Westpac Banking Corporation · ASX:WBC
Westpac Banking — Debt Investor Presentation (November 2020)
23 slides from Westpac Banking's debt investor presentation, Nov 4, 2020
Slide 1: ASX Release: Westpac Capital Notes 7 Offer – Investor Presentation
ASX Release Level 18, 275 Kent Street Sydney, NSW, 2000 For personal use only 4 November 2020 NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Westpac Capital Notes 7 (WCN 7) Offer – Investor Presentation Westpac Banking Corporation today released an investor presentation regarding its offer for
Slide 2: Westpac Capital Notes 7 Investor Presentation
Westpac For personal use only Capital Notes 7 Investor Presentation Not for distribution in the United States Westpac Banking Corporation ABN 33 007141 CAUTION – Westpac Capital Notes 7 are not deposit liabilities of Westpac, are riskier than bank deposits and may not be suitable for some investors.
Slide 3: Disclaimer
Disclaimer 2 THIS PRESENTATION IS NOT FOR DISTRIBUTION IN THE UNITED STATES. For personal use only YOU SHOULD CONSIDER AND READ THE PROSPECTUS IN FULL BEFORE DECIDING WHETHER TO INVEST IN WESTPAC CAPITAL NOTES 7. This presentation has been prepared and authorised by Westpac Banking Corporation (ABN
Slide 4: Disclaimer (continued)
Disclaimer (continued) 3 No representation or warranty, express or implied, is made as to the accuracy, adequacy, currency, completeness or reliability of any statements, estimates or opinions or other For personal use only information contained in this presentation. To the maximum extent permitted
Slide 5: Capital Notes: Summary of terms and conditions
Westpac Capital Notes 7 Summary of terms and conditions 4 For personal use only Issuer • Westpac Banking Corporation (“Westpac”) Quotation • Expected to be quoted on ASX under code WBCPJ Size • Approximately A$750 million with the ability to raise more or less • Notes will qualify as Additional Tier
Slide 6: Summary of terms and conditions (continued)
Westpac Capital Notes 7 Summary of terms and conditions (continued) 5 For personal use only • A Capital Trigger Event occurs if Westpac determines, or APRA notifies Westpac in writing that it believes, that Westpac’s Common Equity Capital Trigger Event Tier 1 Capital Ratio is equal to or less than 5
Slide 7: Comparison to other Westpac Group ASX listed Additional Tier 1 securities
Comparison to other Westpac Group ASX listed Additional Tier 1 securities1 6 Westpac Capital Notes 7 Westpac Capital Notes 6 Westpac Capital Notes 3 For personal use only ASX code WBCPJ2 WBCPI WBCPF Issue date • 4 December 2020 • 18 December 2018 • 8 September 2015 Term • Perpetual with the first po
Slide 8: Capital Notes Offer summary
Westpac Capital Notes 7 Offer summary 7 For personal use only • The Offer is for the issue of Westpac Capital Notes 7 at an Issue Price of A$100 to raise approximately A$750 million, with the ability to raise more or less • The Offer includes a Reinvestment Offer, which is a priority offer to Eligib
Slide 9: Priority Reinvestment Offer for Eligible Westpac Capital Notes 3 Holders
Priority Reinvestment Offer for Eligible Westpac Capital Notes 3 Holders 8 • A priority offer to Eligible Westpac Capital Notes 3 Holders to apply to reinvest all or some of their Westpac Capital Notes 3 in Reinvestment Offer Notes through the Reinvestment Offer For personal use only • An Eligible W
Slide 10: Key dates
Key dates 9 For personal use only Key dates for the Offer Key dates for Westpac Capital Notes 7 Record date for determining Eligible Record Date for first Distribution 12 March 2021 28 October 2020 Securityholders (7.00pm Sydney time) Announcement of Offer and lodgement of the First Distribution Pay
Slide 11: Capital Notes Key Risks
Westpac Capital Notes 7 Key Risks 10 For personal use only Caution - Westpac Capital Notes 7 are not deposit liabilities of Westpac, are riskier than bank deposits and may not be suitable for some investors. Their complexity may make them difficult to understand and the risks associated with the Not
Slide 12: Capital Notes Key Risks (continued)
Westpac Capital Notes 7 Key Risks (continued) 11 Caution - Westpac Capital Notes 7 are not deposit liabilities of Westpac, are riskier than bank deposits and may not be suitable for some investors. Their complexity may For personal use only make them difficult to understand and the risks associated
Slide 13: 2H20 Key financial metrics
2H20 Key financial metrics 12 For personal use only Change Asset quality: stress emerging, less than expected Financial metrics 2H20 1H20 2H20-1H20 Impairment charges and stressed exposures1 (bps) Reported net profit $1,100m $1,190m (8%) 80 500 Impairment charge to average loans annualised (lhs) 400
Slide 14: Asset quality
Asset quality 13 For personal use only Stressed exposures as a % of total committed exposure (%) Provisions for impairments 3.20 Sept-19 Mar-20 Sep-20 Watchlist & substandard 90+ day past due (dpd) and not impaired Total loan provisions to gross loans (bps) 54 80 88 Impaired Impaired asset provision
Slide 15: Key capital ratios
Key capital ratios 14 For personal use only Key capital ratios CET1 capital ratio 11.1% at 30 September 2020 10.5% unquestionably 0.6% Buffer % Sep-19 Mar-20 Sep-20 strong benchmark 2.5% 3.1% Buffer $13.7bn Unquestionably CET1 capital ratio 10.7 10.8 11.1 Strong expectation 8.0% requirement2 3.5% 3.
Slide 16: Additional Tier 1 profile
Additional Tier 1 profile 15 For personal use only Level 2 regulatory capital ratios (%) Annual issuance in the range of AUD1.3bn - 1.7bn1 Westpac Basel III AT1 issuance from FY13 (notional amount, AUD m) CET1 Additional Tier 1 Tier 2 . USD issuance AUD issuance (securityholder/general reinvestment)
Slide 17: Capital and earnings buffers
Capital and earnings buffers 16 Potential measures available to For personal use only Distribution Restriction Trigger1 Indicative Level 2 buffers3 Westpac to strengthen capital • Asset sales, including the businesses within the Specialist Business division • DRP discount and/or DRP underwrite • New
Slide 18: Additional Information and Appendices
Additional Information For personal use only and Appendices Additional Information Scheduled Conversion Summary of certain events that may occur Appendix 1: Joint Lead Managers
Slide 19: Capital Notes Additional information
Westpac Capital Notes 7 Additional information 18 For personal use only • Non-cumulative, floating rate Distributions paid quarterly in arrear • Expected to be fully franked (if not fully franked the cash amount of the Distribution will be increased to compensate for the unfranked portion) Distribut
Slide 20: Additional information: Scheduled Conversion
Westpac Capital Notes 7 Additional information Scheduled Conversion 19 For personal use only • On 22 March 2029, the first possible “Scheduled Conversion Date” and subject to the Scheduled Conversion Conditions being satisfied, the Notes will mandatorily Convert into Ordinary Shares Scheduled Conver
Slide 21: Summary of certain events that may occur
Westpac Capital Notes 7 Additional information Summary of certain events that may occur 20 The table below is a summary of certain events that may occur while the Notes are on issue and what Holders may receive under the Westpac Capital Notes 7 Terms. The events may not occur as their occurrence is
Slide 22: Appendix 1: Joint Lead Managers
Appendix 1: Joint Lead Managers 21 For personal use only ARRANGER AND JOINT LEAD MANAGER • Allan O’Sullivan (02) 8254 1425 Westpac Institutional Bank • Robert Moulton (02) 8253 4584 JOINT LEAD MANAGERS • Tariq Holdich (02) 8037 0622 ANZ Securities Limited • Brenton Smith (02) 8037 0036 Citigroup Glo
Slide 23: More information
More information 22 www.westpac.com.au/investorcentre For personal use only + - X Contact our team Joanne Dawson Guy Volpicella Treasurer, Westpac Banking Corporation Managing Director, Structured Funding and Capital +61 2 8253 4420 +61 2 8254 9261 joannedawson@westpac.com.au gvolpicella@westpac.com
Westpac Banking — Debt Investor Presentation (November 2020) on 6ix