Westpac Banking Corporation · ASX:WBC
Westpac Banking — Conference Presentation (June 2014)
19 slides from Westpac Banking's conference presentation, Jun 25, 2014
Slide 1: Westpac Retail & Business Banking
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Westpac Retail & Business Banking JASON YETTON, GROUP EXECUTIVE 25 JUNE 2014 All metrics in this presentation relate to Westpac Retail & Business Banking division of Westpac Banking Corporation unless otherwise stated Westpac Banking Corporation ABN 33 007 457 141
Slide 2: Westpac RBB is a strong, sustainable franchise
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Westpac RBB is a strong, sustainable franchise Delivered seven consecutive halves of strong performance Tilting to growth while managing business in a balanced way Wealth, retail and business banking all well positioned, with significant opportunity for growth Dig
Slide 3: Seven consecutive halves of strong financial performance
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Seven consecutive halves of strong financial performance Cash Earnings1 ($bn) Core earnings2 ($bn) Revenue per FTE4 (‘000) 3 year CAGR 11% 3 year CAGR 8% 3 year CAGR 11% 1.21 1.25 1.98 2.01 1.13 1.14 1.87 359 369 1.03 1.78 341 0.98 1.65 1.69 320 0.91 1.58 300 291
Slide 4: Tilting to growth, while maintaining strength, return and productivity
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Tilting to growth, while maintaining strength, return and productivity1 Deposit to loan ratio up 11bps Revenue up 2% Impairment charges down 7% Core earnings up 2% Mortgage 90+ delinquencies Cash Earnings up 3% down 3bps to 0.47% Margins up 2bps Business stressed
Slide 5: Strong relationship-based franchise
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Strong relationship-based franchise More Deeper Improved customers relationships Service Consumer customers (#m) Avg products per customer1 (#) Customer complaints (#’000) 5.46 5.36 3.03 48.9 5.33 46.3 5.18 2.85 2.82 2.75 35.4 2.64 26.7 2 1H11 1H12 1H13 1H14 1H11
Slide 6: Significant growth opportunities remain
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Significant growth opportunities remain Business Home Consumer Wealth banking ownership banking A service revolution is underway for customers which will underpin and drive growth while improving productivity Westpac Retail & Business Banking | June 2014 6
Slide 7: Investing in business banking
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Investing in business banking Business banking represents 44% of WRBB business lending ($bn) WRBB revenue Highest customer advocacy of major 47.1 banks1 45.6 Solid new business lending growth 44.8 partially offset by high run-off 42.2 Seeking to improve growth acr
Slide 8: Range of initiatives driving business growth and productivity
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Range of initiatives driving business growth and productivity Expand on success of Access anywhere Digitisation Westpac Local at anytime Mobile Payments Radical simplification Merchant terminals Westpac Retail & Business Banking | June 2014 8
Slide 9: Sustainably improving home ownership
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Sustainably improving home ownership Strong existing Improving relative Good utilisation of position growth all channels Home lending market share1 (%) Home lending relative to system1 (x) New home lending ($bn) 15.4 3rd party 0.8 Proprietary 14.7 0.7 0.6 8.6 6.9
Slide 10: Consumer banking delivering strong growth
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Consumer banking delivering strong growth Industry leading mobile/ Reinvigorated personal Growing household online banking platform lending origination deposits above system >1m customers connected by Jun14 Market share in personal loans1 (%) Household deposits2 (
Slide 11: Wealth revenue 3 year CAGR of 12%
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Wealth revenue 3 year CAGR1 of 12% First to market with Strong financial Protecting simple super product planning network customers BT Super for Life (retail) Revenue per planner2,3,4 ($) Life Insurance individual new premiums market share5 (%) Total customers ('0
Slide 12: Service revolution for customers is underway
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Service revolution for customers is underway Smart Westpac Live Contactless payments ATMs Improving • 24/7 access • Emergency cash customer • Global alliance, 50,000 ATMs experience tailored messages to better support sales and service WIB/AFS New merchant partner
Slide 13: Strongly placed with good momentum
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Strongly placed with good momentum Consistency of delivery a hallmark Strong relationship-based business, with all elements of business well placed Solid momentum as WRBB tilts to growth Wealth continues to be a clear differentiator Service revolution underway, he
Slide 14: Westpac Retail & Business Banking Appendix
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Westpac Retail & Business Banking APPENDIX All metrics in this presentation relate to Westpac Retail & Business Banking division of Westpac Banking Corporation unless otherwise stated Westpac Banking Corporation ABN 33 007 457 141
Slide 15: Westpac Retail and Business Banking senior management team
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Westpac Retail and Business Banking senior management team Jason Yetton Group Executive 23 Richard Holmes Chief Information Officer 20 Megan Rutter Gai Damien Tony Julie Alastair Human Resources McGrath MacRae MacRae Rynski Welsh Director 6 General General General
Slide 16: Our customers are noticing
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Our customers are noticing Winner, Best Enterprise – Westpac Banking for iPad #1 in the 'Global 100 Most Sustainable Corporations in the World' Westpac Retail & Business Banking | June 2014 16
Slide 17: WRBB a strong franchise with consistent growth in Cash Earnings
11.90 4.28 3.79 0.0 3.79 4.28 11.90 WRBB a strong franchise with consistent growth in Cash Earnings Cash Earnings movement ($m) Movement 1H14 – 2H13 Cash 46 (24) 8 (21) 16 (14) 1,251 ↑ 3% Up $38m to $1,251m 83 2 (36) 1,213 49 Earnings 1,142 Core ↑ 2% Up $36m to $2,014m with 2% revenue growth earning
Slide 18: Deepening customer relationships, transforming customer experience
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Deepening customer relationships, transforming customer experience Key features of 1H14 Key non financial metrics In Retail, continued to invest in convenient banking, with 34 Bank Now Change branches and 24/7 sites (up 17), mobile customers up 8%, launch of a new
Slide 19: Definitions and Disclaimer
11.90 4.28 3.79 0.0 3.79 4.28 11.90 Definitions and Disclaimer DEFINITIONS: Wealth penetration metrics: data based on Roy Morgan Research, Respondents aged 14+ and 12 month average to March 2014. Wealth penetration is defined as the proportion of Australians who have a Deposit or Transaction Account
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