2005 First Half Results 040505 FINAL - Westpac · 3 2005 Interim Results Presentation Title & Date...
Transcript of 2005 First Half Results 040505 FINAL - Westpac · 3 2005 Interim Results Presentation Title & Date...
2005 First Half Results
5 May 2005
David Morgan Chief Executive Officer
Philip Chronican Chief Financial Officer
Presentation Title & Date 2005 Interim Results 2
Profitable and resilient growth
• Strong cash earnings per share up 12%
• Revenue driven result operating income up 8%
• Cash return on equity improved 21%
• Higher sustainable dividend up 17%
• Solid margin performance margins down 8bps
• Productivity improved cost to income 120bps lower
All comparatives on prior corresponding period
Presentation Title & Date 2005 Interim Results 3
Robust revenue growth in excess of expenses
0
1,000
2,000
3,000
4,000
5,000
1H00
2H00
1H01
2H01
1H02
2H02
1H03
2H03
1H04
2H04
1H05
Revenue 8%
Expenses 4%
Core earnings 12%
1. Underlying basis (excl. significant items but not adjusted for acquisitions and disposals)
2. Excluding goodwill amortisation
5 Year CAGR 1
2
Revenue and expense performance ($m)
Presentation Title & Date 2005 Interim Results 4
Solid contribution across all businesses
-200 0 200 400 600 800
Group BusinessUnit
New Zealand
Institutional Bank
BT Financial Group
Business &Consumer Banking
1H04
2H04
1H05
Cash earnings ($m) Growth1H04 – 1H05 (%)
1. NZ growth in NZ dollar terms
1
17%
33%
23%
8%
Na
Presentation Title & Date 2005 Interim Results 5
Disciplines maintained
• Strategic discipline
- Focused on areas generating the greatest value
• Pricing discipline
- Strong spread performance despite competitive intensity
• Cost discipline
- Contained cost growth while absorbing additional investment and compliance spend
• Risk discipline
- Prudent credit and risk approach
Presentation Title & Date 2005 Interim Results 6
Successfully managed the growth / margin mix
• Disciplined response to more intense competition:
- Prepared to forego unprofitable growth
- Resisted participation in unsustainable price competition
• Aggressive pricing• Higher broker
commissions
• Selective pricing adjustments
• Held broker commissions• Maintained risk/reward
standards
Australian mortgages
• Two-year fixed rate price war
• Chose not to compete head-on
• Responded with higher rate on alternative term
NZ Mortgages
• Many new online accounts with rates at or above the cash rate
• Max-i Direct - Tiered rate product- Top rate in line with
cash rate
Australian deposits
Change in market
Response
Presentation Title & Date 2005 Interim Results 7
BCB – a revenue led result
• Cash earnings up 17%
• Revenue growth twice expense growth
• Profitable growth
- Slower asset growth 8%
- Margins little changed
• Reconfigured deposit products
• Consumer customer satisfaction up 3% over the year
BCB Cash Earnings1 ($m)
511
567546
619647
690
757
0
100
200
300
400
500
600
700
800
1H02 2H02 1H03 2H03 1H04 2H04 1H05
14% 3 year CAGR
1 Data prior to 2002 not comparable due to business unit restructuring.
Presentation Title & Date 2005 Interim Results 8
New Zealand – growth in a tough environment
• Cash earnings up 8% in NZ dollar terms
• Solid lending growth, up 13%
- Mortgage lending up 15%
- Business lending up 8%
• Housing margin compression offset in part by strong deposit margins
NZ Housing market share monthly (%)
-15%
-10%-5%
0%
5%10%
15%
20%25%
30%
Feb-00 Feb-01 Feb-02 Feb-03 Feb-04 Feb-05
Share of Growth Market Share
0
5
10
15
20
25
30
35
2000 2001 2002 2003 2004
SME Deposit share * SME Lending share
NZ SME share (%)
* 2004 data from TNS following change from ACN
Presentation Title & Date 2005 Interim Results 9
Institutional Bank – broadening revenue base
• Cash earnings up 23%
• Strengthened customer relationships through transactional business
• Specialised Capital Group continued to grow
- $4.6bn in FUM
- Hastings Diversified Utilities Fund
• Strong deal flow
• Sound financial markets income
Revenue Contribution ($m)
0
20
40
60
80
100
120
140
Finan
cing
Inte
rnat
ional
Pro
ducts
FM S
ales
FM T
radin
g
Struct
ured F
inan
ce
Transa
ctio
nal
Mar
ket S
ales
Spec. C
apita
l Gro
up
1H04
1H05
Presentation Title & Date 2005 Interim Results 10
BT Financial Group – building strong momentum
• Cash earnings up 33%
• Significant business momentum, with integration behind us
• Continued top-quartile fund performance
• Innovative new products launched
• Additional mandates:- FUM $40bn (up 6%) - Platform FUA $27bn (up
48%)02468
10121416182022
Mar-00
Sep-00
Mar-01
Sep-01
Mar-02
Sep-02
Mar-03
Sep-03
Mar-04
Sep-04
Mar-05
Corporate SuperWrap
Wrap and Corporate Super FUA ($bn)
BT Core Fund vs S&P/ASX300 Accumulation Index
-1.5%
-1.0%
-0.5%
0.0%
0.5%
1.0%
1.5%
2.0%
Jun-0
2
Sep-0
2
Dec-0
2
Mar
-03
Jun-0
3
Sep-0
3
Dec-0
3
Mar
-04
Jun-0
4
Sep-0
4
Dec-0
4
Mar
-05
-8%
-6%
-4%
-2%
0%
2%
4%
6%
Monthly Active Return (rhs)
Yearly Active Return (lhs)
Presentation Title & Date 2005 Interim Results 11
Step-up in dividend trajectory
• Increased dividend by 7 cents or 17%, reflecting:
- Strong earnings growth
- Confidence in outlook
• Envisage maintaining consistent dividend path of at least a 2 cent increase per half
6159 59 59
62 6163 62 63
61
65
50
55
60
65
70
1H00
2H00
1H01
2H01
1H02
2H02
1H03
2H03
1H04
2H04
1H05
Payout ratio (%)
Dividends per share (cents)
2628
3032
34 3638
4042
44
49
10
15
20
25
30
35
40
45
50
55
1H00
2H00
1H01
2H01
1H02
2H02
1H03
2H03
1H04
2H04
1H05
14% 5 YR CAGR
Presentation Title & Date 2005 Interim Results 12
Long-run consistency in growth and returns
Economic profit ($m)
0
200
400
600
800
1,000
1H00
2H00
1H01
2H01
1H02
2H02
^1H
032H
031H
042H
041H
05
^ Underlying EP excludes significant items in 2002
15% 5 year CAGR
• Consistently strong performance
• True to form on managing growth/margin mix
• Maintained franchise investment
• Cash earnings per share up 12%
• Return on equity 21%
• Delivering value to shareholders with higher dividend
The Details
5 May 2005
Philip Chronican Chief Financial Officer
Presentation Title & Date 2005 Interim Results 14
Revenues continue to drive earnings
Movement in cash earnings ($m)
1,233
1,380
(122)
4
(109)
326
48
800
900
1,000
1,100
1,200
1,300
1,400
1,500
1,600
1H 2004 CashEarnings
Revenue OperatingExpenses
Bad Debts Tax and OEI Hybrid EquityImpacts
1H 2005 CashEarnings
Presentation Title & Date 2005 Interim Results 15
Net interest income
Net interest income analysis ($m)• Net interest income increased 9%- 13% growth in average interest
earning assets
- Offset by 8 bps spread contraction
• Modest slowing of growth in 1H05 with smaller margin decline
• One-off factors increased net interest income in 1H05:- $9m from change in broker
commission amortisation
- $15m in GST recoveries on broker commissions
2,339
2,545
248 35
(8)119
106
(56)
1,200
1,400
1,600
1,800
2,000
2,200
2,400
2,600
2,800
3,000
1H04 BalanceSheet
Growth
Spread Hybrids FreeFunds
1H05
Tax equivalent gross-up
Presentation Title & Date 2005 Interim Results 16
Loan growth
11% 175188194Net loans and acceptances
Key contributors
Australia
28
25
36
7
92
2H04
30
28
37
7
94
1H05
0%7Personal (loans & cards)
8%88Housing 2
Change1
13%
23%
10%
1H04- 1H05
34Business
23Institutional Bank
27New Zealand ($NZ)
1H04$bn
1. Percentage changes have been calculated before rounding of numbers2. Grossed up for mortgages securitised
Presentation Title & Date 2005 Interim Results 17
Analysis of margin movements
Group margins 1H04 – 1H05 (%)
2.48%
(2bps)
2bps
(1bps)(2bps)(2bps)
(3bps)
0 bps2.56%
2.3
2.4
2.5
2.6
2.7
1H04 Assetspread
Asset mix Depositspread/mix
Fundingmix
Hybrids Other Free funds 1H05
Spread decline – 6 basis points
Presentation Title & Date 2005 Interim Results 18
Non-interest income analysis
16
1,522
1,659
38
3126
28
(2)
1,64329
(40)
11
1,400
1,450
1,500
1,550
1,600
1,650
1,700
1,750
1,800
No
rmal
ised
1H
04
Fin
anci
alM
arke
ts
BT
FG
Au
stra
lia
Car
ds
no
n-
inte
rest
inco
me
Hig
h Y
ield
Sec
uri
ties
Po
rtfo
lio
Oth
er c
ore
no
n-
inte
rest
inco
me
gro
wth
No
rmal
ised
1H
05
Un
it t
rust
con
solid
atio
n
Po
licyh
old
er t
axre
cove
ries
2004
TP
S h
edg
eim
pac
t Ep
ic
Rep
ort
ed 1
H05
Adjusted growth 8%
Non-interest movement 1H04 – 1H05 ($m)
Presentation Title & Date 2005 Interim Results 19
Expense to income – downward trend continues
4950
50
535251
53
5455
58
35
40
45
50
55
60
1H00
2H00
1H01
2H01
1H02
2H02
1H03
2H03
1H04
2H04
1H05
Group - expense to income %
354045505560657075
1H00
2H00
1H01
2H01
1H02
2H02
1H03
2H03
1H04
2H04
1H05
35404550556065
1H00
2H00
1H01
2H01
1H02
2H02
1H03
2H03
1H04
2H04
1H05
Banking – expense to income %
Total Wealth – expense to income %
48.4%
47.8%
54.3%
Note: Pre BT acquisition – data not comparable. Data for 2000 does not include NZ wealth business.
Presentation Title & Date 2005 Interim Results 20
Expenses – continued tight management
• Expenses, adjusted for non-core items increased 4.4%
• Benefited from prior restructuring of cost base
• Held expense growth low while absorbing:
- project costs expensed $80m
- compliance spend $7m
(8)Consolidation of Epic
(16)$NZD impact
(1)(2) Consolidation of Life Company MIS
6%1,9252,034Operating expenses
1,924
1H04
4%2,008Adjusted operating expenses
% Change1H05$m
Presentation Title & Date 2005 Interim Results 21
Movements in capitalised software
• Major investments in Reach, Pinnacle and the One Bank Platform are the major drivers of the increase
68
409
1H05
57
328
1H04
47Half-yearly amortisation
377Capitalised software
2H04$m
6658393Standardised platform (One Bank)
377
169
29
45
76
2H04
328
173
21
33
62
1H04
5
3
3
Amort-isationperiod (years)
173Other
33Teller platform, New Zealand
52Customer relationship management (Reach)
85Loan process re-engineering (Pinnacle)
409
1H05
Total
Capitalised software - major projects $m
Presentation Title & Date 2005 Interim Results 22
Cost efficiency offsetting compliance spend
198
29
113
29
18
9
2006(f)
85Productivity improvement programme
21
147
14
18
9
2005(f)
Cumulative total
Wealth integration
Other efficiency initiatives
Lending processes
Outsourcing
Cost Efficiency Pipeline $m
511Other
10134Basel II
25
3
3
5
Expectedin 2H05
5013Total
251Anti-Money Laundering
53Sarbanes Oxley
54IFRS
Expected spend
after FY05
Spend in 1H05
Major compliance projects1
$m
1. Includes project spend capitalised
Presentation Title & Date 2005 Interim Results 23
Bad debt component analysis
203207Total
1441Dynamic provision
(84)(67)Write backs & recoveries
149146Write-offs
12487New specific provisions
1H052H04
1H 05
New business/composition change $37
Factor changes $ 8
Write-back of credit related
litigation provision ($31)
Presentation Title & Date 2005 Interim Results 24
Forward credit indicators in good shape
1.40
0.90
0.50
1.271.47
0.75 0.73
0.0
0.5
1.0
1.5
2.0
2.5
1999 2000 2001 2002 2003 2004 1H05
Aust. Business Banking - 90 day delinquencies (3 month moving average) (%)
Consumer: Housing & unsecured credit - 90 day delinquencies (%)
1.03
0.820.63
0.901.14
0.96
1.98
1.021.070.96
0.210.160.150.150.230.250.260.38
0.64
1.04
0.0
0.4
0.8
1.2
1.6
2.0
1996 1997 1998 1999 2000 2001 2002 2003 2004 1H05
Consumer unsecured Housing
• Increase in housing delinquencies from:
- Easing in loan growth rate
- Temporary collections backlog due to early Easter break
• Consumer increased moderately in the half:
- Maturing of Virgin card portfolio
- Lower personal loan balances
Presentation Title & Date 2005 Interim Results 25
Mortgage lending – targeting profitable growth
• Mortgage income up 10%
• 8% growth with spreads 1 basis point lower
• Mortgage growth below system partly due to:
- Reduced sales productivity
- Below weight broker lending
- Below market growth in Low-doc lending
• Initiatives to enhance growth underway with some improvement evident
1.171.181.181.22
1H052H041H042H03
Australian mortgage spreads (%)
Mortgage applications (weekly average vs target )
24/1
2/04
07/0
1/05
21/0
1/05
04/0
2/05
18/0
2/05
04/0
3/05
18/0
3/05
01/0
4/05
15/0
4/05
29/0
4/05
Target
Trend line (Avg Daily Apps/week)
Presentation Title & Date 2005 Interim Results 26
Retail deposits – balancing the product and price mix
• Achieved competitive growth of 6% with modest spread contraction
• Strategy responded to customer needs:
- Grew term deposits in 2004
- Westpac One – 130,000 new accounts since November 2004
- Launched Max-i Direct - $3bn growth in cash management balances since March 2004
2.60
1.56
2H03
2.772.812.76Business Deposits
1.591.621.66Consumer Deposits
1H052H041H04
Deposit spreads
01020304050607080
2H03 1H04 2H04 1H05
Business deposits
Consumer deposits
Deposit growth ($bn)
Presentation Title & Date 2005 Interim Results 27
Business lending – solid growth
1.781.801.791.81Business
Equipment Finance
2.152.0212.162.33
1H052H041H042H03
• Maintained market share in total business credit, with growth of 15% comprising:
- Institutional lending up 23%
- SME and Middle Market lending up 10%
• Lending slower in latest half:
- 65% of annual loan growth typically occurs in the second half
- Maintained growth/return disciplines
- Lending redesign project diverted resources in first quarter
10.0%
10.5%
11.0%
11.5%
12.0%
12.5%
13.0%
2H03 1H04 2H04 1H05
Business Credit Market Share - Australia
Source: RBA, Westpac
Australian business spreads (%)
1 Spread in 2H04 impacted by repurchase of portfolio of equipment finance loans under the terms of the sale of AGC to GE Capital Finance in 2002
Presentation Title & Date 2005 Interim Results 28
Strong institutional loan growth
• Lending within the Institutional Bank increased 23% over the period
• Strong loan growth across all sectors
• No change in the average risk grade of the portfolio
• Margins lower from tighter credit spreads
• Financing (term and bridging) margins down from 61bps to 50bps
27.931 March 2005
(0.6)Other
0.2Asset finance
1.1Warehoused assets
0.5International
0.8Bridging finance
3.3Term lending
22.631 March 2004
Institutional loans & acceptances ($bn)
Presentation Title & Date 2005 Interim Results 29
Financial markets – sound performance
• Improved customer flow increasing sales and trading opportunities
• Particularly strong foreign exchange performance – up 77%
• Solid financial markets performance without taking additional risk
Financial markets income ($m)
Monthly average VaR ($m)
0
3
6
9
12
15
18
Mar03 Sep03 Mar04 Sep04 Mar05
Monthly average VaR Board Limit
0
50
100
150
200
2H03 1H04 2H04 1H05FX Capital Markets Other
Presentation Title & Date 2005 Interim Results 30
Group business unit
• No change to composition of Group business unit over year
• Result lower from:
- Revenue from Treasury down $41m over year
- $30m tax charge relating to prior period activities
• 2004 TPS hedge has no impact on cash earnings but reduced operating income by $40m
(93)73195Tax & OEI
11(76)(78)(68)Other eq.distr.
Na4524(18)Operating income
(16)
40
(4)
11
29
1H05
43
-
(15)
61
16
1H04
73(25)Bad debts
Na37Cash earnings
large102004 TPS rev
(82)111Core earnings
8187Operatingexpenses
% Change1H04 -
1H05
2H04$m
Presentation Title & Date 2005 Interim Results 31
Strong capital generation
5.1%5.2%
166 bps
(4 bps)(36 bps)
32 bps
(41 bps)
(106 bps)
4.00
4.50
5.00
5.50
6.00
6.50
7.00
Mar-04 CashEarnings
Dividends RWAgrowth
DRP/Staff
issues
Buy backs Other Mar-05
1. $287m APRA defined deferred expenditure not deducted from ACE ratio
2. “Other” includes capital employed by non-banking subsidiaries, Specialised Capital Group investments and movements in the FCTR and deferred tax balances
Target ranges
ACE: 4.50 – 5.00%
Tier 1: 6.00 – 6.50%
Movements in ACE1 ratio (%)
2
Presentation Title & Date 2005 Interim Results 32
Capital – above target capital ranges
Capital ratios and target ranges (%)
3.0%3.5%4.0%4.5%5.0%5.5%6.0%6.5%7.0%7.5%8.0%
Mar
-00
Sep-0
0M
ar-0
1Sep
-01
Mar
-02
Sep-0
2M
ar-0
3Sep
-03
Mar
-04
Sep-0
4M
ar-0
5
ACE Tier 1
• Strong capital generation has increased capital flexibility
• New IFRS capital directives from APRA unresolved:
- Treatment of hybrids
- Innovative equity levels
- Grandfathering/transition arrangements
- Treatment of bad debt reserve
• Additional capital management initiatives on hold pending clarity APRA treatment
Presentation Title & Date 2005 Interim Results 33
Higher dividend – sustainable path
• Dividend up 7 cents or 17% to 49 cents, fully franked
• Step-up in dividend delivers a higher pay-out
• Future dividend trajectory expected to remain at least at 2 cents per half
• Strong franking position maintained
• Capital ratios above target ranges
• Ensure dividend growth broadly in line with cash EPS growth
• New share issues do not dilute EPS in medium term
• Consistency in dividend path given more volatile earnings under IFRS
• Full franking
• Market feedback for a higher payout
• Strong capital position
OutcomeKey considerations
Presentation Title & Date 2005 Interim Results 34
Preparing for New Zealand incorporation
• Agreed to incorporate systemically important operations in NZ
• Incorporation model yet to be determined. Westpac intends to operate a branch and an incorporated entity concurrently
• Impact on earnings and capital for the group is yet to be quantified, but is expected to be manageable
• Required legislative change will impact timing
Presentation Title & Date 2005 Interim Results 35
Structured finance transactions – update
• NZ Structured Finance transactions have been under review by the New Zealand Inland Revenue Department (IRD) since 2003
• Amended assessments received relating to 1999 and 2000 years
• Maximum potential exposure of NZ$711m (tax effected and including interest) up to 31 March 2005
• Confident in our original tax treatment and no provision has been raised
• Current transactions to be unwound in 2H05 as the NZ thin capitalisation regime to apply from 1 July 2005 renders them uneconomic
11
2H05 (est.)
Nil4485
1H06 (forecast)
1H052004Full year
• Revenue impact from the unwinding of these transactions, will impact earnings in 2H05
• Alternate structured transactions have already been undertaken to assist in offsetting loss of revenue
Revenues from NZ Structured Finance Transactions ($m)
Presentation Title & Date 2005 Interim Results 36
Exchange of NZ Class shares
• No impact on EPS or published capital ratios• NZ Class shareholders will receive their final imputed
dividend on 1 July 2005• Improved capital flexibility as NZ Class shares were deemed
‘innovative equity’ and were not classified as Level 1 Tier 1 capital for regulatory purposes
The impact
• NZ Class shares held on 11 July 2005 will be exchanged for Westpac ordinary shares on a 1 for 1 basis
• A New Zealand register will be established to enable ordinary shares to be traded on NZX
What changes
• Australian tax rule changes enabled Westpac to invoke an exchange of the NZ Class shares
• Efforts to restructure NZ Class shares could not satisfactorily resolve all issues
• Board decided to exercise its right to exchange
What occurred
Presentation Title & Date 2005 Interim Results 37
A balanced, high quality result
• Diverse sources of growth maintaining earnings quality
• True to form on managing growth/margin mix
• Ongoing efficiency improvements adding value
• Risks managed effectively
• Higher dividend reflecting
- Quality and strength of result
- Confidence in future
Outlook
5 May 2005
David Morgan Chief Executive Officer
Presentation Title & Date 2005 Interim Results 39
Environment more challenging
• Economic- Slower domestic demand and credit growth
- Higher interest rate environment
• Regulatory- Numerous regulatory changes under way (Basel II, IFRS,
Sarbanes Oxley, Anti Money Laundering)
- Increased regulatory oversight
• Competitive intensity increasing- Existing players focusing more on market share
- New entrants with price based propositions
- Regional banks venturing outside core markets
Presentation Title & Date 2005 Interim Results 40
Credit growth expected to ease
-8
-4
0
4
8
12
16
20
24
Sep-90 Sep-92 Sep-94 Sep-96 Sep-98 Sep-00 Sep-02 Sep-04 Sep-06
-8
-4
0
4
8
12
16
20
24
Housing Business Total (Aust)
Total credit average Total Housing average
Forecasts (To Sep 2006)
Source: RBA, Westpac
Australian credit growth (%)
Presentation Title & Date 2005 Interim Results 41
Upside potential remains across the business
• Deepen the share of wallet
• Continued growth in business banking
• Build on momentum in deposits and cards
New Zealand
• Strategic initiatives to support expense managementBTSS
• Grow alternative funds under management
• Cross sell opportunities from strong client and product positioningWIB
• Capitalise on sustained improvement in fund performance
• Increase penetration of Westpac customer base
BTFG
• Potential from revamped deposit suite
• Full roll-out of CRM capability
• Improve sales productivity
BCB
Presentation Title & Date 2005 Interim Results 42
David MorganChief Executive Officer
Rob CoombeChief Executive Officer
BT Financial Group
Phil CoffeyGroup Executive Institutional Bank
Michael CoomerGroup Executive
Business & Technology Solutions & Services
Philip ChronicanChief Financial Officer
Ann SherryGroup Executive
Westpac New Zealand & Pacific
Mike Pratt Group Executive
Business & Consumer Banking
Ilana AtlasGroup Executive
People and Performance
Experienced executive team
Presentation Title & Date 2005 Interim Results 43
Westpac well positioned for future
• Long term strategy has increased the resilience of the organisation
• Strategy has delivered:
- Right business mix
- Right financial and capital structure
- Right team
- Right culture
• Accordingly, well positioned for the evolving competitive environment
Presentation Title & Date 2005 Interim Results 44
A balanced, high quality result
• Earnings momentum maintained in lower growth environment
• Growth/margin mix managed well
• Efficiency improved despite compliance spend
• Higher dividend with stronger capital position
• Consistency in long-run growth and returns
0
1,000
2,000
3,000
4,000
5,000
1H00
1H01
1H02
1H03
1H04
1H05
Revenue 8%
Expenses 4%
Core earnings 12%
Revenue and expense performance ($m)
5 Year CAGR 1
1. Underlying basis (excl. significant items but not adjusted for acquisitions and disposals)
2. Excluding goodwill amortisation
2
Presentation Title & Date 2005 Interim Results 45
Positive outlook for Westpac
• Well positioned for the more challenging environment
• Good earnings momentum across all businesses
• Earnings model continues to deliver solid results in changing environment
• Credit quality continues to be favourable
• Continue to deliver strong results at the upper end of the major bank sector
2005 First Half Results
5 May 2005
Presentation Title & Date 2005 Interim Results 47
Bad debt trend analysis – half year trend
10
17
27
39
26
21
32
2429
34
22
05
1015202530354045
1H00
2000
1H01
2001
1H02
2H02
1H03
2H03
1H04
2H04
1H05
Long run expectation 25-35 basis points
Total bad & doubtful debt charge to average loans and acceptances (basis points)
Presentation Title & Date 2005 Interim Results 48
Disclaimer
The material contained in this presentation is intended to be general background information on Westpac Banking Corporation and its activities.
The information is supplied in summary form and is therefore notnecessarily complete. Also, it is not intended that it be relied upon as advice to investors or potential investors, who should consider seeking independent professional advice depending upon their specific investment objectives, financial situation or particular needs.
The financial information contained in this presentation includesnon-GAAP financial measures. For a reconciliation of these measures to the most comparable GAAP measure, please refer to full year financial statements filed with the Securities Exchange Commission and Australian Stock Exchange.