Westpac Banking Corporation · ASX:WBC
Westpac Banking — Debt Investor Presentation (June 2008)
22 slides from Westpac Banking's debt investor presentation, Jun 18, 2008
Slide 1: Westpac SPS: A new security
For personal use only Westpac SPS A new security June 2008 Structuring Adviser Joint Lead Managers
Slide 2: Disclaimer
Westpac SPS Disclaimer For personal use only This presentation has been authorised by Westpac Banking Corporation (ABN 33 007 457 141) (Westpac), in connection with a proposed offer of Westpac Stapled Preferred Securities (Westpac SPS) (Offer). The Offer is made under a prospectus which was lodged w
Slide 3: Offer summary
Westpac SPS Offer summary For personal use only Each Westpac Stapled Preferred Security (Westpac SPS) consists of: - A perpetual, unsecured, non-cumulative subordinated Note issued Security by Westpac New York branch; stapled to - A Preference Share issued by Westpac Offer size Approximately A$6
Slide 4: Offer summary
Westpac SPS Offer summary For personal use only Expected to convert into Westpac ordinary shares on 26 September 2013 Mandatory (Initial Mandatory Conversion Date) subject to certain conditions Conversion (Conversion Conditions) At the election of Westpac, Westpac SPS may be Transferred to anoth
Slide 5: Benefits for Westpac
Westpac SPS Benefits for Westpac For personal use only Qualifies as Residual, Non-innovative Tier 1 Capital under new APRA capital adequacy Capital adequacy Reported Pro-forma standards position (Basel II) March-08 March-08 Improves Westpac’s capital mix by increasing the proportion of hybrid ca
Slide 6: Preferred, non-cumulative, floating rate Distributions
Westpac SPS Preferred, non-cumulative, floating rate Distributions For personal use only • Distributions are non-cumulative and scheduled to be paid quarterly in arrear (subject to a Distribution Payment Test) and based on the formula: (90 day Bank Bill Rate + Margin) X (1- Tax Rate) • Margin will b
Slide 7: Conversion, Transfer or Redemption
Westpac SPS Conversion, Transfer or Redemption For personal use only On 26 September 2013 Westpac SPS are expected to be Converted, Transferred or Redeemed Westpac SPS are expected to convert into Westpac ordinary shares on 26 September 2013, subject to the Conversion Conditions being satisfied
Slide 8: Indicative timetable
Westpac SPS Indicative timetable3 For personal use only Offer Announced and Prospectus lodged with ASIC 18 June 2008 Bookbuild 25 June 2008 Margin announced 26 June 2008 Opening date for Offer 26 June 2008 Closing date for Westpac shareholders/TPS holders 23 July 2008 Closing date for Broker Firm of
Slide 9: Westpac
For personal use only Westpac Investor Update
Slide 10: Westpac Banking Corporation – well positioned
Westpac Overview Westpac Banking Corporation – well positioned For personal use only • Westpac is a strong, AA rated major M’vmt Australian bank Key Financial Data 1H08 1H07 to 1H08 • Strong earnings profile Cash earnings $1,839m + 10% - Cash earnings up 10% in 1H08 • Well capitalised under Basel II
Slide 11: Proposed merger with St.George Bank Limited
Proposed Proposed merger with St.George Bank Limited – Merger creating Australia’s leading financial services institution For personal use only Rationale • An institution focused on Australian/New Zealand growth opportunities • Proposed operating model preserves the best of both banks - Retaining di
Slide 12: Summary of Merged Group
Proposed Merger Summary of Merged Group For personal use only Merged Group Customers (million) 3.0 7.1 10.1 Australian retail representation 400 923 3 1,323 Loans ($bn) 1 113 295 408 Deposits ($bn) 1 79 220 299 Funds under management ($bn) 1, 4 7.3 35.3 42.6 Funds under administration ($bn) 1, 4 33.
Slide 13: Well positioned: responded proactively to current conditions
Westpac has responded proactively to Well positioned current conditions For personal use only • Increased liquid assets in August 2007 to Westpac liquid assets ($bn) double historical levels – now holding ~$34bn 50 Internal • Early mover amongst Australian banks to 40 8.3 1 securitisation raise long
Slide 14: Wholesale funding: term funding profile
Wholesale Westpac term funding profile – Funding Well ahead on FY08 funding plan For personal use only • Well ahead on FY08 funding plan of ~$25bn Funding composition as at 31 March 20081 (%) to $30bn: Customer Deposits Securitis- - $27bn term funding completed to date ation, 2% 52% • Consistent app
Slide 15: Responsible approach to short term funding
Wholesale Funding Responsible approach to short term funding For personal use only • Lengthened short term funding profile: Westpac short term funding versus average maturities in key money markets at 31 Mar 08 (days) - Average duration increased from 71 100 days (Sep 07) to 92 days (Mar 08) 80 • Sh
Slide 16: Robust 1H08 result
2008 Interim Result Robust 1H08 result For personal use only Westpac cash earnings, revenue and expense ($m) Business unit results Cash earnings 1H07 – 1H08 2,000 7,000 1H08 cash Business Financial Services (BFS) up 13% 1,800 earnings up 10% on 1H07 6,000 • Banking solutions for SME and middle marke
Slide 17: Well capitalised under Basel II
2008 Interim Result Well capitalised under Basel II For personal use only • Transition to Basel II led to a significant rise Capital ratios as at 31 March 2008 in capital ratios - 26% reduction in risk weighted assets Tier 1 capital ratio 7.4% - Changes in capital deductions reduced Tier 1 by 62bps
Slide 18: Modest rise in stressed exposures; solid provision coverage
2008 Interim Modest rise in stressed exposures; Result solid provision coverage For personal use only • Impairment charges to average loans Stressed exposures as a % of total committed exposures (TCE) (%) higher, at 30bps Watchlist & substandard 1.6% 90 days past due well secured • Total stressed ex
Slide 19: Syndicate details
For personal use only Syndicate details
Slide 20: Joint lead manager contacts
Westpac SPS Joint lead manager contacts For personal use only Citigroup Global Markets Australia Pty Rowan Macdonald, 02-8225-4357 Limited Deutsche Bank, AG Mozammel Ali, 02-8258-1845 Goldman Sachs JBWere Pty Ltd Hamish Kelly, 02-9320-1165 Macquarie Equity Capital Markets Bob Herbert, 03-9635-8263 L
Slide 21: Contacts
Westpac SPS Westpac contacts For personal use only Capital Management For further information on Westpac including: Katherine Plenzich • Annual reports Director, Capital Management • Financial results +61 2 8253 3487 • Presentations and webcasts kplenzich@westpac.com.au • Key policies Please visit o
Slide 22: Important information
Westpac SPS Important information For personal use only The information in this presentation is an overview and does not contain all information necessary to make an investment decision. It is intended to constitute a summary of certain information relating to Westpac and Westpac’s subsidiaries (Gro
Westpac Banking — Debt Investor Presentation (June 2008) on 6ix