WESTPAC
2024 INTERIM RESULTS INDEX
2024 Interim Results Presentation | 3 |
Investor Discussion Pack of 2024 Interim Results | 33 |
Earnings drivers | 35 |
Credit quality and provisions | 45 |
Non-credit risk management | 66 |
Capital, Funding and Liquidity | 73 |
Customer franchise | 84 |
Sustainability | 89 |
Segment results | 97 |
Economics | 104 |
Appendix | 109 |
Contact us | 119 |
Disclaimer | 120 |
2 Westpac Group 2024 Interim Results Presentation & Investor Discussion Pack
PETER KING
CHIEF EXECUTIVE OFFICER
1H24 HIGHLIGHTS
DISCIPLINED | ENHANCED | RETURNING | ||
PERFORMANCE | CUSTOMER FOCUS | SURPLUS CAPITAL | ||
STRENGTHENED | COMMENCED | |
RISK MANAGEMENT | UNITE | |
4 Westpac Group 2024 Interim Results Presentation & Investor Discussion Pack
1H24 FINANCIAL PERFORMANCE
1H24 | 2H23 Change | 1H23 Change | |
Net profit1 | $3,342m | 5% | (16%) |
Return on tangible equity2 | 10.5% | 44 bps | (228 bps) |
Excluding Notable Items | |||
Revenue | $10,816m | 1% | (1%) |
Expenses | ($5,395m) | 3% | 8% |
Pre-provision profit | $5,421m | - | (8%) |
Impairment charges to average loans annualised | 9 bps | 2 bps | (1 bp) |
Net Profit | $3,506m | (1%) | (8%) |
1 Also referred to as net profit attributable to owners of WBC, net profit after tax or statutory profit. 2 The return on tangible equity calculation is described further in the 2024 Interim Financial Results Announcement.
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SURPLUS CAPITAL RETURNED TO SHAREHOLDERS
- Increased share buyback program up to $2.5bn1
- Buyback announced Nov-23: $1.5bn, 59% complete2
- Buyback extension: $1bn1
- Special dividend $0.5bn, 15cps3 fully franked
- Pro forma CET1 capital ratio 12.06%4
ORDINARY DIVIDEND
- 1H24 ordinary dividend 75cps3 fully franked
- 1H24 payout ratio of 74%5
- Payout ratio range 65 - 75%
- Dividend yield 5.7%6, fully franked 8.2%6
- Neutralise DRP for interim and special dividends
CET1 CAPITAL RATIO (%)
11.3 | 12.3 | 12.5 | |
Mar-22Mar-23Mar-24 Target range 11% - 11.5%
DIVIDENDS PER SHARE (CENTS)
15 | ||||||
61 | 64 | 70 | 72 | 75 | ||
Up 4% | ||||||
1H22 | 2H22 | 1H23 | 2H23 | 1H24 | ||
Ordinary dividend | Special dividend |
1 Subject to market conditions. 2 As at 6-May-24. 3 Cents per share. 4 After buyback and special dividend. 5 Excluding Notable Items. 6 Based on 28-Mar-24 closing price of $26.10
6 Westpac Group 2024 Interim Results Presentation & Investor Discussion Pack
A STRATEGY FOR GROWTH AND RETURN
OUR PURPOSE
AMBITION
Creating better futures together
To be our customers' #1 bank and partner through life
PILLARS | ||||||||
Customer | Easy | Expert | Advocate | |||||
care at | to do | solutions | for positive | |||||
the heart | business with | and tools | change | |||||
FOUNDATIONS | ||||||||
Strong | Proactive Risk | Data-informed | Passionate | |||||
balance | Management and | insights and | people who | |||||
sheet | Risk Culture | decisioning | make a difference | |||||
MEASURES
Return on tangible equity
Market position
7 Westpac Group 2024 Interim Results Presentation & Investor Discussion Pack
CUSTOMER SERVICE
IMPROVING SERVICE
NPS1
in employee scorecards
Mortgage time to decision
down 4 days
to 6.0 days2
Business time to decision
down 2 days
to 7.7 days3
#1
Bond House
in Australia4
ENHANCING SAFETY
Agreed
Scam-Safe Accord
with other Australian banks
Launched
Westpac SaferPay
$120m
stopped or recovered in customer scam losses in 1H24
32% lower
customer scam
losses compared to 1H23
PROVIDING SUPPORT
5th largest taxpayer in Australia5
$1.7bn income tax expense and bank levy in 1H24
Increased lending to $785bn
~18k
customer hardship packages6
33
sustainable finance transactions in 1H247
1 Refer to page 118 for definition. 2 3rd party channel median (50th percentile) time to unconditional approval; 1H24 compared to 2H23. 3 Mar-24 compared to Sep-23. 4 Winner of 9 KangaNews Awards. 5 Westpac Tax Transparency Report 2023. 6 Includes accounts in hardship for Australian Consumer and Business segments. 7 Includes 23 labelled sustainable finance loans and 10 bond issuances. Excludes NZ sustainable finance loans.
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CONSUMER: IMPROVING SERVICE
CONSUMER ROTE 9%
FOCUS ON CUSTOMER ENGAGEMENT
- #1 Leading mobile banking app1
- Consumer NPS up 2 points to 42,3
- 100 co-located branches4
GROWING QUALITY DEPOSITS
- Household deposit growth, 1.1x system5
- Enhanced proposition and loyalty rewards
- Consistent positioning in market
SUSTAINABLE GROWTH IN MORTGAGES
- Mortgage growth at 1.0x system5
- Mortgage NPS equal first2
- Cashbacks removed by 30-Jun-24
1 The Forrester Digital Experience Review: Australian Mobile Banking Apps, Q4 2023. 2 Refer to page 118 for definition. 3 Compared to Sep-23.4 At 6-May-24.5 1H24, based on ADI System as published in the Monthly ADI statistics by APRA.
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MORTGAGES: GROWTH IN LINE WITH SYSTEM
NEW OWNER OCCUPIED LENDING
FY22 | FY23 | 1H24 | |||
• | OBP roll-out commenced | • | OBP rolled out to brokers | • | >95% of loans on OBP |
• | Inconsistent service | • | Improved service | • | Consistent service |
• | Halved TTD |
1.1x
System growth1,3 | 0.9x |
0.7x | |
WBC
Lending rate higher relative to peers2,3
WBC lower
TTD (days, OO & IPL)4 | 11.6 | 9.6 | 6.0 |
1 Based on ADI System as published in the Monthly ADI statistics by APRA - owner occupied housing loans to households. 2 Comparison between RBA Statistical Table F6, Lending rates; Housing credit; New loans funded in the month; Owner-occupied;Variable-rate; Large institutions, and Westpac's submission to the RBA under the same criteria. 3 1H24 is average Oct-23 to Feb-24; FY23 is average Oct-22 to Sep-23; and FY22 is average Oct-21 to Sep-22. 4 3rd party channel median (50th percentile) time to unconditional approval for the reporting period.
10 Westpac Group 2024 Interim Results Presentation & Investor Discussion Pack
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Westpac Banking Corporation published this content on 05 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 May 2024 22:02:09 UTC.