Westpac Banking Corporation · ASX:WBC
Westpac Banking — Debt Investor Presentation (March 2022)
17 slides from Westpac Banking's debt investor presentation, March 2022
Slide 1: Westpac Banking Corporation Fixed Income Investor Presentation March 2022
Westpac Banking Corporation Fixed Income Investor Presentation March 2022 WESTPAC BANKING CORPORATION ABN 33 007 457 141 Fix. Simplify. Perform.
Slide 2: Australian and New Zealand economic forecasts
Australian and New Zealand economic forecasts. Key economic indicators (%) Key economic indicators (%) 2019 2020 2021E 2022F 2019 2020 2021 2022F at February 2022 at February 2022 World GDP1 2.8 -3.3 5.4 4.4 Australia Credit growth Australia GDP2 2.1 -0.8 3.2 5.5 Total – year end 2.4 1.7 7.2 6.1 Une
Slide 3: Australian housing market
Australian housing market. Australian dwelling prices (%, 3 month annualised) % 40 ‘Delta’ 35 2019 COVID-19 Macro-prudential election 30 measures 25 Macro- 20 prudential measures 15 10 5 0 -5 rate cuts -10 -15 Feb-14 Feb-15 Feb-16 Feb-17 Feb-18 Feb-19 Feb-20 Feb-21 Feb-22 Feb-23 Sources: CoreLogic,
Slide 4: 1Q22 Summary
1Q22 Summary. All figures are for 1Q22 or at 31 December 2021 unless otherwise noted. • Reported profit $1,815m, up 80% on 2H21 quarter average Earnings increased • Cash earnings excluding notable items1 $1,580m, up 1% on 2H21 quarter average - Expenses down 7%, excluding notable items - Net interes
Slide 5: Unaudited 1Q22 results includes notable items
Unaudited 1Q22 results includes notable items. Performance comparison is 1Q22 compared to 2H21 quarterly average unless otherwise stated. 2H21 Qtr ($m) Avg 1Q22 Change • Average interest earning assets of $868bn, up $43bn (or 5%), mostly liquid assets Net interest income 4,123 4,182 1% up $29bn and
Slide 6: Margins and expenses
Margins and expenses. Net interest margin (NIM) (% and bps) Competition in mortgage and business $29bn increase in lending, high fixed rate flows, partly average liquid assets • NIM ex Treasury & Markets for Dec-21 month offset by deposit repricing 1.67%. Expect NIM to decline further in FY22 • Incr
Slide 7: Capital well above unquestionably strong requirement
Capital well above unquestionably strong requirement. Key capital ratios. % Mar-21 Sep-21 Dec-21 CET1 ratio (% and bps) Level 2 capital ratios 35 (50) CET1 capital ratio 12.3 12.3 12.2 12.32 25 (79) (21) 20 4 12.20 11.66 Additional Tier 1 capital ratio 2.2 2.3 2.2 Tier 1 capital ratio 14.5 14.6 14.4
Slide 8: Expected credit loss provisions
Expected credit loss provisions. Prudence maintained. Expected credit loss provisions1 ($m) Economic forecasts for base case economic scenario in provision models2 Overlay Stage 1 CAP Stage 2 CAP As at September 2021 As at December 20213 Stage 3 CAP Stage 3 IAP 6,159 2022 2023 2022 2023 708 5,508 GD
Slide 9: Credit quality metrics improved
Credit quality metrics improved. Stressed exposures down 21bps in 1Q22. Stressed exposures as a % of TCE Australian mortgage 90+ day delinquencies (%) Watchlist and • Ratings upgrades and repayments substandard in WIB 4.0 90+ day delinquencies 90+ day past • Decrease in mortgage 30+ day delinquencie
Slide 10: New Zealand credit quality stable
New Zealand credit quality stable. Mortgage 90+ day delinquencies1 (%) Unsecured consumer 90+ day delinquencies1 (%) 0.6 90+ day past due (ex-hardship) 3.0 90+ day past due (ex-hardship) 90+ day past due 90+ day past due 0.5 0.4 Introduction of changes to 2.0 Introduction of changes to the reporting
Slide 11: Funding and liquidity
Funding and liquidity. Key funding and liquidity measures Liquidity coverage ratio (%) Net stable funding ratio (%) Deposits to net loans ratio (%) Quarterly average 142 83.6 81.6 79.8 129 124 125 127 123 Mar-21 Sep-21 Dec-21 Mar-21 Sep-21 Dec-21 Mar-21 Sep-21 Dec-21 Term debt issuance and maturity
Slide 12: Tier 2 capital issuance
Tier 2 capital issuance. Well positioned for loss-absorbing capital requirements by 1 Jan 2026. Westpac Total Regulatory Capital Westpac Tier 2 capital (notional amount, %) By format2 By currency2 CET1 Additional Tier 1 Tier 2 41 6.5% 7 23 4.2% ($19bn) (approx. $28.4bn1) 6 USD AUD Domestic 2.3% ($10
Slide 13: Appendix
Appendix Financial results throughout this presentation are in Australian dollars and are based on cash earnings unless otherwise stated. Refer to the 2021 Full Year Financial Results Presentation and Investor Discussion Pack for definition. All results relating to 1Q22 are on an unaudited basis. Th
Slide 14: Unaudited 1Q22 cash earnings excluding notable items
Unaudited 1Q22 cash earnings excluding notable items. Cash earnings impact of notable items 2H21 Qtr ($m) Avg 1Q22 Change ($m) 2H21 Qtr Avg 1Q22 Net interest income 4,094 4,182 2% Net interest income 28 - Non-interest income 72 55 Non-interest income 925 874 (6%) Expenses (801) (38) Expenses (2,850)
Slide 15: 1Q22 reported net profit after tax
1Q22 reported net profit after tax.1 Cash earnings3 policy and cash earnings Reported net 2H21 Qtr Details adjustments to reported profit profit ($m) Avg 1Q22 • Reported net profit $1,815m, up 80% on 2H21 Westpac Group uses a measure of performance quarter average referred to as cash earnings to ass
Slide 16: More information
More information. www.westpac.com.au/investorcentre + - X Contact our Global Funding Team Joanne Dawson Alexander Bischoff Jacqueline Boddy Treasurer, Westpac Banking Corporation Head of Balance Sheet Management and Global Funding Head of Debt Investor Relations +61 2 8253 4420 +61 2 8253 4314 +61 2
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. It should not be reproduced, distributed or transmitted to any person without the consent of Westpac and is not intended for
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