PowerPoint Presentation


Westpac Banking Corporation‌‌‌‌‌‌‌‌‌‌‌‌‌‌

ABN 33 007 457 141


Westpac New Zealand

Market Update


All metrics in this presentation relate to the Westpac New Zealand division of Westpac Banking Corporation unless otherwise stated. Refer Westpac's Full Year 2015 Financial Result page 62 for further details

Financial data is in NZ$ unless otherwise stated

Westpac NZ is well positioned


  • Consistent and disciplined performer

  • Leader on balance sheet strength

  • Successfully growing in target markets - more to do

  • Significant transformation underway

    • Building on digital capability

    • Customer experience led

    • Continue to drive business

  • Well positioned for current environment


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    NZ Market Update March 2016

    Westpac NZ at a glance


    Overview Growing digital presence


  • Founded in 1861

  • New Zealand's 2nd largest bank, by assets1

  • 11% of Westpac Group's cash earnings

  • Strategy focused on service leadership across banking, wealth and insurance

  • Leader in balance sheet strength: capital, funding, liquidity and asset quality

  • Leader in sustainability including being awarded the White Camellia Award and Rainbow Tick2

Customers using digital (%)

52.6

50.551.4


2H14 1H15 2H15


Key statistics as at 30 September 2015 Key financial metrics for FY15 (NZ$)


Customers

1.34m

New Zealand deposit market share

21%

New Zealand consumer lending market share

20%

Wealth retail share3

15%

Life insurance share4

8%

Branches

189

Smart ATMs as % of ATM network

24%

FY14

FY15

Change

Cash earnings ($m)

864

916

6%

Net interest margin (%)

2.27

2.31

4bps

Expense to income ratio (%)

41.0

40.8

(24bps)

Return on tangible equity (%)

21.1

23.5

239bps

Deposit to loan ratio (%)

76.5

75.2

(125bps)

Stressed assets to TCE5 (%)

1.59

1.60

1bp

1 Based on 30 September 2015 Geography Disclosure Statement. 2 White Camellia Award for promoting gender equality through the United Nations Women's Empowerment Principles. Westpac was awarded the Rainbow Tick accreditation recognising diversity in the workplace for LGBTI. 3 Funds Source 30 September 2015, measured as a percentage of funds under management. 4 Financial Services Council, new business for the quarter ended 30 September 2015. 5 Total committed exposure.


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NZ Market Update March 2016

Position relative to peers1


Cash earnings ($m) Lending ($bn) Return on average assets (%)



864 916


1,177

FY14 FY15 1,215


846

776807


823


64.6 69.0


96.6

FY14 FY15 104.8


60.865.6



1.20 1.17 1.20 1.20

Westpac NZ Peer 1 Peer 2 Peer 3

64.468.2



Westpac NZ Peer 1 Peer 2 Peer 3


Westpac NZ Peer 1 Peer 2 Peer 3


Deposit to loan ratio (%) Common equity Tier 1 capital

ratio2 (%)IAPs to impaired assets3,4 (%)


75.211.1

71.3


10.5


10.7


41.8 40.1


39.5


66.7

62.7


Westpac NZ Peer 1 Peer 2 Peer 3


8.8


Westpac NZ Peer 1 Peer 2 Peer 3


14.8


Westpac NZ Peer 1 Peer 2 Peer 3


1 Unless otherwise stated the financial results are as reported for the New Zealand operations in the Full Year 2015 Financial Results of each bank. Peer 2's financial year end is 30 June 2015. 2 Based on NZ legal entity 2015 Full Year Disclosure Statements. Peer 1 and 3 as at 30 September 2015, Peer 2 as at 30 June 2015. 3 IAP is individually assessed provisions. 4 Geography Disclosures, Peer 1 and 2 as at 30 September 2015, Peer 2 as at 30 June 2015.


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NZ Market Update March 2016

Westpac Banking Corporation issued this content on 08 March 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 09 March 2016 00:24:15 UTC

Original Document: http://ir.iguana2.com/westpac/news-item?S=WBC&E=ASX&N=911370