2012 ANNUAL GENERAL MEETING Lindsay Maxsted Chairman …€¦ · 2012 ANNUAL GENERAL MEETING...

Westpac Banking Corporation ABN 33 007 457 141

2012 ANNUAL

GENERAL MEETING

Lindsay Maxsted

Chairman

Westpac Group 2012 Annual General Meeting | December 2012 2

6.2

8.4

2007 2012

A strong company

51

68

2007 2012

33

110

2007 2012

Customer deposits/loans (%) Common equity Basel II1 ratio (%) Liquid assets ($bn)

1 Based on APRA definitions of Basel II; in 2012, ratio is calculated under Basel 2.5.

Westpac Group 2012 Annual General Meeting | December 2012

Strong common equity ratio against global peers

3

6

7

8

9

10

11

12

13

14

15

16

Han

de

lsba

nke

n

Sw

ed

ba

nk

SE

B

DnB

NO

R

Nord

ea

Westp

ac

Dan

ske

Ba

nk

Sta

nd

ard

Cha

rt

AN

Z

CB

A

BB

VA

Inte

sa

Sa

np

ao

lo

Un

icre

dit

NA

B

Ra

iffe

ise

n

Mo

rga

n S

tan

ley

BK

IR

Ba

nk o

f A

me

rica

Sa

nta

nd

er

ING

BO

Q

Citig

rou

p

CIB

C

JP

Mo

rga

n

HS

BC

US

Ba

nco

rp

Wells

Farg

o

Ba

nco

Po

pu

lar

UB

I B

an

ca

Go

ldm

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ch

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Average 9.7% 10.6%

Global peer comparison of fully harmonised Basel III pro forma common equity ratios1 (%)

1 Source: Company data, Credit Suisse estimates (based on latest reporting data as at 26 October 2012).


1 For a detailed explanation of cash earnings and reconciliation to our reported results refer to pages 4-6 of the Group‟s 2012 Full Year Results announcement. 2 Figures for 2009 are presented on a „pro-forma‟ basis, that is as if the merger between Westpac and

St.George Bank Limited was completed on 1 October 2008. Cash earnings for 2009 has been restated to exclude the impact of St.George merger related fair value adjustments.

164

198 209

216

2009 2010 2011 2012

4.7

5.9

6.3 6.6

2009 2010 2011 2012

Cash earnings and cash earnings per share

Cash earnings per ordinary share (cents)1,2 Cash earnings ($bn)1,2


84 cent final dividend, 166 cents for year - up 6%

5

56 60

65

74 76

80 82

84

1H09 2H09 1H10 2H10 1H11 2H11 1H12 2H12

Dividends per ordinary share (cents per share)


Total shareholder return

6

11.6%

24.3%

29.5%

All Ordinaries Index S&P/ASX 300 Bank Index Westpac

Total Shareholder Return1 12 months ended 12 December 2012

1.Total shareholder return includes movements in share prices over the period and dividends paid.

Westpac Banking Corporation ABN 33 007 457 141

2012 ANNUAL

GENERAL MEETING

Gail Kelly

Chief Executive Officer


Snapshot of 2012

FY12

Change

FY11 – FY12

Cash earnings $6,598m 5%

Revenue1 $18,076m 6%

Core earnings1,2 $10,697m 7%

Cash EPS 215.9c 3%

Expense to income ratio1 40.8% (70bps)

Fully franked dividend 166c 6% 1 Cash earnings basis. 2 Core earnings is operating profit before income tax and impairment charges..


Westpac Institutional Bank

Westpac New Zealand

211 231

267 281

1H11 2H11 1H12 2H12

699 728 734 739

1H11 2H11 1H12 2H12

Westpac Retail & Business Banking

BT Financial Group

890 960 1,001

1,113

1H11 2H11 1H12 2H12

611 622

574

657

1H11 2H11 1H12 2H12

356 373

301 352

100

200

300

400

500

1H11 2H11 1H12 2H12

All divisions performing – cash earnings ($ million)

St.George Banking Group


Balanced performance across key dimensions

10

In a low growth environment

we must be even more

disciplined in managing the

business, achieving an

appropriate mix across

strength, return, growth

and productivity.


Strength – higher capital, improved asset quality

11

7.1

7.4

8.2

Sep-10 Sep-11 Sep-12

1 Common equity ratio on a fully harmonised Basel III basis. All figures prior to Sep-12 are pro forma estimates. 2 TCE is Total Committed Exposures.

3.09 3.20

2.48

2.17

Sep-09 Sep-10 Sep-11 Sep-12

Common equity ratio (APRA Basel III)1 (%) Stressed assets to TCE2 (%)


280

310

348

FY10 FY11 FY12

18.4%

20.8%

15.0%

14.1%

18.4%

14.9%

WBC Group

WRBB

SGB

Peer 1

Peer 2

Peer 3

Growth – growing in targeted areas

12

Customer deposit ($bn) Wealth penetration1 (%)

2 Refer to slide 119 in Full Year 2012 Investor Discussion Pack, for the Wealth penetration metrics provider details.

Up 24%

Up 12%

FY10 FY11 FY12

Up 31%

Up 20%

Trade finance revenue


Return - disciplined approach

13

1.4

1.6

1.8

2.0

2.2

2.4

2.6

1H07 2H07 1H08 2H08 1H09 2H09 1H10 2H10 1H11 2H11 1H12 2H12

NIM

NIM excluding Treasury and Markets

2011 2012

Return2 on Average

assets (%) 1.15 1.14

Return2 on average

ordinary equity (%) 16.0 15.5

1 2007 does not include St.George. 2008 and 2009 are pro forma including St.George for the entire period with 1H09 ASX Profit Announcement providing details of pro forma adjustments.

2 Returns are calculated on a Cash earnings basis .

Net interest margin1 (%)


Productivity - one of world’s most efficient banks

14

20%

30%

40%

50%

60%

70%

80%

Deu

tsch

e B

an

k

UB

S A

G

Ba

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f A

me

rica

Citic

orp

Ke

yC

orp

Su

ntr

ust B

an

ks In

c.

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ys

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ya

l B

an

k

JP

Mo

rga

n C

ha

se

Ba

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on

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an

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BN

P P

arib

as

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Th

ird

Be

nd

igo

Ba

nk

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Ba

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co

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nd

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CIB

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Llo

yd

s B

an

kin

g G

rou

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ova

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tia

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an

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rou

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US

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Unite

d O

ve

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s B

k

NA

B

OC

BC

Chin

a M

erc

ha

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an

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Westp

ac

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om

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ation

Ind

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1 Source: Company data, Credit Suisse estimates 2012 (based on latest reporting data as at 10 December 2012).. 2. Cash Earnings Basis.

Average 54.7%

40.8%

2

Global peer comparison of expense to income ratios1 (%)


Supported by a highly engaged workforce

15

81

80

81

84

2009 2010 2011 2012

Employee engagement (%)


Strategic priorities

16

A strong company

Reorient to higher growth/higher return

sectors and segments

Continue building deeper

customer relationships

Materially simplify products and processes

One team approach

1

2

3

4

5


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 not necessarily 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 material contained in this presentation may include information derived from publicly available sources that have not been independently verified. No representation or warranty is made

as to the accuracy, completeness or reliability of the information.

This presentation contains statements that constitute “forward-looking statements” within the meaning of section 21E of the U.S. Securities Exchange Act of 1934. Forward-looking statements

are statements about matters that are not historical facts. The forward-looking statements include statements regarding our intent, belief or current expectations with respect to our business

and operations, market conditions and results of operations and financial condition, including, without limitation, indicative drivers, forecasted economic indicators and performance metric

outcomes.

We use words such as „may‟, „expect‟, 'indicative', „intend‟, „forecast‟, „likely‟, „estimate‟, „anticipate‟, „believe‟, or similar words to identify forward-looking statements. These statements reflect

our current views with respect to future events and are subject to certain risks, uncertainties and assumptions. These forward-looking statements reflect our current views with respect to future

events and have been made upon management‟s expectations and beliefs concerning future development and their potential affect upon us. There can be no assurance that future

developments will be in accordance with our expectations or that the effect of future developments on us will be those anticipated. Actual results may differ materially from those which we

expect, depending on the outcome of various factors. Factors that may impact on the forward-looking statements made include those described in the section entitled 'Risk and risk

management' in Westpac‟s 2012 Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission or in Westpac‟s 2012 Annual Report available at

www.westpac.com.au/investorcentre. When relying on forward-looking statements to make decisions with respect to us, investors and others should carefully consider such factors and other

uncertainties and events. We are under no obligation, and do not intend, to update any forward-looking statements contained in this presentation.

2012 ANNUAL GENERAL MEETING Lindsay Maxsted Chairman …€¦ · 2012 ANNUAL GENERAL MEETING...

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