Slide 1: Westpac Banking Corporation
For personal use only Westpac Banking Corporation ABN 33 007 457 141.
Slide 2: Westpac Full Year 2015 result index
Westpac Full Year 2015 result index For personal use only Presentation of Full Year 2015 Result 3 Investor Discussion Pack of Full Year 2015 Result 27 Strategy 28 Overview 32 Performance discipline 33 Service leadership 38 Digital transformation 40 Targeted growth 44 Workforce revolution 45 Sustaina
Slide 3: Full Year 2015 Financial Results
For personal use only Full Year 2015 Financial Results Brian Hartzer Chief Executive Officer Financial results based on cash earnings unless otherwise stated. Refer page 144 for definition. Results principally cover the FY15 and FY14 years, including 2H15 and 1H15. Comparison of 2H15 versus 1H15 (un
Slide 4: Another disciplined performance
Another disciplined performance For personal use only • Strong franchise, with all divisions performing well • Disciplined and prudent management of growth, return, productivity and strength • Delivering on strategic priorities, seeking to develop service as a comparative advantage 4 | Westpac Group
Slide 5: Headline results, improved 2H15 performance
Headline results, improved 2H15 performance For personal use only Change1 Change1 FY15 FY15 - FY14 2H15 - 1H15 Cash earnings $7,820m 3% 7% Cash EPS2 249.5c 2% 6% Reported NPAT $8,012m 6% 22% Common equity Tier 1 capital ratio3 9.5% 53bps 74bps Return on equity4 15.8% (57bps) 6bps NIM (excl. Treasury
Slide 6: Retail and business banking, the engine of growth
Retail and business banking, the engine of growth For personal use only Core earnings ($m) Westpac RBB St.George Westpac New Zealand1 2,305 2,150 2,113 1,382 1,312 1,278 667 640 622 2H14 1H15 2H15 2H14 1H15 2H15 2H14 1H15 2H15 1 In $NZ. In A$ 2H15 core earnings $615m (up 3% on 1H15). 6 | Westpac Gro
Slide 7: BTFG franchise growing, impacted by higher claims
BTFG franchise growing, impacted by higher claims For personal use only BTFG cash earnings1 ($m) Franchise growth over FY15 Funds Management Insurance Capital & other Average FUA 12% 900 904 Average FUM2 14% 56 67 Life insurance in-force premiums 13% 324 282 General insurance GWP3 6% General
Slide 8: WIB customer franchise strong; operating environment headwinds
WIB customer franchise strong; operating environment headwinds For personal use only WIB core earnings ($m) FY15 financial data (change on FY14) Customer markets sales Derivative 8% $966m adjustments1 & fee income 1,954 1,936 Other customer income2 1% $1,604m 122 Impairment benefit $96m $39m 1
Slide 9: Disciplined FY15 performance
Disciplined FY15 performance For personal use only • Loan growth 7% • Margins ex Treasury and Markets up 2bps • Household deposits up, financial deposits lower • ROE 15.8% • FUA up 12% / FUM up 14%1 • All divisions earning above their • Lloyds2 ahead of expectations cost of capital • Bank of Melbour
Slide 10: Capital unquestionably strong dividend approach maintained
Capital “unquestionably strong” dividend approach maintained For personal use only Westpac internationally comparable CET1 capital ratio1 (%) 1.0 14.2 13.2 12.4 12.2 11.7 Up 250bps Jun-14 Sep-14 Mar-15 Sep-15 Entitlement Offer Sep-15 pro forma Dividends (cps) Special dividends 10 10 90 92 93 94 84 8
Slide 11: Delivering on our strategic priorities
Delivering on our strategic priorities For personal use only The Service Revolution Performance Service Digital Targeted Workforce Discipline Leadership Transformation Growth Revolution Strategic Priorities Region’s One of the Best World’s 21st Building new Talent Performing Great Century Growth Fac
Slide 12: Expectations for operating environment
Expectations for operating environment For personal use only Outlook for Australia remains positive, low interest rates and AUD Expect 2016 real GDP growth to lift to around 2.7% • Likely uneven growth across industry sectors and geographies • Expect improvement in services sector to more than offse
Slide 13: Full Year 2015 Financial Results - Peter King, CFO
For personal use only Full Year 2015 Financial Results Peter King Chief Financial Officer Financial results based on cash earnings unless otherwise stated. Refer page 144 for definition. Results principally cover the FY15 and FY14 years, including 2H15 and 1H15. Comparison of 2H15 versus 1H15 (unles
Slide 14: Reported profit growth higher than cash earnings growth
Reported profit growth higher than cash earnings growth For personal use only Cash earnings / reported profit outcomes Cash earnings and reported profit ($bn) • We believe cash earnings continues to more Reported profit Cash earnings accurately reflect value to shareholders • In FY15 8.0 7.8 ‒ Cash
Slide 15: Impact of infrequent and volatile items
Impact of infrequent and volatile items For personal use only Cash earnings impact FY15 – FY14 ($m) Infrequent and volatile items, FY14 FY15 particularly derivative adjustments in 1H15, had an Asset sales 59 54 impact on earnings Performance fees 46 50 • FY15 vs FY14: $91m lower Group CVA1 (17) (23)
Slide 16: Areas of interest in result
Areas of interest in result For personal use only Met mortgage investor lending Non-interest Margins requirements, income drivers & well managed increased focus Treasury trends on owner occupier Expenses / Asset quality investment Capital materially a continuing right balance and strengthened highli
Slide 17: Margin drivers
Margin drivers For personal use only Net interest margin (NIM) movement (%) NIM up 6bps NIM excl. 4bps 1bp 0bps (1bp) 2bps 2.11 Treasury & 2.06 2.05 0bps 0.06 Markets 0.05 0.04 Treasury & 2.01 2.01 2.05 Markets impact NIM excl. Treasury and Markets up 4bps on NIM 2H14 1H15 Assets Customer Term Capit
Slide 18: Housing meeting regulatory requirements; increased focus on owner occupier
Housing meeting regulatory requirements; increased focus on owner occupier For personal use only Australian mortgage flows (gross) ($bn) New lending ($bn) 19.9 0.9 (28.5) 20.7 375.8 Owner Occupied Investor PF loan/line of credit 351.0 362.8 0.9 New lending 0.8 Up 4% 19.9 19.1 P/F loan/ Net run- Inve
Slide 19: Non-interest income drivers
Non-interest income drivers For personal use only Non-interest income ($m) Lower card Partial BTIM 1H15 deriv. Gains on fees; higher sale, lower adjustment property sales business fees performance fees ($122m) $60m 73 3,215 3,142 114 3,086 (14) (44) Up 4% 2H14 1H15 Fees and Wealth Trading income Oth
Slide 20: Treasury income trends
Treasury income trends For personal use only Treasury income ($m) 1H15 5.8% 2H15 4.5% % of Group FY income 4.0% 3.6% 3.1% 2.1% 2.4% 2.2% 1.7% 970 201 756 720 170 618 236 376 306 303 226 123 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 1 Prior to FY11, the data is not comparable on an exact like for
Slide 21: Expense growth from investment
Expense growth from investment For personal use only Expense growth composition (%) Expense movement ($m) Amortisation 107 (126) 38 25 4,377 4 4,381 FX translation 79 4,181 4,254 4,235 Lloyds Operating expenses Down 0.4% Up 3.3% Up 0.1% 3.3 2H14 1H15 Growth and Regulatory 2H15 pre FX investment tech
Slide 22: Asset quality a continuing highlight
Asset quality a continuing highlight For personal use only Stressed exposures as a % of TCE Stressed exposure by industry over last 3 halves ($bn) Watchlist & substandard 2.5 2H15 stressed exposure reduced 90 days past due and not impaired Impaired 2H15 stressed exposure increased 2.0 3.20 3.09 1.5
Slide 23: Mining and agriculture portfolios
Mining and agriculture portfolios For personal use only Mining portfolio Agriculture portfolio TCE $14.4bn TCE $18.1bn Lending $7.1bn Lending $15.1bn % of Group TCE 1.541% % of Group TCE 1.92% % of portfolio graded as stressed2,3 1.86% % of portfolio graded as stressed2,3 4.80% % of portfolio in imp
Slide 24: Impairment charges up, still 12bps of average loans
Impairment charges up, still 12bps of average loans For personal use only Impairment charge components ($m) Individually assessed Collectively assessed New IAPs Write-backs Write-offs direct Other movements in Total & recoveries collective provisions 1,112 1 793 847 684 1 708 702 650 753 566 (197) (
Slide 25: Capital drivers
Capital drivers For personal use only Sep-15 Sep-15 pro forma1 Organic +19bps Other +55bps % % CET1 capital ratio 9.5 9.4 (APRA) 113 (52) (31) 15 4 (2) 10 9.50 CET1 capital ratio (11) 28 13.2 14.2 (Int. comp.2) 8.76 Leverage ratio 4.8 5.2 (APRA) Leverage ratio 5.5 5.9 Westpac Group preferred range 8
Slide 26: Considerations for FY16
Considerations for FY16 For personal use only All divisions continuing to execute well, within their operating environments Optimise growth/return for the relevant environment On margins • Institutional/commercial competition to remain intense • Some improvement in asset spreads expected • Expect hi
Slide 27: Investor Discussion Pack
For personal use only Full Year 2015 Financial Results Investor Discussion Pack Financial results based on cash earnings unless otherwise stated. Refer page 144 for definition. Results principally cover the FY15 and FY14 years, including 2H15 and 1H15. Comparison of 2H15 versus 1H15 (unless otherwis
Slide 28: Strategy
For personal use only Full Year 2015 Financial Results Strategy Financial results based on cash earnings unless otherwise stated. Refer page 144 for definition. Results principally cover the FY15 and FY14 years, including 2H15 and 1H15. Comparison of 2H15 versus 1H15 (unless otherwise stated) Westpa
Slide 29: Our five strategic priorities
STRATEGY Our five strategic priorities For personal use only The Service Revolution Performance Service Digital Targeted Workforce Discipline Leadership Transformation Growth Revolution Strategic Priorities Region’s One of the Best World’s 21st Building new Talent Performing Great Century Growth Fac
Slide 30: Westpac points of differentiation
STRATEGY Westpac points of differentiation For personal use only Service focused Strategically well placed Embracing digital opportunities • Our vision is to be one of the world’s great • Major Australian bank most focussed on • Utilising digital opportunities to reshape the service companies, helpi
Slide 31: Westpac Group at a glance, Australia's First Bank
STRATEGY Westpac Group at a glance, Australia’s First Bank For personal use only • Australia’s first bank and first company, opened in 1817 Westpac WRBB SGB BT WIB • Australia’s 2nd largest bank, and 22nd largest bank in the world, ranked NZ by market capitalisation1 Westpac Retail St.George BT Fina
Slide 32: Overview
For personal use only Full Year 2015 Financial Results Overview Financial results based on cash earnings unless otherwise stated. Refer page 144 for definition. Results principally cover the FY15 and FY14 years, including 2H15 and 1H15. Comparison of 2H15 versus 1H15 (unless otherwise stated) Westpa
Slide 33: FY15 financial snapshot
PERFORMANCE DISCIPLINE FY15 financial snapshot For personal use only Change1 Change1 Change1 Change1 FY15 2H15 – 1H15 FY15 – FY14 FY15 2H15 – 1H15 FY15 – FY14 Earnings2 Balance sheet Total assets ($bn) 812.2 2% 5% EPS3 (cents) 249.5 6% 2% Common equity Tier 1 capital 9.5 74bps 53bps Core earnings ($
Slide 34: Cash earnings improved performance in 2H15
PERFORMANCE DISCIPLINE Cash earnings improved performance in 2H15 For personal use only Cash earnings Cash earnings 2H15 - 1H15 ($m) Cash earnings FY15 - FY14 ($m) FY15 % chg1 % chg1 371 129 (127) (71) (38) 4,042 743 (23) (389) ($m) 2H15-1H15 FY15-FY14 (103) (36) 7,820 7,628 3,778 Net interest incom
Slide 35: Retail and business banking the engine room of growth
PERFORMANCE DISCIPLINE Retail and business banking the engine room of growth For personal use only FY15 divisional contribution to cash earnings1 ($m) FY15 divisional contribution to core earnings1 ($m) 205 113 4 (85) (96) 61 (10) 7,820 207 (4) (122) (18) 98 (157) 11,905 7,628 327 11,574 WIB total (
Slide 36: Continued to grow dividend
PERFORMANCE DISCIPLINE Continued to grow dividend For personal use only • FY15 ordinary dividends of 187cps, up 3% on FY14 Dividends (cents per share) – Interim dividend of 93cps and final dividend of 94cps Special dividends • FY15 payout ratio of 75.4% 20 – Effective payout ratio1 57%. Issuing shar
Slide 37: Cash earnings and reported net profit reconciliation
PERFORMANCE DISCIPLINE Cash earnings and reported net profit reconciliation For personal use only Cash earnings policy1 Reported net profit and cash earnings1 adjustments ($m) • Westpac Group uses a measure of performance referred to as cash earnings to assess financial FY14 FY15 performance at both
Slide 38: Service is the core of our strategy
SERVICE LEADERSHIP Service is the core of our strategy For personal use only One of the world’s Our goal great service companies Own a home Modernise factory Prepare for retirement Helping Protect my wealth Start a business Manage currency risks Shop overseas Collect payments Access cash when I need
Slide 39: Steadily building franchise value
SERVICE LEADERSHIP Steadily building franchise value For personal use only Customer numbers and service Customer net promoter scores Customer depth of relationship improvement Customer numbers (#’m) Overall consumer NPS1(%) Average products per customer2 (#) WRBB SGB WRBB SGB Peers WRBB SGB Peers 9.
Slide 40: Digital is transforming our business
DIGITAL TRANSFORMATION Digital is transforming our business For personal use only Adapting network to customer needs Leading mobile capability Instant account opening Industry first initiatives empowering customers to better manage their finances 40 | Westpac Group Full Year 2015 Presentation & Inve
Slide 41: Digital transformation continues
DIGITAL TRANSFORMATION Digital transformation continues For personal use only Shift in payment transactions Active digital customers1 (#’m) % digital sessions via mobile FY11 – FY15 (%) 56.6 46.3 30.0 4.2 62.4 4.0 4.1 59.6 3.7 3.8 56.1 51.3 46.1 -5.9 -16.3 -30.6 -35.7 2H13 1H14 2H14 1H15 2H15 2H13 1
Slide 42: Customer focussed approach to technology transformation
DIGITAL TRANSFORMATION Customer focussed approach to technology transformation For personal use only Today Next steps Assisted Unassisted Omni-channel Channels (customer interface) Westpac Customer Service Hub St.George Group BT Customer Westpac St.George Group BT * Westpac St.George Group BT System
Slide 43: Customer Service Hub: starts with wealth and home ownership
DIGITAL TRANSFORMATION Customer Service Hub: starts with wealth and home ownership For personal use only Channels Wealth Home Everyday Other (customer interface) ownership banking products Customer Customer Service Hub brings together all the information we have on customers in a way that enables us
Slide 44: Progress on growth initiatives and digital
TARGETED GROWTH Progress on growth initiatives and digital For personal use only Targeted • Panorama1 (integrated wealth system to transform how customers manage, build and protect their wealth) progressively being rolled out Growth Wealth – In FY14 the BT Cash Hub was launched (balances now over $1
Slide 45: Workforce revolution delivering
WORKFORCE REVOLUTION Workforce revolution delivering For personal use only Women in leadership positions Lost time injury frequency rate New enterprise agreement increasing1 (%) reducing (rolling 12 months) (#) • Completed new innovative enterprise agreement to strengthen our leadership as 1.9 an em
Slide 46: Continued sustainability leadership
SUSTAINABLE FUTURES Continued sustainability leadership For personal use only Sustainability strategic priorities FY15 progress Priority Objectives FY15 progress 1 Help improve the way people work and live as our society changes • Women in leadership 46%, up from 44% 1 • Ensure our workforce is • Re
Slide 47: Helping communities prosper and grow
SUSTAINABLE FUTURES Helping communities prosper and grow For personal use only Supporting communities1 Income tax expense on a cash earnings FY13 FY14 FY15 basis ($m) $97.6bn Funding Provide loans to help millions of new lending2 Notional income tax based on the economic Australians own their home o
Slide 48: Earnings Drivers
For personal use only Full Year 2015 Financial Results Earnings Drivers Financial results based on cash earnings unless otherwise stated. Refer page 144 for definition. Results principally cover the FY15 and FY14 years, including 2H15 and 1H15. Comparison of 2H15 versus 1H15 (unless otherwise stated
Slide 49: Net operating income up 5%
REVENUE Net operating income up 5% For personal use only • Net operating income up 5% (up 4% FY15/FY14) Net operating income movement half on half ($m) • Net interest income up 5% (up 6% FY15/FY14) – AIEA1 growth of 2% (up 6% FY15/FY14) due to mortgages and business 73 10,520 263 (14) (44) 114 – Cus
Slide 50: Loan growth across both mortgages and business
REVENUE Loan growth across both mortgages and business For personal use only • Westpac Group loans up 3% (up 7% FY15/FY14). Excluding foreign Net loans ($bn) exchange translation impacts, up 4% • Australian mortgage lending up 4% (up 7% FY15/FY14) with rise in new 5.9 (2.4) 1.3 623.3 13.0 0.4 lendin
Slide 51: Mortgage growth of 4%
REVENUE Mortgage growth of 4% For personal use only • Australian mortgage market share1 of 23.1% Australian mortgage lending2,3,4 ($bn) – Grew at 0.9x system1 as absorbed a regulatory required reduction in investor property lending growth to below 10% 41.5 (28.5) – Owner occupied increasing percenta
Slide 52: Business lending picking up
REVENUE Business lending picking up For personal use only • Westpac Group business lending up 4%, (up 6% FY15/FY14) Australian business banking customers5 (#’000) • WIB business balances up 6% (up 12% FY15/FY14) – Majority of growth in structured transactions in financial services and Lloyds growth
Slide 53: Consumer finance subdued, growth in auto finance
REVENUE Consumer finance subdued, growth in auto finance For personal use only • Total Australian consumer finance up 2% to $21.6bn (up 5% FY15/FY14) Australian credit card and personal loan applications4 (#’000) • Auto finance up 4% with new business volumes improving Credit cards Personal lending
Slide 54: High quality deposit focus
REVENUE High quality deposit focus, mortgage offset account balances continue to rise For personal use only • Australian customer deposits up $11.0bn or Australian household deposits2 market 3% (up 5% FY15/FY14) share (%), system multiple (x) Customer deposit composition3 ($bn) – 23.3% market share
Slide 55: Good growth across the New Zealand portfolio
REVENUE Good growth across the New Zealand portfolio For personal use only • Housing growth of 3% (6% FY15/FY14), 0.8x system1 Balance sheet (NZ$bn) – Disciplined growth in a competitive market – Fixed rate mortgages now 74% of the portfolio Change on Sep-15 Mar-15 Sep-15 Mar-15 (%) • Business lendi
Slide 56: NIM up 6bps, primarily due to lower cost of funding
REVENUE NIM up 6bps, primarily due to lower cost of funding For personal use only • NIM up 6bps to 2.11% Net interest margin (%) – Higher in retail and business banking, lower in Institutional • NIM excluding Treasury and Markets up 4bps at 2.05% NIM NIM excl. Treasury and Markets – Asset spreads un
Slide 57: Non-interest income up 4%
REVENUE Non-interest income up 4% For personal use only • Non-interest income up 4% (flat FY15/FY14) Non-interest income ($m) – Fees and commissions down 1% to $1,464m. Growth in business lending line fees and institutional fees offset by seasonally lower Fees and commissions Australian credit card
Slide 58: Markets and Treasury income higher
REVENUE Markets and Treasury income higher For personal use only • Total markets income up 24% (up 1% FY15/FY14) Markets income by activity ($m) ‒ Lift in total markets income mainly due to charge for methodology changes to derivative valuations of $122m in 1H15 not being repeated Customer Market ri
Slide 59: Expense growth driven by higher software amortisation
EXPENSES Expense growth driven by higher software amortisation, expense to income ratio at lower end of global peers For personal use only Components of expense growth (%) Expense movement ($m) Operating expenses Amortisation FX translation Lloyds 25 4,377 4 107 (126) 79 38 4,381 3.3 4,254 4,235 2.9
Slide 60: Investment spend focused on growth and productivity
EXPENSES Investment spend focused on growth and productivity For personal use only Investment spend Investment spend Investment spend 2H14 1H15 2H15 2H14 1H15 2H15 2H14 1H15 2H15 capitalised ($m) capitalised ($m) expensed ($m) Capitalised software Opening balance 2,023 2,070 2,102 Growth and product
Slide 61: Consistent track record of delivering productivity savings
EXPENSES Consistent track record of delivering productivity savings - $1.6bn in last 7 years For personal use only • Deal with Australia Post adding around $1.6bn saved from efficiency programs since FY09 ($m) 3,000 new locations around Australia, allowing us to exit 170 instores Targeting FY16-FY18
Slide 62: 2H15 impairment charges higher, lower benefit from stress reduction
IMPAIRMENTS 2H15 impairment charges higher, lower benefit from stress reduction For personal use only • Impairment charges up $71m, or 21% (up Impairment charges and stressed exposures (bps) 16% FY15/FY14) • Equivalent to 13bps of gross loans, up 2bps Impairment charge (lhs)1 (unchanged at 12bps FY1
Slide 63: Asset Quality
For personal use only Full Year 2015 Financial Results Asset Quality Financial results based on cash earnings unless otherwise stated. Refer page 144 for definition. Results principally cover the FY15 and FY14 years, including 2H15 and 1H15. Comparison of 2H15 versus 1H15 (unless otherwise stated) W
Slide 64: High quality portfolio with bias to secured consumer lending
ASSET QUALITY High quality portfolio with bias to secured consumer lending For personal use only Asset composition as at 30 September 2015 (%) Cash and balances with central banks Total assets On balance sheet lending Receivables due from other financial institutions Housing Trading securities, fina
Slide 65: A well diversified portfolio across industries and large exposures
ASSET QUALITY A well diversified portfolio across industries and large exposures For personal use only Top 10 exposures to corporations and NBFIs5 Exposures at default1 by sector ($bn) as a % of total committed exposures6 (%) Finance & insurance2 2.0 1.9 Property 3 1.4 1.3 1.3 1.1 1.2 1.2 1.1 Wholes
Slide 66: Portfolio stress continues to reduce
ASSET QUALITY Portfolio stress continues to reduce For personal use only Stressed exposures as a % of TCE and provisions ($bn) Provisioning coverage ratios . Watchlist & substandard (lhs) 2H14 1H15 2H15 90+ days past due and not impaired (lhs) Collectively assessed provisions to credit 93bps 89bps 8
Slide 67: Portfolio stress remains at low levels
ASSET QUALITY Portfolio stress remains at low levels For personal use only Stressed exposures by industry ($bn) Stressed exposures by industry as at 30 September 2015 (%) Sep-14 Mar-15 Sep-15 Property & Consumer lending 2 business services 2.5 3 23 3 Wholesale & Agriculture, forestry & 4 18 Retail T
Slide 68: Provision cover by portfolio category
ASSET QUALITY Provision cover by portfolio category For personal use only Exposures as a % of TCE Provisioning to TCE (%) Mar-14 Sep-14 Mar-15 Sep-15 Fully performing portfolio • Small cover as low probability of default (PD) 0.23 0.22 0.22 0.21 98.63 • Includes economic overlay 98.76 98.88 Collecti
Slide 69: Areas of interest: commercial property
ASSET QUALITY Areas of interest: commercial property For personal use only Commercial property portfolio 1H15 2H15 Commercial property by region (%) Total committed exposures (TCE) $64.8bn $65.6bn NSW & ACT 16 Lending $50.5bn $51.3bn VIC Commercial property as a % of Group QLD 7.11% 7.00% 45 11 TCE
Slide 70: Areas of interest: mining
ASSET QUALITY Areas of interest: mining For personal use only Mining portfolio Mining portfolio 1H15 2H15 • Westpac’s direct exposure to Mining (category includes energy Total committed exposures (TCE) $11.7bn $14.4bn2 and resources sector) 1.5% of Group TCE at 30 September 2015 • A high quality por
Slide 71: Australian unsecured lending portfolio
ASSET QUALITY Australian unsecured lending portfolio For personal use only • Total Australian consumer unsecured 90+ Australian unsecured lending 90+ days delinquencies (%) days delinquencies decreased 9bps to 111bps (up 6bps FY15/FY14) consistent with Credit cards Personal loans (excl Auto loans) s
Slide 72: High levels of borrower equity support
ASSET QUALITY High levels of borrower equity support Australian mortgage portfolio For personal use only 2H14 1H15 2H15 2H15 Australian housing portfolio Australian housing loan-to-value ratios (LVRs)3,4 (%) balance balance balance flow1 Total portfolio ($bn) 351.0 362.8 375.8 41.5 2H15 drawdowns LV
Slide 73: Further improving home lending standards
ASSET QUALITY Further improving home lending standards For personal use only Reinforcing sound lending standards Notable changes to Westpac mortgage originations in FY15 • Westpac has tightened some mortgage underwriting policies to further • Minimum floor rate increased from 6.80% to 7.25% strength
Slide 74: Australian mortgage delinquencies at low levels
ASSET QUALITY Australian mortgage delinquencies at low levels For personal use only Australian mortgage portfolio 2H14 1H15 2H15 Australian mortgages delinquencies (%) 30+ days delinquencies (bps) 108 124 102 2.5 90+ Past Due Total 90+ First Home Buyer 90+ days delinquencies (bps) 47 47 45 90+ Inves
Slide 75: Australian investment property portfolio
ASSET QUALITY Australian investment property portfolio For personal use only • Investment property loans (IPLs) are 44.5% of Westpac’s Australian mortgage portfolio, down from 46.3% Strong origination standards • Compared to owner occupied applicants, IPL applicants are on average • IPLs1 are full r
Slide 76: Lenders mortgage insurance
ASSET QUALITY Lenders mortgage insurance For personal use only • Lenders mortgage insurance (LMI) provides benefits to the Westpac Group Lenders mortgage insurance – Risk transfer / loss mitigation LVR Band • LVR ≤80% • LVR >80% to ≤ 90% • LVR >90% • Low Doc LVR ≤60% • Low Doc LVR >60% to ≤ 80% – Im
Slide 77: Mortgage portfolio stress testing outcomes
ASSET QUALITY Mortgage portfolio stress testing outcomes For personal use only • Westpac regularly conducts a range of portfolio stress tests as part Australian mortgage portfolio stress testing of its regulatory and risk management activities as at 30 September 2015 • The Australian mortgage portfo
Slide 78: Funding and Liquidity
For personal use only Full Year 2015 Financial Results Funding and Liquidity Financial results based on cash earnings unless otherwise stated. Refer page 144 for definition. Results principally cover the FY15 and FY14 years, including 2H15 and 1H15. Comparison of 2H15 versus 1H15 (unless otherwise s
Slide 79: LCR improved
FUNDING & LIQUIDITY LCR improved For personal use only • Westpac’s Liquidity Coverage Ratio (LCR) Change on Liquidity Coverage Ratio ($bn) Mar-15 Sep-15 121% as at 30 September 2015 Mar-15 (%) – Westpac’s average monthly LCR for High Quality Liquid Assets1 (HQLA) 57 61 6 quarter ending September 201
Slide 80: Stable sources providing 84% of all funding
FUNDING & LIQUIDITY Stable sources providing 84% of all funding For personal use only • Stable Funding Ratio 83.8%, up 68bps Maintaining a stable funding profile FY15/FY14, as the Group continues to focus on funding growth through stable Funding composition by residual maturity (%) funding sources S
Slide 81: Wholesale term issuance well diversified
FUNDING & LIQUIDITY Wholesale term issuance well diversified, benefit from broad product capabilities For personal use only FY15 new term issuance composition1 (%) Australian covered bond issuance5 Remaining capacity By type By tenor 2,3 By currency (8% cap & over-collateralisation) ($bn) Outstandin
Slide 82: Capital
For personal use only Full Year 2015 Financial Results Capital Financial results based on cash earnings unless otherwise stated. Refer page 144 for definition. Results principally cover the FY15 and FY14 years, including 2H15 and 1H15. Comparison of 2H15 versus 1H15 (unless otherwise stated) Westpac
Slide 83: Capital position strengthened while supporting growth
CAPITAL Capital position strengthened while supporting growth For personal use only CET1 capital ratio (% and bps) APRA Basel III CET capital ratio (%) Preferred CET1 capital ratio range 9.5 13.20 8.75% - 9.25% 9.1 9.0 Capital raising 9.0 Organic +19bps initiatives +43bps Other +12bps 8.7 8.8 8.8 8.
Slide 84: Capital materially strengthened
CAPITAL Capital materially strengthened For personal use only Capital developments CET1 capital ratio (%) (APRA basis) • On 14 October 2015, Westpac announced an Entitlement Offer targeting 0.7 1.0 (1.1) $3.5bn. After allowing for the Entitlement Offer and the impact of changes 0.0 9.5 9.4 to mortga
Slide 85: Leverage ratio disclosure
CAPITAL Leverage ratio disclosure For personal use only Leverage ratio Leverage ratio (APRA basis) $bn Sep-15 • APRA requires the disclosure of the leverage ratio from the first reporting period after 1 July 2015. The leverage ratio is Level 2 On balance sheet exposures ex derivatives and SFT1 746.1
Slide 86: Basel III regulatory capital ratios
CAPITAL Basel III regulatory capital ratios For personal use only Regulatory capital ratios (%) CET1 capital ratio Total Tier 1 capital ratio Total regulatory capital ratio 14.5 15.4 13.2 13.4 13.1 14.1 14.0 12.4 12.2 11.4 12.3 12.1 13.3 9.0 8.8 9.5 10.6 10.3 Sep-14 Mar-15 Sep-15 Sep-14 Mar-15 Sep-1
Slide 87: Basel III CET1 capital ratios global comparison
CAPITAL Basel III CET1 capital ratios global comparison1 For personal use only 14.2% 13.2% APRA top quartile 12.4%6 2 WBC pro forma3 Intesa Sanpaolo2 2 3 3 3 ING Group4 2 2 2 2 2 2 2 2 2 5 2 5 5 2 Barclays Deutsche Bank BNP Paribas Citi JPMorgan Lloyds ANZ ICBC China Construct. Bank Mitsubishi UFJ H
Slide 88: Internationally comparable capital ratio explanation
CAPITAL Internationally comparable capital ratio explanation For personal use only The APRA Basel III capital requirements are more conservative than those of the Basel Committee on Banking Supervision (BCBS), leading to lower reported capital ratios. In July 2015, APRA published a study that compar
Slide 89: RWA movements
CAPITAL RWA movements For personal use only RWA movements RWA movements ($bn) • Total RWA increased 3.4% 0.9 7.3 2.2 1.4 358.6 • Credit RWA increased 2.4% or $7.3bn 346.8 − $12.0bn supporting business growth. Offset by − $2.8bn decrease from improvement in credit quality 331.4 − $1.7bn decrease from
Slide 90: Actively managing capital to optimise returns
CAPITAL Actively managing capital to optimise returns For personal use only Actively managing returns ROE and CET1 capital ratios (%) Return on average interest-earning assets (AIEA) (%) • Returns in 2H15 increased from the 7% rise 1H14 2H14 1H15 2H15 CET1 ROE 9.5 in cash earnings. ROE only up 6bps
Slide 91: Divisional Summary
For personal use only Full Year 2015 Financial Results Divisional Summary Financial results based on cash earnings unless otherwise stated. Refer page 144 for definition. Results principally cover the FY15 and FY14 years, including 2H15 and 1H15. Comparison of 2H15 versus 1H15 (unless otherwise stat
Slide 92: Differentiated by our strong portfolio of brands
BUSINESS UNIT SUMMARY Differentiated by our strong portfolio of brands For personal use only Westpac Group Westpac Retail & Business Banking Contribution to FY15 cash earnings (%) WRBB Australian national brand for consumer and business banking, SMEs and commercial Westpac RBB customers under the We
Slide 93: WRBB: 8% cash and core earnings growth
WRBB 8% cash and core earnings growth For personal use only Impairment Cash earnings movement ($m) Key financial metrics FY15 - FY14 charges ($m) 442 16 (131) Cash (35) (87) 8% • Up $205m to $2,788m 2,788 earnings 2,583 486 471 Core 8% • Up $327m to $4,455m with 6% revenue growth 436 earnings •
Slide 94: WRBB delivers another disciplined 2H15 result
WRBB WRBB delivers another disciplined 2H15 result For personal use only Cash earnings movement 2H15 - 2H14 ($m) Key financial metrics 2H15 - 1H15 195 (13) (27) (29) (38) Cash • Up $88m to $1,438m , 10th consecutive half of 61 5 1,438 7% 1,330 (29) (11) (6) 1,350 earnings gains Core • Up $155m to
Slide 95: WRBB consistently delivering high quality results
WRBB WRBB consistently delivering high quality results For personal use only Revenue ($m) Core earnings ($m) Cash earnings ($m) 4,017 2,305 1,438 3,835 2,150 1,350 3,769 2,113 1,330 2,015 1,253 3,625 1,982 3,570 1,217 2H13 1H14 2H14 1H15 2H15 2H13 1H14 2H14 1H15 2H15 2H13 1H14 2H14 1H15 2H15 Loans (
Slide 96: Consumer banking highlights
WRBB Number 1 online/mobile platform For personal use only Consumer banking highlights Key performance metrics • Number 1 banking/mobile platform in Australia and number 2 in the world;1 Change customer growth of 1% (3% over FY15/FY14); market leading wealth 2H14 1H15 2H15 on 1H15 penetration2 posit
Slide 97: Transformation of network continues
WRBB Transformation of network continues For personal use only Active digital customers (#’m) Digital sales (#’000) Sales FTE / Total FTE (%) 2.79 216 61 59 2.70 2.63 57 152 2.53 145 55 135 2.45 52 107 Sep-13 Mar-14 Sep-14 Mar-15 Sep-15 2H13 1H14 2H14 1H15 2H15 2H13 1H14 2H14 1H15 2H15 Bank Now impr
Slide 98: St.George delivering growth and customer choice
St.George delivering growth and customer choice For personal use only Cash earnings movement ($m) Impairment Key financial metrics FY15 - FY14 charges ($m) Cash 237 40 (70) (44) 7% • Up $113m to $1,688m (50) 1,688 293 earnings 1,575 280 236 Core • Up $207m to $2,694m with 7% revenue 8% growth ea
Slide 99: 2H15 delivered 5% core earnings growth
2H15 delivered 5% core earnings growth For personal use only Cash earnings movement 2H15 – 2H14 ($m) Key financial metrics 2H15 – 1H15 9 (27) (48) Cash 88 2% • Up $14m to $851m 11 12 (15) 837 (8) 851 earnings 806 14 9 Core 5% • Up $70m to $1,382m with 5% revenue growth earnings • Up $88m to $1,9
Slide 100: All brands contributing to growth
All brands contributing to growth For personal use only FY15 cash earnings contribution (%) Cash earnings ($m) Core earnings ($m) 851 1,382 STG 837 1,312 806 1,278 5 5 769 1,209 BoM 1,167 699 14 BankSA 8 RAMS 68 Lloyds 2H13 1H14 2H14 1H15 2H15 2H13 1H14 2H14 1H15 2H15 Loans ($bn) and customer deposi
Slide 101: St.George delivering across key metrics
St.George delivering across key metrics For personal use only Consumer banking highlights Key performance metrics • Customer service revolution and continued innovation is delivering a Change better customer experience. Customer satisfaction1 and NPS2 ahead of 2H14 1H15 2H15 on 1H15 all the majors,
Slide 102: Investment, innovation and customer focus delivering sustainable growth
Investment, innovation and customer focus delivering sustainable growth across brands For personal use only Strong customer growth (#’m) Bank of Melbourne continuing to Lloyds acquisition a solid performer grow market share • Positive cash earnings growth supporting • Acquired auto finance and equip
Slide 103: BTFG franchise growing, impacted by higher claims
BTFG franchise growing, impacted by higher claims For personal use only Cash earnings movement ($m) Catastrophe claims ($m) Movement FY15 - FY14 Catastrophe claims up $904m cash earnings business generating a ROTE of 28%. FY15 cash 900 (9) 18 16 (65) 2 6 904 $65m on FY14 earnings up 6% excluding imp
Slide 104: Funds management growth
Funds management growth For personal use only FUM and FUA drivers FUA ($bn) • FUM related revenue increased 1% on FY14 (up 9% excluding impact of BT Wrap/Asgard/Panorama Corporate Super Other BTIM) driven by – Positive net flows in retail and wholesale portfolios in Advance Up 8% – Retail Super supp
Slide 105: Insurance key metrics
Insurance key metrics For personal use only Premiums ($m) Insurance loss rates (%) General Insurance gross written premiums Life in-force premiums General Insurance loss rate Life Insurance loss rates Up 13% 892 827 62 792 734 51 45 Up 5% 32 34 33 29 30 227 235 246 246 1H14 2H14 1H15 2H15 1H14 2H14
Slide 106: Leading wealth provider, investing for the future
Leading wealth provider, investing for the future For personal use only Insurance & Super – targeted growth Panorama – a 360 degree view • Focus on innovation, enhancing customer experience and digital • Panorama is a key enabler of our Wealth strategy and FY16 capability capability and functionalit
Slide 107: BTFG performance across key metrics
BTFG performance across key metrics For personal use only Delivering on the service revolution Key performance metrics • Private Wealth continues to drive a ‘whole of wealth’ solution for high net worth customers. A specialised Digital Opportunities Team was launched Change to serve customers with a
Slide 108: WIB FY15 cash earnings lower
WIB FY15 cash earnings lower from derivative adjustments1 and lower impairment benefits For personal use only Cash earnings movement ($m) Movement FY15 – FY14 • FY15 was impacted by methodology changes to (13) 110 (122) 1,467 (115) derivative adjustments1 that reduced cash (96) 55 1,286 earnings by
Slide 109: WIB 2H15 cash earnings and core earnings up 6%
WIB 2H15 cash earnings and core earnings up 6% For personal use only Cash earnings movement ($m) Movement 2H15 – 1H15 • 1H15 was impacted by methodology changes to 67 (122) derivative adjustments1 that reduced cash earnings 717 (2) 122 (41) Cash 6% by $85m and was not repeated in 2H15 (25) (23) (5
Slide 110: Australia's leading institutional bank
Innovative solutions and service, capabilities and insights from Australia’s leading institutional bank For personal use only Australia’s leading institutional bank Delivering in targeted areas • 90% of the ASX Top 100 FY15 revenue • Australia’s leading infrastructure bank – WIB was the lead arrange
Slide 111: Asian operations support customer and financial flows
Asian operations support customer and financial flows between Asia and Australasia For personal use only Key product and customer areas Enhancing our Asian presence - key milestones in FY15 Deepened existing customer Corporate & relationships Institutional Banking • Strong customer acquisition takin
Slide 112: Solid customer flows and activity in core WIB businesses
Solid customer flows and activity in core WIB businesses For personal use only Customer revenue Solid volume growth Financial Markets customer activity WIB net loans and deposits ($bn) Financial Markets Customer revenue1 2H15 ($m) customer sales revenue ($m) 2H14 1H15 2H15 2H14 1H15 2H15 Lending 78.
Slide 113: Institutional bank asset quality remains sound
Institutional bank asset quality remains sound For personal use only Impairments: (charges) / benefits ($m) Stressed exposures as a % of TCE New IAPs Write-backs Change in CAP Total impairment . and recoveries benefit / (charge) Watchlist & substandard 4.6 4.3 90+ days past due and not 93 90 impaire
Slide 114: Westpac New Zealand delivers another disciplined performance
New Zealand Westpac New Zealand delivers another disciplined performance For personal use only Impairment Cash earnings movement (NZ$m) Key financial metrics FY15 - FY14 (NZ$m) charges (NZ$m) 120 15 (50) Cash (21) (12) 117 6% • Up $52m to $916m 864 916 earnings Core 7% • Up $85m to $1,307m with
Slide 115: Cash earnings up 8% from revenue growth
New Zealand Cash earnings up 8% from revenue growth For personal use only Cash earnings movement (NZ$m) Key financial metrics 2H15 - 1H15 (NZ$m) 48 4 (25) Cash 15 (8) 8% • Cash earnings of $475m up $34m 475 earnings 23 5 (10) (9) Core • Up $27m to $667m driven by a 5% increase in 0 441 4% 432 ea
Slide 116: Investment delivering improvement in key operating metrics
New Zealand Investment delivering improvement in key operating metrics and enhancing the customer experience For personal use only Everyday banking, changing how customers bank Key performance metrics % of deposits through Smart ATMs • Providing enhanced flexibility with 33% 34% Change 28% 24/7 capa
Slide 117: Significant FY15 milestones
New Zealand Significant FY15 milestones For personal use only New online platform • 78% of customers migrated, 56% of which • Expanded market share over 1ppt to 23.8%1 • Westpac was retained as the main banking choose to access via mobile devices • Over 57,000 new credit card accounts provider to th
Slide 118: Delivering returns whilst optimising the balance sheet
New Zealand Delivering returns whilst optimising the balance sheet For personal use only Cash earnings (NZ$m) Core earnings (NZ$m) Net interest margin (%) 475 667 2.34 432 432 441 2.33 640 2.32 400 622 368 602 600 2.29 2.28 580 2.27 1H13 2H13 1H14 2H14 1H15 2H15 1H13 2H13 1H14 2H14 1H15 2H15 1H13 2H
Slide 119: Asset quality in good shape
New Zealand Asset quality in good shape For personal use only • Consumer delinquencies improved further in 2H15 Movement in impairment charges (NZ$m) – Mortgage delinquencies 90+ days down 11bps to 0.14%, near historical lows 31 (1) (4) – Other consumer loans delinquencies 90+ days down 26 bps to (8
Slide 120: Westpac New Zealand underweight in agriculture
New Zealand Westpac New Zealand underweight in agriculture For personal use only Agriculture portfolio Agriculture portfolio Agriculture exposure and measures of stress • Agriculture lending comprises 7.9% of TCE Mar-15 Sep-15 • Agriculture portfolio is sound with stressed and impaired asset levels
Slide 121: Westpac Pacific cash earnings up 3%
Westpac Pacific cash earnings up 3% For personal use only Cash Earnings movement ($m) Movement 2H15 – 1H15 • Lift in non-interest income and favourable FX impacts 13 (9) 4 (4) Cash (5) 4 (1) 59 (3) 5 61 3% • 2H15 included approximately three months of earnings from 57 0 earnings Cook Islands, Samo
Slide 122: Economics
For personal use only Economics Westpac Banking Corporation ABN 33 007 457 141.
Slide 123: Australian and New Zealand economic forecasts
Australian and New Zealand economic forecasts For personal use only Calendar year Key economic indicators1 (%) as at October 2015 2013 2014 2015f 2016f World GDP 3.3 3.4 3.0 3.6 Australia GDP 2.1 2.7 2.2 2.7 Private consumption 1.7 2.4 2.5 2.9 Business investment2,3 -4.0 -4.8 -7.0 -6.5 Unemployment
Slide 124: Fiscal and monetary flexibility remain
Fiscal and monetary flexibility remain For personal use only GDP well placed relative to other developed economies RBA still has capacity to reduce rates further Real GDP growth (%) Major countries’ policy rates (%) % growth, year-ended Australia UK Canada US Euro 8 8 Australia 6 4 UK 6 2 Canada 0 U
Slide 125: Australian economy adjusting well to lower commodity prices
Australian economy adjusting well to lower commodity prices and mining investment For personal use only Terms of trade returning to a sustainable level Lower AUD is providing some cushion index index Terms of trade, goods & services 1.20 Fair value band 1.20 120 120 AUD/USD actual & forecast 1.10 We
Slide 126: Lower Australian dollar supporting rebalancing of the economy
Lower Australian dollar supporting rebalancing of the economy For personal use only Australian dollar lower against major Positives Negatives currencies • A critical buffer to external shocks • Impact on sentiment both within and towards Australian dollar, change last 18mths (%) • Australia’s commod
Slide 127: Tourism benefiting from lower Australian dollar
Tourism benefiting from lower Australian dollar For personal use only International arrivals in Australia (millions) Australia’s 3rd largest export mn Annual arrivals, financial years mn 2.5 Asia, 2.5 • Tourism is Australia's third largest export, and its largest service 2014/15: +21% vs 3 yrs ago e
Slide 128: Australian labour market: services sectors creating the vast bulk of new jobs
Australian labour market: services sectors creating the vast bulk of new jobs For personal use only Australian employment by sector (2014/15, %) Around 80% of Australian jobs are in the services industries 11.8 million employed • Australia is a world-class provider of a range of services, such as te
Slide 129: Australian labour market: services sectors creating new jobs (cont.)
Australian labour market: services sectors creating the vast bulk of new jobs (cont.) For personal use only Cumulative change in industry employment (‘000) Australia: employment by sector (annual change, ’000) ‘000 ‘000 700 700 household services public admin Health & education 600 mining 600 busine
Slide 130: Australia's population growth
Australia’s population growth For personal use only • Australia’s population is just over 23 million and growing at a Population growth (%) comparatively rapid pace ‒ Population growth was 1.4% in 2014, at the lower end of 2.0 % % 2.0 growth over the last decade which has ranged from 1.3% to 2.2%, b
Slide 131: Australian state economies shift in growth with NSW the pace setter
Australian state economies shift in growth with NSW the pace setter For personal use only • Domestic demand growth is shifting from the WA mining states of WA and Qld, to NSW and, POPULATION to a lesser extent, Victoria 2.6 million QLD SIZE OF ECONOMY POPULATION – 1 in 3 Australians live in NSW, wit
Slide 132: Credit growth picking up at a modest pace
Credit growth picking up at a modest pace For personal use only Business confidence and consumer confidence (net balance) Australian private sector credit growth (% ann) Consumer (lhs) Business * (rhs) % annual % annual Housing Total credit Business 130 monthly 30 25 Forecasts 25 end 2015 120 20 20
Slide 133: Australian housing market sound fundamentals
Australian housing market sound fundamentals For personal use only • Australian housing market continues to face a significant structural Population versus dwelling stock undersupply (annual average change ‘000) • Persistently low levels of new building over the last decade has combined with a stron
Slide 134: House price growth and activity sees some moderation
House price growth and activity sees some moderation, wide range of conditions For personal use only • Price growth has picked up in recent months, accelerating to Capital city dwelling prices 11.9%yr nationally in September. Activity remains mixed across geographies and market segments % * 6mth ann
Slide 135: Investment property lending remains buoyant
Investment property lending remains buoyant For personal use only • Investor activity has been buoyant, responding to low vacancy Housing finance approvals: value of housing finance rates, solid rental yields, and low interest rates, including low fixed ($bn/mth) rates offering attractive opportunit
Slide 136: A cautious approach to household finances
Australian households A cautious approach to household finances For personal use only Australian households: debt to income ratio (%) Consumer survey: ‘Wisest place for savings’ % total (gross) debt 70 % shares % 70 180 total debt net of offset accounts real estate 60 deposits 60 130 total debt net
Slide 137: Areas of interest: The Sydney housing market
Areas of interest: The Sydney housing market For personal use only 20% live in Sydney 84k new Sydneysiders 1 new dwelling Australia’s population of 23.6 million is Sydney’s population has grown strongly over for every 6 new people concentrated in the capital cities. Approximately the last 10 years,
Slide 138: Areas of interest: Sydney housing market
Areas of interest: Sydney housing market For personal use only 4.82% mortgage rate 10.7% investor lending 4.6% average price growth As the Australian economy transitions from growth last 12 years mining to non-mining led growth, the RBA has In Australia, interest payments on investment Growth in Syd
Slide 139: New Zealand economy: growth to soften, inflation remains subdued
139 New Zealand economy: growth to soften, inflation remains subdued For personal use only • A slowdown in GDP growth remains on the cards for 2016, despite GDP growth (%) an improvement in recent economic indicators 8 8 • The New Zealand economy is facing headwinds from sluggish Qtr % chg Annual av
Slide 140: New Zealand economy: low inflation outlook
140 New Zealand economy: low inflation outlook For personal use only New Zealand Official Cash Rate (%) CPI inflation (annual, % year) %yr %yr % % 6 6 9 Westpac 9 Westpac 8 forecasts 8 5 forecasts 5 7 7 4 4 6 6 5 5 3 3 4 4 3 3 2 2 2 2 1 1 1 1 0 0 0 0 Mar-00 Mar-04 Mar-08 Mar-12 Mar-16 2005 2007 2009
Slide 141: New Zealand economy: export markets
New Zealand economy: export markets For personal use only • Sharp rebound in dairy prices, following weakness earlier in the GlobalDairyTrade price index year 1800 index index 1800 − Rebound sparked in large part by Fonterra’s predictions that 1600 1600 milk collection this season will be down by mo
Slide 142: Appendix & Disclaimer
For personal use only Full Year 2015 Financial Results Appendix & Disclaimer Financial results based on cash earnings unless otherwise stated. Refer page 144 for definition. Results principally cover the FY15 and FY14 years, including 2H15 and 1H15. Comparison of 2H15 versus 1H15 (unless otherwise s
Slide 143: Appendix 1: cash earnings adjustments
Appendix 1: cash earnings adjustments For personal use only Cash earnings adjustment 2H14 1H15 2H15 Description Reported net profit 3,939 3,609 4,403 Partial sale of BTIM 0 0 (665) During Second Half 2015 the Group recognised a significant gain following the partial sale and deconsolidation of the G
Slide 144: Appendix 2: definitions
Appendix 2: definitions For personal use only Westpac’s business units Financial performance Westpac Retail & Business Banking is responsible for sales and service to Is a measure of the level of profit that is generated by ongoing operation and Westpac RBB or is therefore available for distribution
Slide 145: Appendix 2: definitions (cont.)
Appendix 2: definitions (cont.) For personal use only Asset quality Key metrics TCE Total committed exposures Net Promoter Score measures the net likelihood of recommendation to others of the customer’s main financial institution for retail or business banking. Net Stressed loans are the total of wa
Slide 146: Appendix 2: definitions (cont.)
Appendix 2: definitions (cont.) For personal use only Key metrics (continued) Other Data based on Roy Morgan Research, Respondents aged 14+ and 12 month Liquidity The level of high quality liquid assets (as defined by APRA) over total cash average to Sept. 2015. Wealth penetration is defined as the
Slide 147: Investor Relations Team
Investor Relations Team For personal use only Equity Investor Relations For further information on Westpac Andrew Bowden Leigh Short www.westpac.com.au/investorcentre Head of Investor Relations Senior Manager • Annual reports +61 2 8253 4008 +61 2 8253 1667 • Presentations and webcasts • 5 year fina
Slide 148: Disclaimer
Disclaimer For personal use only 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