Westpac Banking Corporation · ASX:WBC
Westpac Banking — Debt Investor Presentation (March 2024)
21 slides from Westpac Banking's debt investor presentation, March 2024
Slide 1: Fixed Income Investor Presentation
ASIA ROADSHOW MARCH 2024 FIXED INCOME INVESTOR PRESENTATION WESTPAC BANKING CORPORATION ABN 33 007 457 141
Slide 2: Australian and New Zealand Economic Forecasts
AUSTRALIAN AND NEW ZEALAND ECONOMIC FORECASTS As at 8 March 2024 Key (%) economic indicators 2023 2024F Calendar Years Q2 Q3 Q4 Q1 Q2 Q3 Q4 2022 2023F 2024F 2025F World GDP1 - - - - - - - 3.5 3.3 3.3 3.1 Australia GDP2 2.1 2.1 1.5 1.3 1.1 1.3 1.6 2.4 1.5 1.6 2.5 Unemployment – end period 3.6 3.7 3.8
Slide 3: Australian Housing Market
AUSTRALIAN HOUSING MARKET Australian dwelling prices (%, 3 month annualised) 2019 election COVID-19 40 % ‘Delta’ outbreak Macro-prudential rate cuts 35 measures 30 rate hikes Macro-prudential 25 measures 20 15 10 5 0 -5 -10 -15 -20 Feb-16 Feb-17 Feb-18 Feb-19 Feb-20 Feb-21 Feb-22 Feb-23 Feb-24 Feb-2
Slide 4: Westpac Overview
WESTPAC OVERVIEW IMPROVED BALANCE CREDIT FINANCIAL SHEET QUALITY RESULT STRONG RESILIENT Data as at 30 September 2023. Data as at 31 December 2023. Data as at 31 December 2023. Comparisons to 30 September 2022. Comparisons to 30 September 2023. Comparisons to 30 September 2023. — Net profit after ta
Slide 5: Focused on Banking in Australia and New Zealand
FOCUSED ON BANKING IN AUSTRALIA AND NEW ZEALAND Data as at 30 September 2023 unless otherwise stated PORTFOLIO SIMPLIFICATION EASY AND INTUITIVE #1 MOBILE BANKING APP4 COMPLETE ONLINE BANKING DRIVING GROWTH — 10 businesses exited1 — 1.1x system household deposit — Retaining BT Platforms and Pacific
Slide 6: Loans and Deposits
LOANS AND DEPOSITS Data as at 30 September 2023 unless otherwise stated. Composition of gross loans (% of total) Composition of customer deposits (% of total) <1 Australian mortgages 9 18 4 29 8 Australian business 2 Institutional $641bn 29 $641bn 11 57 Australian personal 25 $778bn New Zealand mort
Slide 7: CET1 Capital Ratio 12.3%
CET1 CAPITAL RATIO 12.3% Level 2 CET1 capital ratio movements (%) Key capital ratios (%) Dec-22 Sep-23 Dec-23 Level 2 CET1 capital ratio 11.1 12.4 12.3 Additional Tier 1 capital ratio 2.1 2.2 2.4 34bps (57bps) Tier 1 capital ratio 13.2 14.6 14.7 12.38 20bps (4bps) (2bps) 12.29 (30bps) Tier 2 capital
Slide 8: Provisions and Credit Quality
PROVISIONS AND CREDIT QUALITY Impairment charges and stressed exposures (bps) Expected credit loss1 (ECL) ($m) Impairment charge to average loans annualised (lhs) As at 30 September 2023 100 Stressed exposures to total committed exposures (rhs) 350 6,849 80 250 4,930 60 122 3,409 40 150 20 10 50 0 -
Slide 9: Australian Mortgage Portfolio Composition
AUSTRALIAN MORTGAGE PORTFOLIO COMPOSITION Mar-23 Sep-23 Dec-23 Australian mortgage portfolio balance balance balance Fixed rate mortgage expiry schedule ($bn, for the 6mths to) Total portfolio ($bn) 472.7 485.6 490.9 Expired Yet to expire Owner occupied (OO) (%) 66.4 67.1 67.5 51 Investment property
Slide 10: Australian Mortgage Portfolio Repayment Buffers
AUSTRALIAN MORTGAGE PORTFOLIO REPAYMENT BUFFERS Customers ahead on repayments1 (% by accounts) Offset account balances2 ($bn) >2yrs 57 59 1 53 51 23 >6mths <2yrs 46 32 41 39 <6 mths < 1 mth 16 On time 13 15 Behind Sep-18 Sep-19 Sep-20 Sep-21 Sep-22 Sep-23 Dec-23 Customers ahead on repayments1 (% by
Slide 11: Credit Quality Across Sectors
CREDIT QUALITY ACROSS SECTORS Corporate and business stressed exposures by industry sector (%) 8.0 Dec-22 Sep-23 Dec-23 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 Property Wholesale Manufacturing Agriculture, Services Property & Transport Utilities Construction Accommodation Mining & forestry & business & cafe
Slide 12: Sectors in Focus: Commercial Property
SECTORS IN FOCUS: COMMERCIAL PROPERTY Data as at 30 September 2023 unless otherwise stated. Commercial property portfolio Commercial property portfolio Sep-22 Mar-23 Sep-23 (Total committed exposure, %) — Single credit policy, supported by industry sector TCE ($bn) 76.1 78.8 80.1 concentration and s
Slide 13: Long Term Wholesale Funding Profile
LONG TERM WHOLESALE FUNDING PROFILE Term debt issuance and maturity profile1 ($bn) Issuance Maturities Funding for Lending Programme (NZ) 43 34 35 35 33 Term Funding Facility (Aus) 31 33 27 27 27 Tier 2 capital 12 20 22 18 13 Additional Tier 1 capital 8 Covered bond FY19 FY20 FY21 FY22 FY23 FY24 FY2
Slide 14: Long Term Wholesale Funding Diversification
LONG TERM WHOLESALE FUNDING DIVERSIFICATION Term debt issuance (%, 2024 financial year to end February) By program (%) By currency (%) By tenor (%) 14 Senior bonds 2 AUD 2 years 16 28 3 years Covered bonds USD 9 5 years 42 EUR Securitisation 18 56 >5 years 13 63 Additional Tier 1 2 capital Tier 2 ca
Slide 15: Loss-Absorbing Capacity and Tier Capital
LOSS-ABSORBING CAPACITY AND TIER 2 CAPITAL Loss-absorbing capacity (LAC) Westpac Tier 2 profile1,2,3 (notional amount, A$bn) — Australian D-SIBs are required to increase Total Westpac Banking Corporation (WBC) WBC Capital to meet APRA’s LAC requirements Westpac New Zealand Limited (WNZL) WNZL — This
Slide 16: Appendix
APPENDIX Wifestpac Group
Slide 17: 2023 Group Financial Results
2023 GROUP FINANCIAL RESULTS Data as at 30 September 2023 unless otherwise stated. Net profit after tax FY22 – FY23 ($m) Net interest margin (% and bps) Up 2bps — Avg. interest earning assets up 6%, mainly mortgages and 35bps 6bps business lending Expenses (4bps) (1bp) (3bps) — Net interest margin u
Slide 18: Becoming a Net-Zero, Climate Resilient Bank
BECOMING A NET-ZERO, CLIMATE RESILIENT BANK Data as at 30 September 2023 unless otherwise stated. 11. NET-ZERO, CLIMATE RESILIENT OPERATIONS - Reduced scope 1 and 2 emissions1 by 52% and our scope 3 upstream emissions1,2 by 4% for the year Jun-23 - From Apr-23, equivalent of 100%3 of our Australian
Slide 19: Summary of Our 2030 Emission Reduction Targets
SUMMARY OF OUR 2030 EMISSION REDUCTION TARGETS Data as at 30 September 2023 unless otherwise stated. 2030 Targets set in FY22 New 2030 Targets established in FY23 23% reduction in scope 1, 2 and 3 financed emissions Reduction in scope 1 and 2 emissions intensity to 1.42tCO2- *STEEL e/tonne of steel
Slide 20: Sustainability – Footnotes
SUSTAINABILITY – FOOTNOTES Becoming a net-zero, climate resilient bank 1. 2021 baselines for scope 1, 2 and scope 3 upstream emissions targets adjusted for COVID-19 pandemic and other impacts. Refer to our 2023 Sustainability Index and Datasheet. 2. Refer to our 2023 Sustainability Index and Datashe
Slide 21: Disclaimer
DISCLAIMER 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. It should not be reproduced, distributed or transmitted to any person without the consent of Westpac and is not
Westpac Banking — Debt Investor Presentation (March 2024) on 6ix