Cash EPS1 121.3c 7% 6% Cash Earnings $3,772m 8% 6% Core earnings2,3 $5,794m 5% 5% Reported net profit $3,622m 10% 5% Return on equity2 16.5% 43bps 68bps Impairment
Slide 5: Divisional contributions (Cash Earnings)
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Divisional contributions (Cash Earnings $m) For personal use only Australian Financial Services Westpac RBB St.George 2,461 2,324 2,130 2,196 1,213 1,251 1,127 1,142 772 691 701 635 2H12 1H13 2H13 1H14 2H12 1H13 2H13 1H14 2H12 1H13 2H13 1H14 BT Financial Group Wes
Slide 6: Executing on strategic priorities and tilting to growth
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Executing on strategic priorities and tilting to growth For personal use only Remain strong Targeted growth Strength Return A strong Maintain company discipline Customer relationships Productivity Growth Sector Investment Materially simplify leading driven One tea
Slide 7: Achieving strength, return, productivity
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Achieving strength, return, productivity For personal use only Strength Return Productivity Common equity tier 1 capital ratio1 (%) Return on equity4 (%) Revenue per FTE ($’000) 274 11.26 16.5 265 9.10 8.82 16.1 260 8.74 15.9 15.8 8.16 255 2 Sep-12 Mar-13 Sep-13 M
Slide 8: Tilt to growth delivering improved momentum
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Tilt to growth delivering improved momentum For personal use only Sustainably improved Growth returning to Australian Australian business lending4 Australian housing momentum personal lending supported by Lloyds and trade Housing growth versus system1 (times) AFS
Slide 9: Growth continues in targeted areas
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Growth continues in targeted areas For personal use only Customer deposits ($bn) FUA2 and FUM3 ($bn) Insurance premiums ($m) FUA FUM General GWP 4 Life IFP 5 383 389 104 108 348 360 685 734 97 93 635 89 86 601 76 68 186 198 218 227 2H12 1H13 2H13 1H14 2H12 1H13 2H
Slide 10: Deepening customer relationships
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Deepening customer relationships For personal use only Wealth penetration1 (%) MyBank2 customers (#m) WRBB SGB WRBB 1.21 1.23 1.25 SGB 21.9 Peers 0.51 0.52 19.5 0.49 1H13 2H13 1H14 16.1 14.3 Customer return3 (%) 14.1 4.00 4.03 3.96 1H13 2H13 1H14 1 Refer slide 134
Slide 11: Capital strong, consistent dividend path
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Capital strong, consistent dividend path For personal use only • Common equity tier 1 capital ratio Dividends (cents per share) 8.82%, well above regulatory Special dividend 10 10 requirements 86 88 90 82 84 80 • 1H14 dividend of 90 cents per share 74 76 maintains
Slide 12: A service revolution for customers is underway
11.90 4.28 3.79 0.0 3.79 4.28 11.90 A service revolution for customers is underway For personal use only Transform New wealth Contactless online/mobile platform payments Enhanced Private wealth offer Leadership1 Improving Global ATM Global alliance Transactional customer 50,000 ATMs Services experie
Slide 13: Summary
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Summary For personal use only • A high quality and consistent performance Remain strong • Best in class balance sheet Targeted growth • Improving growth in targeted areas Customer relationships • Good operating momentum across all divisions Materially simplify • D
Slide 14: First Half 2014 Financial Result - CFO
For personal use only FIRST HALF 2014 FINANCIAL RESULT PETER KING CHIEF FINANCIAL OFFICER COMPARISON OF 1H14 VERSUS 2H13 CASH EARNINGS BASIS (UNLESS OTHERWISE STATED)
Slide 15: A consistent, high quality performance
11.90 4.28 3.79 0.0 3.79 4.28 11.90 A consistent, high quality performance For personal use only • Consistent growth in core and Earnings ($m) Cash Earnings Core earnings Cash Earnings 5,794 5,531 5,543 • Quality reflecting 5,442 5,207 – Divisional contributions – Tilting to growth now evident – Ris
Slide 16: Actively managing returns
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Actively managing returns For personal use only Return on average interest-earning assets 1H13 2H13 1H14 (AIEA) (%) Net interest income (margin) 2.19 2.12 2.11 Non-interest income 0.98 0.99 1.00 Operating income 3.17 3.11 3.11 Operating expenses (1.30) (1.29) (1.2
Slide 17: Areas of interest within result
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Areas of interest within result For personal use only FX and infrequent/ Markets and Treasury Funding focused on volatile items had income improved LCR environment little impact Margins Productivity creating Sector leading capital well managed room for investment
Slide 18: Improved Markets and Treasury performance
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Improved Markets and Treasury performance For personal use only • Relationship approach seeing consistent Customer related markets income ($m) growth in customer related markets Foreign exchange 2 Interest rates and other 3 income 380 389 360 – AFS/WIB partnership
Slide 19: Infrequent items had little impact on earnings
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Infrequent items had little impact on earnings For personal use only Foreign exchange movements not a major Infrequent and volatile items did not lift contributor to earnings in 1H14 growth in 1H14 • $15m net impact on Cash Earnings • Infrequent/volatile items low
Slide 20: Funding – actively working towards the LCR
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Funding – actively working towards the LCR1 For personal use only • Continued to fund loan growth with Stable funding ratio (%) stable funding sources 83.2 83.9 83.4 Equity 7.5 7.4 7.2 64 • Funded Lloyds acquisition ($8bn), 5 16.7 15.9 16.6 growth in trade ($3bn)
Slide 21: Margins down 1bp
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Margins down 1bp For personal use only Net interest margin (NIM) movement (%) NIM excl. Treasury & Markets Treasury & Markets impact on NIM 2.19 NIM down 1bp 2.12 (7bps) 4bps 2.11 0.13 4bps 1bp (1bp) (2bps) 0.06 0.10 2.06 2.06 2.01 NIM excl. Treasury & Markets dow
Slide 22: Expense growth from investment and FX translation
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Expense growth from investment and FX translation For personal use only Components of expense movements ($m) 1H14 investment spend (%) Growth & productivity BAU expenses Investment Lloyds & FX Regulatory change 110 (102) 35 32 4,065 40 13 2 3,998 3,935 3,943 Other
Slide 23: Productivity remains a priority
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Productivity remains a priority For personal use only Productivity savings in 1H14 $m $1.2bn saved from efficiency programs ($m) Operating model changes 32 102 1,209 225 Continuous improvement 22 238 Supplier changes 19 289 NZ simplification for growth 11 212 143
Slide 24: Asset quality a highlight
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Asset quality a highlight For personal use only Stressed exposures as a % of TCE1 New and increased gross impaired assets ($m) Watchlist & substandard 90 days past due well secured 2,149 Impaired 3.20 3.09 1,748 2.48 1,519 2.17 1,343 1,218 1,194 1.94 1,060 1.60 99
Slide 25: Lower impairments, strong provisioning cover
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Lower impairments, strong provisioning cover For personal use only Impairment charge movements ($m) Write-backs Write-offs Other movements in New IAPs Total & recoveries direct collective provisions 557 555 438 409 349 382 341 326 331 (47) (179) (239) (266) (289)
Slide 26: Strong capital position
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Strong capital position For personal use only Common equity tier 1 capital ratio (% and bps) 11.26 Organic capital generation 12bps 117 (85) 9.10 (37) (18) 8.74 7 (10) (2) 8.82 31 Mar-13 30 Sep-13 Lloyds St.George 2H13 Cash 2H13 RWA Other 31 Mar-14 31 Mar-14 1 Bas
Slide 27: Considering the impact of D-SIB buffer
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Considering the impact of D-SIB buffer For personal use only APRA CET1 ratio1 minimums, including additional D-SIB buffer Westpac CET1 ratio 8.82% at March 2014 8.0% 4th Quartile 7.0% 3.5% 4th Quartile 3rd Quartile capital 2.5% conservation capital 3rd Quartile bu
Slide 28: Expectations for 2H14
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Expectations for 2H14 For personal use only • Lending growth to trend higher • Continue to actively manage margins • Productivity benefits to largely offset business as usual expenses, with most expense growth related to investments • Strong returns from supportin
Slide 29: Investor Discussion Pack
For personal use only FIRST HALF 2014 INVESTOR DISCUSSION PACK COMPARISON OF 1H14 VERSUS 2H13 CASH EARNINGS BASIS (UNLESS OTHERWISE STATED)
Slide 30: Overview
For personal use only FIRST HALF 2014 OVERVIEW COMPARISON OF 1H14 VERSUS 2H13 CASH EARNINGS BASIS (UNLESS OTHERWISE STATED)
Slide 31: Westpac Group at a glance
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Westpac Group at a glance For personal use only • Australia’s first bank and first company, opened in 1817 Australian Financial Services (AFS) WIB Westpac NZ • Australia’s 2nd largest bank, and 13th largest bank in the world, ranked by market capitalisation1 Westp
Slide 32: 1H14 financial snapshot
11.90 4.28 3.79 0.0 3.79 4.28 11.90 1H14 financial snapshot For personal use only Change1 Change1 Change1 Change1 1H14 1H14 1H13 – 1H14 2H13 – 1H14 1H13 – 1H14 2H13 – 1H14 Earnings2 Balance sheet EPS3 (cents) 121.3 7% 6% Total assets ($bn) 729 7% 4% Core earnings ($m) 5,794 5% 5% Common equity tier
Slide 33: Reconciliation between Cash Earnings and reported net profit
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Reconciliation between Cash Earnings and reported net profit For personal use only Cash Earnings policy1 Reported net profit and Cash Earnings1 adjustments ($m) • Westpac Group uses a measure of performance referred to as Cash Earnings to assess financial performa
Slide 34: Managing for a balanced performance
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Managing for a balanced performance For personal use only Strategic priorities 1H14 outcomes • Common equity tier 1 capital ratio at 8.82%, well placed for D-SIB Remain strong • Stable funding ratio at 83%, down 45bps Remain • Stressed assets to TCE down 23bps, to
Slide 35: Delivering against key strategic priorities
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Delivering against key strategic priorities For personal use only Mortgage growth moving toward 1x Common equity tier 1 capital ratio1 (%) Stable funding ratio above 75 (%) system (multiple)3 9.1 83 83 84 83 8.7 8.8 8.2 79 0.9 7.7 0.8 0.8 0.7 0.7 Mar-12 Sep-12 Mar
Slide 36: Market valuation metrics continuing to improve
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Market valuation metrics continuing to improve For personal use only Cash Earnings ($m) Return on equity (%) Cash Earnings per share (cents) 3,772 16.5 121.3 3,508 3,555 16.1 114.5 3,386 15.9 15.8 110.4 113.3 3,178 104.4 15.1 1H12 2H12 1H13 2H13 1H14 1H12 2H12 1H1
Slide 37: Improving franchise quality
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Improving franchise quality For personal use only Wealth penetration improving1 (%) Customer numbers up across brands (#m) MyBank customer numbers rising (#m) Brands rank #1 and # 3 WRBB SGB WRBB SGB 1.21 1.23 1.25 21.9% 6.07 6.11 6.20 WRBB 19.5% SGB 3.26 3.55 Pee
Slide 38: 1H14 Cash Earnings up 6%
11.90 4.28 3.79 0.0 3.79 4.28 11.90 1H14 Cash Earnings up 6% For personal use only 1H14 % change1 % change1 Cash Earnings Cash Earnings 1H13 – 1H14 ($m) Cash Earnings 2H13 - 1H14 ($m) ($m) 1H13-1H14 2H13-1H14 Net interest income 6,677 4 3 272 (241) 97 (96) 171 (130) 68 (102) 232 3,772 210 3,772 Non-
Slide 39: Strong Cash Earnings and core earnings growth
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Strong Cash Earnings and core earnings growth For personal use only 1H14 divisional contribution to Cash Earnings1 ($m) 1H14 divisional contribution to core earnings1 ($m) AFS division 137 AFS division 144 61 3,772 145 5,794 71 28 (38) 57 66 (76) 38 38 36 42 3,555
Slide 40: 1H14 divisional performance highlights operating momentum
11.90 4.28 3.79 0.0 3.79 4.28 11.90 1H14 divisional performance highlights operating momentum For personal use only 1H14 Cash Earnings Core % of Group earnings % % change Performance summary Performance highlights Cash Earnings1 $m change on on 2H13 2H13 WRBB • Deposits up 2%, customer deposit to lo
Slide 41: Consistent dividend growth path
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Consistent dividend growth path For personal use only • 1H14 ordinary dividend of 90 cents, up 2% Dividends per share (cents) • Payout ratio at 74% – Arranging to purchase shares to fully neutralise DRP Special dividends 10 10 • 1H14 dividend yield1 5.2% – Equival
Slide 42: Lloyds integration progressing well
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Lloyds integration progressing well For personal use only • On 11 October 2013, Westpac entered into an agreement to acquire Integration progress selected assets of Lloyds Banking Group’s Australian business • Transaction was completed on 31 December 2013 • $7.6bn
Slide 43: Continuing sustainability leadership
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Continuing sustainability leadership For personal use only Sustainability strategic priorities 1H14 progress Help improve the way people work and live as our Priority Objectives 1H14 achievements 1 society changes • Increased women in leadership to 43%, up 1% • En
Slide 44: Helping Australia prosper and grow
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Helping Australia prosper and grow For personal use only Supporting Australia1 Tax and related payments 1H13 2H13 1H14 reconciliation (Statutory basis) $m $m $m Funding Provide loans to help millions of $41bn 2 new lending economic Australians own their home or $5
Slide 45: Features
For personal use only FIRST HALF 2014 FEATURES COMPARISON OF 1H14 VERSUS 2H13 CASH EARNINGS BASIS (UNLESS OTHERWISE STATED)
Slide 46: Net operating income up 4% on 2H13
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Net operating income up 4% on 2H13 For personal use only • Net interest income up 3% Net operating income movement half on half ($m) – Average interest-earning asset (AIEA) growth of 5% – Customer deposit growth of 2%, mostly household deposits 291 (81) 65 87 (3)
Slide 47: Loan growth from Australian housing, Institutional and Lloyds
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Loan growth from Australian housing, Institutional and Lloyds For personal use only • Westpac Group loans up 5% (up 4% excluding Lloyds) Net loans ($bn) • Australian housing loans up 3% – Growth in new lending (up 12%) partly offset by higher run-off as lower 2.6
Slide 48: Focused on higher quality deposit growth
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Focused on higher quality deposit growth For personal use only • Customer deposits up $6.3bn or 2% Household deposits annual growth1 (%) – Focus has been on higher quality deposits – Household deposit growth at 1.0x system1 WBC Total banking system – Business depo
Slide 49: Net interest margin down 1bp
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Net interest margin down 1bp For personal use only • Net interest margin (NIM) down 1bp to 2.11% Net interest margin (%) • Margins firmer in Australian retail banking (up 2bps). NZ margins down 4bps due to mix impacts of higher growth in lower spread fixed rate mo
Slide 50: Non-interest income featured strong fees & commissions and Wealth & Insurance
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Non-interest income featured strong fees & commissions and Wealth & Insurance result For personal use only • Non-interest income up 6% Non-interest income ($m) – Fees and commissions up 5% to $1,458m, with higher credit card income reflecting seasonality and highe
Slide 51: Markets and Treasury income
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Markets and Treasury income For personal use only • Markets income $528m, was little changed over the half, down 1%, Markets income by activity ($m) as a lift in customer sales and improved trading performances were offset by a large movement in CVA Customer incom
Slide 52: Expenses well managed while continuing to invest
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Expenses well managed while continuing to invest For personal use only • Expenses up 3.3% (up 1.6% excluding FX1 and Lloyds) Expense growth and expense to income ratio2 (%) • Expense to income ratio down 29bps to 41.2% 1 • Well controlled expenses pre-investment (
Slide 53: Disciplined investment spend, focussed on growth & productivity
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Disciplined investment spend, focussed on growth & productivity For personal use only Capitalised software & deferred expenses ($m) 1H13 2H13 1H14 Composition of investment spending2 (%) Investment Capitalised software 1.20 0.94 1.15 0.53 spend ($bn) Opening balan
Slide 54: Australia's most efficient bank, continued focus on productivity
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Australia’s most efficient bank, continued focus on productivity For personal use only $1.2bn saved from efficiency programs since FY09 ($m) Global peer comparison of expense to income ratios1 (%) 102 1,209 69.2 225 62.0 60.1 59.1 238 55.6 289 45.2 45.0 44.3 44.0
Slide 55: Improvements in asset quality leading to lower impairment charges
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Improvements in asset quality leading to lower impairment charges in 1H14 For personal use only Impairment charges to average gross loans1 (bps) Impairment charge movements ($m) Impairment charge Impairment charge inc. interest adjustment New IAPs, write-backs 409
Slide 56: Capital, Funding & Liquidity
For personal use only FIRST HALF 2014 CAPITAL, FUNDING & LIQUIDITY COMPARISON OF 1H14 VERSUS 2H13 CASH EARNINGS BASIS (UNLESS OTHERWISE STATED)
Slide 57: Capital strength maintained
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Capital strength maintained For personal use only • Key drivers of the 28bp decrease in the common equity tier 1 Key capital ratios (%) 1H13 2H13 1H14 (CET1) capital ratio are Common equity tier 1 capital ratio 8.7 9.1 8.8 – Acquisition of selected assets of Lloyd
Slide 58: Capital well positioned for D-SIB capital requirement
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Capital well positioned for D-SIB capital requirement For personal use only • On 23 December 2013, APRA issued an information paper which Common equity tier 1 capital ratio (%) – Identified the four major Australian banks as domestic systemically important banks (
Slide 59: CET1 APRA to BCBS Basel III reconciliation
11.90 4.28 3.79 0.0 3.79 4.28 11.90 CET1 APRA to BCBS Basel III reconciliation For personal use only • APRA has maintained a conservative stance for its Basel III capital standards, resulting in a significant variance between capital measured under APRA and fully harmonised Basel III • Key differenc
Slide 60: Fully harmonised CET1 ratio at upper end of global peers
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Fully harmonised common equity tier 1 capital ratio at the upper end of global peers For personal use only Global peer comparison of Basel III pro-forma common equity tier 1 capital ratios1 (%) 15.0 14.7 13.9 13.6 12.8 11.9 11.9 11.8 11.4 11.3 11.1 10.9 10.7 10.5
Slide 61: Modest growth in risk weighted assets over half
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Modest growth in risk weighted assets over half For personal use only • Lloyds acquisition added $9.0bn to RWA RWA movements ($bn) – $8.5bn to credit RWA 3.2 1.6 0.7 1.5 (0.9) 322.5 – $0.5bn to operational risk RWA 9.0 • Credit RWA (excluding Lloyds) increased 1%
Slide 62: Asset growth funded through stable sources
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Asset growth funded through stable sources For personal use only • Stable Funding Ratio 83% at 1H14, down 45bps (up 24bps 1H13/1H14) Funding composition by residual maturity (%) – Funding through stable sources of customer deposits and term wholesale funding – Ave
Slide 63: Strong liquidity position maintained
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Strong liquidity position maintained For personal use only • $127bn in unencumbered liquid assets held at 31 March 2014 Liquid assets ($bn) – Securities are eligible for repo with a central bank and proposed Committed Liquidity Facility (CLF) 126 127 – Sufficient
Slide 64: New term issuance well diversified
11.90 4.28 3.79 0.0 3.79 4.28 11.90 New term issuance well diversified For personal use only Term debt issuance and maturity profile1,2 ($bn) Lowest short term funding of peers Covered Bond Hybrid Senior Govt Guaranteed Sub Debt Short term funding3,4 ($bn) Short term funding to total funding includi
Slide 65: Asset Quality
For personal use only FIRST HALF 2014 ASSET QUALITY COMPARISON OF 1H14 VERSUS 2H13 CASH EARNINGS BASIS (UNLESS OTHERWISE STATED)
Slide 66: High quality portfolio with bias to secured consumer lending
11.90 4.28 3.79 0.0 3.79 4.28 11.90 High quality portfolio with bias to secured consumer lending For personal use only Asset composition as at 31 March 2014 (%) Cash and balances with central banks Total assets On balance sheet lending Receivables due from other financial institutions Trading securi
Slide 67: Diversification across industries and large exposures
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Diversification across industries and large exposures For personal use only Exposures at default1 by sector ($m) Top 10 exposures to corporations and NBFIs5 as a % of TCE6 (%) Finance & insurance 2 Largest corporation/NBFI single name exposure represents less than
Slide 68: Commercial property portfolio performing well
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Commercial property portfolio performing well For personal use only Commercial property exposures size ($bn) and % of TCE Commercial property portfolio by sector and region (%) 18 Commercial property exposure ($bn) 9.6 10 9 16 9.1 Commercial property as % of TCE 1
Slide 69: Portfolio stress continues to reduce
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Portfolio stress continues to reduce For personal use only Stressed exposures as a % of TCE and provisions ($m) Provisioning coverage ratios 1H13 2H13 1H14 Impaired (lhs) 90+ days past due well secured (lhs) Watchlist & substandard (lhs) IAP (rhs) Collectively % $
Slide 70: Improvement in portfolio quality across all major sectors
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Improvement in portfolio quality across all major sectors For personal use only New and increased gross impaired Stressed exposures by industry ($bn) assets ($m) 4.5 2,149 1H13 2H13 1H14 1,798 1,748 4.0 1,519 1,343 1,218 1,194 3.5 1,060 997 958 708 3.0 2.5 1H09 2H
Slide 71: Provision cover by portfolio category
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Provision cover by portfolio category For personal use only Exposures TCE1 asaa%%ofofTCE Exposures as Provisioning to TCE (%) 2H12 1H13 2H13 1H14 Fully performing portfolio 98.63 • Small cover as low probability of default Fully 98.40 performing 97.83 98.06 (PD) 0
Slide 72: High quality Australian mortgage portfolio
11.90 4.28 3.79 0.0 3.79 4.28 11.90 High quality Australian mortgage portfolio For personal use only 1H13 2H13 1H14 1H14 Australian housing loan-to-value (LVR) ratios (%) Australian housing portfolio Balance Balance Balance Flow1 1H14 drawdowns LVR at origination Total portfolio ($bn) 321.9 328.5 33
Slide 73: Mortgage customers continuing to repay ahead of schedule
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Mortgage customers continuing to repay ahead of schedule For personal use only • Australian mortgage customers continue to display a cautious Australian home loan customers ahead on repayments2,3 (%) approach to debt levels, taking advantage of historically low Ma
Slide 74: Australian mortgage delinquencies at low levels
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Australian mortgage delinquencies at low levels For personal use only Delinquencies Australian mortgages delinquencies and loss rates (%) • Sustained period of low interest rates and a continued conservative 90+ Past Due Total 90+ First Home Buyer approach to debt
Slide 75: Australian investment property portfolio performing well
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Australian investment property portfolio performing well For personal use only • Investment property loans (IPLs) 44% of Loan-to-value ratio at origination1 (%) Applicants by gross income band1 (%) Westpac’s Australian mortgage portfolio • 46% of IPL loans origina
Slide 76: Lenders mortgage insurance managing risk transfer
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Lenders mortgage insurance managing risk transfer For personal use only • Lenders mortgage insurance (LMI) provides benefits to the Westpac Group Lenders mortgage insurance structure at 31 March 2014 – Risk transfer / loss mitigation LVR ≤80% and Low Doc – Improve
Slide 77: Mortgage portfolio stress testing outcomes
11.90 4.28 3.79 0.0 3.79 4.28 11.90 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 as at 31 March 2014 of its regulatory and risk management activities • The Australi
Slide 78: Australian unsecured lending portfolio performing well
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Australian unsecured lending portfolio performing well For personal use only • Unsecured consumer asset quality has Australian unsecured lending 90+ days delinquencies (%) remained strong as continuing low interest rates have assisted debt serviceability and the G
Slide 79: Business Units
For personal use only FIRST HALF 2014 BUSINESS UNITS COMPARISON OF 1H14 VERSUS 2H13 CASH EARNINGS BASIS (UNLESS OTHERWISE STATED)
Slide 80: AFS consistent track record of Cash Earnings growth
11.90 4.28 3.79 0.0 3.79 4.28 11.90 AFS AFS consistent track record of Cash Earnings growth For personal use only Cash Earnings movement ($m) Key features of AFS in 1H14 142 (120) • Cash Earnings up 6% (up 12% 1H13/1H14) 84 (91) 128 (52) 122 2,461 • All AFS businesses contributed to the strong perfo
Slide 81: AFS: Sustainable growth with all divisions contributing
11.90 4.28 3.79 0.0 3.79 4.28 11.90 AFS Sustainable growth with all divisions contributing For personal use only All business units delivering sustainable Cash Earnings growth ($m) Core earnings growth ($m) 1H12 2H12 1H13 2H13 1H14 3,878 1,213 1,251 3,734 1,142 1,127 3,517 1,031 3,401 3,187 772 691
Slide 82: AFS: Delivering more functionality for customers via digital
11.90 4.28 3.79 0.0 3.79 4.28 11.90 AFS Delivering more functionality for customers via digital For personal use only Digital growth deepening relationships and improving service Continuing to roll-out new products • AFS active digital customers as a percentage of total customers up 1.2 percentage p
Slide 83: AFS: Lifting mortgage growth in sustainable way
11.90 4.28 3.79 0.0 3.79 4.28 11.90 AFS Lifting mortgage growth in sustainable way For personal use only • AFS mortgage market share of 23.2% and lifting growth closer to system1 Applications, approvals and drawndowns uplift3 – Grew at 0.9x in 1H14 (up from 0.7x 2H13) • Improvement in key business d
Slide 84: AFS: Growth in business banking, aided by Lloyds
11.90 4.28 3.79 0.0 3.79 4.28 11.90 AFS Growth in business banking, aided by Lloyds For personal use only • AFS business lending up 5% (broadly flat excluding Lloyds acquisition) and Business banking customers (#’000) up 6% on 1H13 (1% excluding Lloyds acquisition) – Business customers up 3% 1,038 –
Slide 85: AFS: Consumer finance delivering strong growth
11.90 4.28 3.79 0.0 3.79 4.28 11.90 AFS Consumer finance delivering strong growth For personal use only • Total consumer finance up 17% to $22.0bn (up 4% excluding Lloyds Credit card and personal loan applications (#’000) acquisition) • Improving momentum across both personal lending and credit card
Slide 86: AFS: Deposit focus on growth and quality
11.90 4.28 3.79 0.0 3.79 4.28 11.90 AFS Deposit focus on growth and quality For personal use only • Deposit to loan ratio down slightly to 59.8%, impacted by the Lloyds AFS customer deposit to loan ratio (%) acquisition and a focus on originating quality deposits (excluding Lloyds deposit to loan ra
Slide 87: AFS: Wealth is part of our banking DNA
11.90 4.28 3.79 0.0 3.79 4.28 11.90 AFS Wealth is part of our banking DNA For personal use only • Westpac’s strategy is one of meeting the total financial needs of customers and its commitment was stepped up with the creation of AFS Customer wealth penetration change over last 4 years1 (bps) • AFS s
Slide 88: Delivering efficiency while improving the AFS customer experience
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Delivering efficiency while improving the AFS customer experience For personal use only • Expenses increased 4%, impacted by the Lloyds acquisition and higher BT Disciplined expense management ($m) performance related fees. Excluding these items operating expenses
Slide 89: AFS high quality portfolio, significant improvement in business
11.90 4.28 3.79 0.0 3.79 4.28 11.90 AFS high quality portfolio, AFS significant improvement in business For personal use only • AFS impairment charges down 20%, with the improvement in portfolio quality continuing Movement in impairment charges ($m) • AFS stressed exposures as a % of TCE reduced 21b
Slide 90: WRBB a strong franchise with consistent growth in Cash Earnings
11.90 4.28 3.79 0.0 3.79 4.28 11.90 WRBB WRBB a strong franchise with consistent growth in Cash Earnings For personal use only Cash Earnings movement ($m) Movement 1H14 – 2H13 Cash 46 (24) 2 (36) 1,213 49 8 (21) 16 (14) 1,251 ↑ 3% • Up $38m to $1,251m 83 Earnings 1,142 Core ↑ 2% • Up $36m to $2,014m
Slide 91: WRBB: Deepening customer relationships through digital
11.90 4.28 3.79 0.0 3.79 4.28 11.90 WRBB Deepening customer relationships and transforming customer experience through digital For personal use only Key features of 1H14 Key non-financial metrics • In Retail, continued to invest in convenient banking, with 34 Bank Now Change branches and 24/7 sites
Slide 92: WRBB: Consistently delivering growth, return, strength and productivity
11.90 4.28 3.79 0.0 3.79 4.28 11.90 WRBB Consistently delivering growth, return, strength and productivity For personal use only Core earnings ($m) Revenue per FTE2 ($’000) Average products per customer3 (#) 369 359 2,014 1,978 341 3.03 3.00 320 2.85 1,873 2.84 300 2.75 1,780 1,692 1H12 2H12 1H13 2H
Slide 93: St.George delivering growth and flexibility
11.90 4.28 3.79 0.0 3.79 4.28 11.90 St.George delivering growth and flexibility For personal use only Cash Earnings movement ($m) Movement 1H14 – 2H13 63 (34) • Up $71m to $772m with all brands contributing 69 11 (38) 772 Cash Earnings ↑ 10% 62 13 (16) (49) • Up 8% excluding Lloyds 691 0 701 • Up $4
Slide 94: St.George: Significant improvement in key operating metrics
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Significant improvement in key operating metrics For personal use only Key features of 1H14 Key non-financial metrics • Continued to build on gains in recent halves with all brands positively contributing to Cash Earnings growth Change 1H13 2H13 1H14 • Strong mome
Slide 95: All brands contributing with many growth opportunities
11.90 4.28 3.79 0.0 3.79 4.28 11.90 All brands contributing with many growth opportunities For personal use only Positive Cash Earnings across all brands Quality improvement – reduced stressed ($m) Excellent customer growth (#’000) assets to TCE (%) 772 3.9 14 3 2 3.7 All brands contributing 38 3,55
Slide 96: BTFG: Strong Cash Earnings growth up 21%
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Strong Cash Earnings growth up 21% For personal use only Cash Earnings movement ($m) Movement2H13 Movement 1H14––1H1313 1H13 Cash Earnings ($m) Revenue Revenue up up $31192 (17%) Expenses (3%) Expenses up up $26 (4%) 73 (12%) Cash Earnings up 75 (21%) BTFG Cash Ea
Slide 97: Leading wealth provider and investing for the future
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Leading wealth provider and investing for the future For personal use only Cash Earnings movement ($m) Cash Earnings ($m) Movement 1H14 – 2H13 Revenue up 127 (11%) Expenses up 61 (10%) Cash Earnings up 28 (7%) • Asset markets higher, positively impacting FUM (up 8
Slide 98: Continued growth across business drivers
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Continued growth across business drivers For personal use only Key features of 1H14 versus 1H13 Key non-financial metrics • Solid growth across all earnings drivers Change on 1H13 2H13 1H14 – FUM and FUA up 25% and 12% respectively 2H13 – General Insurance gross w
Slide 99: Strong value creation across wealth business
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Strong value creation across wealth business For personal use only Revenue per salaried planner1,2, 3 ($’000) Planner numbers (#) FUA ($bn) Bank median 574 Salaried planners Aligned planners Up 12% WRBB salaried planner 106.8 Aligned planners up 15% 102.7 SGB sala
Slide 100: Solid WIB performance; up 7% excluding significant items
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Solid WIB performance; up 7% excluding significant items For personal use only Cash Earnings movement ($m) Movement 1H14 – 2H13 • 2H13 included a large benefit from CVA and performance (47) fees associated with Hastings’ exit of its listed 790 (38) 70 (24) 44 (42)
Slide 101: Strong WIB franchise supports customer revenue
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Strong WIB franchise supports customer revenue For personal use only • WIB 1H14 revenue $1,581m WIB customer revenue up 2% – Excluding impact of performance fees associated with Hastings’ exit of its listed infrastructure funds business and CVA, revenue 1H14 reven
Slide 102: Risk management continues to be a competitive advantage
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Risk management continues to be a competitive advantage For personal use only Impairments: (charges) / benefits ($m) Stressed exposures as a % of TCE New IAPs Write-backs Change in CAP Total impairment Impaired 90+ days past due well secured Watchlist & substandar
Slide 103: Delivering innovative solutions and new capabilities
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Delivering innovative solutions and new capabilities For personal use only WIB’s strategy: Partner with customers, communities and our people to prosper and grow as Australasia’s undisputed number one Institutional Bank Innovative solutions for customers Deliverin
Slide 104: Number one Lead Domestic Transactional Bank
11.90 4.28 3.79 0.0 3.79 4.28 11.90 10 consecutive years as Number 1 Lead Domestic Transactional Bank1 For personal use only Global Transactional Foreign Debt Relationship. Insight. Services. Exchange. Markets. No.1 Lead Relationship No.1 Most Useful No.1 Lead No.1 Australian No.1 Australian Bank in
Slide 105: New Zealand: Strong performance with improving asset quality
11.90 4.28 3.79 0.0 3.79 4.28 11.90 New Strong performance with improving asset quality Zealand in a competitive environment For personal use only Cash Earnings movement1 ($m) Movement 1H14 – 2H131 46 (12) 432 Cash Earnings ↑ 8% • Up $32m to $432m 17 (7) 3 3 (8) Core earnings - Flat • Down $2m to $6
Slide 106: New Zealand: Strengthening the balance sheet and customer relationships
11.90 4.28 3.79 0.0 3.79 4.28 11.90 New Strengthening the balance sheet and deepening Zealand customer relationships For personal use only Key features of 1H14 Achievements and recognition • Strengthening the balance sheet with 93bps increase in customer Canstar 5 star award for home loan deposit to
Slide 107: New Zealand: Responding to changing customer behaviours with digital
11.90 4.28 3.79 0.0 3.79 4.28 11.90 New Responding to changing customer behaviours with Zealand investment in digital For personal use only Focus on next generation banking Key non-financial metrics 1H13 2H13 1H14 Change on 2H13 Meeting changing customer behaviours is leading to material changes in
Slide 108: New Zealand: Growth momentum with strong quality attributes
11.90 4.28 3.79 0.0 3.79 4.28 11.90 New Zealand Growth momentum with strong quality attributes For personal use only • Deposit growth of 4%, in line with system1 and fully funding loan Balance sheet ($NZbn) growth in a competitive environment 1H13 2H13 1H14 Chg on 2H13 (%) – Significant growth in ot
Slide 109: New Zealand mortgage portfolio
11.90 4.28 3.79 0.0 3.79 4.28 11.90 New Zealand New Zealand mortgage portfolio For personal use only • Mortgage portfolio is at $38.6bn, up 3% New Zealand mortgage portfolio by region (%) • The distribution of the mortgage portfolio across regions is consistent with population concentrations of New
Slide 110: New Zealand: Improving asset quality in the business
11.90 4.28 3.79 0.0 3.79 4.28 11.90 New Zealand Improving asset quality in the business For personal use only • Business stressed exposures of TCE at 3.8%, down 114bps Movement in impairment charges (NZ$m) – Down mostly across property, agriculture and manufacturing sectors – Excluding institutional
Slide 111: Westpac Pacific earnings ease in line with activity
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Westpac Pacific Westpac Pacific earnings ease in line with activity For personal use only Cash Earnings movement ($m) Key highlights 27 (2) 1 (9) 79 (3) (10) • Westpac Pacific Cash Earnings Westpac Pacific Cash Earnings ($m) (2) 6 65 has lifted in recent periods 6
Slide 112: Technology
For personal use only FIRST HALF 2014 TECHNOLOGY
Slide 113: Moving to Phase II of our Technology Roadmap
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Moving to Phase II of our Technology Roadmap – customer experience is key For personal use only Phase II C Channels: helping customers to bank their way 2014 2017+ • Enhanced digital customer experience – mobile first • Integrating banking and wealth • Innovating
Slide 114: Empowering customers to bank when, where and how they want
11.90 4.28 3.79 0.0 3.79 4.28 11.90 C Empowering customers to bank when, where and how they want For personal use only Contact Centre Online & Mobile Design principles • Customer centred design – intuitive Remote and consistent • Mobile first • Easy to access and easy to use Designed for mobile firs
Slide 115: Integrating the banking and wealth customer experience
11.90 4.28 3.79 0.0 3.79 4.28 11.90 C Integrating the banking and wealth customer experience P For personal use only Digital customer experience • Richer, easier to use online and mobile experience • Seamless customer service across all channels Banking Wealth • Simplified experience with greater co
Slide 116: Delivering our Phase II Technology Roadmap
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Delivering our Phase II Technology Roadmap For personal use only 2009- 2013 2013 2014 2015 2016 2017 Completed Phase I (SIPs) Phase II Underway Digital signatures Enhanced digital enablement – including mobile and online Cards system consolidation Workplace infras
Slide 117: Economics
For personal use only FIRST HALF 2014 ECONOMICS
Slide 118: Australian and New Zealand economic forecasts
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Australian and New Zealand economic forecasts For personal use only Calendar year Key economic indicators1 (%) as at April 2014 2012 2013 2014f 2015f World GDP 3.2 2.9 3.2 3.8 Australia GDP 3.6 2.4 2.7 3.0 Private consumption 2.5 2.0 3.0 3.2 Business investment2,3
Slide 119: Australia remains well-placed relative to developed economies
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Australia remains well-placed relative to developed economies For personal use only Net public debt levels as a % of GDP 2012 Real GDP growth (%) 120 % Australia UK Canada US Euro 100 Australian Government % growth, year-ended 80 including 6 60 2014/15 forecasts 4
Slide 120: Australia's economic transition from mining to non-mining
11.90 4.28 3.79 0.0 3.79 4.28 11.90 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) 2012 2013 2014f 2015f mining, CAPEX housing investment ppts ann% % of GDP % of
Slide 121: Commodity cycle evolves
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Commodity cycle evolves For personal use only Committed Australian projects and mining investment ($bn) Commodity prices (index) committed investment (lhs) bulks* (lhs) exchange traded* (rhs) $bn BREE* most likely projection $bn index index 300 120 mining capital
Slide 122: Cash rate expected to remain stable; AUD expected to trend lower
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Cash rate expected to remain stable at 2.50%; AUD expected to trend lower over medium term For personal use only Major countries’ policy rates (%) Australian dollar (AUD/USD) Australia UK Canada US Euro fair value band* AUD/USD actual & forecast % USD USD 8 1.20 1
Slide 123: Labour market showing some signs of improvement
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Labour market showing some signs of improvement in early 2014 For personal use only Unemployment rates (%) Cumulative change in industry employment (‘000) household services mining Australia Canada UK US Euro ‘000 construction goods distribution 500 % 400 14 300 2
Slide 124: Credit growth picking up at a modest pace
11.90 4.28 3.79 0.0 3.79 4.28 11.90 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) Housing Total credit Business net bal. net bal. % ann % ann 25
Slide 125: Chinese growth remains a positive for Australia
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Chinese growth remains a positive for Australia For personal use only • As a $US7 trillion economy, China grew at 10%. As a $US10 trillion Real GDP %ann 2012 2013 2014f 2015f economy, Westpac expects China to grow at 7% China 7.7 7.7 7.3 7.6 • Represents an equiva
Slide 126: Chinese growth remains a positive for Australia
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Chinese growth remains a positive for Australia For personal use only China’s share of selected elements of world activity (%) % 1980 2000 2010 25 20 15 10 5 0 Household Gross fixed Exports 1 Imports 1 Manufacturing Construction Services value PPP GDP Nominal USD
Slide 127: A strong economic picture in New Zealand
11.90 4.28 3.79 0.0 3.79 4.28 11.90 A strong economic picture in New Zealand For personal use only • The New Zealand economy is experiencing a strong upturn driven New Zealand GDP growth and forecast (%) by earthquake-related construction activity, last year’s rise in house prices, a four decade hig
Slide 128: New Zealand housing market beginning to slow
11.90 4.28 3.79 0.0 3.79 4.28 11.90 New Zealand housing market beginning to slow For personal use only • House price inflation peaked at 10% in 2013, but is now slowing. New Zealand house price inflation (annual %) Westpac is forecast 5.5% house price inflation in 2014, and 1% in ann % ann % 2015 30
Slide 129: Australian housing market fundamentals sound
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Australian housing market fundamentals sound For personal use only Rental vacancy rates (%) Population versus dwelling stock (annual average change ‘000) Australia Sydney Melbourne population dwelling stock* % % ’000 6 6 400 * net of demolitions – implied by Censu
Slide 130: Housing activity responding to lower rates
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Housing activity responding to lower rates For personal use only Housing finance approvals: value of housing finance ($bn/mth) Housing credit: rate cut cycles compared (index) 'upgraders', ex-refinancing investor finance first home buyers current 2008-09 2001-02 1
Slide 131: A more cautious approach to household leverage
11.90 4.28 3.79 0.0 3.79 4.28 11.90 A more cautious approach to household leverage by Australian households For personal use only Australian households: debt to income ratio (%) Pressure easing on existing borrowers (%) accumulated savings since Jun-07 debt serv ratio (mortgagors, lagged 6mths, rhs)
Slide 132: Appendix & Disclaimer
For personal use only FIRST HALF 2014 APPENDIX & DISCLAIMER COMPARISON OF 1H14 VERSUS 2H13 CASH EARNINGS BASIS (UNLESS OTHERWISE STATED)
Slide 133: Appendix 1: Cash Earnings adjustments
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Appendix 1: Cash Earnings adjustments For personal use only Cash Earnings adjustment 1H13 2H13 1H14 Description Reported net profit 3,287 3,464 3,622 Reported net profit after tax attributable to equity holders of Westpac Group Non merger & acquisition related ite
Slide 134: Appendix 2: Definitions
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Appendix 2: Definitions For personal use only Westpac’s business units Financial performance Australian Financial Services is responsible for the Westpac Group’s Australian Australian Net profit attributable to equity holders adjusted for the impact of the economi
Slide 135: Appendix 2: Definitions (continued)
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Appendix 2: Definitions (continued) For personal use only Financial performance (cont.) Asset quality Roy Morgan Research, Products Per Customer, Total Banking & Finance (incl Work Based Super) customers aged 18+, 6 month rolling average, March 2014. TCE Total com
Slide 136: Investor Relations Team
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Investor Relations Team For personal use only Equity Investor Relations For further information on Westpac www.westpac.com.au/investorcentre click on ‘Analysts’ Centre’ Andrew Bowden Leigh Short • Annual reports Head of Investor Relations Senior Manager +61 2 8253
Slide 137: Disclaimer
11.90 4.28 3.79 0.0 3.79 4.28 11.90 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