6-K
WESTPAC BANKING CORP (WEBNF)
6-K
2023-09-14
For: 2023-09-14
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April 06, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
September 14,2023
Commission FileNumber 1-10167
WESTPAC BANKING CORPORATION
(Translation of registrant’s name into English)
275 KENT STREET, SYDNEY, NEW SOUTH WALES 2000, AUSTRALIA
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F x Form 40-F ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨
Index to Exhibits
| ExhibitNo. | Description |
|---|---|
| 1 | Strategy Update – Westpac Institutional Bank |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| WESTPAC BANKING<br> CORPORATION | |||
|---|---|---|---|
| (Registrant) | |||
| Date: | September 14, 2023 | By: | /s/<br> Yvette Adiguzel |
| Yvette Adiguzel | |||
| Tier One Attorney |
Exhibit 1
| ASX<br>Release<br>14 September 2023<br>Strategy Update – Westpac Institutional Bank<br>Westpac Banking Corporation (“Westpac”) today provides the attached 2023 Strategy<br>Update – Westpac Institutional Bank<br>For further information:<br>Hayden Cooper Justin McCarthy<br>Group Head of Media Relations General Manager, Investor Relations<br>0402 393 619 0422 800 321<br>This document has been authorised for release by Tim Hartin, Company Secretary.<br>Level 18, 275 Kent Street<br>Sydney, NSW, 2000 |
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| Strategy Update<br>Westpac Institutional Bank<br>September 2023<br>WESTPAC BANKING CORPORATION ABN 33 007 457 141 |
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| Anthony Miller<br>Group Executive WIB, Business & Wealth |
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| Gaining momentum in our institutional bank<br>3<br>44%<br>35%<br>21%<br>CIB FM GTS<br>WIB Revenue split 1H23<br>Improved financial performance<br>Our ambition: To be the banking partner of choice<br> • Our clients’ key partner for transactional banking, financing and risk<br>management<br> • Simplified product and service offering<br> • Significantly improved risk culture<br> • Industry expertise and thought leadership<br> • Attracting and retaining talent<br>1.2 1.2 1.1 1.4<br>1.1 1.1 1.2<br>FY20 FY21 FY22 1H23<br>1H 2H<br>Operating income1,2 ($bn)<br>1 Excluding Notable Items. 2 Operating income includes net interest income and non-interest income.<br>Westpac Group September 2023 Strategy Update – Westpac Institutional Bank<br>52.8<br>62.6<br>52.7<br>43.6<br>FY20 FY21 FY22 1H23<br>3.9<br>5.9<br>8.8<br>13.8<br>FY20 FY21 FY22 1H23<br>Return on tangible equity1 (%) Cost to income ratio1 (%) |
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| Nell Hutton<br>Group Executive WIB from 1 October 2023 |
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| Westpac Institutional Bank overview<br>5 Westpac Group September 2023 Strategy Update – Westpac Institutional Bank<br>Sustainability Technology Digital Data-driven<br>insights<br>Economics &<br>Research<br>Global<br>capabilities<br>Max Bulloch<br>Risk management across fixed income,<br>currencies and commodities<br>Debt capital markets<br>Financial<br>Markets<br>Alastair Welsh<br>Lending solutions<br>Relationship management<br>Deep industry understanding and<br>expertise<br>Corporate &<br>Institutional Banking<br>Jeff Byrne<br>Transactional banking<br>Liquidity management<br>Payments services for<br>Westpac<br>Global Transaction<br>Services |
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| A strategy for growth and return<br>PILLARS<br>CUSTOMER<br>care at the<br>heart<br>EASY<br>to do business<br>with<br>EXPERT<br>solutions and<br>tools<br>ADVOCATE<br>for positive<br>change<br>VALUES Helpful Ethical Leading<br>Change Performing Simple<br>MEASURES Market position Return on tangible equity<br>FOUNDATIONS Strong<br>balance sheet<br>Proactive Risk Management<br>and<br>Risk Culture<br>Data-informed insights and<br>decisioning<br>Passionate<br>people who<br>make a difference<br>PURPOSE Creating better futures together<br>6 Westpac Group September 2023 Strategy Update – Westpac Institutional Bank |
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| Jeff Byrne<br>Managing Director, Global Transaction Services |
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| 32<br>61<br>41<br>74<br>39<br>76<br>CAS OHI<br>FY21 FY22 1H23<br>99<br>117 113<br>FY21 FY22 1H23<br>Global Transaction Services (GTS)<br>8<br>1 Organisational Health Index (OHI). 2 Customer Advocacy Score (CAS). CAS is provided by Fifth Dimension and calculated as a 6-month rolling average. 3 Anti-money laundering (AML).<br>Westpac Group September 2023 Strategy Update – Westpac Institutional Bank<br>Deposits ($bn)<br> • Strengthened AML3 systems and processes<br> • Selected correspondent banking and agency services relationships<br> • Simplified client, product and service offering (exited ~1,000 low value<br>clients; reduced product suite by ~50%)<br>OHI1 and CAS2<br> • Efficiency delivered from portfolio simplification<br> • Sustained deposit growth<br> • Improving customer advocacy<br> • Stronger employee engagement<br>Gaining momentum<br>Reset the business |
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| GTS: Meeting clients’ needs today<br>9 Westpac Group September 2023 Strategy Update – Westpac Institutional Bank<br>PayTo for payers delivered; PayTo for Billers on schedule<br>Global SWIFT ISO upgrade: Phase-1 delivered; Phase-2 on schedule<br>Westpac Live FX upgrades<br>Introduced dynamic virtual cards<br>Launched new deposit product for Superannuation funds |
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| GTS: Ambition to be a leading digital transaction bank<br>10 Westpac Group September 2023 Strategy Update – Westpac Institutional Bank<br> • Transforming GTS into a leading,<br>modern, digital transaction bank<br> • Radically simplifying the<br>transaction banking user<br>experience<br> • Delivering sophisticated, real time<br>treasury management capabilities<br>PAYMENT<br>CAPABILITIES<br>DEPOSIT<br>ACCOUNTS<br>CASH<br>MANAGEMENT<br>TOOLS<br>SINGLE CUSTOMER<br>INTERFACE<br>Real-time clearing and<br>settlement of domestic<br>and international<br>payments<br>Real-time<br>cash balances,<br>receipts and<br>predictive analytics<br>Advanced liquidity<br>solutions for more<br>control<br>Intuitive interface<br> & digital servicing<br>Transformational investment |
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| Alastair Welsh<br>Managing Director, Corporate & Institutional Banking |
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| 68<br>85 85<br>FY21 FY22 1H23<br>FIPSH RE EIR C&I Other 4<br>50<br>62<br>58<br>75<br>62<br>75<br>CAS OHI<br>FY21 FY22 1H23<br>Corporate & Institutional Banking (CIB)<br>12<br>1 Financial Institutions, Public Sector & Health (FIPSH). 2 Real Estate (RE). 3 Energy, Infrastructure & Resources (EIR). 4 Consumer & Industrial (C&I). 5 Source: Westpac research, project websites and IJ Global League Tables at 30 May 2023. 6 Over<br>two years Mar-21 to Mar-23.<br>Westpac Group September 2023 Strategy Update – Westpac Institutional Bank<br> • #1 greenfield renewable energy financier in Australia5<br> • Customer advocacy score increased<br> • Loan CAGR of 16% while maintaining risk settings6<br> • Uplift in banker engagement since FY21 - OHI moved from 4th to 2nd quartile<br> • ~3,000 employees completed ESG fundamentals training<br>Loans ($bn)<br> • Client focus through industry specialisation<br> • Improving banker productivity<br> • Managing business end to end<br> • ESG capability uplift to support clients’ transition journey<br> • Data insights and research to support clients’ growth aspirations<br>CAS and OHI<br>1 2 3<br>Stronger foundations<br>Client driven business |
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| 10.8<br>12.0<br>FY22 1H23<br>Exposure to climate change<br>solutions1 ($bn, TCE2)<br>CIB: Ambition to be the lead relationship bank<br>13<br>1 Climate change solutions activities are defined in the Glossary section in our 2022 Sustainability Index and Datasheet. 2 TCE is total committed exposure.<br>Westpac Group September 2023 Strategy Update – Westpac Institutional Bank<br> • Enhancing client experience through simplification and digitisation<br> • Aiming to be within top 2 lending market share while maintaining risk settings<br> • Growth aligned with soon to be launched Sustainable Finance Taxonomy<br> • Expanding NZBA targets<br> • Achieve top quartile employee engagement<br>Performance measures of future state<br> • Simplified & digitised processes making client interactions easier<br> • Deeper relationships through enhanced WIB product offering<br> • Supporting our bankers to facilitate more time with clients<br> • ESG fully integrated into banking operations<br> • Portfolio diversification balancing risk and returns<br>Future state<br>Existing clients<br>Infrastructure and<br>renewables<br>To lead in ESG |
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| Max Bulloch<br>Managing Director, Financial Markets |
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| Financial Markets (FM)<br>15<br>1 #1 market share in bonds and semis, #1 market share in OIS, #1 market share in asset-backed bonds, =#2 market share in investment grade corporate bonds, #3 market share in interest rate swaps – 2022 Peter Lee Associates Fixed Income Survey,<br>ranking against all banks. 2 Peter Lee Associates Interest Rate Derivatives Survey 2006 to 2022. Ranking against four major domestic banks. 3 Joint lead manager (JLM). 4 Semi-government financial year runs from July 2022 to June 2023. 5<br>KangaNews Fixed Income Trading and Research Poll 2023. 6 2022 Peter Lee Associates Foreign Exchange – Financial Institutions Survey, ranking against all banks.<br>Westpac Group September 2023 Strategy Update – Westpac Institutional Bank<br> • JLM3 on all semi-government green/sustainability bond issuance in past 2 years<br> • JLM3 on 16 of 24 semi-government deals, covering 75% of supply4<br> • Ranked #1 in five out of six fixed income secondary trading categories5<br> • #2 FX market share with Institutional clients and #1 with funds6<br> • Technology uplift to streamline the deal process and enhance risk management<br> • Deeper client relationships through greater external focus<br> • Alignment across all teams delivering a consistent, competitive and easy client<br>experience<br> • Embarked on a technology and data simplification<br>Most useful analysis of the<br>economy<br>Leading position<br>across a range of fixed income<br>markets1<br>17 years in a row2<br>#1<br>Australian sustainable bond<br>league table<br>#2<br>$A bond league table<br>(excluding self-led)<br>Demonstrated capabilities<br>Client focused business |
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| FM: Ambition to be #1 FM business in Australia and NZ<br>16<br>1 As measured by Peter Lee and East & Partners surveys – Corporate Foreign Exchange, Corporate Interest Rate Derivatives, Foreign Exchange – Financial Institutions, Fixed Income.<br>Westpac Group September 2023 Strategy Update – Westpac Institutional Bank<br> • Top 2 market share in core products1<br> • Top 2 in league tables for A$ and NZ$ bonds<br> • Improving growth and return<br> • Strong employee engagement<br> • Deepening existing client relationships<br> • Leveraging market leading systematic pricing capability<br> • Increasing cross border business<br> • Using data, technology and insights to enhance the client experience<br> • Partnering with clients on their climate transition journey<br>54<br>59<br>67<br>72 71<br>74<br>CAS OHI<br>FY21 FY22 1H23<br>CAS and OHI<br>Business & Consumer<br>Cross border flows<br>Carbon & Commodities<br>Performance measures for the future<br>A blueprint for moving forward |
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| Nell Hutton<br>Group Executive WIB from 1 October 2023 |
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| Focus on becoming the leading institutional bank<br>18 Westpac Group September 2023 Strategy Update – Westpac Institutional Bank<br>Improving<br>returns &<br>market position<br>Client focus<br>Digital<br>experience<br>Expertise<br>Advocate |
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| Appendix<br>and Disclaimer |
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| Managing Director<br>Global Transaction Services<br>Business structure: GTS<br>20 Westpac Group September 2023 Strategy Update – Westpac Institutional Bank<br>New Zealand<br>Chief Operating Office<br>Global Operations Management, Strategic Business<br>Transformation, Business Controls and Monitoring<br>Client Engagement<br>Transactional Banking Sales, Implementation and Client<br>Service<br>Digital<br>Solutions &<br>Channels<br>Qvalent Pty<br>Ltd<br>Domestic<br>Payments<br>Corporate<br>Cards<br>Business and Consumer<br>Institutional<br>International<br>Payments<br>Liquidity<br>Management |
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| Managing Director<br>Corporate & Institutional Bank<br>Business structure: CIB<br>21 Westpac Group September 2023 Strategy Update – Westpac Institutional Bank<br>Relationship Management and analytical expertise<br>Chief Operating Office<br>Global Operations Management<br>and Strategic Business<br>Transformation<br>Business Controls<br> & Monitoring<br>Support and guide the business in<br>driving risk and compliance<br>priorities<br>Debt Products<br>Highly experienced specialist<br>teams delivering market-leading<br>capabilities<br>Financial<br>Institutions, Public<br>Sector & Health<br>Energy,<br>Infrastructure &<br>Resources<br>Real Estate Consumer &<br>Industrial |
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| Managing Director<br>Financial Markets<br>Fixed Income,<br>Currencies &<br>Commodities<br>Institutional<br>Client Group<br>Debt Capital<br>Markets,<br>Syndicate &<br>Solutions<br>Systematic<br>Trading, Analytics<br> & Quants<br>Corporate,<br>Business &<br>Consumer<br>Solutions<br>WIB Digital &<br>Customer<br>Platforms<br>Business structure: FM<br>22 Westpac Group September 2023 Strategy Update – Westpac Institutional Bank<br>Chief Operating Office – Global Operations Management and Strategic Business Transformation |
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| 208<br>98 109<br>85<br>Peer 1 Peer 2 Peer 3 WBC<br>Peer comparison: institutional banking divisions1<br>23<br>Loans: balances at end-1H23 ($bn)<br>Westpac Group September 2023 Strategy Update – Westpac Institutional Bank<br>1 Based on segment disclosure of each bank. The segments are not comparable on a like for like basis. The peer comparison provides an overview of relative size.<br>278<br>182<br>138<br>113<br>Peer 1 Peer 2 Peer 3 WBC<br>Deposits: balances at end-1H23 ($bn)<br>38.6<br>47.4<br>36.2<br>43.6<br>30<br>60<br>90<br>120<br>1H20 2H20 1H21 2H21 1H22 2H22 1H23<br>Peer 1 Peer 2 Peer 3 Westpac<br>Expense to income ratio (%)<br>39.9<br>36.4<br>43.9<br>49.7<br>20.0<br>30.0<br>40.0<br>50.0<br>60.0<br>70.0<br>1H20 2H20 1H21 2H21 1H22 2H22 1H23<br>Peer 1 Peer 2 Peer 3 Westpac<br>Non-interest income/ operating income (%) |
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| League tables1,2<br>1 Excluding self-led. 2 Source: Bloomberg, KangaNews. 3 Local issuers.<br>2020 2021 2022 2023 YTD<br>A$ bonds 4 3 2 2<br>NZ$ bonds 3 3 3 3<br>A$ securitisation 2 2 2 2<br>Australian sustainable<br>bonds3 3 6 1 1<br>Manager, ranking according to market share<br>24 Westpac Group September 2023 Strategy Update – Westpac Institutional Bank |
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| For all shareholding enquiries relating to:<br> • Address details and communication preferences<br> • Updating bank account details, and participation in the dividend<br>reinvestment plan<br>Investor Relations Contact Share Registry Contact<br>For all matters relating to Westpac’s strategy,<br>performance and results<br>25<br>Justin McCarthy<br>General Manager, Investor Relations<br>Arthur Petratos<br>Manager, Shareholder Services<br>Rebecca Plackett<br>Head of Corporate Reporting and ESG<br>Andrea Jaehne<br>Head of Investor Relations,<br>Ratings Agencies and Analysis<br>Jacqueline Boddy<br>Head of Debt Investor Relations<br>investorrelations@westpac.com.au westpac@linkmarketservices.com.au<br>westpac.com.au/investorcentre investorcentre.linkmarketservices.com.au<br>+61 2 9178 2977 1800 804 255<br>Investor Relations Team<br>James Wibberley<br>Manager, Investor Relations<br>Catherine Garcia<br>Head of Investor Relations,<br>Institutional<br>Nathan Fontyne<br>Graduate, Investor Relations<br>Westpac Group September 2023 Strategy Update – Westpac Institutional Bank |
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| Disclaimer<br>The material contained in this presentation is intended to be general background information on Westpac Banking Corporation (Westpac) and its activities.<br>The information is supplied in summary form and is therefore not necessarily complete. It is not intended that it be relied upon as advice to investors or potential investors, who should consider seeking independent<br>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<br>that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information.<br>All amounts are in Australian dollars unless otherwise indicated.<br>The financial information in this presentation is presented in accordance Australian Accounting Standards (AAS) and is also compliant with International Financial Reporting Standards. In First Half 2023, Westpac ceased<br>reporting cash earnings and cash earnings excluding Notable Items and now uses net profit attributable to owners of Westpac (net profit) as Westpac’s key measure of financial performance. Refer to Westpac’s 2023<br>Interim Financial Results (incorporating the requirements of Appendix 4D) for the six months ended 31 March 2023 available at www.westpac.com.au in the section “Results Announcement to the market - Introduction” for<br>details of the presentation changes and non-AAS financial measures.<br>This presentation contains statements that constitute “forward-looking statements” within the meaning of Section 21E of the US Securities Exchange Act of 1934. Forward looking statements are statements that are not<br>historical facts. Forward-looking statements appear in a number of places in this presentation and include statements regarding our intent, belief or current expectations with respect to our business and operations, macro<br>and micro economic and market conditions, results of operations and financial condition, capital adequacy and risk management, including, without limitation, future loan loss provisions and financial support to certain<br>borrowers, forecasted economic indicators and performance metric outcomes, indicative drivers, climate- and other sustainability-related statements, commitments, targets, projections and metrics, and other estimated<br>and proxy data.<br>We use words such as ‘will’, ‘may’, ‘expect’, ‘intend’, ‘seek’, ‘would’, ‘should’, ‘could’, ‘continue’, ‘plan’, ‘estimate’, ‘anticipate’, ‘believe’, ‘probability’, ‘indicative’, ‘risk’, ‘aim’, ‘outlook’, ‘forecast’, ‘f’cast’, ‘f’, ‘assumption’,<br> ‘projection’, ‘target’, ‘goal’, ‘guidance’, ‘ambition’, or other similar words to identify forward-looking statements, or otherwise identify forward-looking statements. These forward-looking statements reflect our current views<br>on future events and are subject to change, certain known and unknown risks, uncertainties and assumptions and other factors which are, in many instances, beyond our control (and the control of our officers,<br>employees, agents and advisors), and have been made based on management’s expectations or beliefs concerning future developments and their potential effect upon Westpac. Forward-looking statements may also be<br>made, verbally or in writing, by members of Westpac’s management or Board in connection with this presentation. Such statements are subject to the same limitations, uncertainties, assumptions and disclaimers set out<br>in this presentation. There can be no assurance that future developments or performance will align with our expectations or that the effect of future developments on us will be those anticipated. Actual results could differ<br>materially from those we expect or which are expressed or implied in forward-looking statements, depending on various factors including, but not limited to, those described in the section titled ‘Risk factors' in our 2023<br>Interim Financial Results (incorporating the requirements of Appendix 4D) for the six months ended 31 March 2023 available at www.westpac.com.au. When relying on forward-looking statements to make decisions with<br>respect to Westpac, investors and others should carefully consider such factors and other uncertainties and events. Except as required by law, we assume no obligation to revise or update any forward-looking statements<br>contained in this presentation, whether from new information, future events, conditions or otherwise, after the date of this presentation.<br>26 Westpac Group September 2023 Strategy Update – Westpac Institutional Bank |
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