Westpac Banking Corporation · ASX:WBC
Westpac Banking — Debt Investor Presentation (November 2000)
19 slides from Westpac Banking's debt investor presentation, November 2000
Slide 1: NZ Debt Investor Update
NZ DEBT INVESTOR UPDATE November 2000 Rob Whitfield Pat Brennan Group Treasurer Treasurer Westpac Banking Corporation WestpacTrust
Slide 2: Westpac Banking Group
Westpac Banking Group
Slide 3: Financial Highlights
Financial Highlights $1,715M 89¢ 54¢ 18.4% $1,058M ñ 18% ñ 15% ñ 15% ñ 160bp ñ 58% 77.0 17.0 16.8 47 1,456 70.1 70.0 15.5 1,342 716 43 669 # 694 58.9 1,291 14.6 39 554 1,132 33 1996 1997 1998 1999 2000 1996 1997 1998 1999 2000 1996 1997 1998 1999 2000 1996 1997 1998 1999 2000 1996 1997 1998 1999 200
Slide 4: Looking at the earnings
Looking at the earnings % increase/ $M 1999 2000 (decrease) Net interest income 3,619 3,884 7 Non-interest income 2,139 2,368 11 Operating income 5,758 6,252 9 Expenses (3,334) (3,405) 2 Core earnings 2,424 2,847 17 Bad debts (171) (202) 18 Intangibles (100) (98) (2) NPBT 2,153 2,547 18 Tax and OEI
Slide 5: Debt Investor Scorecard
Debt Investor Scorecard Net interest income & margin trends % Expense to income* $B Margin (%) 65 4.0 4 3.5 3.0 3.5 60 2.5 53.5% 2.0 3 1.5 55 1.0 2.5 0.5 0.0 2 50 1996 1997 1998 1999 2000 1996 1997 1998 1999 2000 2H00 Net interest income (LHS) Average margin (RHS) WBC Peer Average Peer average margi
Slide 6: Capital Ratios
Capital Ratios % 8.0 7.5 7.0 6.7 6.6 7.0 6.3 6.5 6.0 - 6.5% * 6.0 5.6% * 5.5 5.0 4.5 4.0 TOE / RAA Tier 1 ratio 1999 2000 * Target ratio
Slide 7: Strong credit ratings - stable outlook
Strong credit ratings - stable outlook Outlook: Stable (Moody’s & S&P) “..reflects S&P’s expectation that despite tight competition will continue to maintain sound market position and market profile..”
Slide 8: Westpac Strategy
Westpac Strategy Organic growth remains No.1 priority • Realising opportunities in existing customer base • Further productivity enhancements • Effective tax rate reduction • Optimising the capital structure • Maintain strong asset quality & provisioning cover • Take advantage of Internet & eCommerc
Slide 9: Strategic growth
Strategic growth • Rapid industry change will create convergence and consolidation opportunities • Strict criteria to apply – strategic fit & scale/capability enhancement – strict valuation disciplines – not unduly diverting from our organic growth path
Slide 10: WestpacTrust performance
WestpacTrust performance 30 September 30 September Change 2000 $m 1999 $m Net interest income 865 823 5% Non interest income 459 413 11% Non interest expense 713 705 1% Bad and doubtful debts 32 36 (10%) expense Income tax expense 144 163 (12%) Net profit after tax and 408 332 23% minority interests
Slide 11: WestpacTrust Securities NZ Limited
WestpacTrust Securities NZ Limited
Slide 12: WestpacTrust Securities NZ Limited
WestpacTrust Securities NZ Limited • Securities issued in the name of WTSNZ. • All funds are on-lent to WestpacTrust. • WTSNZ debt (DMTN,EMTN,ECP,CP) is rated equally with WBC (AA- / Aa3). • NZ Wholesale term debt issued under the DMTN, programme is guaranteed by Westpac. 29/11/2000
Slide 13: Retail/Wholesale Funding Mix
Retail/Wholesale Funding Mix 16 14 14.786 14.448 14,470 12 10 NZD$ 8 10.961 14.134 9.007 6 4 2 0 1998 1999 2000 Retail Funding Wholesale Funding “We are experiencing a systemic change to how financial institutions fund themselves”
Slide 14: Funding diversification
Funding diversification wholesale funding portfolio wholesale funding portfolio By Currency By Product Wholesale Deposits Securitisation 16% 7% CP 19% Term Debt 43% CDs 15%
Slide 15: Domestic MTN Strategy
Domestic MTN Strategy • Target to raise $250-300m (00/01) - subject to investor demand • Build WTSNZ’s MTN curve • Current Maturities – June 01, April 03, July 09 (sub debt) • Consistent pricing across markets
Slide 16: FRN Pricing Levels - Australian Banks
FRN Pricing Levels - Australian Banks Large Public Transactions (USD500m) Source: Chase Manhattan Weekly Euromarket Financial Institutions Capital Market Update
Slide 17: Approach to funding
Approach to funding •Responsible & consistent approach to the markets •Generate ongoing participation, communication and visibility • 24 hr global funding presence •London •Sydney •Wellington
Slide 18: Future Opportunities
Future Opportunities • Structured notes – Infrastructure • Retail Bond presence, subject to demand • Subordinated debt
Slide 19: Summary
Summary A great Westpac Story Profit up 18%, with strong core growth • Organic growth remains the No. 1 priority • Outlook remains positive • Excellent contribution by WestpacTrust We are committed and receptive to investor requirements in the domestic MTN market. WTSNZ offers the NZ institutional i
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