Westpac Banking Corporation · ASX:WBC
Westpac Banking — Shareholder Meeting (December 2012)
17 slides from Westpac Banking's shareholder meeting presentation, Dec 13, 2012
Slide 1: 2012 Annual General Meeting
For personal use only 2012 ANNUAL GENERAL MEETING Lindsay Maxsted Chairman Westpac Banking Corporation ABN 33 007 457 141
Slide 2: A strong company
A strong company For personal use only Common equity Basel II1 ratio (%) Customer deposits/loans (%) Liquid assets ($bn) 8.4 110 68 6.2 51 33 2007 2012 2007 2012 2007 2012 1 Based on APRA definitions of Basel II; in 2012, ratio is calculated under Basel 2.5. Westpac Group 2012 Annual General Meeting
Slide 3: Strong common equity ratio against global peers
Strong common equity ratio against global peers For personal use only Global peer comparison of fully harmonised Basel III pro forma common equity ratios1 (%) 16 15 14 13 12 11 10.6% Average 9.7% 10 9 8 7 6 DnB NOR BKIR Westpac CBA NAB ING SEB JPMorgan HSBC Wells Fargo Nordea Raiffeisen BOQ CIBC Swe
Slide 4: Cash earnings and cash earnings per share
Cash earnings and cash earnings per share For personal use only Cash earnings ($bn)1,2 Cash earnings per ordinary share (cents)1,2 6.6 6.3 216 209 5.9 198 164 4.7 2009 2010 2011 2012 2009 2010 2011 2012 1 For a detailed explanation of cash earnings and reconciliation to our reported results refer to
Slide 5: Dividends per ordinary share
84 cent final dividend, 166 cents for year - up 6% For personal use only Dividends per ordinary share (cents per share) 84 82 80 76 74 65 60 56 1H09 2H09 1H10 2H10 1H11 2H11 1H12 2H12 Westpac Group 2012 Annual General Meeting | December 2012 5
Slide 6: Total shareholder return
Total shareholder return For personal use only Total Shareholder Return1 12 months ended 12 December 2012 29.5% 24.3% 11.6% All Ordinaries Index S&P/ASX 300 Bank Index Westpac 1.Total shareholder return includes movements in share prices over the period and dividends paid. Westpac Group 2012 Annual
Slide 7: 2012 Annual General Meeting – Chief Executive Officer
For personal use only 2012 ANNUAL GENERAL MEETING Gail Kelly Chief Executive Officer Westpac Banking Corporation ABN 33 007 457 141
Slide 8: Snapshot of 2012
Snapshot of 2012 For personal use only Change FY12 FY11 – FY12 Cash earnings $6,598m 5% Revenue1 $18,076m 6% Core earnings1,2 $10,697m 7% Cash EPS 215.9c 3% Expense to income ratio1 40.8% (70bps) Fully franked dividend 166c 6% 1 Cash earnings basis. 2 Core earnings is operating profit before income
Slide 9: All divisions performing – cash earnings
All divisions performing – cash earnings ($ million) For personal use only Westpac Retail & Business Banking Westpac Institutional Bank 1,113 960 1,001 890 728 734 739 699 1H11 2H11 1H12 2H12 1H11 2H11 1H12 2H12 St.George Banking Group BT Financial Group Westpac New Zealand 657 500 622 400 356 373 3
Slide 10: Balanced performance across key dimensions
Balanced performance across key dimensions For personal use only In a low growth environment we must be even more disciplined in managing the business, achieving an appropriate mix across strength, return, growth and productivity. Westpac Group 2012 Annual General Meeting | December 2012 10
Slide 11: Strength – higher capital, improved asset quality
Strength – higher capital, improved asset quality For personal use only Common equity ratio (APRA Basel III)1 (%) Stressed assets to TCE2 (%) 3.20 3.09 8.2 2.48 7.4 2.17 7.1 Sep-10 Sep-11 Sep-12 Sep-09 Sep-10 Sep-11 Sep-12 1 Common equity ratio on a fully harmonised Basel III basis. All figures prio
Slide 12: Growth – growing in targeted areas
Growth – growing in targeted areas For personal use only Customer deposit ($bn) Wealth penetration1 (%) Trade finance revenue WBC Group 20.8% 348 WRBB 18.4% Up 24% 18.4% SGB 15.0% 310 Peer 1 Up 31% 14.9% Peer 2 Up 20% 14.1% 280 Peer 3 Up 12% FY10 FY11 FY12 FY10 FY11 FY12 2 Refer to slide 119 in Full
Slide 13: Return - disciplined approach
Return - disciplined approach For personal use only Net interest margin1 (%) 2011 2012 NIM 2.6 NIM excluding Treasury and Markets 2.4 Return2 on Average 1.15 1.14 assets (%) 2.2 2.0 1.8 Return2 on average 1.6 16.0 15.5 ordinary equity (%) 1.4 1H07 2H07 1H08 2H08 1H09 2H09 1H10 2H10 1H11 2H11 1H12 2H
Slide 14: Productivity - one of world's most efficient banks
For personal use only 20% 30% 40% 50% 60% 70% 80% Deutsche Bank UBS AG Bank of America Citicorp KeyCorp Suntrust Banks Inc. Barclays Royal Bank JP Morgan Chase Westpac Group 2012 Annual General Meeting | December 2012 Bank of Montreal PNC Bank BNP Paribas Fifth Third Bendigo Bank TD Bank HSBC Royal
Slide 15: Supported by a highly engaged workforce
Supported by a highly engaged workforce For personal use only Employee engagement (%) 84 81 81 80 2009 2010 2011 2012 Westpac Group 2012 Annual General Meeting | December 2012 15
Slide 16: Strategic priorities
Strategic priorities For personal use only 1 A strong company 2 Reorient to higher growth/higher return sectors and segments 3 Continue building deeper customer relationships 4 Materially simplify products and processes 5 One team approach Westpac Group 2012 Annual General Meeting | December 2012 16
Slide 17: Disclaimer
Disclaimer For personal use only The material contained in this presentation is intended to be general background information on Westpac Banking Corporation and its activities. The information is supplied in summary form and is therefore not necessarily complete. Also, it is not intended that it be
Westpac Banking — Shareholder Meeting (December 2012) on 6ix