Westpac Banking Corporation · ASX:WBC
Westpac Banking — Debt Investor Presentation (February 2014)
80 slides from Westpac Banking's debt investor presentation, February 2014
Slide 1: Full Year 2013 Investor Update
WESTPAC FULL YEAR 2013 INVESTOR UPDATE FIXED INCOME INVESTOR PRESENTATION FOR THE YEAR ENDED 30 SEPTEMBER 2013 FEBRUARY 2014
Slide 2: Disclaimer
Disclaimer The presentation was prepared and will be used by Westpac Banking Corporation (“Westpac”) for use in relation to the Westpac Japanese Yen Bonds (the “Bonds”) to be issued under its Shelf Registration Statement for the offering of bonds. The Bonds have not been and will not be registered u
Slide 3: 免責事項
免責事項 本資料は、Westpac Banking Corporation（以下「ウエストパック」といいます。）により、ウエストパック円貨社債（社債の募集に関するウエスト パックの発行登録書に基づき発行予定の社債であり、以下「本社債」といいます。）に関連して作成され、使用される資料です。本社債は、アメリカ 合衆国1933年証券法（その後の改正を含みます。）に基づき現在登録されておらず、また今後も登録される予定はなく、アメリカ合衆国内において、 募集又は売付けを行うことはできません（本社債が同法に基づき登録され又は同法での登録義務を免除される場合を除きます。）。本資料は、日 本の金融商品取引法に
Slide 4: Index
INDEX FY13 HIGHLIGHTS 4 ECONOMICS 19 AUSTRALIAN HOME LENDING 30 SECURITISATION 43 ADDITIONAL INFORMATION 47 APPENDICES 59
Slide 5: 目次
目次 FY13 HIGHLIGHTS 4 ECONOMICS 19 AUSTRALIAN HOME LENDING 30 SECURITISATION 43 ADDITIONAL INFORMATION 47 APPENDICES 59
Slide 6: FY13 highlights: higher earnings and a stronger balance sheet
FY13 highlights: higher earnings and a stronger balance sheet % Change Strong financial performance Disciplined margin management FY13 Cash earnings results FY13 FY13 – FY12 Cash earnings ($m) Net interest margin (%) Financial results 7,097 Cash earnings $7,097m 8 6,598 6,301 2.33 2.22 2.22 2.17 2.1
Slide 7: 2013年度ハイライト：収益の増加及びより堅固なバランスシート
2013年度ハイライト：収益の増加及びより堅固なバランスシート 2013年度現金収益 2013年度 前年度比(%) 好調な業績 厳密なマージン管理 現金利益 ($m) 純利鞘 (%) 業績 7,097 現金利益 $7,097m 8 6,598 6,301 2.33 2.22 2.22 2.17 2.15 法定利益 $6,816m 14 5,879 純業務収益 $18,833m 4 営業経費 $7,710m 4 4,675 減損費用 $847m (30) 評価基準 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 一株あたり利益 228.9c 6
Slide 8: Westpac continues to deliver on key measures
Westpac continues to deliver on key measures Strong capital generation Common equity tier 1 ratio (%) Return on equity (%) APRA APRA Common equity tier 1 ratio 11.6%1 APRA Basel 2 Basel 2.5 Basel 3 Basel 31 FY13 ROE above 15% 11.6 16.1 16.0 16.0 15.5 9.1 Strong franchise 7.5 8.1 8.4 ≥20% market shar
Slide 9: ウエストパックは主要基準で継続的に成果を上げている
ウエストパックは主要基準で継続的に成果を上げている 堅固な資本形成 普通株等Tier1資本比率 (%) ROE (%) APRA APRA 普通株等Tier1資本比率11.6%1 APRA Basel 2 Basel 2.5 Basel 3 Basel 31 2013年度の ROEは15％以上 11.6 16.1 16.0 16.0 15.5 健全なフランチャイズ 7.5 8.1 8.4 9.1 オーストラリア、ニュージーランドにおける 住宅ローン、預金、資産管理部門のマー ケットシェアは20％以上 2 資産の質は強み FY10 FY11 FY12 FY13 FY13 FY10 FY11 FY
Slide 10: Clear strategic priorities managed in a balanced way
Clear strategic priorities managed in a balanced way 1 Remain strong 2 Strength Return Targeted growth A strong company Maintain discipline Capital within preferred Maintain strong ROE range of 8.0% - 8.5% Maintain dividend path Target stable funding 3 ratio >75% Customer relationships Productivity
Slide 11: 明確な戦略上のプライオリティ
明確な戦略上のプライオリティ 1 引き続き健全な銀行 2 強み 利益 目標とする成長率 健全な銀行 規律を維持 資本は8.0% - 8.5%に収め 高いROEを維持 られており目標安定調達 配当を維持 比率は75%超 3 顧客との関係性 生産性 成長 業界トップ 投資中心 費用対収益比率は他行 預金、アジア、中小企業、 4 と比べ最も低いレベルを 貿易、天然資源、などの分 簡素化 維持 野でより高い成長 5 ワン・チーム Westpac Group FY13 Fixed Income Investor Update | February 2014 | Japan Roadshow 6
Slide 12: All divisions and brands contributing to growth
All divisions and brands contributing to growth Westpac Retail & Business • FY13 cash earnings $2.3bn FY13 Cash earnings by division (%) Banking • Up 9% on FY12 2 Westpac RBB Australian Financial Services Australian retail and business 3 banking for consumers, SMEs and • Strong franchise continuing
Slide 13: 全ての部署とブランドが成長に寄与
全ての部署とブランドが成長に寄与 ウエストパック・リテール及びビジ • 2013年度の現金利益は23億豪ドル 2013年度部門別現金収益 (%) ネスバンキング： • 前年度比 9%増 2 Westpac RBB オーストラリアの消費者顧客、中小 Australian Financial Services 3 企業顧客、商業顧客向けのリテール • フランチャイズが強く顧客が増加 9 St.George 32 及びビジネスバンキング BT 23 WIB セントジョージ・バンキング・グ • 2013年度の現金利益は14億豪ドル New Zealand ループ： • 前年度比17%増 10 20 P
Slide 14: Setting Westpac apart
Setting Westpac apart – Domestic customer focus, efficiency and balance sheet strength Clear focus on Australia and New Zealand Wealth penetration2 leads sector (%) Leader in efficiency Total income by geography1 (%) Westpac R&BB St.George Expense to income ratio1 (%) Peer 1 Peer 2 Peer 3 45.0 2 4 4
Slide 15: ウエストパックを際立たせる
ウエストパックを際立たせる 国内顧客への注力、効率、バランスシートの強さ オーストラリア及びニュージーランドに注力 資産管理部門のマーケットシェア1位2 (%) 効率面で業界トップ 地域別収益1 (%) Westpac R&BB St.George 費用収益率1 (%) Peer 1 Peer 2 Peer 3 45.0 2 4 44.8 Asia, Pacific, 10 15 21.2% 44.0 17 9 Europe & 8 18.9% 40.9 Americas 15 New Zealand 14.9% 14.4% 88 87 13.9% 67 76 Australia Mar-10
Slide 16: Completed acquisition of Lloyds Banking Group's Australian businesses
Completed acquisition of Lloyds Banking Group’s Australian businesses • On 11 October 2013 Westpac entered into an agreement to acquire Lloyds Summary of businesses acquired Banking Group’s Australian business for $1.45bn. The acquisition was completed on 31 December 2013 (no impact on FY13 results)
Slide 17: ロイズバンキンググループのオーストラリア事業を取得
ロイズバンキンググループのオーストラリア事業を取得 • 2013年10月11日、ウエストパックはロイズバンキンググループのオーストラリア事業 取得した事業の概要 を14.5億豪ドルで取得することに合意し、2013年12月31日に買収は完了（2013年 度の業績への影響はなし） • 資産29億豪ドル • 84億豪ドルの資産ベースでリスク加重資産は91億豪ドル – 中小企業19億豪ドル（セントジョージが管理） • 資産はウエストパックの資産ベースの1.2%を占め、ウエストパックグループのオース – 法人10億豪ドル（ウエストパックIBが管理） トラリア事業のポートフォリオを約7%押し上げた 設備融
Slide 18: Strong capital generation in FY13
Strong capital generation in FY13 Key capital ratios (%) FY12 FY13 Preferred range Increase in common equity tier 1 ratio2 (bps) APRA Basel 2.5 APRA Basel III Common equity tier 1 ratio 8.4 9.1 8.0% - 8.5% Added 200bps 94 to capital in 79 Additional tier 1 capital 1.9 1.6 last 3 years Tier 2 capital
Slide 19: 2013年度の強固な資本基盤
2013年度の強固な資本基盤 主要資本比率(%) FY12 FY13 望ましいレンジ 普通株等Tier1資本比率の増加2 (bps) APRA Basel 2.5 APRA Basel III 普通株等Tier1資本比率 8.4 9.1 8.0% - 8.5% 94 直近3年間で資 追加的な Tier 1 資本 1.9 1.6 本は200bps増加 79 Tier 2 資本 1.4 1.6 自己資本比率 11.7 12.3 11.5% - 12.0% 27 リスク加重資産 $298bn $307bn FY12 FY13 普通株等Tier1資本比率 (BCBS1 Basel III) 10.6
Slide 20: Fully harmonised common equity tier ratio above local peers
Fully harmonised common equity tier 1 ratio above local peers and at the upper end of global peers Global peer comparison of Basel III pro-forma common equity tier 1 ratios1 (%) 14.7 14.5 12.3 12.3 11.6 11.5 11.4 Basel III minimum 7.0% 11.2 11.2 11.0 10.8 10.8 10.7 10.5 10.3 10.1 10.1 10.0 9.6 9.6 9
Slide 21: バーゼル3完全移行後の普通株等Tier1資本比率
バーゼル3完全移行後の普通株等Tier1資本比率は国内トップ、 全世界でもトップレベル プロフォーマベースのバーゼル3 普通株等Tier1資本比率1 (%) 14.7 14.5 12.3 12.3 11.6 11.5 11.4 バーゼル3要件7.0% 11.2 11.2 11.0 10.8 10.8 10.7 10.5 10.3 10.1 10.1 10.0 9.6 9.6 9.3 9.3 9.2 9.0 8.9 8.9 8.8 8.6 8.6 8.5 Westpac Nordea CIBC BOQ Citicorp DBS CBA NAB Bank of America UBI Banca
Slide 22: Westpac has built a strong and sustainable funding profile
Westpac has built a strong and sustainable funding profile • Stable funding ratio1 (SFR) 84%, up 99bps Funding composition by residual maturity (%) • Customer deposits 61% of total funding, up 290bps • Continued strong growth in customer deposits, up $35bn over the year, SFR1 64% SFR1 83% SFR1 84% e
Slide 23: 持続可能な資金調達プロファイルを構築
持続可能な資金調達プロファイルを構築 • 安定調達比率1 (SFR)は99bps 増加して84% 残存期間別の資金調達内訳 (%) • 顧客預金は290bps増加して調達額全体の61% • 顧客預金は年間で350億豪ドル増と伸び続けており、グループに以下をもたらし SFR1 64% SFR1 83% SFR1 84% ホールセール・オンショア Wholesale Onshore <1Yr た： （1年以下） – 年間のファンドローンの伸びは377bpsとなり、顧客の預貸率が71.4％に改善 7 7 ホールセール・オフショア 16 Wholesale （1年超） Offshore <1Yr –
Slide 24: Above system growth in customer deposits
Above system growth in customer deposits • Customer deposits grew strongly over the year, up $35bn or 10% Australian household deposits market share1 (%) and • Focus on growing deposits with higher LCR value growth compared to system1 (times) – Particularly strong growth in Australian household depo
Slide 25: 顧客預金は平均的成長を上回る
顧客預金は平均的成長を上回る • 顧客預金は年間で大幅に拡大、10%増の350億豪ドル オーストラリアの家計預金マーケットシェア1 (%) 及び平均的成長を上回る • 流動性カバレッジ比率はより高くしつつ、預金拡大にフォーカス 伸び1 (倍) – オーストラリア家計預金に特に大きな伸び 平均的成長(右軸) ウエストパックの家計預金マーケットシェア o 平均成長1.3倍の成長率1 23.0 23.20 22.8 o マーケットシェアは1年で45bps 拡大し23%に1 23.00 22.6 22.80 22.3 22.4 22.60 – 法人向けの投資用口座Evergreen を2013年2月に
Slide 26: Wholesale funding significantly lower; provides capacity for growth
Wholesale funding significantly lower; provides capacity for growth • $22bn term debt issued in FY13 Term debt issuance and maturity profile1 ($bn) • Includes $2.3bn in Tier 1 and Tier 2 capital securities Covered Bond Hybrid Senior Govt Guaranteed Sub Debt • Weighted average maturity of new issuanc
Slide 27: ホールセール調達は大幅に減少し成長に寄与
ホールセール調達は大幅に減少し成長に寄与 • 2013年度、220億豪ドルのタームデットを発行 タームデット発行と償還プロファイル1 (10億豪ドル) • 上記には23億豪ドルのTier1及びTier2資本証券 を含む カバードボンド ハイブリッド証券 シニア債 政府保証債 劣後債 • 新発債の加重平均年限は4.8年（2012年度は4.3 45 Issuance Maturities 年） 43 • 2014年度に向け、状況は良好 33 – アクティブな償還管理 - 2013年度、豪ドル建 て及び米ドル建て政府保証債80億豪ドル相当 25 22 24 23 を買い戻し 19 19 15 – 2
Slide 28: Issuance capabilities delivering diversity in new term funding
Issuance capabilities delivering diversity in new term funding New term funding by type1 (%) New term funding by currency1 (%) FY12 FY13 1H13 6 FY12 3 9 6 4 AUD USD 4 11 4 8 14 Series 1 34 1 EUR JPY 2 47 6 Series 55 2 GBP Other 0 33 21 Series 3 44 Senior unsecured Covered bonds RMBS & ABS FY13 Hybri
Slide 29: 発行能力が高く、新しいタームファンディングに多様化をもたらす
発行能力が高く、新しいタームファンディングに多様化をもたらす 種類別タームデット新規発行1 (%) 通貨別タームデット新規発行1 (%) FY12 FY13 1H13 6 FY12 3 9 6 4 AUD USD 4 11 4 8 14 Series 1 34 1 EUR JPY 2 47 6 Series 55 2 GBP Other 0 33 21 Series 3 44 無担保シニア債 カバードボンド 住宅ローン担保証券 FY13 ハイブリッド証券 劣後債 USD private, 11 年限別タームデット新規発行1,2 (%) USD public, 32 EUR public, 6
Slide 30: Significant improvement in asset quality
Significant improvement in asset quality Stressed exposures as a % of TCE1 (%) and provisions ($m) Stressed exposures by industry ($bn) Impaired (lhs) 5 2H12 1H13 2H13 90+ days past due well secured (lhs) Watchlist & substandard (lhs) IAP (rhs) Total Provisions (rhs) 4 4.0 CAP (inc. economic overlay
Slide 31: 資産の質の大幅な改善
資産の質の大幅な改善 TCE1 (%)及び引当金(100万豪ドル)のストレス・エクスポージャー 産業別ストレス・エクスポージャー (10億豪ドル) Impaired (lhs) 5 2H12 1H13 2H13 90+ days past due well secured (lhs) Watchlist & substandard (lhs) IAP (rhs) Total Provisions (rhs) 4 4.0 CAP (inc. economic overlay) (rhs) 5,500 5,000 3 3.17 3.20 3.09 4,500 3.0 2.85 4,000 2.48
Slide 32: Maintaining mortgage portfolio quality
Maintaining mortgage portfolio quality Westpac Australian housing 2H12 1H13 2H13 2H13 Australian housing portfolio (%) portfolio Balance Balance Balance Flow1 FY13 drawdowns LVR at origination Total portfolio ($bn) 316.3 321.9 328.5 29.5 70 Portfolio LVR at origination Owner-occupied (%) 48.2 48.1 4
Slide 33: 住宅ローンポートフォリオの質を維持
住宅ローンポートフォリオの質を維持 ウエストパックの住宅ローンポー 2H12 1H13 2H13 2H13 オーストラリア国内の住宅ローンポートフォリオ (%) トフォリオ（オーストラリア） Balance Balance Balance Flow1 FY13 drawdowns LVR at origination ポートフォリオ全体 (10億豪ドル) 316.3 321.9 328.5 29.5 70 Portfolio LVR at origination 所有者居住用ローン (%) 48.2 48.1 47.9 48.4 Portfolio dynamic LVR 2,3,4 60 投
Slide 34: Mortgage customer behaviour remains cautious
Mortgage customer behaviour remains cautious • Australian mortgage customers continue to display a cautious Australian home loan customers ahead on repayments1,2 (%) approach to debt levels, taking advantage of historically low mortgage rates to pay down debt Sep-12 50 Mar-13 exc. mortgage offset ac
Slide 35: 住宅ローンの顧客は依然として慎重
住宅ローンの顧客は依然として慎重 • オーストラリアの住宅ローン顧客は債務レベルに対し依然として慎重であ オーストラリアの住宅ローン顧客のうち前倒して返済している割合1,2 (%) り、かつてない住宅ローン利率の低さを利用して返済を続けている Sep-12 – 住宅ローン差引口座の残高を含むと、顧客の71%が返済を繰り上げて 50 Mar-13 exc. mortgage offset accounts おり、うち22%は2年以上前倒している Sep-13 40 Sep-13 inc. mortgage offset accounts – 住宅ローン差引口座の残高を除くと、オーストラリアの住宅
Slide 36: Economics
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Slide 37: Australian and New Zealand economic forecasts
Australian and New Zealand economic forecasts Calendar year Key economic indicators1 (%) as at January 2014 2011 2012 2013f 2014f World GDP 3.9 3.2 2.8 2.8 Australia GDP 2.4 3.6 2.4 2.6 Private consumption 3.1 2.5 1.8 2.8 Business investment2,3 17.0 16.3 -2.0 -2.0 Unemployment – end period 5.2 5.3 5
Slide 38: Australia's diverse and robust economy
Australia’s diverse and robust economy • Diverse economy that goes well beyond mining - more than 80% of the economy is services based • 22 years of uninterrupted economic growth (1991 – 2012) – One of the few countries rated AAA/Aaa/AAA (S&P/Moody’s/Fitch) • Only economy to consistently rank in the
Slide 39: Australia well-placed relative to developed economies
Australia well-placed relative to developed economies • Economy continues to perform well relative to other developed economies • GDP is forecast to grow 2.4% in 2013 and 2.6% in 2014 – Growth expected to be below trend as the economy adjusts to lower levels of mining investment and non-mining inves
Slide 40: Policy rate changes having desired effect
Policy rate changes having desired effect • Cash rate has been cut by 225bps since 2011 − Currently 2.50% (February 2014) − Low by historical standards but still leaves scope for additional easing if required • Policy changes are having an effect, with the clearest evidence in housing markets where
Slide 41: Australia's economic transition: from mining to non-mining
Australia’s economic transition: from mining to non-mining • Australia experiencing a rotation of economic growth from mining to non-mining activity – Mining investment is entering a sustained decline, after several years of strong rises, that will see it swing from being a significant growth driver
Slide 42: Commodity cycle evolves
Commodity cycle evolves • Australia’s mining boom is entering a new phase in which investment winds back from recent extreme highs but production and exports surge strongly as new projects become productive • With commodity price declines acting as a drag on incomes near term, the mix will see minin
Slide 43: Credit growth expected to remain relatively subdued
Credit growth expected to remain relatively subdued • Domestic business and household balance sheets remain in good shape – For businesses, pressure on incomes has been mitigated by low gearing levels – For households, efforts to increase savings and repayment buffers have bolstered balance sheets i
Slide 44: Chinese growth remains a positive for Australia
Chinese growth remains a positive for Australia • As a $US7 trillion economy, China grew at 10%. As a $US10 trillion economy, we expect it to grow at 7% • Represents an equivalent incremental contribution to global absorptive capacity, at higher levels of energy, protein, metal and consumer goods de
Slide 45: New Zealand – the economic cycle
New Zealand – the economic cycle • The New Zealand economy is experiencing a strong upturn in domestic demand, driven by earthquake-related construction activity and rising house prices • Economic growth for the year to Sept 2013 was 2.6%. GDP growth rebounded strongly in the September quarter as th
Slide 46: New Zealand – the housing market
New Zealand – the housing market • House price inflation has accelerated to almost 10% on a nationwide basis, but there are wide regional differences – 17.9% in Auckland, low single digits in many other parts of New Zealand • The main driver has been low interest rates – the Reserve Bank of New Zeal
Slide 47: Australian Home Lending
AUSTRALIAN HOME LENDING
Slide 48: Housing activity responding to monetary policy
Housing activity responding to monetary policy • Australia’s housing sector is showing clear signs of a pick-up although the response to lower interest rates has been slower and more muted than in previous easing cycles and conditions remain uneven across segments and states • The value of loan appr
Slide 49: Australian house prices recovering
Australian house prices recovering • House prices are firming again, up 7.4% in the year to September nationally, Dwelling prices: Australia capital cities (index) after a moving through a mild correction in 2011-12 index index – Conditions vary with gains ranging from around 8% in Sydney and Perth,
Slide 50: Housing market fundamentals sound
Housing market fundamentals sound • Significant tightening in the supply-demand balance for housing over the last decade from a combination of strong migration-driven population growth and subdued new dwelling construction. Pressure is evident in – Rental markets where vacancy rates have been near h
Slide 51: Housing affordability much improved
Housing affordability much improved • Despite recent gains in house prices, affordability remains relatively good by historical standards – Measures based on the proportion of income required to service a mortgage on a median priced dwelling show, nationally, the best mix of prices, interest rates a
Slide 52: Household leverage: a more cautious approach
Household leverage: a more cautious approach • The last five years have seen a significant shift in the behaviour of Australian households, resulting in a major shift in household leverage • A more cautious attitude towards finances has seen a sharp and sustained rise in household savings rates, slo
Slide 53: Australian mortgage market features underpin asset quality
Australian mortgage market features underpin asset quality Australian mortgage market Australian bank mortgage market share1 (%) Market share • 4 major banks dominate - 83% share held • Major banks have a lower share of low doc market, with 16% low flow in this segment over recent years Westpac (inc
Slide 54: Australian housing portfolio delinquencies at low levels
Australian housing portfolio delinquencies at low levels Delinquencies Australian mortgage 90+ days delinquencies (%) • Lower interest rates and a continued conservative approach to debt 1.5 by borrowers have supported very strong credit quality ALL NSW/ACT VIC/TAS QLD WA SA/NT • 90+ days delinquenc
Slide 55: Australian investment property portfolio performing well
Australian investment property portfolio performing well • Investment property loans (IPLs) make up Australian mortgage1 loan-to-value ratio Australian mortgage1 applicants by gross 43.1% of Westpac’s Australian mortgage at origination (%) income band (%) portfolio Owner Occupied IPL 50 25 Owner Occ
Slide 56: Lenders mortgage insurance managing risk transfer
Lenders mortgage insurance managing risk transfer • Lenders mortgage insurance provides the following benefits to the Westpac Group Lenders mortgage insurance (LMI) structure at 30 September 2013 – Risk transfer / loss mitigation – Improvement in the quality of risk acceptance via the additional lay
Slide 57: Mortgage portfolio stress testing outcomes
Mortgage portfolio stress testing outcomes • Westpac regularly conducts a range of portfolio stress tests as part of Australian mortgage portfolio stress testing as at 30 September 2013 its regulatory and risk management activities • The Australian mortgage portfolio stress testing scenario presente
Slide 58: Home loan evaluation process - originations
Home loan evaluation process - originations Origination Credit • Westpac • Approved third party • Regardless of origination source, all Application loans are subject to Westpac’s standard underwriting criteria Manual Credit Decision Exception Request Credit Manager Referral Automated Credit Decision
Slide 59: Arrears management and collections
Arrears management and collections • Customer delinquency management is segmented by risk: Typical collections process (medium risk customer) Days – Risk is assessed based on historical loan and customer attributes – Higher risk customers are contacted earlier and more assertively, SMS 3 leaving low
Slide 60: Securitisation
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Slide 61: Securitisation an important part of the Group's funding
Securitisation an important part of the Group’s funding • Securitisation is an important part of the Group’s funding Original RMBS and ABS issuance by calendar year (A$bn) – A$10bn in outstanding issuance, represents 2% of the Group’s total funding at 30 September 2013, mostly RMBS issuance WST Crus
Slide 62: WST RMBS performance
WST RMBS performance Key pool comparison statistics (issuance) High quality product WST WST WST WST WST WST WST 2013-2 2013-1 2012 - 1 2011-3 2011-2 2011-1 2009-1 • All WST transactions backed by prime Pricing Date Sep-13 Feb-13 May-12 Oct-11 Jun-11 Feb-11 Dec-09 residential mortgages Tranche A A A
Slide 63: Crusade ABS transaction comparison
Crusade ABS transaction comparison • Crusade ABS – 100% auto receivables • Credit enhancement in excess of minimum required by agencies • Long seasoning • 12 month revolving period Deal Crusade ABS 2012-1 SMART 2012-4 SMART 2012-2 REDS EHP Bella 2012-1 SMART 2012-1 (Issue Date) (Dec 12) (Oct 12) (Ju
Slide 64: Additional Information
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Slide 65: Westpac Banking Corporation Overview as at 30 September 2013
Westpac Banking Corporation Overview as at 30 September 2013 Balance sheet Westpac: Contribution to FY13 NPAT by division (%) Group (inc. Total assets $696.6bn Treasury) Australian Financial 1% Services (64%) Westpac Pacific 2% Westpac Retail & Total loans $536.2bn Westpac New Business banking Zeala
Slide 66: Tier 2 Capital comparison
Tier 2 Capital comparison Characteristic Basel III compliant Tier 2 Old-style Tier 2 (specifically Lower Tier 2) Absorb losses on a "gone concern" basis Gone concern capital Gone concern capital Non-discretionary, Must pay securities subject to solvency tests; deferred Must pay securities subjec
Slide 67: Tier 2 Capital comparison by region
Tier 2 Capital comparison1,2 US Canada UK Scandinavia Australia Senior to Senior to Additional Senior to Additional Senior to Additional Senior to Additional Ranking Tier 1 Capital Tier 1 Capital Tier 1 Capital Tier 1 Capital Tier 1 Capital Step-ups Not permitted Not permitted Not permitted Not perm
Slide 68: Risk management a key strength; Impairment charges 16bps of average gross loans
Risk management a key strength; Impairment charges 16bps of average gross loans Impairment charges to average gross loans1,2 (bps) Impairment charge movements ($m) 73 57 (140) 1,212 (216) (51) (15) 847 New IAPs, 870 write-backs 33 31 31 30 and recoveries New IAPs, 23 24 write-backs 557 19 19 20 and
Slide 69: High quality portfolio with bias to secured consumer lending
High quality portfolio with bias to secured consumer lending Asset composition as at 30 September 2013 (%) Cash and balances with central banks Total assets On balance sheet lending Receivables due from other financial institutions Trading securities, financial assets at fair value and 4 Housing ava
Slide 70: Diversification across industries and large exposures
Diversification across industries and large exposures Exposures at default1 by sector ($m) Top 10 exposures to corporations and NBFIs6 as a % of TCE5 (%) • Top 10 single name exposures to corporations and non-bank financial 2 institutions (NBFIs) continues to be below 2% of TCE Finance & insurance •
Slide 71: Commercial property portfolio comfortably within appetite
Commercial property portfolio comfortably within appetite Commercial property exposures size ($bn) and % of TCE Commercial property portfolio by sector and region (%) 18 Commercial property exposure ($bn) 9.6 9 9 16 9.1 Commercial Property as % of TCE 10 17 17 8.0 45 40 11 7.7 7.1 56 55 6.9 6.8 6.7
Slide 72: Australian unsecured lending portfolio performing well
Australian unsecured lending portfolio performing well • Unsecured consumer asset quality has Australian unsecured lending 90+ days delinquencies (%) remained strong, as further interest rate cuts have assisted debt serviceability and the Credit cards Personal loans Total unsecured lending Group mai
Slide 73: New Zealand mortgage portfolio
New Zealand New Zealand mortgage portfolio • Mortgage portfolio $37.5bn, up 4% FY12/FY13 New Zealand mortgage portfolio by region (%) • The distribution of the mortgage portfolio across regions is consistent with population concentrations of New Zealand Auckland Wellington • The proportion of variab
Slide 74: Improved asset quality in New Zealand business
New Zealand Improved asset quality in New Zealand business • Business stressed exposures down 190bps in FY13 to 4.9% of TCE Movement in impairment charges (NZ$m) – Down mostly across property, agriculture and manufacturing sectors – Excluding Institutional assets, business stressed exposures reduced
Slide 75: Wholesale funding portfolio
Wholesale funding portfolio • Westpac’s wholesale funding strategy is focused on diversity and Wholesale funding composition1 as at 30 September 2013 (%) flexibility • Able to issue in a broad range of formats, tenors and currencies, 1 including covered bonds 3 2 15 • Westpac is the only Australian
Slide 76: Appendix 1: Cash earnings adjustments
Appendix 1: Cash earnings adjustments Cash earnings adjustment (A$m) FY13 FY12 2H13 1H13 Reported NPAT 6,816 5,970 3,512 3,304 TPS revaluations 9 27 1 8 Treasury shares 42 27 13 29 Ineffective hedges (20) (7) 3 (23) Fair value gain/(loss) on economic hedges and own credit (10) 7 (67) 57 Buyback of g
Slide 77: Appendix 2: Cash earnings adjustments by segment
Appendix 2: Cash earnings adjustments by segment Westpac BT St.George Westpac Retail & Financial New Pacific Group FY13 Segment Results (A$m) Banking Institutional Group Business Group Zealand Banking Businesses Group Bank Banking (Australia) Reported NPAT 2,300 1,313 715 1,635 634 143 76 6,816 TPS
Slide 78: Appendix 3: APRA to BCBS Basel III reconciliation
Appendix 3: APRA to BCBS Basel III reconciliation • The Australian Prudential Regulation Authority (APRA) has maintained the conservative stance adopted under its Basel III capital standards, resulting in a significant variance between capital measured under APRA and fully harmonised Basel III • Key
Slide 79: Appendix 4: Definitions
Appendix 4: Definitions Financial performance Asset quality Core earnings Operating profit before income tax and impairment charges Stressed Stressed loans are Watchlist and Substandard, 90 days past due well loans secured and impaired assets AIEA Average interest earning assets Impaired assets can
Slide 80: Contacts
Contacts For further information For further information go to: www.westpac.com.au/investorcentre Curt Zuber Treasurer, Westpac Banking Corporation and click on ‘Fixed income investors’ +61 2 8253 4230 [email protected] or visit our Bloomberg page ‘WBCT’ Joanne Dawson Deputy Treasurer, Westpac B
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