Westpac Banking Corporation · ASX:WBC

Westpac Banking — Investor Presentation (February 2013)

20 slides from Westpac Banking's investor presentation, Feb 5, 2013

  1. Slide 1: Westpac New Zealand: Driving sustainable returns

    : For personal use only Westpac New Zealand Driving sustainable returns Peter Clare Chief Executive Officer 5 February 2013

  2. Slide 2: A strong business

    : 2 A strong business1 For personal use only  Significant repositioning over the last 4 years has created a stronger, more customer oriented business  Delivered six halves of solid cash earnings 2 growth whilst improving risk profile  Achieved the right mix of revenue/growth/productivity/strength

  3. Slide 3: Westpac NZ 2009 – 2013 journey

    : 3 Westpac NZ 2009 – 2013 journey only  Improved risk management and governance structure Improved risk  Enhanced skills with over 1,600 bankers undertaking additional For personal use2009 governance credit training and pricing  Recalibrated pricing for changed risk/funding environment  Empower

  4. Slide 4: Westpac NZ 2009 – 2013 journey (cont.)

    : 4 Westpac NZ 2009 – 2013 journey (cont.) only  MyBank1 approach focused on building deeper customer Implemented relationships For personal use2012 „MyBank‟  Further enhanced front-line capability bringing decision making approach closer to customers  Simplification improved productivity and dec

  5. Slide 5: Balanced performance in 2012

    : 5 Balanced performance1 in 2012 For personal use only  Strong growth in target segments  ROA2 1.2% up 19bps  Customer deposits up 11%  ROE3 19.6%  Business lending up 4%, particularly agriculture  Strong management of and resources margins, up 8bps Growth Return  Funds under management up 3

  6. Slide 6: Past investment in Westpac NZ is delivering

    : 6 Past investment in Westpac NZ is delivering For personal use only Cash earnings1 (NZ$m) Core earnings2 (NZ$m) Net interest margin (%) 346 361 594 577 302 2.73 276 2.71 545 2.68 521 2.60 1H11 2H11 1H12 2H12 1H11 2H11 1H12 2H12 1H11 2H11 1H12 2H12 Expense to income (%) Stressed assets to TCE3 (%)

  7. Slide 7: Five strategic imperatives to drive returns

    : 7 Five strategic imperatives to drive returns For personal use only Five Strategic Imperatives Proof Points  24/7 in branch; on-line or mobile Transition to next generation 1 distribution  Further branch format innovation  More personalised marketing, utilising digital  Continued front-line em

  8. Slide 8: Next generation distribution

    : 8 Next generation distribution For personal use only Service transactions by channel (%) Changing customer preferences, improved technology and MyBank2 approach is 100% leading to material changes in distribution Mobile Large 90% Consumer Internet 15% Areas of focus 80% Banking  Functionality of

  9. Slide 9: Next generation distribution (cont.)

    : 9 Next generation distribution (cont.) only Innovations On-line/mobile New Zealand’s first iPad banking app  Integrated mobile and internet banking use platform  Innovative mobile apps, impulse saver, cash tank and „tap and go‟ payments personal Self serve concept branch  Introduced smaller for

  10. Slide 10: Deepen customer relationships

    : 10 Deepen customer relationships For personal use only  Maintaining customer numbers and increasing depth of relationship in a Customers (#m) competitive environment 1.273 1.274  Launched personalised digital marketing to 1.261 engage with customers around their specific 1.249 needs  New progra

  11. Slide 11: Simplify the business

    : 11 Simplify the business For personal use only  Increasing self serve transactions utilising Revenue per average FTE ($’000) on-line, mobile, and new technology, such as smart ATMs 430 435  Aiming to reduce processing times to 411 improve productivity and customer 390 experience  Culture of con

  12. Slide 12: NZ economy well positioned for global recovery

    : 12 NZ economy well positioned for global recovery For personal use only  New Zealand economic growth picked up in 2012, Calendar year Key NZ economic indicators and we expect growth to continue increasing over January 2013 2010 2011 2012e 2013f 2013 GDP growth 1.7 1.5 2.4 3.0  A driver of econom

  13. Slide 13: 1Q13 trends: Balance sheet continues to strengthen

    : 13 1Q13 trends For personal use only  Balance sheet continues to strengthen  System growth expected to remain modest. For Westpac NZ – Deposits growing above system – Wealth cross sell improving, FUM/FUA balances now above $5bn – Mortgages below system overall, above system for loans with LVR <

  14. Slide 14: Appendix

    : 14 For personal use only Westpac New Zealand Appendix 5 February 2013

  15. Slide 15: Westpac New Zealand Executive Team

    : 15 Westpac New Zealand Executive Team For personal use only Chie f E xecutive Peter Clare GM MD Wealth, GM Business In stitutional In surance and GM Retail Bank Ban k Ban king Pr ivate Ian Blair Mark Fitz-Gerald Karen Silk Simon Power * C h ief Operating C h ief Financial C h ief Risk GM Human O f

  16. Slide 16: Solid growth, balance sheet strengthened

    : 16 Solid growth, balance sheet strengthened For personal use only Cash earnings movement (NZ$m) Movement 2H12 – 1H12 (NZ$) (7) 5 (7) Cash earnings  4%  Cash earnings up 4% to $361m 19 5 361 10 2 346 14 0 Core earnings  3%  Core earnings up 3% to $594m 18 302  Good balance sheet growth – Loans

  17. Slide 17: Good balance sheet growth in a subdued environment

    : 17 Good balance sheet growth in a subdued environment For personal use only  Strong deposit growth with sustainable lending growth resulted in an improvement in the deposit to loan ratio to 71%, up 300bps in 2H12 Balance sheet (NZ$bn)  Total lending increased slightly above banking system growth

  18. Slide 18: Improving asset quality across portfolios

    : 18 Improving asset quality across portfolios For personal use only Asset quality continues to improve Movement in impairment charges (NZ$m)  Impairment charges down 5% i n 2H12 (down 21% on FY11/FY12) 81 (13) (3) (70)  Bus iness stressed exposures as proportion of TCE1 reduced s ignificantly i n

  19. Slide 19: Strong external recognition

    : 19 Strong external recognition For personal use only  Westpac Kiwisaver scheme topped the Morningstar industry fund awards again in December 2012, with our Balanced and Growth Funds receiving a bronze rating – Morningstar’s highest rating for a Kiwisaver Scheme fund  Winner of the CANSTAR award

  20. Slide 20: Disclaimer

    : 20 Disclaimer For personal use only The material contained in this presentation is intended to be general background information on the New Zealand Banking divis ion of Westpac Banking Corporation and its activities. It does not constitute a prospectus, offering memorandum or offer of securities.

Westpac Banking — Investor Presentation (February 2013) on 6ix