Westpac Banking Corporation · ASX:WBC
Westpac Banking — FY2018 Earnings Presentation
151 slides from Westpac Banking's earnings presentation, Nov 5, 2018
Slide 1: 2018 Full Year Results
2018 Full Year Results For the twelve months ended 30 September 2018 Presentation and Investor Discussion Pack Westpac Banking Corporation | ABN 33 007 457 141
Slide 2: Westpac 2018 Full Year Results index
Westpac 2018 Full Year Results index 2018 Full Year Result Presentation 3 Image on front Investor Discussion Pack of 2018 Full Year Result 32 Westpac banker Anna Thorpe helped sheep farmer Greg Woodlock fund the Strategy 33 expansion of his dam to capture much needed water for his property ‘Kaloola’
Slide 3: Brian Hartzer, Chief Executive Officer
Brian Hartzer Chief Executive Officer Financial results throughout this presentation are in Australian dollars and based on cash earnings unless otherwise stated. Refer page 41 for definition. Results principally cover the FY18, FY17 and 2H18 and 1H18 periods. Comparison of 2H18 versus 1H18 (unless
Slide 4: Flat result in a difficult year
Flat result in a difficult year 4 • Cash earnings little changed: strong first half, soft second half • Balance sheet in great shape across all dimensions • Challenges Royal Commission/regulatory actions Higher cost of funds and full year impact of the bank levy Customer remediation Slowing
Slide 5: Earnings snapshot
Earnings snapshot 5 Change Change FY18 FY18 – FY17 2H18 – 1H18 Reported net profit after tax $8,095m 1% (7%) Cash earnings $8,065m - (10%) Cash EPS1 236.2c (1%) (11%) Return on equity (ROE)2 13.0% (77bps) (188bp) Net tangible assets per share $15.39 5% 3% Margin (excl. Treasury & Markets)3 2.00% 1bp
Slide 6: Balance sheet remains strong
Balance sheet remains strong 6 Common equity Tier 11 (ratio % and $bn) Liquidity ratios2 (%) 55 $bn Ratio (%) 12 LCR NSFR 10.6 10.6 11 50 9.5 9.5 45 9.1 9.0 10 40 8.2 9 8 35 7 134 133 30 43 45 125 124 39 6 112 114 25 34 108 109 30 5 20 25 28 4 15 3 Sep-12 Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 Ma
Slide 7: Divisional performance
Divisional performance 7 Cash earnings by division FY18 - FY17 (% change) • Good volume growth offset by margin pressure (down 7bps) Consumer Bank - • Margins lower from mortgage spreads, funding costs • Expenses up 5% reflects remediation and investment • Core earnings up 5%, good fee growth, margi
Slide 8: Strategy unchanged, adapted to environment
Strategy unchanged, adapted to environment 8 Deal with 1 outstanding issues Non negotiables: • Balance sheet strength • Credit quality Momentum in 2 customer franchise • Return disciplines • Culture • Great service Structural 3 cost reduction Westpac Group 2018 Final Results Presentation & Investor
Slide 9: 1. Deal with outstanding issues
1. Deal with outstanding issues 9 Continuing consumer product reviews • Significant number of products reviewed • Halved number of products offered in the Consumer Bank over 3 years Customer remediation provisions • No advice or no record of advice (salaried financial planners) • Inappropriate advic
Slide 10: 2. Momentum in customer franchise
2. Momentum in customer franchise 1,2 10 New customers Depth of relationship • Australian banking customers reached 11m, 250k new • New Panorama pricing model to bank • Presto for merchants a new payment/cash flow solution • Consumer transaction balances up 6% • 80% of SME loans originated online vi
Slide 11: 3. Structural cost reduction: Run costs flat
3. Structural cost reduction: Run costs flat 11 Expenses by type1 ($m) 9,586 9,105 158 8,931 71 112 87 Hastings 1,008 1,192 924 Remediation 903 985 1,110 Regulation and compliance Investments (excl regulation) 7,017 7,041 7,016 Run costs (business as usual) FY16 FY17 FY18 $263m $262m $304m Annual pr
Slide 12: 3. Structural cost reduction: $304m in 2018
3. Structural cost reduction: $304m in 2018 12 Product rationalisation • 35 products1 closed or exited Simplify Process simplification • Four of six key home loan processes automated $180m Operating model changes • Better alignment of bankers with customers Replace paper • 48% of accounts now on e-s
Slide 13: Significant progress on technology transformation
Significant progress on technology transformation 13 2018 2019 2020+ Customer Roll out to Westpac brand (early Roll out to Extend across other Mortgage Pilot Service Hub 2019) and St.George (late 2019) Brokers products/services Customer Wealth BT Cash Mgmt launch Corporate Super Superannuation and w
Slide 14: Summary
Summary 14 • Flat result; stronger balance sheet • Impairment losses at cyclical lows • Strong business portfolio – some short term issues • Remaining focused on improving service for customers • Delivering innovative and modernised digital platform Westpac Group 2018 Final Results Presentation & In
Slide 15: Peter King, Chief Financial Officer
Peter King Chief Financial Officer
Slide 16: Result impacted by remediation and funding costs
Result impacted by remediation and funding costs 16 Cash earnings movements ($m) full year Cash earnings movements ($m) half on half 635 (240) (481) 4,251 (263) 8,062 143 (54) 8,065 (88) (278) 116 3,814 76 Flat Down 10% Incl. $163m rise in remediation costs Incl. $430m rise in remediation and fundin
Slide 17: Infrequent/volatile items
Infrequent/volatile items 17 Infrequent/volatile items ($m after tax) Key items 2H17 1H18 2H18 Remediation2 $281m (after tax) Asset sales – (7) 0 Divisional BTFG: $141m, Consumer Bank: impact $110m, Other $30m Small impact on cash earnings, more Fund manager revaluations (3) – (13) Hastings exit sig
Slide 18: Australian mortgage growth moderating
Australian mortgage growth moderating 18 Australian mortgages ($bn) and mix (%) Mortgage portfolio flow composition (%) 3.2% 2.4% 1.7% 1H17 2H17 1H18 2H18 $414 $427 $437 $445 Owner occupied growth 3 4 3 3 5 5 4 4 % of portfolio Investor growth 3 4 1 1 45 49 Line of 56 61 Basic (% of flow) 22 14 20 2
Slide 19: Margins impacted by competition, cost of funds, Treasury
Margins impacted by competition, cost of funds, Treasury 19 Net interest margin movement (% and bps) NIM excl. Treasury & Markets Treasury & Markets impact on NIM 2.17 (2bps) (5bps) (4bps) 0.12 1bp 0bp 1bps (1bps) (2bps) 2.05 0.10 2.05 Down 12bps 1.95 1H18 Remediation W'sale Loans Customer Term Capi
Slide 20: Markets & Treasury income skewed to 1H18
Markets & Treasury1 income skewed to 1H18 20 Markets non-customer and Treasury income ($m) Markets customer income ($m) 1H 2H 1H 2H 1,030 1,002 969 918 935 912 918 349 896 484 395 507 462 447 436 448 653 546 574 411 473 465 482 448 2015 2016 2017 2018 2015 2016 2017 2018 1 Includes net interest inco
Slide 21: Non-interest income down from trading
Non-interest income down from trading 21 Components of non-interest income ($m) Fees & Wealth and Trading 11% 17% 18% Total 3% Commissions Insurance and Other + Higher business lending fees, + Increased Hastings income - Lower non-customer & cards fees markets income + Lower insurance claims 2,850 -
Slide 22: Expenses higher from infrequent items
Expenses higher from infrequent items 22 Movement in expenses ($m) 2H18 cost drivers New Payments Platform, 87 4,932 Platforms Customer Service Hub and Panorama 112 Strengthening Cyber security, network and system infrastructure refresh, private cloud 126 (173) 66 4,733 BEAR, regulatory and complian
Slide 23: Credit quality sound
Credit quality sound 23 Stressed assets as a % of TCE1 Corporate/business stressed exposure by sector ($bn) 3.20 1.6 Watchlist & substandard New Zealand dairy 90+ day past due and not impaired 1.4 improvement Impaired 1.2 2.48 Two names 1.0 into stressed 2.17 2.07 0.8 Two names out 1.45 of stressed
Slide 24: Australian mortgages performing well
Australian mortgages performing well 24 Australian mortgage portfolio delinquencies (%) Australian mortgages 90+ day delinquencies by State (%) 3.0 90+ day past due 3.0 NSW/ACT VIC/TAS QLD 90+ day past due investor WA SA/NT ALL 30+ day past due 2.0 Introduced new 2.0 Introduced new hardship treatmen
Slide 25: Well collateralised mortgage portfolio
Well collateralised mortgage portfolio 25 Australian housing LVRs (%) Australian mortgages1 by origination date and dynamic LVR2 (%) Portfolio LVR at origination 2015 commenced 80% of portfolio tighter lending standards 49 Dynamic LVR bands 6 8 14 (% of total) 14 23 17 >80 14 11 45 5 4 60-80 <=60 0<
Slide 26: Impairment charge low at 9bps
Impairment charge low at 9bps 26 Individually assessed provisions ($m) Collectively assessed provisions ($m) Total ($m) Other movement Write-backs Write-offs New IAPs in Collective & recoveries direct provisions 525 493 443 430 428 393 364 360 317 246 198 173 Interest carrying (147) (162) (167) (43)
Slide 27: CET1 ratio 10.6%
CET1 ratio 10.6% 27 CET1 capital ratio (% and bps) 16.14 Organic +20bps Other -7bps 90 (68) 3 (5) (30) 5 4 10.63 10.56 10.50 14 Higher RWA for operational risk and mortgages Up 13 basis points Sep-17 Mar-18 Cash Final Ordinary Other capital Impacts of Residual Exit of FX Sep-18 Sep-18 1 APRA APRA ea
Slide 28: Unchanged dividend
Unchanged dividend 28 Dividends per ordinary share (cents) Dividend considerations • Sustainability of the payout ratio over 94 94 94 94 94 94 94 the medium term 92 93 90 • CET1 capital ratio = unquestionably strong benchmark • Surplus franking credits • FY18 Bank Levy equivalent to 8 cents per shar
Slide 29: Considerations for FY19
Considerations for FY19 29 • Expect system credit growth to moderate • Continued focus on return • Margin: recent mortgage repricing to flow through, expect continued price competition and industry changes to calculation of credit card interest rates • Non-interest income: will reflect previously an
Slide 30: Brian Hartzer, Chief Executive Officer
Brian Hartzer Chief Executive Officer
Slide 31: 2019 priorities
2019 priorities 31 • ‘Get it right, put it right’ initiative Deal with • Customer remediation programs 1 outstanding issues • Royal Commission response • Advice model • Roll out of Customer Service Hub Momentum in 2 customer franchise • Accelerate growth in Panorama • Continue migration to digital s
Slide 32: Investor Discussion Pack basis of presentation
Financial results throughout this Investor Discussion Pack are in Australian dollars and based on cash earnings unless otherwise stated Refer page 41 for definition. Results principally cover the FY18, FY17 and 2H18 and 1H18 periods. Comparison of 2H18 versus 1H18 (unless otherwise stated)
Slide 33: Strategy
Strategy
Slide 34: Westpac Group at a glance: Australia's First Bank
WBC Westpac Group at a glance: Australia’s First Bank listed on ASX & NZX Strategy 34 • In its 202nd year, Australia’s first bank and first company, opened 1817 Consumer Business BT Financial Institutional Westpac • Australia’s 2nd largest bank and 20th largest bank in the world; Bank Bank Group Ban
Slide 35: Progress on our strategic agenda
Progress on our strategic agenda Strategy 35 Our To be one of the world’s great service companies, Vision: helping our customers, communities and people to prosper and grow Strategic Priorities Service Performance Digital Targeted Workforce Leadership Discipline Transformation Growth Revolution Cost
Slide 36: Rebuilding trust
Rebuilding trust Strategy 36 Completed ABA1 six point plan Get it Right. Put it Right Delivering for customers 1. Reviewing product sales and commissions • Dedicated initiative to identify where we may not • Helping customers manage their finances for bank staff have got it right, and where problems
Slide 37: Building the franchise
Building the franchise Strategy 37 Targeted growth Supporting customers via digital Strong balance sheet Australia Australia • APRA • # 2 in mortgage market share1 (23%) • 4.8m active digital customers 10.6% CET1 capital ratio • # 2 in credit card market share2 (23%) • 3.5m active mobile users 5
Slide 38: What sets Westpac apart
What sets Westpac apart Strategy 38 Strong strategic position – consistent strategy Conservative balance sheet • No. 1 or 2 position across key markets – all divisions well placed • Strong credit quality with lowest Impaired assets to gross loans1 (%) impaired assets of peers • Unique portfolio of b
Slide 39: Consistent performer over the long term
Consistent performer over the long term Strategy 39 Cash earnings ($bn) Cash earnings per share (cents) 245.4 248.2 235.5 239.7 236.2 8.1 8.1 227.8 7.8 7.8 209.3 214.8 7.6 198.3 197.8 163.7 7.1 6.6 6.3 5.9 5.0 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 4.7 Ordinary dividend yield (%) Ord
Slide 40: Overview
ae . : . ~ Overview.
Slide 41: Cash earnings and reported net profit reconciliation
Cash earnings and reported net profit reconciliation Results 41 Cash earnings1 policy Reported net profit and cash earnings adjustments ($m) • Westpac Group uses a measure of performance referred to as cash earnings to assess financial performance at both a Group and divisional level FY17 FY18 • Thi
Slide 42: FY18 financial snapshot
FY18 financial snapshot Results 42 Change Change Change Change FY18 FY18 – FY17 2H18 – 1H18 FY18 FY18 – FY17 2H18 – 1H18 Earnings1 Balance sheet Total assets ($bn) 879.6 3% 1% Earnings per share (cents) 236.2 (1%) (11%) Common equity Tier 1 10.63 7bps 13bps Core earnings ($m) 12,365 (1%) (10%) (CET1
Slide 43: Cash earnings impacted by infrequent items of $281m in 2H18
Cash earnings impacted by infrequent items of $281m in 2H18 Performance discipline 43 % Change % Change Cash earnings features of FY18 – FY17 ($m) FY18 FY18 – 2H18 – Lower $m FY17 1H18 AIEA1 up 3%, margins up 2bps new IAPs2 635 (240) (481) 8,062 143 (54) 8,065 Net interest 16,339 4 (3) income Lower
Slide 44: Divisional contributions
Divisional contributions Performance discipline 44 2H18 divisional1 core earnings movements ($m) 2H18 divisional1 cash earnings movements ($m) Impacted by higher short Impacted by customer term wholesale funding remediation (422) and customer remediation 4,251 (294) 6,497 18 (229) (1) (163) 28 22 (4
Slide 45: More customers, deeper relationships and strong balance sheet
More customers, deeper relationships and strong balance sheet Service leadership 45 Grow customers Deepen relationships Maintain balance sheet strength Customer numbers (#m) Transaction account balances ($bn) CET1 capital ratio (%) and capital ($bn) 2 3 4 Australian banking1 BT and WIB New Zealand A
Slide 46: Building long term franchise value – customer service
Building long term franchise value – customer service Service leadership 46 Customer satisfaction1 Customer complaints (#) Consumer and Business (mean), New Zealand (%) Australian retail (CB, BB and BT) Westpac St.George brands Peers Higher over the year as we have made complaints process easier for
Slide 47: Workforce revolution delivering
Workforce revolution delivering Workforce revolution 47 Service leadership - Navigate Learning and development Simplification • The majority of Australian employees have • Over 1,240 leaders have participated in leadership • Enhanced controls and streamlined critical risk and participated in the Nav
Slide 48: Reinventure – Investing in new fintech businesses
Reinventure – Investing in new fintech businesses1 Digital transformation 48 Westpac has increasedWestpac is actively its commitment responding to fintech venturetocapital digitalfund, threats and opportunities. Reinventure, to $150m2. Reinventure enables We encourage Westpac to accessdigital insigh
Slide 49: New digital offers for customers
New digital offers for customers1 Digital transformation 49 Examples of how Westpac and Reinventure’s investments are delivering 2 Delivered Presto Smart for Westpac customers Investing in • Based on software built by Assembly, merchant Presto Smart enables a business merchant propositions terminal
Slide 50: Customer Service Hub: capabilities to be delivered
Customer Service Hub Starting with a new mortgage experience Strategy Digital transformation 50 Re-engineering the home ownership process: Digitising the end-to-end home loan origination experience by 2020 Customer access Banker dashboard Customer application Capabilities to be delivered via any cha
Slide 51: Enhanced customer experience
Customer Service Hub pilot now, roll out 2019 Digital transformation 51 One location for Application Better customer conversations everything tracking process Improved banker experience • Dashboard currently in • Customer conversations made • Greater visibility on how use to bring together easier wi
Slide 52: Customers shifting to digital channels
Customers shifting to digital channels1 Digital transformation 52 Digitally active customers (#m) Quality digital sales (#000’s) and % of sales via digital Sales % of sales via digital 4.81 33 4.69 4.53 29 4.33 4.18 4.05 25 428 24 380 312 287 Up 3% Up 13% Up 6% Up 37% Mar-16 Sep-16 Mar-17 Sep-17 Mar
Slide 53: Digital supporting productivity
Digital supporting productivity Digital transformation 53 Calls reduced and time saved Paper and postage saved Calling through our ‘Connect’ feature Digital Mail • More customers are initiating calls as authenticated • Customers can receive their documents faster, and customers through ‘Connect’ in
Slide 54: Helping customers via digital
Helping customers via digital Digital transformation 54 Supporting customers Deposit a cheque with a Make payments and check account balance by voice anywhere anytime photo • Siri banking is an Australian first that allows eligible Westpac • Customers on Westpac • Mobile cheque deposit customers to
Slide 55: Helping customers via digital
Helping customers via digital Digital transformation 55 Apply for a home loan online Support customers overseas Making payment easier See transactions in real time (St.George brands only) • Applications can be • App to support customers • Just Beem It! Westpac • Customers with a Handycard completed
Slide 56: Continued sustainability leadership
Continued sustainability leadership Sustainable futures 56 United Nations Sustainable Westpac’s sustainability 2018 outcomes Development Goals alignment priority areas • Improving financial literacy in target segments with specific programs: ─ Youth supported through Mathspace and Year 13 partnershi
Slide 57: Delivering sustainable value for all stakeholders
Delivering sustainable value for all stakeholders1 Sustainable futures 57 Customers Employees Community Suppliers Investors Economy Environment 14.2m 38,522 $100m $5.4bn 13.0% $3.6bn $9.1bn Customers Employees Drought Assistance Spent with suppliers Cash return Income tax Committed exposure Package
Slide 58: Climate-related metrics
Climate-related metrics Sustainable futures 58 Climate change solutions exposure Electricity generation exposure Total scope 1, 2 and 3 emissions ($bn) (% of TCE)1 (tCO2-e, 000s) TCE at 30 Sep 2018 $3.5bn 9.1 1.9 0.8 244 7.0 220 Renewable energy 203 6.1 6.2 194 11.8 Gas 14.1 Black coal Brown coal 71
Slide 59: Climate-related disclosures – scenario analysis
Climate-related disclosures – scenario analysis Sustainable futures 59 Portfolio transition risk – 2 degree scenario Transition risk – key points 80 • Westpac assessed the potential transition risks (policy, legal, Current portfolio exposure to transition risk (%) 70 technology and market changes re
Slide 60: Earnings
Earnings
Slide 61: Income down 3% over the half
Income down 3% over the half; mostly from margin decline and customer remediation Revenue 61 Net operating income movement ($m) 172 (435) 19 5 3 39 11,151 213 77 (146) 159 (88) 10,795 (13) 10,800 Net interest up 4% Non-interest up 2% Net interest down 3% Non-interest down 3% 1 2H17 AIEA Margins Fees
Slide 62: Composition of lending and deposits
Composition of lending and deposits Revenue 62 Composition of lending (% of total) Net loans ($bn) Australian mortgage lending1 ($bn) 37 (29) 2 Aust. mortgages 437 445 701 7 1 1 (1) 1 710 427 685 10 Aust. business 3 Aust. institutional 9 Up 1% Aust. other consumer 13 63 New Zealand lending Consumer
Slide 63: Net interest margin excluding Treasury & Markets down 10bps
Net interest margin excluding Treasury & Markets down 10bps Revenue 63 Net interest margin (NIM) movement (%) Net interest margin (%) NIM NIM excl. Treasury & Markets Treasury & Markets impact on NIM NIM excl. Treasury & Markets 2.17 (2bps) (4bps) 2.12 2.05 1bp (5bps) 2.03 2.10 1.95 0.12 1bp (1bp) 0
Slide 64: Non-interest income down 3%
Non-interest income down 3% Revenue 64 Non-interest income contributors ($m) Markets income by activity ($m) Fees and commissions Wealth and insurance Trading Other Customer Market related risk Derivative valuation adjustments 748 3,068 2,905 2,784 2,850 2,762 19 25 43 66 610 514 713 27 53 546 0 504
Slide 65: Markets & Treasury income
Markets & Treasury1 income Revenue 65 Markets non-customer and Treasury income ($m) Markets customer income ($m) Markets non-customer Treasury 653 574 482 546 462 465 447 448 448 507 247 436 484 162 142 131 89 395 349 60 72 404 395 406 412 376 335 277 2H15 1H16 2H16 1H17 2H17 1H18 2H18 2H15 1H16 2H1
Slide 66: Expenses up 6%
Expenses up 6% from the impact of infrequent items, higher regulatory and compliance costs, and investment spend Expenses 66 Expense movements ($m) FTE run versus change (#) Costs associated with the exit of Hastings and provisions for litigation and implementing customer refunds and payments Run: o
Slide 67: Investment spend focused on growth, productivity and compliance
Investment spend focused on growth, productivity and compliance Expenses 67 Investment spend mix ($m) Investment spend ($m) Capitalised software2 Other technology FY16 FY17 FY18 Capitalised software balance ($bn) Regulatory change Amortisation ($bn) Expensed 517 479 530 Growth and productivity 1,411
Slide 68: Continued low impairment charge reflects sound credit quality
Continued low impairment charge reflects sound credit quality Impairments 68 Impairment charges ($m) Individually assessed Collectively assessed New IAPs Write-backs & recoveries Write-offs direct Other movements in CAP Total Lower consumer early 525 cycle delinquencies and 493 443 430 428 393 364 o
Slide 69: Credit Quality
. . ee ee oe ee "Credit Quality,
Slide 70: High quality portfolio with bias to mortgage lending
High quality portfolio with bias to mortgage lending Credit Quality 70 Asset composition (%) Lending composition at 30 September 2018 (% of total) Total assets ($880bn) Sep-16 Sep-17 Sep-18 Total loans of $710bn Loans 79 81 81 Trading securities, financial assets at fair value and 10 10 9 Housing av
Slide 71: A well diversified loan portfolio
A well diversified loan portfolio Credit Quality 71 Exposures at default1 by sector ($bn) Top 10 exposures to corporations and NBFIs5 (% of TCE) 2 Finance & insurance The single largest corporation/NBFI 3 exposure represents Property less than 0.3% of TCE 1.4 1.3 1.3 Government admin. & defence 1.2
Slide 72: Well provisioned, sound credit quality
Well provisioned, sound credit quality Credit Quality 72 Provisions for impairments Total impairment provisions ($m) Sep-17 Mar-18 Sep-18 Overlay 5,061 Collectively assessed provisions Total provisions to gross loans (bps) 45 45 43 453 Individually assessed provisions 4,414 Impaired asset provisions
Slide 73: Estimated impact of AASB 9
Estimated impact of AASB 9 and AASB 15 AASB 9 and 15 impact 73 Approach to provisioning AASB 9 Estimated transition impacts of AASB 9 • The current requirement for provisioning (AASB 139) is based on an • Impairment provisions higher “incurred loss approach”, with the revised methodology (AASB 9) ba
Slide 74: Provision cover by portfolio category
Provision cover by portfolio category Credit Quality 74 Exposures as a % of TCE Provisioning to TCE (%) Mar-17 Sep-17 Mar-18 Sep-18 Fully performing portfolio • Small cover as low probability of default (PD) 0.21 0.20 0.20 0.18 • Includes overlay Fully performing 98.86 98.95 98.91 98.92 portfolio pr
Slide 75: Stressed exposures little changed
Stressed exposures little changed Credit Quality 75 Stressed exposures as a % of TCE Movement in stress categories (bps) 3 1 2 3 (5) 0 109 (1) 108 105 0 Watchlist & substandard 2.48 1 90+ day past due (dpd) and not impaired 2.17 Impaired Mar-18 Substandard Substandard 90+ dpd not Watchlist 90+ dpd n
Slide 76: Overall stressed exposures little changed over 2H18
Overall stressed exposures little changed over 2H18 Credit Quality 76 Corporate and business portfolio stressed exposures by industry ($bn) 2.0 Sep-17 Mar-18 Sep-18 1.8 New Zealand dairy improvements Reflects retail 1.6 trade sector challenges 1.4 1.2 2 exposures 1.0 0.8 2 exposures 0.6 0.4 0.2 0.0
Slide 77: Areas of interest: Commercial property
Areas of interest: Commercial property Credit Quality 77 Commercial property portfolio Commercial property exposures % of TCE and % in stress Sep-17 Mar-18 Sep-18 10 Commercial property as % of TCE (lhs) 20 Total committed exposures (TCE) $65.2bn $66.3bn $67.6bn Commercial property % in stress (rhs)
Slide 78: Areas of interest: Inner city apartments
Areas of interest: Inner city apartments Credit Quality 78 Commercial property portfolio TCE ($bn) Sep-17 Mar-18 Sep-18 TCE1 • Market activity is slowing as demand eases and pre-sales and new Residential apartment development developments start to slow. Sydney completions expected to peak in 2018, 4
Slide 79: Areas of interest: Retail trade
Areas of interest: Retail trade Credit Quality 79 Overview Retail trade portfolio • The retail sector continues to be challenged by subdued consumer demand Sep-17 Mar-18 Sep-18 and growth in domestic and international online channels Total committed exposures (TCE) $15.4bn $15.5bn $16.2bn • These ch
Slide 80: Areas of interest: Aged Care sector
Areas of interest: Aged Care sector Credit Quality 80 Overview Aged Care portfolio • Aged care sector is forecast to grow with significant investment required to Sep-17 Mar-18 Sep-18 meet demand from Australia’s aging population Total committed exposures (TCE) $2.6bn $2.5bn $2.7bn • The stress incre
Slide 81: Areas of interest: Areas experiencing drought conditions
Areas of interest: Areas experiencing drought conditions Credit Quality 81 Overview Australian Agribusiness1 portfolio • Many parts of Australia are currently affected by drought, in particular, NSW. Sep-17 Mar-18 Sep-18 Other areas such as WA are performing well. This is typical in Australia where
Slide 82: Areas of interest: Mining and NZ dairy
Areas of interest: Mining and NZ dairy Credit Quality 82 Mining (inc. oil and gas) portfolio Mining portfolio (TCE) Iron Ore and Oil prices ($)3 by sector (%) Sep-17 Mar-18 Sep-18 Iron ore (USD/t) 4 Crude oil (USD/bbl)5 Westpac Total committed 7 Economics $9.7bn $9.3bn $10.7bn forecast exposure (TCE
Slide 83: Australian consumer unsecured lending, 3% of Group loans
Australian consumer unsecured lending, 3% of Group loans Credit Quality 83 Australian consumer unsecured lending portfolio 90+ day delinquencies (%) by State NSW/ACT VIC/TAS QLD WA SA/NT Sep-17 Mar-18 Sep-18 3.00 Hardship reporting changes commenced1 Lending $22.0bn $21.8bn $21.1bn 2.00 30+ day deli
Slide 84: Australian mortgage portfolio performance
Australian mortgage portfolio performance Credit quality 84 Australian mortgage delinquencies and Sep-17 Mar-18 Sep-18 Australian mortgage portfolio delinquencies (%) properties in possession (PIPs) 90+ day past due total 90+ day past due investor 30+ day delinquencies (bps) 130 144 140 3.0 30+ day
Slide 85: Australian mortgage portfolio well collateralised
Australian mortgage portfolio well collateralised Credit quality 85 Sep-17 Mar-18 Sep-18 2H18 Australian mortgage portfolio balance balance balance flow1 Australian housing loan-to-value ratios (LVRs) (%) 100 FY18 drawdowns LVR at origination Total portfolio ($bn) 427.2 437.2 444.7 36.9 90 Portfolio
Slide 86: Australian mortgage portfolio standards tightening
Australian mortgage portfolio standards tightening Credit quality 86 Notable changes to Westpac mortgage lending standards Australian mortgage portfolio by calendar year of • 10% limit on investment property lending growth announced – origination (% of total book) 2014 implemented by 30 September 20
Slide 87: Australian mortgage portfolio repayment buffers
Australian mortgage portfolio repayment buffers Credit quality 87 Mortgage interest rate buffers (%) Westpac Australian offset account balances2 ($bn) Westpac owner occupied SVR1 inc package • Borrowers applying Linked to I/O mortgages Linked to P&I mortgages . discount for a mortgage must be able t
Slide 88: Interest only (I/O) portfolio
Interest only (I/O) portfolio Credit quality 88 I/O portfolio (%) Switching from I/O to P&I2 ($m) Variable mortgage interest rates3 (%) % of total portfolio (at period end) Reached end of I/O period Customer initiated at 17 October 2018 % of all new flows by limit (6 mnth)1 Owner occupied Investor 5
Slide 89: Performance of interest only mortgages
Performance of interest only mortgages Credit quality 89 Interest only lending Australian interest only loan portfolio balances ($bn) • Interest only (I/O) loans assessed on a principal and interest basis 250 I/O performing loans balance (lhs) 14 – Loans originated prior to 2015 were assessed on a p
Slide 90: Investment property portfolio
Investment property portfolio Credit quality 90 Mortgage applications by Investment property portfolio by LVR at origination (%) number of properties per customer (%) gross income band (%) Owner occupied IPL Owner occupied IPL 1 1 25 50 1 20 40 7 2 2 15 30 10 3 20 26 5 10 4 62 0 0 5 100<=125 125<=15
Slide 91: Australian mortgage deep dive
Australian mortgage deep dive Credit quality 91 Australian mortgage lending1 by origination date, dynamic LVR2 and income (%) Chart may not add due to rounding Year of origination <2011 2011-14 2015+ Gross income bands 80 >$250k 7 69 $100k - $250k 12 34 <$100k 45 41 36 8 9 23 3 25 38 14 21 14 1 13 8
Slide 92: Lenders mortgage insurance arrangements
Lenders mortgage insurance arrangements Credit quality 92 Lenders mortgage insurance (LMI) Lenders mortgage insurance arrangements • Where mortgage insurance is required, mortgages LVR Band Insurance are insured through Westpac’s captive mortgage insurer, Westpac Lenders Mortgage Insurance1 • LVR ≤8
Slide 93: Mortgage portfolio stress testing outcomes
Mortgage portfolio stress testing outcomes Credit quality 93 • Westpac regularly conducts a range of portfolio stress tests as part of its Australian mortgage portfolio stress testing regulatory and risk management activities at 30 September 2018 • The Australian mortgage portfolio stress testing sc
Slide 94: Capital, Funding and Liquidity
Capital, Funding and Liquidity
Slide 95: Well positioned for "Unquestionably strong"
Well positioned for “Unquestionably strong” Capital, Funding and Liquidity 95 CET1 capital ratio (%) and CET1 capital ($bn) Highlights (APRA basis) Westpac CET1 capital (lhs, $bn) • CET1 ratio up 13bps from March 2018 • Organic capital growth and conversion of Westpac CET1 capital ratio (rhs, %) APR
Slide 96: Changes to the capital framework expected over 2018-2021
Clarity on changes to the capital framework are expected to emerge over the 2018-2021 transitional period. Capital, Funding and Liquidity 96 2H18 2019 2020 2021 New Basel III framework Consult Finalise Implementation Counterparty credit risk Implement – 1 July 2019 Leverage ratio Finalise Implement
Slide 97: CET1 capital ratio, top quartile globally
CET1 capital ratio, top quartile globally Capital, Funding and Liquidity 97 Capital ratios Key capital ratios (%) APRA basis Internationally comparable1 basis Sep-17 Mar-18 Sep-18 BIS 75th percentile2 CET1 capital ratio 10.6 10.5 10.6 21.5 Additional Tier 1 capital 2.1 2.3 2.2 19.0 Tier 1 capital ra
Slide 98: CET1 capital ratio movements
CET1 capital ratio movements Capital, Funding and Liquidity 98 CET1 capital ratio (% and bps) Higher RWA for 16.14 operational risk and mortgages 90 (68) 10.56 10.50 3 (5) (30) 14 5 4 10.63 Organic +20bps Other -7bps Up 13 basis points 1 Sep-17 Mar-18 Cash Final Ordinary Other capital Impact of Resi
Slide 99: RWA increased from measurement changes
RWA increased from measurement changes Capital, Funding and Liquidity 99 Movement in risk weighted assets ($bn)1 8.2 0.6 425.4 415.7 1.4 (0.7) 0.1 404.2 See below Includes an operational risk overlay Up $9.6bn or 2.3% Sep-17 Mar-18 Credit risk Market IRRBB Operational Other Sep-18 risk risk Movement
Slide 100: Well placed on internationally comparable CET1 and leverage ratios
Well placed on internationally comparable CET1 and leverage ratios Capital, Funding and Liquidity 100 Common equity Tier 1 ratio (%) 20% 15% Standard Chartered China Construction Credit Agricole SA Westpac, 16.14% Norinchukin Bank JPMorgan Chase Societe Generale 10% Bank of Montreal Sumitomo Mitsui
Slide 101: Internationally comparable capital ratio reconciliation
Internationally comparable capital ratio reconciliation Capital, Funding and Liquidity 101 APRA’s Basel III capital requirements are more conservative than those of the Basel Committee on Banking Supervision (BCBS), leading to lower reported capital ratios by Australian banks. In July 2015, APRA pub
Slide 102: Optimising returns by actively managing capital
Optimising returns by actively managing capital Capital, Funding and Liquidity 102 Return on equity (ROE) is important Return on AIEA1 (%) Divisional capital and ROE • ROE is a key measure of performance for the Group and across divisions 2007 FY17 FY18 2H18 Allocated capital ($bn) FY17 FY18 2H18 •
Slide 103: A$32bn new term funding raised in FY18
A$32bn new term funding raised in FY18 Capital, Funding and Liquidity 103 Term debt issuance and maturity profile1,2,3 ($bn) Covered bond Hybrid Senior/Securitisation Sub debt 42 Issuance Maturities 37 33 31 32 29 30 30 27 22 17 5 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 >FY24 New term
Slide 104: Funding and liquidity metrics
Funding and liquidity metrics Capital, Funding and Liquidity 104 Funding composition by residual maturity (%) Liquidity coverage ratio (LCR)3 (%) LCR 134% LCR 133% 129.0 133.5 1 5 Wholesale Onshore <1yr 100.4 6 96.0 16 7 8 Wholesale Offshore <1yr 1 20 4 4 Wholesale Onshore >1yr Net cash outflows Liq
Slide 105: Divisional Results
Divisional Results
Slide 106: Consumer Bank growing the franchise; earnings impacted by margin pressure
Consumer Bank growing the franchise; earnings impacted by margin pressure and remediation Consumer 106 Cash earnings ($m) Key financial metrics AIEA up 2%, margin down 26bps from Change higher short-term funding costs, mortgage 2H17 1H18 2H18 on 1H18 spreads compression and provision for Lower colle
Slide 107: 2H18 performance – impacted by margin pressure and infrequent items
2H18 performance – impacted by margin pressure and infrequent items Consumer 107 Revenue ($m) Core earnings ($m) Cash earnings ($m) Lower margin (down 26bps) from higher short- term funding costs, competition and provisions Lower margin and higher regulatory for estimated customer refunds and paymen
Slide 108: Improving the customer experience through digital
Improving the customer experience through digital Consumer 108 Innovation Digitising Making it easier to connect Voice banking St.George online home loan application Digital Mail Customers can access their accounts, make • Applications can be completed online or via mobile • Customers can receive pa
Slide 109: Business Bank, another solid result
Business Bank, another solid result Business 109 Cash earnings ($m) Key financial metrics Change AIEA up 1% and margin down 2bps Higher 2H17 1H18 2H18 on 1H18 from lower asset spreads and investments and increased funding costs regulatory costs Revenue ($m) 1% 2,559 2,610 2,644 Net interest margin (
Slide 110: A disciplined 2H18 performance
A disciplined 2H18 performance Business 110 Revenue ($m) Core earnings ($m) Cash earnings ($m) 2,644 1,080 1,079 2,610 1,698 1,680 1,045 2,559 1,638 2,467 2,447 954 958 1,558 1,570 2,408 931 1,523 1H16 2H16 1H17 2H17 1H18 2H18 1H16 2H16 1H17 2H17 1H18 2H18 1H16 2H16 1H17 2H17 1H18 2H18 Expense to in
Slide 111: Transforming the Business Bank
Transforming the Business Bank Business 111 Investing in bankers Digital for customers Payment and transaction solutions Enabling bankers to build great Empowering more customers Helping customers take customer relationships through industry with online capabilities such as and make payments, meet c
Slide 112: BTFG, a leading wealth provider responding to industry change
BTFG, a leading wealth provider responding to industry change BT Financial Group 112 Cash earnings ($m) Key financial metrics Loans 4%, deposits 7%, Change Life in-force: 20% Cash earnings impact of funds 7%. Partly offset by FY16 FY17 FY18 on FY17 H&C1 GWP2: 3% provisions for estimated mar
Slide 113: Sound fundamentals
Sound fundamentals BT Financial Group 113 Funds ($bn) Insurance premiums ($m) Insurance claims rates (%) Group in-force premiums Platforms Superannuation Packaged funds Other Retail in-force premiums General Insurance Life Insurance General Insurance gross written premiums¹ 197.7 205.6 71 191.5 191.
Slide 114: Meeting customers' wealth needs via digital
Meeting customers’ wealth needs via digital BT Financial Group 114 New and improved customer services Digitising insurance: improving customer experience BT Open Services1, an online services hub, providing self- Launch of near real-time (1hour) email re-contacting licensed advisers and dealer group
Slide 115: Panorama: new, simple, transparent pricing
Panorama: new, simple, transparent pricing on BT Panorama – a unique offer for advisers and investors BT Financial Group 115 New pricing structure: Advisers using Panorama (#) Investors on Panorama (#) • Simple, transparent pricing structure with price alignment across all channels and advisers 1,77
Slide 116: WIB delivers a disciplined performance
WIB delivers a disciplined performance Westpac Institutional Bank 116 Cash earnings ($m) Key financial metrics Change Income associated with Hastings expenses up 2H17 1H18 2H18 on 1H18 exit of Hastings offset by lower $84m, mostly goodwill markets income write-off Revenue ($m) 1,421 1,424 1,548 9% N
Slide 117: Balance sheet in good shape, maintaining focus on returns
Balance sheet in good shape, maintaining focus on returns Westpac Institutional Bank 117 Deposits ($bn) Net loans ($bn) Risk weighted assets ($bn) 104.8 78.2 77.3 77.0 98.9 77.2 74.1 76.1 92.1 Up 6% Up 1% Down <1% Up 7% Up 3% Down 1% Sep-17 Mar-18 Sep-18 Sep-17 Mar-18 Sep-18 Sep-17 Mar-18 Sep-18 Mar
Slide 118: A strong franchise serving customers and delivering innovative solutions
A strong franchise serving customers and delivering innovative solutions in key segments Westpac Institutional Bank 118 Service Efficiency Innovation Franchise Strength Banker to 91% of the ASX top 100 Developing solutions for customers to Track record of delivering innovative industry enhance
Slide 119: NZ transformation delivering
NZ transformation delivering New Zealand 119 Cash earnings (NZ$m) Key financial metrics Lower consumer delinquencies Change AIEA up 2% and margin up 1bp from and lower stress in dairy sector 2H17 1H18 2H18 on 1H18 higher mortgage and business spreads offset by lower deposit Revenue (NZ$m) 1,151 1,16
Slide 120: New Zealand key metrics
New Zealand key metrics1 New Zealand 120 Revenue ($m) Core earnings ($m) Cash earnings ($m) 715 535 1,183 698 1,166 676 508 1,151 653 482 1,132 1,098 463 611 434 2H16 1H17 2H17 1H18 2H18 2H16 1H17 2H17 1H18 2H18 2H16 1H17 2H17 1H18 2H18 Expense to income ratio (%) Net interest margin (%) Loans ($bn)
Slide 121: Improving the customer experience through digital and new services
Improving the customer experience through digital and new services New Zealand 121 Digital for customers Making payments easier Deeper customer relationships Customers increasingly using digital • Westpac Pay, Solutions based on customer goals launched in July 2018, Digital online sales1 (‘000’s) al
Slide 122: Balance sheet drivers
Balance sheet drivers New Zealand 122 New Zealand net loans (NZ$bn) New Zealand deposits (NZ$bn) 79.1 0.9 0.4 80.4 77.3 61.6 0.9 (0.6) 61.9 58.4 Up 2% Flat Sep-17 Mar-18 Consumer Business Sep-18 Sep-17 Mar-18 Consumer Business Sep-18 New Zealand customer loans (NZ$bn) and % of total New Zealand cust
Slide 123: Stressed exposures lower as dairy portfolio improves
Stressed exposures lower as dairy portfolio improves New Zealand 123 Business stressed exposures as a % of New Zealand business TCE 15.6 Watchlist & substandard Property 13.2 90+ day past due (dpd) and not impaired Impaired 13 14 Manufacturing 6 12.8 7 Agriculture, 9.6 4 6.8 forestry & fishing 5.5 5
Slide 124: Consumer credit quality in good shape
Consumer credit quality in good shape New Zealand 124 Mortgage 90+ Mortgages 90+day day days delinquencies delinquencies past due (%)(%) Unsecured consumer 90+ day delinquencies (%) 1.5 1.0 Operational issue now resolved 1.0 0.5 0.62 0.5 0.11 0.0 0.0 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18
Slide 125: Economics
oe _ ——rr— ae . : ~ Economics ~
Slide 126: Australian economic snapshot – growth to moderate
Australian economic snapshot – growth to moderate 126 Australian economy key statistics Global backdrop less positive Inflation remains subdued1 (latest available as at October 2018) Avg RBA core CPI %qtr (rhs) Westpac global trade PMI %yr %qtr Index 8 Headline CPI %yr (lhs) 3.2 JPMorgan global manu
Slide 127: Australian and New Zealand economic forecasts
Australian and New Zealand economic forecasts 127 Calendar year Key economic indicators (%) as at October 2018 2017 2018F 2019F World GDP1 3.8 3.8 3.6 Australia GDP2 2.4 3.3 2.7 Private consumption2 3.0 2.6 2.6 Business investment2,3 6.9 1.1 2.5 Unemployment – end period 5.5 5.1 5.0 CPI headline – y
Slide 128: The Australian economy
The Australian economy 128 NSW and Victoria 58% of population and employment Services employ a large part of the Australian workforce Output 2017 - sector contribution to GDP (%)1 Services Mining 56% Manufacturing 7 19 7 Construction Transport, Utilities 9 Wholesale, Retail 10 Agriculture 9 Househol
Slide 129: Australian economic outlook: positive but uneven
Australian economic outlook: positive but uneven 129 Australian growth mix: shifting drivers Positive but moderating business conditions Contributions to GDP growth (ppts) Australian business conditions (net balance) ppts ppts net bal. 2015 2016 2017 2018f 2019f Goods related Consumer sectors 3 3 30
Slide 130: Population growth, public spending, lower AUD boosting activity
Population growth, public spending, lower AUD boosting activity 130 Population growth remains high Services exports remains strong Population growth 2006-2016 average (% ann) $bn Rolling annual, nominal $bn 30 Education 30 EU 0.28 Total service exports: +7% yr +14% Developed 0.33 25 25 Leisure UK 0.
Slide 131: Housing slowdown and wages are headwinds
Housing slowdown and wages are headwinds 131 Jobs are being created… …but Australian wage inflation remains low Employment by major sector: Australia %yr Australian wage inflation (%, yr) (‘000 change in employment over the last 2 years) 8 Aus private sector wages 7 Mining industry wages education &
Slide 132: The Australian housing market has cooled
The Australian housing market has cooled 132 Dwelling prices cooling Price decline felt most in the top 25% of house prices Change in Australian dwelling prices (annual %) Dwelling prices by property value ann% ann% 25 30 ann % (annual %, all dwellings, seasonally adjusted by Westpac) ann % Sydney 4
Slide 133: Physical supply/demand fundamentals remain supportive
Physical supply/demand fundamentals remain supportive across wider market 133 Dwelling supply has not kept pace with stronger demand Rental vacancy rates remain low in Sydney and Melbourne Population versus dwelling stock (annual average change ‘000) ‘000 Rental vacancy rates (%, quarterly, seasonal
Slide 134: Impact of macro-prudential measures across Australian industry
Impact of macro-prudential measures across Australian industry 134 Change in composition of housing credit Introduction of differentiated mortgage pricing Australian housing credit growth (6mth % change annualised) % Mortgage interest rates (major bank average) % 7.5 10% limit on investment 30% limi
Slide 135: Australian household balance sheets
Australian household balance sheets 135 Affordability on repayment basis around long run average Australian households debt to income ratio remains high Housing affordability: all dwellings Australian households debt to income ratio (%) (% income required to service mortgage of 75% median dwelling,
Slide 136: Australia's high rise apartment market
Australia’s high rise apartment market – past the peak although supply still coming online 136 Aggregate supply/demand fundamentals remain positive Dwelling construction: indicative completion times1 Population versus dwelling stock (annual average change ‘000) ‘000 % % ‘000 450 Population Total inc
Slide 137: The New Zealand economy
The New Zealand economy 137 Regional GDP - 2017, nominal $NZ NZ output and employment Total nominal GDP 2017: $280bn Output 2018 - sector contribution to GDP (%) Population 4.9 mil Primary 9 7 Electricity, gas and water 3 Northland, $7bn 6 Construction 4% of population 11 3 Food manufacturing 7 Manu
Slide 138: New Zealand economic snapshot – growth has taken a step down
New Zealand economic snapshot – growth has taken a step down 138 New Zealand economy key statistics GDP holding firm Spending to slow as housing cools (latest available as at October 2018) GDP (%) % % House prices and household spending % % House price inflation 6 6 GDP 2.7% Qtr % chg Annual average
Slide 139: New Zealand economic indicators
New Zealand economic indicators 139 Inflation off its lows, boosted by oil prices Export prices remain favourable % Inflation (%) % NZ export commodity price index (world prices) Index 6 6 500 Meat,skins & wool Forestry Dairy CPI inflation Forecast 5 5 450 CPI excluding petrol 400 4 4 350 3 3 300 25
Slide 140: New Zealand housing market expected to be dampened by policy changes
New Zealand housing market expected to be dampened by policy changes 140 Policy changes have softened housing demand… …and a period of subdued prices is expected New Zealand house prices by region (index) New Zealand house prices (nationwide, %) 220 220 20 20 NZ ex Auckland and Canterbury Forecast 2
Slide 141: Appendix and Disclaimer
laimer i‘. Pe e ~ Appendix. and Disc
Slide 142: Appendix 1: Cash earnings adjustments
Appendix 1: Cash earnings adjustments Appendix and Disclaimer 142 Cash earnings 2H17 1H18 2H18 adjustment $m $m $m Description Reported net profit 4,083 4,198 3,897 Net profit attributable to owners of Westpac Banking Corporation Identifiable intangible assets arising from business acquisitions are
Slide 143: Appendix 2: Sustainability
Appendix 2: Sustainability Appendix and Disclaimer 143 Industry awards1 Sustainability indexes1 Inclusion and diversity recognition1 Awarded Gold Class ranking in A world leader and member of Included in the 2018 RobecoSAM’s 2018 DJSI World, DJSI Asia Pacific, Bloomberg Gender Equality Index Sustain
Slide 144: Appendix 2: Sustainability
Appendix 2: Sustainability Appendix and Disclaimer 144 Key commitments and partnerships1 Financial Stability Board’s Task Principles for Responsible Banking Force on Climate-related Financial Part of core group of 28 banks developing Paris Climate Agreement Disclosures the Draft Principles for Respo
Slide 145: Appendix 3: Definitions – Divisions
Appendix 3: Definitions – Divisions Appendix and Disclaimer 145 Consumer Bank (CB) is responsible for sales and service to consumer customers in Australia under the Westpac, St.George, BankSA, Bank of Westpac Institutional Bank (WIB) delivers a broad range of financial Melbourne and RAMS brands. Act
Slide 146: Appendix 3: Definitions – Credit quality
Appendix 3: Definitions – Credit quality Appendix and Disclaimer 146 Includes facilities where: Includes exposures that have deteriorated to the point where full collection • contractual payments of interest and / or principal are 90 or more of interest and principal is in doubt, based on an assessm
Slide 147: Appendix 3: Definitions – Earnings, capital and liquidity
Appendix 3: Definitions – Earnings, capital and liquidity Appendix and Disclaimer 147 Earnings Drivers As defined by APRA (unless stated otherwise). Tier 1 capital divided by ‘exposure measure’ and expressed as a percentage. ‘Exposure measure’ Average interest- The average balance of assets held by
Slide 148: Appendix 3: Definitions – Other
Appendix 3: Definitions – Other Appendix and Disclaimer 148 Data based on DBM Consultants, Respondents aged 18+ and 12 month 3 month rolling Retail Market Monitor data (survey conducted by Camorra rolling. Wealth penetration is defined as the proportion of Australians who Research). Main bank custom
Slide 149: Appendix 3: Definitions – Other
Appendix 3: Definitions – Other Appendix and Disclaimer 149 Source: DBM Consultants Business Financial Services Monitor, 12 months Source: 3 month rolling Retail Market Monitor data (survey conducted by to September 2018, MFI customers, SME businesses. SME businesses are Camorra Research). Responden
Slide 150: Investor Relations Team
Investor Relations Team Contact us 150 Equity Investor Relations www.westpac.com.au/investorcentre Andrew Bowden Nicole Mehalski Annual reports Presentations and webcasts Head of Investor Relations Director +61 2 8253 4008 +61 2 8253 1667 5 year financial summary andrewbowden@westpac.com.au nicole.m
Slide 151: Disclaimer
Disclaimer 151 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 be relied upon as