Westpac Banking Corporation · ASX:WBC
Westpac Banking — Debt Investor Presentation (March 2025)
20 slides from Westpac Banking's debt investor presentation, Mar 11, 2025
Slide 1: An Introduction to Westpac Covered Bonds
AN INTRODUCTION TO WESTPAC COVERED BONDS 11 March 2025 © Westpac Banking Corporation ABN 33 007 457 141 AFSL and Australian credit licence 233714
Slide 2: In relation to Westpac Banking Corporation ("Westpac")
IN RELATION TO WESTPAC BANKING CORPORATION (“WESTPAC”) © Westpac Banking Corporation ABN 33 007 457 141 AFSL and Australian credit licence 233714
Slide 3: Westpac covered bond key features and issuance profile
As at 31 January 2025. Key features Housing Loan Pool size A$37,485,504,976 AUD USD EUR CHF GBP • Covered Bonds are AAA/Aaa rated1 Average loan size A$313,154 • Highly rated issuer Westpac AA- / Aa2 / AA-2 • Issuer can go to BBB+/A3(cr) (Fitch/Moody’s) and Weighted average LVR 1.3 2.4 57.3% / 49.8%
Slide 4: Australian mortgage portfolio
Mar-24 Sep-24 Dec-24 Australian mortgage portfolio balance balance balance Total portfolio ($bn) 495.2 503.3 508.3 Mar-24 (Portfolio) Sep-24 (Portfolio) Dec-24 (Portfolio) Owner occupied (OO) (%) 67.8 67.9 68.0 65 66 66 Investment property loans (IPL) (%) 31.0 31.1 31.0 Portfolio loan/line of credit
Slide 5: Loans 'on time'
Loans ‘on time’ Mar-24 Sep-24 Dec-24 and <1mth ahead 24 25 Investment property loans – 23 generally maintain higher 21 21 21 19 19 20 35 balances for tax purposes 18 17 18 17 17 15 Accounts opened in the last 12 15 months 4 Structural restrictions on 3 repayments e.g. fixed rate 2 2 2 14 Residual –
Slide 6: Impairment charge and delinquencies
Impairment charge to average loans annualised (lhs) 90+ dpd excl. 6 months serviceability hold-out period and RAMS Stressed exposures to total committed exposures (rhs) (closed to new customers) 100 350 4.0 80 90+ day delinquencies 250 60 3.0 139 40 150 30+ day delinquencies 20 5 2.0 50 1.69 0 -20 -
Slide 7: Australian housing market
As at 20 February 2025. 40 % Macro- COVID-19 ‘Delta’ rate cuts 2019 election prudential rate hikes 30 measures Macro-prudential measures 20 10 0 -10 -20 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22 Jan-23 Jan-24 Jan-25 Jan-26 Sources: CoreLogic, Westpac Economics Capital city Pop’n Last 3 mths Last 12
Slide 8: Covered bond pool: LVR, seasoning and regional distribution
As at 31 January 2025. Current LVR (unindexed) Current LVR (indexed) 50 40 Northern 30 Territory $175.7m, 0.5% 20 Queensland $6,283.7m, Western 16.8% 10 Australia South $3,932.2m, Australia 10.5% $1,941.9m, 0 5.2% New 0-50% > 100% 50-55% 55-60% 60-65% 65-70% 70-75% 75-80% 80-100% South Wales $14,105
Slide 9: Covered bond pool: interest only, fixed rate and loan size
As at 31 January 2025. % of interest only loans by balance (lhs) Number of loans (rhs) 30 2,000 Fixed 11% 25 1,500 Variable 20 15 1,000 10 500 5 89% - 0 < 6 mths 6 mths 1yr 2yrs 3yrs 4yrs > 5 yrs - 1yr - 2yrs - 3yrs - 4yrs - 5yrs % of fixed rate loans by balance (lhs) Number of loans (rhs) % of pool
Slide 10: In relation to Westpac New Zealand Limited ("WNZL")
IN RELATION TO WESTPAC NEW ZEALAND LIMITED (“WNZL”) © Westpac Banking Corporation ABN 33 007 457 141 AFSL and Australian credit licence 233714
Slide 11: WNZL covered bond key features
As at 31 January 2025. Key features Housing Loan Pool size NZ$6,975,528,961 • Covered Bonds are AAA/Aaa rated1 • Covered Bonds are issued by Westpac Securities NZ Limited, guaranteed by WNZL (A+ / A1 / AA-)2 Average loan size NZ$204,897 and backed by an unconditional and irrevocable guarantee by the
Slide 12: New Zealand mortgage portfolio and comparison to Australia
Total portfolio (NZ$bn)1 $68.0b 2.0 90+ day delinquencies Fixed / Floating (%) 89 / 11 Owner occupied (%) 74.4 1.5 Investment property loans (%) 25.6 1.0 Broker introduced (%) 53.8 Interest-only (%) 15.5 0.5 0.49 Loan to Value Ratio2 80-90% (%) 6.0 0.0 Loan to Value Ratio2 >90% (%) 2.6 Dec-22 Mar-23
Slide 13: New Zealand housing market
(INDEX = 1000 IN 2010) Last 3 mths Last 12 mths Last 5 years Region Pop’n 3500 3500 (to Jan-25) (to Jan-25) (to Jan-25) OCR increases begin Auckland 1.7m 3000 Auckland 3000 Up 1% Down 2% Up 14% OCR cuts begin Wellington 0.6m Canterbury Flat Down 4% Up 11% 2500 Covid outbreak, 2500 OCR cuts Canterbur
Slide 14: © Westpac Banking Corporation ABN 33 007 457 141 AFSL and Australian credit licence
© Westpac Banking Corporation ABN 33 007 457 141 AFSL and Australian credit licence 233714
Slide 15: Secured funding is an important part of Westpac's funding strategy
— Secured funding is an important part of Westpac’s funding strategy. Westpac’s secured funding programmes include Covered Bonds and RMBS which typically represent approximately 20%–25% of Westpac’s annual term funding requirements (c. 18% in FY24). 6 — Westpac’s RMBS and Covered Bonds provide addit
Slide 16: Covered bond pool eligibility summary (Australia)
As at 31 January 2025. Covered bond pool eligibility summary Total Pool Loan Balance1 A$37,485,504,976 At the time of sale, each loan: • Is denominated and payable only in AUD in Australia Number of Loans 119,703 • Is secured by a mortgage that constitutes a first ranking Australian mortgage (second
Slide 17: Covered bond pool eligibility summary (New Zealand)
As at 31 January 2025. Covered bond pool eligibility summary Total Pool Loan Balance1 NZ$6,975,528,961 • First ranking mortgage registered under the New Zealand Real Property Legislation Number of Loans 34,044 • Loan is secured by a mortgage over land and a completed residential dwelling Average Loa
Slide 18: Comparison to EEA countries
Comparison to EEA Countries. Name of New Zealand Covered Australian Covered Bonds Bonos Garantizados Pfandbriefe Swedish Covered Bond Norwegian covered bond instrument Bonds Universal credit Universal or Universal credit Authorised Deposit Taking institution with a special Universal credit instituti
Slide 19: Comparison to non-EEA countries
Comparison to non-EEA Countries. Name of New Zealand Covered Singapore Covered Canadian Covered South Korean Covered Australian Covered Bonds Regulated Covered Bond instrument Bonds Bonds Bonds Bonds Universal credit institution Universal or Universal credit Authorised Deposit Taking with a special
Slide 20: Important notice
The material contained in this presentation is intended to be general background information on Westpac Banking Corporation (“Westpac”) (ABN 33 007 457 141) and its activities, as well as Westpac subsidiaries and their activities. It should not be reproduced, distributed or transmitted to any person
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