Westpac Banking Corporation · ASX:WBC
Westpac Banking — 1Q25 Earnings Presentation
17 slides from Westpac Banking's earnings presentation, February 2025
Slide 1: 1Q25 Investor Discussion Pack
1Q25 INVESTOR DISCUSSION PACK FOR THE 3 MONTHS ENDED 31 DECEMBER 2024 This document should be read in conjunction with Westpac’s December 2024 Pillar 3 Report. All amounts are in Australian dollars. © Westpac Banking Corporation ABN 33 007 457 141
Slide 2: 1Q25 Summary
1Q25 SUMMARY1 SUMMARY • Revenue down 4%, excluding Notable Items up 2% • NIM of 1.82%. Core NIM of 1.81%, down 1bp from 2H24 excluding a provision release in 4Q242 • Expenses increased 1% with wage and salary growth partly offset by seasonally lower SOLID FINANCIAL investment spend PERFORMANCE • Imp
Slide 3: Financial Performance
FINANCIAL PERFORMANCE FINANCIAL PERFORMANCE NET PROFIT Excluding Notable Items % movement % movement $b 1Q25 1Q25 - 2H24 qtr average 1Q25 1Q25 - 2H24 qtr average Net interest income 4.5 (6) 4.8 1 Non-interest income 0.8 12 0.8 9 Net operating income 5.3 (4) 5.6 2 Expenses (2.8) 1 (2.8) 1 Pre-provisi
Slide 4: CET1 Capital Ratio 11.9%
CET1 CAPITAL RATIO 11.9% CAPITAL LEVEL 2 CET1 CAPITAL RATIO MOVEMENTS (%, BPS) Key capital ratios (%) Dec- 23 Mar- 24 Sep- 24 Dec- 24 Level 2 CET1 12.3 12.5 12.5 11.9 capital ratio Additional Tier 1 Lending: (17bps) 2.4 2.5 2.3 2.3 capital ratio 37 (58) IRRBB: (17bps) Further details on page 5 Tier
Slide 5: Risk Weighted Asset Movements
RISK WEIGHTED ASSET MOVEMENTS CAPITAL RWA ($BN) 6.3 (0.6) 0.4 (0.3) 451.4 8.2 437.4 Up $14.0bn or 3.2% Sep-24 Credit risk IRRBB Market risk Operational risk Other Dec-24 CREDIT RWA ($BN) IRRBB RWA ($BN) Driven by lower mortgage Optionality and basis risk Repricing and yield curve risk delinquencies
Slide 6: Provisions for Expected Credit Loss
PROVISIONS FOR EXPECTED CREDIT LOSS CREDIT QUALITY TOTAL PROVISIONS FOR EXPECTED CREDIT LOSSES1 ($M) KEY RATIOS Overlay Stage 1 CAP Stage 2 CAP Mar-24 Sep-24 Dec-24 Stage 3 CAP Stage 3 IAP Provisions to gross loans (bps) 65 63 62 5,135 5,128 5,096 5,091 Impaired asset provisions 213 179 47 41 40 260
Slide 7: Credit Quality Metrics
CREDIT QUALITY METRICS CREDIT QUALITY STRESSED EXPOSURES AS A % OF TCE AUSTRALIAN MORTGAGE DELINQUENCIES (%) Impaired Non-performing, 90+ days 90+ dpd excl. 6 months serviceability hold-out period and RAMS (closed to Non-performing, <90 days Watchlist & substandard new customers) 4.0 90+ day delinqu
Slide 8: Credit Quality Across Sectors
CREDIT QUALITY ACROSS SECTORS CREDIT QUALITY CORPORATE AND BUSINESS STRESSED EXPOSURES BY INDUSTRY SECTOR (%) 7.0 Mar-24 Sep-24 Dec-24 6.0 5.0 4.0 3.0 2.0 1.0 0.0 Property Wholesale Manufacturing Services Agriculture, Property & Utilities Transport Construction Accommodation Mining & forestry & busi
Slide 9: Australian Mortgage Portfolio Composition
AUSTRALIAN MORTGAGE PORTFOLIO COMPOSITION MORTGAGE CREDIT QUALITY Australian mortgage portfolio Mar-24 balance Sep-24 balance Dec-24 balance BY PRODUCT AND REPAYMENT TYPE (%) Total portfolio ($bn) 495.2 503.3 508.3 Mar-24 (Portfolio) Sep-24 (Portfolio) Dec-24 (Portfolio) Owner occupied (OO) (%) 67.8
Slide 10: Australian Mortgage Portfolio Repayment Buffers
AUSTRALIAN MORTGAGE PORTFOLIO REPAYMENT BUFFERS MORTGAGE CREDIT QUALITY CUSTOMERS AHEAD ON REPAYMENTS1 (% BY BALANCES) 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
Slide 11: New Zealand Credit Quality
NEW ZEALAND CREDIT QUALITY NEW ZEALAND CREDIT QUALITY MORTGAGE DELINQUENCIES (%) MORTGAGE PORTFOLIO LVR2 (% OF PORTFOLIO) 2.0 90+ day delinquencies 30+ day delinquencies 91% of mortgage portfolio has an LVR less than 80% Sep-24 1.5 50% 0.96 1.08 1.0 0.49 21% 0.51 20% 0.5 6% 3% 0.0 Dec-22 Jun-23 Dec-
Slide 12: Funding and Liquidity
FUNDING AND LIQUIDITY FUNDING AND LIQUIDITY KEY FUNDING AND LIQUIDITY MEASURES Liquidity coverage ratio (LCR) (%) Net stable funding ratio (NSFR) (%) Customer deposits to net loans ratio (D2L) (%) Quarterly average 133 132 133 131 114 114 83.3 82.9 83.5 83.9 112 113 Dec-23 Mar-24 Sep-24 Dec-24 Dec-2
Slide 13: Appendix 1: Financial Summary
APPENDIX 1: FINANCIAL SUMMARY APPENDIX Excluding Notable Items % movement % movement $b 1Q25 1Q25 - 2H24 qtr average 1Q25 1Q25 - 2H24 qtr average Net interest income 4.5 (6) 4.8 1 Non-interest income 0.8 12 0.8 9 Net operating income 5.3 (4) 5.6 2 Operating expenses (2.8) 1 (2.8) 1 Pre-provision pro
Slide 14: Appendix 2: Net Profit
APPENDIX 2: NET PROFIT APPENDIX Excluding Notable Items 2H24 qtr 2H24 qtr $b 3Q24 4Q24 average 1Q25 3Q24 4Q24 average 1Q25 Net interest income 4.7 5.0 4.8 4.5 4.7 4.9 4.8 4.8 Non-interest income 0.7 0.7 0.7 0.8 0.7 0.7 0.7 0.8 Net operating income 5.4 5.6 5.5 5.3 5.4 5.5 5.5 5.6 Operating expenses (
Slide 15: Appendix 3: Abbreviations
APPENDIX 3: ABBREVIATIONS APPENDIX NIM Net interest margin CET1 capital ratio Common equity tier one capital ratio RWA Risk weighted assets CAP Collectively assessed provisions TCE Total committed exposures LCR Liquidity coverage ratio NSFR Net stable funding ratio ROE Return on average equity ROTE
Slide 16: Investor Relations Team – Contact Us
INVESTOR RELATIONS TEAM – CONTACT US CONTACT US Justin McCarthy Catherine Garcia General Manager, Investor Relations Head of Investor Relations, Institutional Jacqueline Boddy Lucy Wilson Head of Debt Investor Relations Head of Corporate Reporting and ESG James Wibberley Arthur Petratos Manager, Inv
Slide 17: Disclaimer
DISCLAIMER DISCLAIMER 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