Slide 1: 1Q22 Update
1Q22 Update Financial results throughout this presentation are in Australian dollars and are based on cash earnings unless otherwise stated. Refer to page 14 for cash earnings definition. All results relating to 1Q22 are unaudited. This document should be read in conjunction with Westpac’s December
Slide 2: 1Q22 Summary
1Q22 Summary.1 Summary • Reported profit $1,815m, up 80% on 2H21 quarter average Earnings increased • Cash earnings excluding notable items2 $1,580m, up 1% on 2H21 quarter average - Expenses down 7%, excluding notable items - Net interest margin (NIM) 1.91%, down 8bps from 2H21 • CET1 capital ratio
Slide 3: Unaudited 1Q22 results includes notable items
Unaudited 1Q22 results includes notable items.1 Performance 2H21 Qtr ($m) Avg 1Q22 Change • AIEA2 of $868bn, up $43bn (or 5%), mostly liquid assets up $29bn and gross loans Net interest income 4,123 4,182 1% up $11bn3 • NIM 1.91%, down 8bps Non-interest income 997 929 (7%) • Non-interest income down
Slide 4: Unaudited 1Q22 cash earnings excluding notable items
Unaudited 1Q22 cash earnings excluding notable items.1 Performance Cash earnings impact of notable items 2H21 Qtr ($m) Avg 1Q22 Change ($m) 2H21 Qtr Avg 1Q22 Net interest income 4,094 4,182 2% Net interest income 28 - Non-interest income 72 55 Non-interest income 925 874 (6%) Expenses (801) (38) Exp
Slide 5: Margins and expenses
Margins and expenses. Performance NIM (% and bps) Competition in mortgage and business $29bn increase in lending, high fixed rate flows, partly average liquid assets • NIM ex Treasury & Markets for Dec-21 month offset by deposit repricing 1.67%. Expect NIM to decline further in FY22 • Increased liqu
Slide 6: Expected credit loss provisions
Expected credit loss provisions. Provisioning Prudence maintained. Expected credit loss provisions1 ($m) Economic forecasts for base case economic scenario in provision models2 Overlay Stage 1 CAP Stage 2 CAP As at September 2021 As at December 20213 Stage 3 CAP Stage 3 IAP 6,159 2022 2023 2022 2023
Slide 7: Credit quality metrics improved
Credit quality metrics improved. Credit quality Stressed exposures down 21bps in 1Q22. Stressed exposures as a % of TCE Australian mortgage 90+ day delinquencies (%) Watchlist and • Ratings upgrades and repayments substandard in WIB 4.0 90+ day delinquencies 90+ day past • Decrease in mortgage 30+ d
Slide 8: New Zealand credit quality stable
New Zealand credit quality stable. Credit quality Mortgage 90+ day delinquencies1 (%) Unsecured consumer 90+ day delinquencies1 (%) 0.6 90+ day past due (ex-hardship) 3.0 90+ day past due (ex-hardship) 90+ day past due 90+ day past due 0.5 0.4 Introduction of changes to 2.0 Introduction of changes t
Slide 9: Capital well above unquestionably strong requirement
Capital well above unquestionably strong requirement. Capital Key capital ratios. % Mar-21 Sep-21 Dec-21 CET1 ratio (% and bps) Level 2 capital ratios 35 (50) CET1 capital ratio 12.3 12.3 12.2 12.32 25 (80) (21) 20 4 12.20 11.65 Additional Tier 1 capital ratio 2.2 2.3 2.2 Tier 1 capital ratio 14.5 1
Slide 10: Risk weighted assets
Risk weighted assets.1 Capital Risk weighted assets ($bn) 2.5 2.5 0.7 0.3 (0.3) 442.4 436.7 428.9 Up $5.8bn or 1.3% Mar-21 Sep-21 Credit risk Market risk IRRBB Operational Other Dec-21 risk Movement in credit risk weighted assets ($bn) Commentary 5.0 (0.7) (1.8) 359.8 • RWA increased $5.8bn over 1Q2
Slide 11: Funding and liquidity
Funding and liquidity. Funding and liquidity Key funding and liquidity measures Liquidity coverage ratio (%) Net stable funding ratio (%) Deposits to net loans ratio (%) Quarterly average 142 83.6 81.6 79.8 129 124 125 127 123 Mar-21 Sep-21 Dec-21 Mar-21 Sep-21 Dec-21 Mar-21 Sep-21 Dec-21 Term debt
Slide 12: New organisational structure
New organisational structure. Organisational structure Changes Outcomes • Combining the Group Executive roles of Risk and Financial Crime • Better customer outcomes - decision making closer to customers Compliance and Conduct under the Chief Risk Officer • Smaller, more efficient Group head office r
Slide 13: Appendix
Appendix Financial results throughout this presentation are in Australian dollars and are based on cash earnings unless otherwise stated. Refer to the 2021 Full Year Financial Results Presentation and Investor Discussion Pack for definition. All results relating to 1Q22 are on an unaudited basis. Th
Slide 14: 1Q22 reported net profit after tax
1Q22 reported net profit after tax.1 Appendix Cash earnings3 policy and cash earnings Reported net 2H21 Qtr Details adjustments to reported profit profit ($m) Avg 1Q22 • Reported net profit $1,815m, up 80% on 2H21 Westpac Group uses a measure of performance quarter average referred to as cash earnin
Slide 15: Segment reporting change from 1H22
Segment reporting change from 1H22. Appendix Division Lines of business (LOB) Major changes Consumer1 • Mortgages Consumer & Business • Consumer finance • Consumer deposits • All Australian mortgages (both business and consumer) now included in Mortgage LOB Bank • Deposit LOB split into consumer and
Slide 16: Investor Relations Team
Investor Relations Team. Contact us Contact us. Andrew Bowden Neil Wesley Head of Investor Relations Head of Institutional Investor Relations Louise Coughlan Jacqueline Boddy Head of Ratings Agencies and Analysis Head of Debt Investor Relations Andrea Jaehne Arthur Petratos Director, Ratings Agencie
Slide 17: Disclaimer
Disclaimer Disclaimer 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 be relied