Slide 1: Westpac Retail & Business Banking
For personal use only Westpac Retail & Business Banking JASON YETTON, GROUP EXECUTIVE 25 JUNE 2014 All metrics in this presentation relate to Westpac Retail & Business Banking division of Westpac Banking Corporation unless otherwise stated Westpac Banking Corporation ABN 33 007 457 141
Slide 2: Westpac RBB is a strong, sustainable franchise
Westpac RBB is a strong, sustainable franchise For personal use only Delivered seven consecutive halves of strong performance Tilting to growth while managing business in a balanced way Wealth, retail and business banking all well positioned, with significant opportunity for growth Digitisat
Slide 3: Seven consecutive halves of strong financial performance
Seven consecutive halves of strong financial performance For personal use only Cash Earnings1 ($bn) Core earnings2 ($bn) Revenue per FTE4 (‘000) 3 year CAGR 11% 3 year CAGR 8% 3 year CAGR 11% 1.21 1.25 1.98 2.01 1.13 1.14 1.87 359 369 1.03 1.78 341 0.98 1.65 1.69 320 0.91 1.58 300 291 272 1H11 2H11
Slide 4: Tilting to growth, while maintaining strength, return and productivity
Tilting to growth, while maintaining strength, return and productivity1 For personal use only Deposit to loan ratio up 11bps Revenue up 2% Impairment charges down 7% Core earnings up 2% Mortgage 90+ delinquencies Cash Earnings up 3% down 3bps to 0.47% Margins up 2bps Business stresse
Slide 5: Strong relationship-based franchise
Strong relationship-based franchise For personal use only More Deeper Improved customers relationships Service Consumer customers (#m) Avg products per customer1 (#) Customer complaints (#’000) 5.46 5.36 3.03 48.9 5.33 46.3 5.18 2.85 2.82 2.75 35.4 2.64 26.7 2 1H11 1H12 1H13 1H14 1H11 1H12 1H13 1H14
Slide 6: Significant growth opportunities remain
Significant growth opportunities remain For personal use only Business Home Consumer Wealth banking ownership banking A service revolution is underway for customers which will underpin and drive growth while improving productivity Westpac Retail & Business Banking | June 2014 6
Slide 7: Investing in business banking
Investing in business banking For personal use only Business banking represents 44% of WRBB business lending ($bn) WRBB revenue Highest customer advocacy of major 47.1 banks1 45.6 Solid new business lending growth 44.8 partially offset by high run-off 42.2 Seeking to improve growth across bo
Slide 8: Range of initiatives driving business growth and productivity
Range of initiatives driving business growth and productivity Expand on success of Access anywhere For personal use only Digitisation Westpac Local at anytime Mobile Payments Radical simplification Merchant terminals Westpac Retail & Business Banking | June 2014 8
Slide 9: Sustainably improving home ownership
Sustainably improving home ownership For personal use only Strong existing Improving relative Good utilisation of position growth all channels Home lending market share1 (%) Home lending relative to system1 (x) New home lending ($bn) 15.4 3rd party 0.8 Proprietary 14.7 0.7 0.6 8.6 6.9 13.1 5.5 7.5 8
Slide 10: Consumer banking delivering strong growth
Consumer banking delivering strong growth For personal use only Industry leading mobile/ Reinvigorated personal Growing household online banking platform lending origination deposits above system >1m customers connected by Jun14 Market share in personal loans1 (%) Household deposits2 (x) 1.4 18.5 17
Slide 11: Wealth revenue year CAGR of 12%
Wealth revenue 3 year CAGR1 of 12% For personal use only First to market with Strong financial Protecting simple super product planning network customers BT Super for Life (retail) Revenue per planner2,3,4 ($) Life Insurance individual new premiums market share5 (%) Total customers ('000) Bank media
Slide 12: Service revolution for customers is underway
Service revolution for customers is underway For personal use only Smart Westpac Live Contactless payments ATMs Improving • 24/7 access • Emergency cash customer • Global alliance, 50,000 ATMs experience tailored messages to better support sales and service WIB/AFS New merchant partnership fleet Wes
Slide 13: Strongly placed with good momentum
Strongly placed with good momentum For personal use only Consistency of delivery a hallmark Strong relationship-based business, with all elements of business well placed Solid momentum as WRBB tilts to growth Wealth continues to be a clear differentiator Service revolution underway, helpin
Slide 14: Appendix
For personal use only Westpac Retail & Business Banking APPENDIX All metrics in this presentation relate to Westpac Retail & Business Banking division of Westpac Banking Corporation unless otherwise stated Westpac Banking Corporation ABN 33 007 457 141
Slide 15: Westpac Retail and Business Banking senior management team
Westpac Retail and Business Banking senior management team For personal use only Jason Yetton Group Executive 23 Richard Holmes Chief Information Officer 20 Megan Rutter Gai Damien Tony Julie Alastair Human Resources McGrath MacRae MacRae Rynski Welsh Director 6 General General General General Gener
Slide 16: Our customers are noticing
Our customers are noticing For personal use only Winner, Best Enterprise – Westpac Banking for iPad #1 in the 'Global 100 Most Sustainable Corporations in the World' Westpac Retail & Business Banking | June 2014 16
Slide 17: WRBB a strong franchise with consistent growth in Cash Earnings
WRBB a strong franchise with consistent growth in Cash Earnings For personal use only Cash Earnings movement ($m) Movement 1H14 – 2H13 Cash 46 (24) 8 (21) 16 (14) 1,251 3% Up $38m to $1,251m 83 2 (36) 1,213 49 Earnings 1,142 Core 2% Up $36m to $2,014m with 2% revenue growth earnings Deposi
Slide 18: Deepening customer relationships, transforming customer experience
Deepening customer relationships, transforming customer experience For personal use only Key features of 1H14 Key non financial metrics In Retail, continued to invest in convenient banking, with 34 Bank Now Change branches and 24/7 sites (up 17), mobile customers up 8%, launch of a new 1H13 2H13 1
Slide 19: Definitions and Disclaimer
Definitions and Disclaimer For personal use only DEFINITIONS: Wealth penetration metrics: data based on Roy Morgan Research, Respondents aged 14+ and 12 month average to March 2014. Wealth penetration is defined as the proportion of Australians who have a Deposit or Transaction Account, Mortgage, Pe