Westpac Banking : 2024 Interim Financial Results Presentation and Investor Discussion Pack

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.

5 Westpac Group 2024 Interim Results Presentation & Investor Discussion Pack

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.

8 Westpac Group 2024 Interim Results Presentation & Investor Discussion Pack

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