Westpac Banking Corporation · ASX:WBC
Westpac Banking — Debt Investor Presentation (August 2021)
26 slides from Westpac Banking's debt investor presentation, August 2021
Slide 1: Westpac Capital Notes 8 Investor Presentation
Westpac Capital Notes 8 Investor Presentation Not for distribution in the United States Westpac Banking Corporation ABN 33 007 457 141 CAUTION – Westpac Capital Notes 8 are not deposit liabilities of Westpac, are riskier than bank deposits and may not be suitable for some investors. Their complexity
Slide 2: Disclaimer
Disclaimer 2 THIS PRESENTATION IS NOT FOR DISTRIBUTION IN THE UNITED STATES. YOU SHOULD CONSIDER AND READ THE PROSPECTUS IN FULL BEFORE DECIDING WHETHER TO INVEST IN WESTPAC CAPITAL NOTES 8. This presentation has been prepared and authorised by Westpac Banking Corporation (ABN 33 007 457 141, AFSL 2
Slide 3: 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 information contained in this presentation. To the maximum extent permitted by law, Westpac, the J
Slide 4: Summary of terms and conditions and Offer structure
Summary of terms and conditions and Offer structure 4 Issuer • Westpac Banking Corporation (“Westpac”) Quotation • Expected that the Notes will trade on ASX under the code WBCPK Size • Approximately $1.0 billion with the ability to raise more or less • Notes will qualify as Additional Tier 1 Capital
Slide 5: Certain events that may affect Holders
Certain events that may affect Holders 5 OPTION FOR WESTPAC TO CONVERT, REDEEM OR TRANSFER SCHEDULED CONVERSION DATE 15 September Each Distribution Payment Date 21 September 21 December 21 March 21 June 21 June 2032, the first possible 2021, after the first possible 2029 2029 2030 2030 Scheduled Con
Slide 6: 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 8 Westpac Capital Notes 7 Westpac Capital Notes 4 ASX code WBCPK2 WBCPJ WBCPG Issue date • 15 September 2021 • 4 December 2020 • 30 June 2016 Term • Perpetual with the first possible • Perpetual with t
Slide 7: Offer summary
Offer summary 7 • The Offer is for the issue of Westpac Capital Notes 8 at an Issue Price of $100 to raise approximately $1.0 billion, with the ability to raise more or less • The Offer includes a Reinvestment Offer, which is a priority offer to Eligible Westpac Capital Notes 4 Holders to reinvest a
Slide 8: Priority Reinvestment Offer for Eligible Westpac Capital Notes 4 Holders
Priority Reinvestment Offer for Eligible Westpac Capital Notes 4 Holders 8 • A priority offer to Eligible Westpac Capital Notes 4 Holders to apply to reinvest all or some of their Westpac Capital Notes 4 in Notes through Reinvestment Offer the Reinvestment Offer • An Eligible Westpac Capital Notes 4
Slide 9: Key dates
Key dates 9 Key dates for the Offer Key dates for Westpac Capital Notes 8 Record date for determining Eligible Securityholders Record Date for first Distribution 13 December 2021 10 August 2021 (7.00pm Sydney time) First Distribution Payment Date1 21 December 2021 Announcement of the Offer and lodge
Slide 10: Westpac overview
Westpac overview 10 Earnings • Cash earnings $3.5bn, up $1.9bn on 2H20 as at • Cash ROE 10% 31 March 2021 • Net interest margin 2.09%, up 6bps on 2H20 Balance sheet • CET1 capital ratio of 12.0% strength • Announced divestments expected to add ~50bps to the CET1 capital ratio1 as at • Given excess c
Slide 11: Credit quality
Credit quality 11 Stressed exposures as a % of TCE 3.20 1 Impaired 90+ day past due and not impaired Watchlist & substandard 3.0 Increase in impaired Reduction in watchlist and Increase in 90+ day past due and not in 3Q21 mainly driven impaired in 3Q21 driven by migration substandard in 3Q21 mainly
Slide 12: Australian mortgage delinquencies
Australian mortgage delinquencies 12 Australian mortgages Sep-20 Mar-21 Jun-21 Australian mortgage delinquencies (%) Total portfolio 30+ day delinquencies (bps) 214 179 176 4.0 90+ day past due total 30+ day past due total Total portfolio 90+ day delinquencies (bps) 162 120 111 3.0 (incl. impaired m
Slide 13: Funding and liquidity
Funding and liquidity 13 Key funding and liquidity measures Net stable funding ratio (%) Liquidity coverage ratio (%) Deposits to net loans ratio (%) Term Funding Facility1 (TFF) ($bn) Quarterly average 30 151 Supplementary 80.1 79.8 80.2 allowance 122 123 123 12 (Drawn down 124 127 Oct-20 to Jun-21
Slide 14: Additional Tier 1 securities profile
Additional Tier 1 profile 14 Annual issuance in the range of AUD1.3bn - 1.7bn1 Westpac Basel III AT1 issuance from FY13 (notional amount, AUD m) AUD issuance (securityholder/general reinvestment) USD issuance 1,7022 1,6902 1,7232 1,5761 1,384 248 230 1,4232 324 1,3112 1,324 131 79 169 299 1,454 1,46
Slide 15: Key capital ratios
Key capital ratios 15 Key capital ratios (%) Sep-20 Mar-21 Jun-21 CET1 capital ratio (%)2 CET1 capital ratio 11.1 12.3 12.0 12.3 (0.5) 4.0% Buffer 0.4 12.0 (0.2) 11.1 1.0% D-SIB Additional Tier 1 capital ratio 2.1 2.2 2.2 1.0% D-SIB 1.0% D-SIB 4.0% CCB Tier 1 capital ratio 13.2 14.5 14.2 4.5% PCR 4.
Slide 16: Capital buffers
Capital buffers 16 Potential measures available to Distribution Restriction Trigger1 Indicative Level 2 buffers3 Westpac to strengthen capital • Asset sales, including the businesses within the CET1 capital ratio 12.3% as at Specialist Business division 31 March 2021 • DRP discount and/or DRP underw
Slide 17: Key risks
Key risks 17 Caution - Westpac Capital Notes 8 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 Notes could result in the loss of all of your inv
Slide 18: Key risks (continued)
Key risks (continued) 18 Caution - Westpac Capital Notes 8 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 Notes could result in the loss of all
Slide 19: Additional Information and Appendices
Additional Information and Appendices Distributions Scheduled Conversion Capital Trigger Event and Non-Viability Trigger Event Optional Exchange and Acquisition Event Summary of certain events that may occur Appendix 1: Joint Lead Managers
Slide 20: Additional information: Distributions
Westpac Capital Notes 8 Additional information Distributions 20 • 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) Distributions • D
Slide 21: Additional information: Scheduled Conversion
Westpac Capital Notes 8 Additional information Scheduled Conversion 21 • On 21 June 2032, the first possible Scheduled Conversion Date and subject to the Scheduled Conversion Conditions being satisfied, the Notes Scheduled will mandatorily Convert into Ordinary Shares Conversion • Holders will recei
Slide 22: Capital Trigger Event and Non-Viability Trigger Event
Westpac Capital Notes 8 Additional information Capital Trigger Event and Non-Viability Trigger Event 22 • A Capital Trigger Event occurs if Westpac determines, or APRA notifies Westpac in writing that it believes, that Westpac’s Common Equity Tier 1 Capital Trigger Event Capital Ratio is equal to or
Slide 23: Optional Conversion, Redemption or Transfer and Acquisition Event
Westpac Capital Notes 8 Additional information Optional Conversion, Redemption or Transfer and 23 Acquisition Event • Westpac may elect to Convert into Ordinary Shares (subject to certain conditions), Redeem or Transfer: – all or some of the Notes on 21 September 2029, 21 December 2029, 21 March 203
Slide 24: Summary of certain events that may occur
Westpac Capital Notes 8 Additional information Summary of certain events that may occur 24 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 8 Terms. The events may not occur as their occurrence is
Slide 25: Appendix 1: Joint Lead Managers
Appendix 1: Joint Lead Managers 25 ARRANGER AND JOINT LEAD MANAGER • Allan O’Sullivan +61 424 575 938 Westpac Institutional Bank • Tyler O’Brien +61 419 881 284 JOINT LEAD MANAGERS • Tariq Holdich +61 403 445 535 ANZ Securities Limited • Brenton Smith +61 413 854 575 Citigroup Global Markets Austral
Slide 26: More information
More information 26 westpac.com.au/investorcentre + - X Contact our team Joanne Dawson Guy Volpicella Treasurer, Westpac Banking Corporation Managing Director, Structured Funding and Capital +61 408 192 742 +61 458 265 917 joannedawson@westpac.com.au gvolpicella@westpac.com.au Jacqueline Boddy John
Westpac Banking — Debt Investor Presentation (August 2021) on 6ix