Document and Entity Information
Document and Entity Information | 6 Months Ended |
Mar. 31, 2023 | |
Document and Entity Information | |
Entity Registrant Name | WESTPAC BANKING CORP |
Document Type | 6-K |
Document Period End Date | Mar. 31, 2023 |
Entity Central Index Key | 0000719245 |
Current Fiscal Year End Date | --09-30 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
Consolidated income statement
Consolidated income statement - AUD ($) $ in Millions | 6 Months Ended | ||
Mar. 31, 2023 | Sep. 30, 2022 | Mar. 31, 2022 | |
Interest income: | |||
Calculated using the effective interest method | $ 19,279 | $ 12,872 | $ 10,109 |
Calculated using the effective interest rate method, percentage movement from prior period | 50% | ||
Total interest income calculated using the effective interest rate method, percentage movement from same period in prior year | 91% | ||
Other | $ 560 | 174 | 96 |
Total interest income | $ 19,839 | 13,046 | 10,205 |
Total interest income, percentage movement from prior period | 52% | ||
Total interest income, percentage movement from same period in prior year | 94% | ||
Interest expense | $ (10,726) | (4,173) | (1,917) |
Interest expense, percentage movement from prior period | 157% | ||
Net interest income | $ 9,113 | 8,873 | 8,288 |
Net interest income, percentage movement from prior period | 3% | ||
Net interest income, percentage movement from same period of prior year | 10% | ||
Non-interest income | |||
Net fees | $ 827 | 826 | 845 |
Net fees, percentage movement from same period of prior year | (2.00%) | ||
Net wealth management and insurance | $ 347 | 407 | 401 |
Net wealth management and insurance, percentage movement from prior period | (15.00%) | ||
Net wealth management and insurance, percentage movement from same period of prior year | (13.00%) | ||
Trading | $ 387 | 321 | 343 |
Trading, percentage movement from prior period | 21% | ||
Trading, percentage movement from same period in prior year | 13% | ||
Other | $ 329 | (1,051) | 353 |
Other, percentage movement from same period of prior year | (7.00%) | ||
Total non-interest income | $ 1,890 | 503 | 1,942 |
Total non-interest income, percentage movement from same period of prior year | (3.00%) | ||
Net operating income | $ 11,003 | 9,376 | 10,230 |
Net operating income, percentage movement from prior period | 17% | ||
Net operating income, percentage movement from same period of prior year | 8% | ||
Operating expenses | $ (4,988) | (5,429) | (5,373) |
Operating expenses, percentage movement from prior period | (8.00%) | ||
Operating expenses, percentage movement from same period of prior year | (7.00%) | ||
Impairment (charges)/benefits | $ (390) | (196) | (139) |
Impairment (charges)/benefits, percentage movement from prior period | 99% | ||
Impairment (charges)/benefits, percentage movement from same period of prior year | 181% | ||
Profit before income tax expense | $ 5,625 | 3,751 | 4,718 |
Profit before income tax expense, percentage movement from prior period | 50% | ||
Profit before income tax expense, percentage movement from same period of prior year | 19% | ||
Income tax expense | $ (1,620) | (1,336) | (1,434) |
Income tax expense, percentage movement from prior period | 21% | ||
Income tax expense, percentage movement from same period of prior year | 13% | ||
Profit after income tax expense | $ 4,005 | 2,415 | 3,284 |
Profit after income tax expense, percentage movement from prior period | 66% | ||
Profit after income tax expense, percentage movement from same period of prior year | 22% | ||
Net profit attributable to non-controlling interests (NCI) | $ (4) | (1) | (4) |
Net profit attributable to owners of Westpac Banking Corporation (WBC) | $ 4,001 | $ 2,414 | $ 3,280 |
Net profit attributable to owners of Westpac Banking Corporation (WBC), percentage movement from prior period | 66% | ||
Net profit attributable to owners of Westpac Banking Corporation (WBC), percentage movement from same period of prior year | 22% | ||
Earnings per share (cents) | |||
Basic | $ 1.142 | $ 0.690 | $ 0.905 |
Basic, percentage movement from prior period | 66% | ||
Basic, percentage movement from same period of prior year | 26% | ||
Diluted | $ 1.077 | $ 0.660 | $ 0.857 |
Diluted, percentage movement from prior period | 63% | ||
Diluted, percentage movement from same period of prior year | 26% |
Consolidated statement of compr
Consolidated statement of comprehensive income - AUD ($) $ in Millions | 6 Months Ended | ||
Mar. 31, 2023 | Sep. 30, 2022 | Mar. 31, 2022 | |
Consolidated statement of comprehensive income | |||
Profit after income tax expense | $ 4,005 | $ 2,415 | $ 3,284 |
Profit after income tax expense, percentage movement from prior period | 66% | ||
Profit after income tax expense, percentage movement from same period of prior year | 22% | ||
Gains/(losses) recognised in equity on: | |||
Debt securities measured at fair value through other comprehensive income (FVOCI) | $ (2) | (178) | (140) |
Debt securities measured at fair value through other comprehensive income (FVOCI), percentage movement from prior period | (99.00%) | ||
Debt securities measured at fair value through other comprehensive income (FVOCI), percentage movement from same period of prior year | (99.00%) | ||
Cash flow hedging instruments | $ 522 | 82 | 1,222 |
Cash flow hedging instruments, percentage movement from same period of prior year | (57.00%) | ||
Transferred to income statements: | |||
Debt securities measured at FVOCI | $ (65) | (49) | (205) |
Debt securities measured at FVOCI, percentage movement from prior period | 33% | ||
Debt securities measured at FVOCI, percentage movement from same period of prior year | (68.00%) | ||
Cash flow hedging instruments | $ (418) | (424) | (10) |
Cash flow hedging instruments, percentage movement from prior period | (1.00%) | ||
Loss allowance on debt securities measured at FVOCI | $ 1 | (2) | |
Exchange differences on translation of foreign operations (net of associated hedges) | 378 | (98) | (166) |
Income tax on items taken to or transferred from equity: | |||
Debt securities measured at FVOCI | $ 21 | 66 | 100 |
Debt securities measured at FVOCI, percentage movement from prior period | (68.00%) | ||
Debt securities measured at FVOCI, percentage movement from same period of prior year | (79.00%) | ||
Cash flow hedging instruments | $ (32) | 106 | (359) |
Cash flow hedging instruments, percentage movement from same period of prior year | (91.00%) | ||
Items that will not be reclassified subsequently to profit or loss | |||
Gains/(losses) on equity securities measured at FVOCI (net of tax) | $ (25) | (54) | 146 |
Gains/(losses) on equity securities measured at FVOCI (net of tax), percentage movement from prior period | (54.00%) | ||
Own credit adjustment on financial liabilities designated at fair value (net of tax) | $ 43 | 35 | 45 |
Own credit adjustment on financial liabilities designated at fair value (net of tax), percentage movement from prior period | 23% | ||
Own credit adjustment on financial liabilities designated at fair value (net of tax), percentage movement from same period of prior year | (4.00%) | ||
Remeasurement of defined benefit obligation recognised in equity (net of tax) | $ (181) | 388 | 58 |
Net other comprehensive income/(expense) (net of tax) | $ 242 | (126) | 689 |
Net other comprehensive income/(expense) (net of tax), percentage movement from same period of prior year | (65.00%) | ||
Total comprehensive income/(expense) | $ 4,247 | 2,289 | 3,973 |
Attributable to: | |||
Owners of WBC | $ 4,243 | 2,287 | 3,970 |
Owners of WBC, percentage movement from prior period | 86% | ||
Owners of WBC, percentage movement from same period of prior year | 7% | ||
NCI | $ 4 | 2 | 3 |
NCI, percentage movement from prior period | 100% | ||
NCI, percentage movement from same period of prior year | 33% | ||
Total comprehensive income/(expense) | $ 4,247 | $ 2,289 | $ 3,973 |
Total comprehensive income/(expense), percentage movement from prior period | 86% | ||
Total comprehensive income/(expense), percentage movement from same period of prior year | 7% |
Consolidated balance sheet
Consolidated balance sheet - AUD ($) $ in Millions | 6 Months Ended | ||
Mar. 31, 2023 | Sep. 30, 2022 | Mar. 31, 2022 | |
Assets | |||
Cash and balances with central banks | $ 117,886 | $ 105,257 | $ 102,410 |
Cash and balances with central banks, percentage movement from prior period | 12% | 3% | |
Cash and balances with central banks, percentage movement from same period of prior year | 15% | 48% | |
Collateral paid | $ 4,093 | $ 6,216 | 7,374 |
Collateral paid, percentage movement from prior period | (34.00%) | ||
Collateral paid, percentage movement from same period of prior year | (44.00%) | ||
Trading securities and financial assets measured at fair value through income statement (FVIS) | $ 30,474 | 24,332 | 23,738 |
Trading securities and financial assets measured at fair value through income statement (FVIS), percentage movement from prior period | 25% | ||
Trading securities and financial assets measured at fair value through income statement (FVIS), percentage movement from same period of prior year | 28% | ||
Derivative financial instruments | $ 20,346 | 41,283 | 18,269 |
Derivative financial instruments, percentage movement from prior period | (51.00%) | ||
Derivative financial instruments, percentage movement from same period of prior year | 11% | ||
Investment securities | $ 73,552 | 76,465 | 70,442 |
Investment securities, percentage movement from prior period | (4.00%) | ||
Investment securities, percentage movement from same period of prior year | 4% | ||
Loans | $ 749,931 | 739,647 | 719,556 |
Loans, percentage movement from prior period | 1% | ||
Loans, percentage movement from same period of prior year | 4% | ||
Other financial assets | $ 7,343 | 5,626 | 4,896 |
Other financial assets, percentage movement from prior period | 31% | ||
Other financial assets, percentage movement from same period of prior year | 50% | ||
Current tax assets | $ 25 | 16 | 214 |
Current tax assets, percentage movement from prior period | 56% | ||
Current tax assets, percentage movement from same period of prior year | (88.00%) | ||
Investment in associates | $ 34 | 37 | 41 |
Investments in associates, percentage change from prior period | (8.00%) | ||
Investments in associates, percentage change from same period of prior year | (17.00%) | ||
Property and equipment | $ 2,415 | 2,429 | 2,614 |
Property and equipment, percentage movement from prior period | (1.00%) | ||
Property and equipment, percentage movement from same period of prior year | (8.00%) | ||
Deferred tax assets | $ 1,703 | 1,754 | 1,831 |
Deferred tax assets, percentage movement from prior period | (3.00%) | ||
Deferred tax assets, percentage movement from same period of prior year | (7.00%) | ||
Intangible assets | $ 10,724 | 10,327 | 10,064 |
Intangible assets, percentage movement from prior period | 4% | ||
Intangible assets, percentage movement from same period of prior year | 7% | ||
Other assets | $ 582 | 734 | 600 |
Other assets, percentage movement from prior period | (21.00%) | ||
Other assets, percentage movement from same period of prior year | (3.00%) | ||
Assets held for sale | 75 | 2,700 | |
Assets held for sale, percentage movement from prior period | (100.00%) | ||
Assets held for sale, percentage movement from same period of prior year | (100.00%) | ||
Total assets | $ 1,019,108 | 1,014,198 | 964,749 |
Total assets, percentage movement from same period of prior year | 6% | ||
Liabilities | |||
Collateral received | $ 3,577 | 6,371 | 2,170 |
Collateral received, percentage movement from prior period | (44.00%) | ||
Collateral received, percentage movement from same period of prior year | 65% | ||
Deposits and other borrowings | $ 676,352 | 659,129 | 645,606 |
Deposits and other borrowings, percentage movement from prior period | 3% | ||
Deposits and other borrowings, percentage movement from same period of prior year | 5% | ||
Other financial liabilities | $ 60,102 | 56,360 | 51,345 |
Other financial liabilities, percentage movement from prior period | 7% | ||
Other financial liabilities, percentage movement from same period of prior year | 17% | ||
Derivative financial instruments | $ 20,791 | 39,568 | 25,347 |
Derivative financial instruments, percentage movement from prior period | (47.00%) | ||
Derivative financial instruments, percentage movement from same period of prior year | (18.00%) | ||
Debt issues | $ 148,952 | 144,868 | 133,629 |
Debt issues, percentage movement from prior period | 3% | ||
Debt issues, percentage movement from same period of prior year | 11% | ||
Current tax liabilities | $ 363 | 219 | 21 |
Current tax liabilities, percentage movement from prior period | 66% | ||
Provisions | $ 2,424 | 2,950 | 3,035 |
Provisions, percentage movement from prior period | (18.00%) | ||
Provisions, percentage movement from same period of prior year | (20.00%) | ||
Deferred tax liabilities | 164 | ||
Deferred tax liabilities, percentage movement from same period of prior year | (100.00%) | ||
Other liabilities | $ 2,854 | 2,938 | 3,379 |
Other liabilities, percentage movement from prior period | (3.00%) | ||
Other liabilities, percentage movement from same period of prior year | (16.00%) | ||
Liabilities held for sale | 32 | 684 | |
Liabilities held for sale, percentage movement from prior period | (100.00%) | ||
Liabilities held for sale, percentage movement from same period of prior year | (100.00%) | ||
Total liabilities excluding loan capital | $ 915,415 | 912,435 | 865,380 |
Total liabilities excluding loan capital, percentage movement from same period of prior year | 6% | ||
Loan capital | $ 31,025 | 31,254 | 29,036 |
Loan capital, percentage movement from prior period | (1.00%) | ||
Loan capital, percentage movement from same period of prior year | 7% | ||
Total liabilities | $ 946,440 | 943,689 | 894,416 |
Total liabilities, percentage movement from same period of prior year | 6% | ||
Net assets | $ 72,668 | 70,509 | 70,333 |
Net assets, percentage movement from prior period | 3% | ||
Net assets, percentage movement from same period of prior year | 3% | ||
Share capital: | |||
Ordinary share capital | $ 39,824 | 39,666 | 39,667 |
Treasury shares | $ (702) | (655) | (651) |
Treasury shares, percentage movement from prior period | 7% | ||
Treasury shares, percentage movement from same period of prior year | 8% | ||
Reserves | $ 2,816 | 2,378 | 2,901 |
Reserves, percentage movement from prior period | 18% | ||
Reserves, percentage movement from same period of prior year | (3.00%) | ||
Retained profits | $ 30,686 | 29,063 | 28,362 |
Retained profits, percentage movement from prior period | 6% | ||
Retained profits, percentage movement from same period of prior year | 8% | ||
Total equity attributable to owners of WBC | $ 72,624 | 70,452 | 70,279 |
Total equity attributable to owners of WBC, percentage movement from prior period | 3% | ||
Total equity attributable to owners of WBC, percentage movement from same period of prior year | 3% | ||
NCI | $ 44 | 57 | 54 |
NCI, percentage movement from prior period | (23.00%) | ||
NCI, percentage movement from same period of prior year | (19.00%) | ||
Total shareholders' equity and NCI | $ 72,668 | $ 70,509 | $ 70,333 |
Total shareholders' equity and NCI, percentage movement from prior period | 3% | ||
Total shareholders' equity and NCI, percentage movement from same period of prior year | 3% |
Consolidated statement of chang
Consolidated statement of changes in equity - AUD ($) $ in Millions | Total equity attributable to owners of WBC | Share capital | Reserves | Retained profits | NCI | Total |
Balance at Sep. 30, 2021 | $ 72,035 | $ 40,995 | $ 2,227 | $ 28,813 | $ 57 | $ 72,092 |
Profit after income tax expense | 3,280 | 3,280 | 4 | 3,284 | ||
Net other comprehensive income/(expense) | 690 | 587 | 103 | (1) | 689 | |
Total comprehensive income/(expense) | 3,970 | 587 | 3,383 | 3 | 3,973 | |
Transactions in capacity as equity holders | ||||||
Dividends on ordinary shares | (2,201) | (2,201) | (2,201) | |||
Other equity movements | ||||||
Off-market share buy-back (net of transaction costs) | (3,502) | (1,901) | (1,601) | (3,502) | ||
Share-based payment arrangements | 60 | 60 | 60 | |||
Purchase of shares | (33) | (33) | (33) | |||
Net acquisition of treasury shares | (45) | (45) | (45) | |||
Other | (5) | 27 | (32) | (6) | (11) | |
Total contributions and distributions | (5,726) | (1,979) | 87 | (3,834) | (6) | (5,732) |
Balance at Mar. 31, 2022 | 70,279 | 39,016 | 2,901 | 28,362 | 54 | 70,333 |
Profit after income tax expense | 2,414 | 2,414 | 1 | 2,415 | ||
Net other comprehensive income/(expense) | (127) | (550) | 423 | 1 | (126) | |
Total comprehensive income/(expense) | 2,287 | (550) | 2,837 | 2 | 2,289 | |
Transactions in capacity as equity holders | ||||||
Dividends on ordinary shares | (2,136) | (2,136) | (2,136) | |||
Other equity movements | ||||||
Off-market share buy-back (net of transaction costs) | (1) | (1) | (1) | |||
Share-based payment arrangements | 27 | 27 | 27 | |||
Net acquisition of treasury shares | (4) | (4) | (4) | |||
Other | 1 | 1 | ||||
Total contributions and distributions | (2,114) | (5) | 27 | (2,136) | 1 | (2,113) |
Balance at Sep. 30, 2022 | 70,452 | 39,011 | 2,378 | 29,063 | 57 | 70,509 |
Profit after income tax expense | 4,001 | 4,001 | 4 | 4,005 | ||
Net other comprehensive income/(expense) | 242 | 380 | (138) | 242 | ||
Total comprehensive income/(expense) | 4,243 | 380 | 3,863 | 4 | 4,247 | |
Transactions in capacity as equity holders | ||||||
Dividends on ordinary shares | (2,240) | (2,240) | (2,240) | |||
Dividend reinvestment plan | 190 | 190 | 190 | |||
Other equity movements | ||||||
Share-based payment arrangements | 58 | 58 | 58 | |||
Purchase of shares | (32) | (32) | (32) | |||
Net acquisition of treasury shares | (47) | (47) | (47) | |||
Other | (17) | (17) | ||||
Total contributions and distributions | (2,071) | 111 | 58 | (2,240) | (17) | (2,088) |
Balance at Mar. 31, 2023 | $ 72,624 | $ 39,122 | $ 2,816 | $ 30,686 | $ 44 | $ 72,668 |
Consolidated statement of cha_2
Consolidated statement of changes in equity (Parenthetical) - AUD ($) $ in Millions | 6 Months Ended | |||
Feb. 14, 2022 | Mar. 31, 2023 | Sep. 30, 2022 | Mar. 31, 2022 | |
Final dividend (in dollars per share) | $ 0.64 | $ 0.60 | ||
Final dividend | $ 2,240 | $ 2,201 | ||
Interim dividend (in dollars per share) | $ 0.61 | |||
Interim dividend | $ 2,136 | |||
Dividend tax rate (as a percent) | 30% | 30% | 30% | |
Ordinary shares | ||||
Value of shares acquired in off-market buy back | $ 3,500 |
Consolidated cash flow statemen
Consolidated cash flow statement - AUD ($) $ in Millions | 6 Months Ended | ||
Mar. 31, 2023 | Sep. 30, 2022 | Mar. 31, 2022 | |
Cash flows from operating activities | |||
Interest received | $ 18,818 | $ 12,332 | $ 10,091 |
Interest received, percentage movement from prior period | 53% | ||
Interest received, percentage movement from same period in prior year | 86% | ||
Interest paid | $ (9,091) | (3,312) | (1,779) |
Interest paid, percentage movement from prior period | 174% | ||
Dividends received excluding life business | 1 | 3 | |
Dividends received excluding life business, percentage movement from prior period | (100.00%) | ||
Dividends received excluding life business, percentage movement from same period in prior year | (100.00%) | ||
Other non-interest income received | $ 2,067 | 2,522 | 1,686 |
Other non-interest income received, percentage movement from prior period | (18.00%) | ||
Other non-interest income received, percentage movement from same period in prior year | 23% | ||
Operating expenses paid | $ (4,436) | (4,585) | (5,139) |
Operating expenses paid, percentage movement from prior period | (3.00%) | ||
Operating expenses paid, percentage movement from same period in prior year | (14.00%) | ||
Income tax paid excluding life business | $ (1,364) | (996) | (1,282) |
Income tax paid excluding life business, percentage movement from prior period | 37% | ||
Income tax paid excluding life business, percentage movement from same period in prior year | 6% | ||
Life business: | |||
Receipts from policyholders and customers | 379 | 466 | |
Receipts from policyholders and customers, percentage movement from prior period | (100.00%) | ||
Receipts from policyholders and customers, percentage movement from same period in prior year | (100.00%) | ||
Interest and other items of similar nature | 1 | ||
Interest and other items of similar nature, percentage movement from same period in prior year | (100.00%) | ||
Dividends received | 17 | 8 | |
Dividends received, percentage movement from prior period | (100.00%) | ||
Dividends received, percentage movement from same period in prior year | (100.00%) | ||
Payments to policyholders and suppliers | (307) | (312) | |
Payments to policyholders and suppliers, percentage movement from prior period | (100.00%) | ||
Payments to policyholders and suppliers, percentage movement from same period in prior year | (100.00%) | ||
Income tax paid | (14) | (51) | |
Income tax paid, percentage movement from prior period | (100.00%) | ||
Income tax paid, percentage movement from same period in prior year | (100.00%) | ||
Cash flows from operating activities before changes in operating assets and liabilities | $ 5,994 | 6,037 | 3,692 |
Cash flows from operating activities before changes in operating assets and liabilities, percentage movement from prior period | (1.00%) | ||
Cash flows from operating activities before changes in operating assets and liabilities, percentage movement from same period in prior year | 62% | ||
Net (increase)/decrease in: | |||
Collateral paid | $ 1,898 | 1,769 | (3,293) |
Collateral paid, percentage movement from prior period | 7% | ||
Trading securities and financial assets measured at FVIS | $ (4,967) | (1,644) | (2,106) |
Trading securities and financial assets measured at FVIS, percentage movement from same period in prior year | 136% | ||
Derivative financial instruments | $ (165) | (553) | 3,004 |
Derivative financial instruments, percentage movement from prior period | (70.00%) | ||
Loans | $ (5,074) | (23,709) | (12,636) |
Loans, percentage movement from prior period | (79.00%) | ||
Loans, percentage movement from same period in prior year | (60.00%) | ||
Other financial assets | $ (148) | (447) | 726 |
Other financial assets, percentage movement from prior period | (67.00%) | ||
Life insurance assets and liabilities | 133 | 133 | |
Life insurance assets and liabilities, percentage movement from prior period | (100.00%) | ||
Life insurance assets and liabilities, percentage movement from same period in prior year | (100.00%) | ||
Other assets | $ 26 | 37 | (17) |
Other assets, percentage movement from prior period | (30.00%) | ||
Net increase/(decrease) in: | |||
Collateral received | $ (2,781) | 3,827 | (184) |
Deposits and other borrowings | $ 13,464 | 13,296 | 21,758 |
Deposits and other borrowings, percentage movement from prior period | 1% | ||
Deposits and other borrowings, percentage movement from same period in prior year | (38.00%) | ||
Other financial liabilities | $ (328) | 5,738 | 1,382 |
Other liabilities | (4) | 8 | 3 |
Net cash provided by/(used in) operating activities | $ 7,915 | 4,492 | 12,462 |
Net cash provided by/(used in) operating activities, percentage movement from prior period | 76% | ||
Net cash provided by/(used in) operating activities, percentage movement from same period in prior year | (36.00%) | ||
Cash flows from investing activities | |||
Proceeds from investment securities | $ 20,299 | 16,877 | 19,145 |
Proceeds from investment securities, percentage movement from prior period | 20% | ||
Proceeds from investment securities, percentage movement from same period in prior year | 6% | ||
Purchase of investment securities | $ (15,619) | (24,239) | (9,837) |
Purchase of investment securities, percentage movement from prior period | (36.00%) | ||
Purchase of investment securities, percentage movement from same period in prior year | 59% | ||
Proceeds from disposal of controlled entities and other businesses, net of cash disposed | $ 293 | 727 | 1,388 |
Proceeds from disposal of controlled entities and other businesses, net of cash disposed, percentage movement from prior period | (60.00%) | ||
Proceeds from disposal of controlled entities and other businesses, net of cash disposed, percentage movement from same period in prior year | (79.00%) | ||
Purchase of controlled entities | (14) | ||
Purchase of controlled entities, percentage movement from same period in prior year | (100.00%) | ||
Proceeds from disposal of property and equipment | $ 7 | 1 | 24 |
Proceeds from disposal of property and equipment, percentage movement from same period in prior year | (71.00%) | ||
Purchase of property and equipment | $ (103) | (97) | (69) |
Purchase of property and equipment, percentage movement from prior period | 6% | ||
Purchase of property and equipment, percentage movement from same period in prior year | 49% | ||
Purchase of intangible assets | $ (595) | (677) | (422) |
Purchase of intangible assets, percentage movement from prior period | (12.00%) | ||
Purchase of intangible assets, percentage movement from same period in prior year | 41% | ||
Net cash provided by/(used in) investing activities | $ 4,282 | (7,408) | 10,215 |
Net cash provided by/(used in) investing activities, percentage movement from same period in prior year | (58.00%) | ||
Cash flows from financing activities | |||
Proceeds from debt issues (net of issue costs) | $ 41,825 | 33,397 | 39,912 |
Proceeds from debt issues (net of issue costs), percentage movement from prior period | 25% | ||
Proceeds from debt issues (net of issue costs), percentage movement from same period in prior year | 5% | ||
Redemption of debt issues | $ (38,989) | (29,114) | (26,785) |
Redemption of debt issues, percentage movement from prior period | 34% | ||
Redemption of debt issues, percentage movement from same period in prior year | 46% | ||
Payments for the principal portion of lease liabilities | $ (205) | (191) | (236) |
Payments for the principal portion of lease liabilities, percentage movement from prior period | 7% | ||
Payments for the principal portion of lease liabilities, percentage movement from same period in prior year | (13.00%) | ||
Issue of loan capital (net of issue costs) | 3,511 | 3,016 | |
Issue of loan capital (net of issue costs), percentage movement from prior period | (100.00%) | ||
Issue of loan capital (net of issue costs), percentage movement from same period in prior year | (100.00%) | ||
Redemption of loan capital | $ (285) | (1,305) | (1,039) |
Redemption of loan capital, percentage movement from prior period | (78.00%) | ||
Redemption of loan capital, percentage movement from same period in prior year | (73.00%) | ||
Payment for off-market share buy-back | (1) | (3,502) | |
Payment for off-market share buy-back, percentage movement from prior period | (100.00%) | ||
Payment for off-market share buy-back, percentage movement from same period in prior year | (100.00%) | ||
Purchase of shares relating to share-based payment arrangements | $ (32) | (33) | |
Purchase of shares relating to share-based payment arrangements, percentage movement from same period in prior year | (3.00%) | ||
Purchase of Restricted Share Plan (RSP) treasury shares | $ (47) | (4) | (45) |
Purchase of Restricted Share Plan (RSP) treasury shares, percentage movement from same period in prior year | 4% | ||
Payment of dividends | $ (2,050) | (2,136) | (2,201) |
Payment of dividends, percentage movement from prior period | (4.00%) | ||
Payment of dividends, percentage movement from same period in prior year | (7.00%) | ||
Dividends paid to NCI | $ (17) | (5) | |
Net cash provided by/(used in) financing activities | $ 200 | 4,157 | 9,082 |
Net cash provided by/(used in) financing activities, percentage movement from prior period | (95.00%) | ||
Net cash provided by/(used in) financing activities, percentage movement from same period in prior year | (98.00%) | ||
Net increase/(decrease) in cash and balances with central banks | $ 12,397 | 1,241 | 31,759 |
Net increase/(decrease) in cash and balances with central banks, percentage movement from same period in prior year | (61.00%) | ||
Effect of exchange rate changes on cash and balances with central banks | $ 232 | 1,598 | (701) |
Effect of exchange rate changes on cash and balances with central banks, percentage movement from prior period | (85.00%) | ||
Net (increase)/decrease in cash and balances with central banks included in assets held for sale | 8 | (1) | |
Net (increase)/decrease in cash and balances with central banks included in assets held for sale, percentage change from prior period | (100.00%) | ||
Net (increase)/decrease in cash and balances with central banks included in assets held for sale, percentage change from same period of prior year | (100.00%) | ||
Cash and balances with central banks as at beginning of year | $ 105,257 | 102,410 | 71,353 |
Cash and balances with central banks as at end of year | $ 117,886 | $ 105,257 | $ 102,410 |
Cash and balances with central banks, percentage movement from prior period | 12% | 3% | |
Cash and balances with central banks, percentage movement from same period of prior year | 15% | 48% |
Financial statements preparatio
Financial statements preparation | 6 Months Ended |
Mar. 31, 2023 | |
Financial statements preparation | |
Financial statements preparation | 3.7 Notes to the consolidated financial statements Note 1. Financial statements preparation This general purpose Interim Financial Report for the half year ended 31 March 2023 has been prepared in accordance with Australian Accounting Standard AASB 134 Interim Financial Reporting Corporations Act 2001 (Cth) The Interim Financial Report does not include all the notes of the type normally included in an Annual Financial Report. Accordingly, this Interim Financial Report is to be read in conjunction with the Annual Financial Report for the year ended 30 September 2022 and any relevant public announcements made by Westpac during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001 (Cth) The Interim Financial Report complies with current Australian Accounting Standards (AAS) as they relate to interim financial reports. The Interim Financial Report was authorised for issue by the Board of Directors on 7 May 2023. All amounts have been rounded in accordance with ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191, to the nearest million dollars, unless otherwise stated. Accounting policies The accounting policies adopted in the preparation of this Interim Financial Report are consistent with those in the Annual Financial Report for the year ended 30 September 2022. Critical accounting assumptions and estimates In preparing the Interim Financial Report, the application of the Group’s accounting policies requires the use of judgement, assumptions and estimates. The areas of judgement, assumptions and estimates in the Interim Financial Report, including the key sources of estimation uncertainty, are consistent with those in the Annual Financial Report for the year ended 30 September 2022. Details on specific judgements in relation to the calculation of provision for ECL including overlays are included in Note 9. Amendments to Accounting Standards effective this period No new accounting standards have been adopted by the Group for the half year ended 31 March 2023. There have been no amendments to existing accounting standards that have had a material impact to the Group. Future developments in accounting standards There are no new standards or amendments to existing standards that are not yet effective that are expected to have a material impact on the Group. Interest rate benchmark reform The IBOR reform and the enterprise-wide IBORs Transition Programme the Group has established to manage the impacts of this reform are detailed in Note 22.4 of the Group’s 2022 Annual Report. A number of IBORs had a 31 December 2021 cessation date. The Group ceased to enter into new contracts referencing these rates and the Group’s exposures to contracts which reference these rates have either matured or transitioned to an alternative reference rate (ARR) with the exception of a small number of trades with immaterial balances. Certain US LIBOR tenors have not yet transitioned to an ARR as they have a cessation date of 30 June 2023. The Group has monitoring controls in place to assess US LIBOR exposures on a regular basis and an overall Programme objective to transition away from USD LIBOR transactions. For the Group’s derivative exposures, almost all have bilateral adherence from our counterparties to the fallback clauses issued by the International Swaps and Derivatives Association (ISDA) in the ISDA 2020 IBOR Fallbacks Protocol which provides a standardised process to identify the appropriate ARR at the relevant benchmark transition date. For the Group’s non-derivative exposures, the Group is engaging with its customers and counterparties to transition or include appropriate fallback provisions. Due to the nature of these contracts, these fallback provisions will be determined bilaterally with the customer or counterparty rather than the standardised basis provided by the ISDA protocols applicable to our derivative contracts. In addition, the Group’s exposure to new contracts referencing these rates is limited by regulatory guidelines whereby transactions from 31 December 2021 can only be entered into for risk management purposes. |
Segment reporting
Segment reporting | 6 Months Ended |
Mar. 31, 2023 | |
Segment reporting | |
Segment reporting | Note 2. Segment reporting Operating segments are presented on a basis consistent with information provided internally to Westpac’s key decision makers and reflect the management of the business, rather than the legal structure of the Group. In prior periods the information provided internally to Westpac’s key decision makers presented an adjusted measure of profit that was referred to as “cash earnings” in assessing the financial performance of the Group. Cash earnings adjustments to statutory profit after tax in prior periods included: ● Fair value (gain)/loss on economic hedges (which do not qualify for hedge accounting under AAS) which may create a material timing difference on reported results but do not affect the Group’s earnings over the life of the hedge. ● The net ineffectiveness on qualifying hedges arises from the fair value movement in these hedges which reverses over time and therefore does not affect the Group’s profits over time. The Group ceased reporting this adjusted measure of profit in the current period and instead reports the Group and segments statutory profit after tax internally to Westpac’s key decision makers. The statutory amount of the net operating income and operating expenses segment line items are separated to show the balances excluding Notable Items and the total Notable Items for each of these categories. This is consistent with the information provided internally to Westpac’s key decision makers. Notable Items are items that management believes are not reflective of the Group’s ongoing business performance and are grouped into the following broad categories: ● Unrealised fair value gains and losses on economic hedges that do not qualify for hedge accounting ● Net ineffectiveness on qualifying hedges ● Large items that are not reflective of the Group’s ordinary operations. In individual reporting periods large items may include - Provisions for remediation, litigation, fines and penalties - The impact of asset sales and revaluations - The write-down of assets (including goodwill and capitalised software) - Restructuring costs Cash earnings adjustments which reclassified amounts between individual line items but did not impact on net cash earnings have also ceased. In prior periods these included: ● Operating leases: Under AAS rental income on operating leases is presented gross of the depreciation of the assets subject to the lease. In prior periods, these amounts were offset in deriving non-interest income and operating expenses on a cash earnings basis; and ● Policyholder tax recoveries: Income and tax amounts that are grossed up to comply with the AAS covering Life Insurance Business (policyholder tax recoveries) were reversed in deriving income and taxation expense on a cash earnings basis. As the sale of the Group’s life insurance business was finalised in Full Year 2022 this adjustment is no longer relevant to the Group. For the 2023 Interim Financial Report we have updated our reporting and restated comparatives for this change. Reportable operating segments We are one of Australia’s leading providers of banking and selected financial services, operating under multiple brands, and predominantly in Australia and New Zealand, with a small presence in Europe, North America and Asia. We operate through a significant online capability supported by an extensive branch and ATM network, call centres and specialist relationship and product managers. Our operations comprise the following key segments: ● Consumer and Business Banking: – Consumer provides banking products and services, including mortgages, credit cards, personal loans, and savings and deposit products to retail customers in Australia. – Business serves the banking needs of Australian small and commercial businesses, generally up to $200 million in exposure. ● Westpac Institutional Bank (WIB) delivers a broad range of financial products and services to corporate, institutional and government customers. ● Westpac New Zealand provides banking, and wealth products and services for consumer, business and institutional customers in New Zealand. ● Specialist Businesses was established in May 2020 by combining the operations that Westpac identified to be exited as part of its simplification agenda. Since its formation, nine business divestments have been completed. The remaining operations include Platforms, Westpac Pacific, margin lending and the retail auto finance business which is in run-off. ● Group Businesses includes support functions such as Treasury, Customer Services and Technology, Corporate Services and Enterprise Services. It also includes Group-wide elimination entries arising on consolidation, centrally raised provisions and other unallocated revenue and expenses. Note 2. Segment reporting (continued) The tables present the segment results for the Group: Consumer Westpac and Westpac New Notable Business Institutional Zealand Specialist Group Items Income $m Consumer Business Banking Bank (A$) Businesses Businesses Total (pre-tax) statement Half Year March 2023 Net interest income 4,693 2,043 6,736 712 1,145 216 393 9,202 (89) 9,113 Net fee income 266 163 429 296 82 22 (2) 827 - 827 Net wealth management and insurance income 22 - 22 - 17 308 - 347 - 347 Trading income - - - 375 18 22 (6) 409 (22) 387 Other income 9 2 11 33 (1) 41 2 86 243 329 Notable Items - - - - - 243 (111) 132 (132) - Net operating income 4,990 2,208 7,198 1,416 1,261 852 276 11,003 - 11,003 Operating expenses 1 (2,301) (914) (3,215) (617) (574) (280) (302) (4,988) - (4,988) Notable Items - - - - - - - - - - Total operating expenses (2,301) (914) (3,215) (617) (574) (280) (302) (4,988) - (4,988) Pre-provision profit 2,689 1,294 3,983 799 687 572 (26) 6,015 - 6,015 Impairment (charges)/benefits (170) (78) (248) 4 (142) (2) (2) (390) - (390) Profit before income tax expense 2,519 1,216 3,735 803 545 570 (28) 5,625 - 5,625 Income tax (expense)/benefit 2 (756) (365) (1,121) (229) (154) (73) (43) (1,620) - (1,620) Net profit attributable to NCI - - - - - (4) - (4) - (4) Net profit attributable to owners of WBC 1,763 851 2,614 574 391 493 (71) 4,001 - 4,001 Notable Items (post-tax) 2 - - - - - 256 (78) 178 Balance sheet Loans 479,761 85,568 565,329 84,697 91,943 8,086 (124) 749,931 Deposits and other borrowings 293,565 133,442 427,007 112,662 77,321 10,046 49,316 676,352 1. Impairment of assets (including goodwill and other intangible assets) were insignificant for all segments except for the following: - Specialist Businesses: First Half 2023: nil (Second Half 2022: nil , First Half 2022: $167 million); - Group Businesses: First Half 2023: nil (Second Half 2022: $159 million, First Half 2022: $7 million). 2. The tax impact of Notable Items was a reduction to income tax (expense)/benefit of $46 million in First Half 2023 (Second Half 2022: $135 million reduction, First Half 2022: $89 million addition). Note 2. Segment reporting (continued) Consumer and Westpac Westpac New Notable Business Institutional Zealand Specialist Group Items Income $m Consumer Business Banking Bank (A$) Businesses Businesses Total (pre-tax) statement Half Year Sept 2022 Net interest income 4,608 1,704 6,312 629 1,073 232 339 8,585 288 8,873 Net fee income 248 165 413 303 99 17 (5) 827 (1) 826 Net wealth management and insurance income 25 - 25 - 15 375 - 415 (8) 407 Trading income - - - 249 18 21 (7) 281 40 321 Other income 15 2 17 2 (4) 5 46 66 (1,117) (1,051) Notable Items - - - - (12) (1,120) 334 (798) 798 - Net operating income 4,896 1,871 6,767 1,183 1,189 (470) 707 9,376 - 9,376 Operating expenses 1 (2,254) (915) (3,169) (607) (538) (313) (412) (5,039) (390) (5,429) Notable Items (66) - (66) - - (150) (174) (390) 390 - Total operating expenses (2,320) (915) (3,235) (607) (538) (463) (586) (5,429) - (5,429) Pre-provision profit 2,576 956 3,532 576 651 (933) 121 3,947 - 3,947 Impairment (charges)/benefits (228) 15 (213) (27) 16 29 (1) (196) - (196) Profit before income tax expense 2,348 971 3,319 549 667 (904) 120 3,751 - 3,751 Income tax (expense)/benefit 2 (703) (292) (995) (168) (192) 50 (31) (1,336) - (1,336) Net profit attributable to NCI - - - - - (1) - (1) - (1) Net profit attributable to owners of WBC 1,645 679 2,324 381 475 (855) 89 2,414 - 2,414 Notable Items (post-tax) 2 (47) - (47) - (10) (1,112) 116 (1,053) Balance sheet Loans 474,604 84,897 559,501 85,182 85,285 9,866 (187) 739,647 Deposits and other borrowings 280,574 133,335 413,909 116,552 71,202 9,457 48,009 659,129 1. Impairment of assets (including goodwill and other intangible assets) were insignificant for all segments except for the following: - Specialist Businesses: First Half 2023: nil (Second Half 2022: nil , First Half 2022: $167 million); - Group Businesses: First Half 2023: nil (Second Half 2022: $159 million, First Half 2022: $7 million). 2. The tax impact of Notable Items was a reduction to income tax (expense)/benefit of $46 million in First Half 2023 (Second Half 2022: $135 million reduction, First Half 2022: $89 million addition). Note 2. Segment reporting (continued) Consumer Westpac and Westpac New Notable Business Institutional Zealand Specialist Group Items Income $m Consumer Business Banking Bank (A$) Businesses Businesses Total (pre-tax) statement Half Year March 2022 Net interest income 4,377 1,323 5,700 481 1,034 242 564 8,021 267 8,288 Net fee income 265 162 427 302 86 29 1 845 - 845 Net wealth management and insurance income 26 - 26 - 39 379 - 444 (43) 401 Trading income - - - 267 25 20 27 339 4 343 Other income 33 3 36 23 1 14 8 82 271 353 Notable Items - - - - 132 109 258 499 (499) - Net operating income 4,701 1,488 6,189 1,073 1,317 793 858 10,230 - 10,230 Operating expenses 1 (2,369) (984) (3,353) (581) (534) (370) (304) (5,142) (231) (5,373) Notable Items - - - - - (215) (16) (231) 231 - Total operating expenses (2,369) (984) (3,353) (581) (534) (585) (320) (5,373) - (5,373) Pre-provision profit 2,332 504 2,836 492 783 208 538 4,857 - 4,857 Impairment (charges)/benefits 27 (158) (131) (58) 9 38 3 (139) - (139) Profit before income tax expense 2,359 346 2,705 434 792 246 541 4,718 - 4,718 Income tax (expense)/benefit 2 (713) (107) (820) (128) (190) (111) (185) (1,434) - (1,434) Net profit attributable to NCI - - - - - (3) (1) (4) - (4) Net profit attributable to owners of WBC 1,646 239 1,885 306 602 132 355 3,280 - 3,280 Notable Items (post-tax) 2 - - - - 129 (114) 164 179 Balance sheet Loans 465,697 80,949 546,646 73,950 87,361 11,730 (131) 719,556 Deposits and other borrowings 276,161 134,716 410,877 104,661 75,622 8,362 46,084 645,606 1. Impairment of assets (including goodwill and other intangible assets) were insignificant for all segments except for the following: - Specialist Businesses: First Half 2023: nil (Second Half 2022: nil , First Half 2022: $167 million); - Group Businesses: First Half 2023: nil (Second Half 2022: $159 million, First Half 2022: $7 million). 2. The tax impact of Notable Items was a reduction to income tax (expense)/benefit of $46 million in First Half 2023 (Second Half 2022: $135 million reduction, First Half 2022: $89 million addition). Half Year Half Year Half Year % Mov’t March Sept March Mar 23 Mar 23 $m 2023 2022 2022 - Sept 22 - Mar 22 Notable Items after tax Economic hedges (121) 266 204 large large Hedge ineffectiveness 43 (33) (19) large large Provisions for litigation, fines and penalties 3 - (68) (65) (100) (100) Asset sales and revaluations 256 (1,089) 213 large 20 The write-down of assets - (129) (154) (100) (100) Total Notable Items after tax 178 (1,053) 179 large (1) 3. Second Half 2022 and First Half 2022 also included provisions for estimated customer refunds and payments and associated costs. |
Net interest income and average
Net interest income and average balance sheet and interest rates | 6 Months Ended |
Mar. 31, 2023 | |
Net interest income and average balance sheet and interest rates | |
Net interest income and average balance sheet and interest rates | Note 3. Net interest income and average balance sheet and interest rates Net interest income Half Year Half Year Half Year % Mov’t March Sept March Mar 23 Mar 23 $m 2023 2022 2022 - Sept 22 - Mar 22 Interest income 1 Calculated using the effective interest method Cash and balances with central banks 1,806 637 46 184 large Collateral paid 269 64 4 large large Investment securities 918 620 506 48 81 Loans 16,276 11,549 9,547 41 70 Other financial assets 10 2 - large - Assets held for sale - - 6 - (100) Total interest income calculated using the effective interest method 19,279 12,872 10,109 50 91 Other Net ineffectiveness on qualifying hedges 62 (50) (27) large large Trading securities and financial assets measured at FVIS 498 224 123 122 large Total other 560 174 96 large large Total interest income 19,839 13,046 10,205 52 94 Interest expense Calculated using the effective interest method Collateral received (142) (60) (4) 137 large Deposits and other borrowings (6,151) (2,098) (712) 193 large Debt issues (2,268) (1,406) (851) 61 167 Loan capital (620) (586) (440) 6 41 Other financial liabilities (234) (117) (45) 100 large Total interest expense calculated using the effective interest method (9,415) (4,267) (2,052) 121 large Other Deposits and other borrowings (801) (350) (49) 129 large Trading liabilities 2 (188) 717 452 large large Debt issues (116) (62) (31) 87 large Bank levy (164) (163) (177) 1 (7) Other interest expense (42) (48) (60) (13) (30) Total other (1,311) 94 135 large large Total interest expense (10,726) (4,173) (1,917) 157 large Net interest income 9,113 8,873 8,288 3 10 1. Included items relating to compliance, regulation and remediation costs recognised as a $9 million addition to net interest income (Second Half 2022: $8 million reduction, First Half 2022: $9 million addition). Refer to Note 13 for further details. 2. Includes net impact of Treasury balance sheet management activities. Average balance sheet and interest rates Half Year March 2023 Half Year Sept 2022 Half Year March 2022 Average Average Average Average Average Average balance Interest rate balance Interest rate balance Interest rate $m $m % $m $m % $m $m % Assets Interest earning assets Loans 1 699,735 16,276 4.7 683,786 11,549 3.4 669,815 9,547 2.9 Housing 481,538 10,174 4.2 472,098 7,349 3.1 468,207 6,317 2.7 Personal 13,485 556 8.3 14,471 582 8.0 15,618 618 7.9 Business 204,712 5,546 5.4 197,217 3,618 3.7 185,990 2,612 2.8 Trading securities and financial assets measured at FVIS 29,044 498 3.4 23,426 224 1.9 22,243 123 1.1 Investment securities 76,015 918 2.4 77,783 620 1.6 77,779 506 1.3 Other interest earning assets 2 129,414 2,147 3.3 116,786 653 1.1 101,392 23 - Assets held for sale - - - 5 - - 846 6 1.4 Total interest earning assets and interest income 934,208 19,839 4.3 901,786 13,046 2.9 872,075 10,205 2.3 Non-interest earning assets Derivative financial instruments 25,290 28,479 18,283 Assets held for sale 60 1,843 3,048 All other assets 3 58,365 59,492 64,427 Total non-interest earning assets 83,715 89,814 85,758 Total assets 1,017,923 991,600 957,833 Liabilities Interest bearing liabilities Deposits and other borrowings 599,545 6,952 2.3 581,038 2,448 0.8 570,842 761 0.3 Certificates of deposit 45,447 799 3.5 48,068 347 1.4 46,544 48 0.2 At call 386,455 3,520 1.8 389,417 1,158 0.6 391,719 342 0.2 Term 167,643 2,633 3.1 143,553 943 1.3 132,579 371 0.6 Repurchase agreements 41,310 228 1.1 39,807 112 0.6 35,740 38 0.2 Loan capital 33,649 620 3.7 30,910 586 3.8 30,504 440 2.9 Other interest bearing liabilities 4 174,925 2,926 3.4 167,147 1,027 1.2 149,307 678 0.9 Total interest bearing liabilities and interest expense 849,429 10,726 2.5 818,902 4,173 1.0 786,393 1,917 0.5 Non-interest bearing liabilities Deposits and other borrowings 68,678 69,082 69,413 Derivative financial instruments 29,765 30,434 19,035 Liabilities held for sale 26 590 775 All other liabilities 5 (969) 3,072 11,087 Total non-interest bearing liabilities 97,500 103,178 100,310 Total liabilities 946,929 922,080 886,703 Shareholders’ equity 70,947 69,467 71,073 NCI 47 53 57 Total equity 70,994 69,520 71,130 Total liabilities and equity 1,017,923 991,600 957,833 Loans Australia 602,493 13,791 4.6 590,428 9,679 3.3 574,439 8,015 2.8 New Zealand 90,605 2,304 5.1 86,989 1,755 4.0 89,021 1,448 3.3 Other overseas 6,637 181 5.5 6,369 115 3.6 6,355 84 2.7 Deposits and other borrowings Australia 516,397 5,547 2.2 498,319 1,760 0.7 489,642 489 0.2 New Zealand 63,422 1,017 3.2 60,312 522 1.7 61,263 243 0.8 Other overseas 19,726 388 3.9 22,407 166 1.5 19,937 29 0.3 1. Loans are net of Stage 3 provision for ECL, where interest income is determined based on their carrying value. Stage 1 and 2 provisions for ECL are not included in the average interest earning assets balance, as interest income is determined based on the gross value of loans and other receivables. 2. Interest income includes net ineffectiveness on qualifying hedges. 3. Includes property and equipment, intangible assets, deferred tax assets, non-interest bearing loans relating to mortgage offset accounts and all other non-interest earning assets. 4. Includes net impact of Treasury balance sheet management activities and the Bank Levy. 5. Includes other financial liabilities, provisions, current and deferred tax liabilities and all other non-interest bearing liabilities. |
Non-interest income
Non-interest income | 6 Months Ended |
Mar. 31, 2023 | |
Non-interest income | |
Non-interest income | Note 4. Non-interest income 1 Half Year Half Year Half Year % Mov’t March Sept March Mar 23 Mar 23 $m 2023 2022 2022 - Sept 22 - Mar 22 Net fees Facility fees 338 342 344 (1) (2) Transaction fees 589 576 556 2 6 Other non-risk fee income 68 50 72 36 (6) Fee income 995 968 972 3 2 Credit card loyalty programs (81) (66) (60) 23 35 Transaction fee related expenses (87) (76) (67) 14 30 Fee expenses (168) (142) (127) 18 32 Net fees 827 826 845 - (2) Net wealth management and insurance Net wealth management income 347 365 361 (5) (4) Life insurance premium income - 314 520 (100) (100) Life insurance investment and other income 2 - (12) (129) (100) (100) Total insurance premium, investment and other income - 302 391 (100) (100) Life insurance claims, changes in life insurance liabilities and other expenses - (260) (351) (100) (100) Total insurance claims, changes in insurance liabilities and other expenses - (260) (351) (100) (100) Net wealth management and insurance 347 407 401 (15) (13) Trading 387 321 343 21 13 Other Dividends received from other entities - 1 3 (100) (100) Net gain/(loss) on sale/derecognition of associates 1 12 13 (92) (92) Net gain/(loss) on disposal of assets - (1) (2) (100) (100) Net gain/(loss) on hedging of overseas operations - 1 (1) (100) (100) Net gain/(loss) on derivatives held for risk management purposes 3 - 2 7 (100) (100) Net gain/(loss) on financial instruments measured at fair value 29 (4) 16 large 81 Net gain/(loss) on disposal of controlled entities and other businesses 4 268 (1,112) 289 large (7) Rental income on operating leases 5 7 9 (29) (44) Share of associates’ net profit/(loss) (3) (4) (3) (25) - Other 29 47 22 (38) 32 Total other 329 (1,051) 353 large (7) Total non-interest income 1,890 503 1,942 large (3) 1. Includes items relating to compliance, regulation and remediation costs recognised as an addition in non-risk fee income, net wealth management income and other income totalled $ 8 million for First Half 2023 (Second Half 2022: $56 million reduction, First Half 2022: $8 million reduction). Refer to Note 13 for further details. 2. Includes policyholder tax recoveries. 3. Income from derivatives held for risk management purposes reflects the impact of economic hedges of earnings. 4. First Half 2023 included a profit on sale of $243 million for AAML, Second Half 2022 included $1,112 million loss on sale of Australian life insurance business, while First Half 2022 included $170 million gain on sale of auto finance and $119 million gain on sale of NZ life insurance. |
Operating expenses
Operating expenses | 6 Months Ended |
Mar. 31, 2023 | |
Operating expenses | |
Operating expenses | Note 5. Operating expenses 1 Half Year Half Year Half Year % Mov’t March Sept March Mar 23 Mar 23 $m 2023 2022 2022 - Sept 22 - Mar 22 Staff Employee remuneration, entitlements and on-costs 2,545 2,527 2,584 1 (2) Superannuation 270 255 278 6 (3) Share-based payments 44 42 46 5 (4) Restructuring costs 33 60 74 (45) (55) Total staff 2,892 2,884 2,982 - (3) Occupancy Operating lease rentals 81 91 79 (11) 3 Depreciation and impairment of property and equipment 2 227 365 261 (38) (13) Other 64 60 58 7 10 Total occupancy 372 516 398 (28) (7) Technology Amortisation and impairment of software assets 2 250 318 337 (21) (26) Depreciation and impairment of IT equipment 58 92 85 (37) (32) Technology services 352 377 342 (7) 3 Software maintenance and licences 296 258 248 15 19 Telecommunications 59 72 72 (18) (18) Data processing 39 40 41 (3) (5) Total technology 1,054 1,157 1,125 (9) (6) Other Professional and processing services 413 554 460 (25) (10) Amortisation and impairment of other intangible assets and deferred expenditure 2 1 1 122 - (99) Postage and stationery 67 70 74 (4) (9) Advertising 79 77 81 3 (2) Non-lending losses 1 59 45 (98) (98) Other expenses 109 111 86 (2) 27 Total other 670 872 868 (23) (23) Total operating expenses 4,988 5,429 5,373 (8) (7) 1. Operating expenses included items relating to compliance, regulation and remediation costs were a reduction of $ 6 million (Second Half 2022: $46 million addition; First Half 2022: $17 million addition). Refer to Note 13 for further details. 2. Nil impairment expenses for the First Half 2023. Significant impairment expenses in comparative periods included: ● Property and equipment (Second Half 2022: $ 116 million, First Half 2022: $1 million); ● Capitalised software assets (Second Half 2022: $56 million, First Half 2022: $54 million); ● Goodwill and other intangible assets (Second Half 2022: nil , First Half 2022: $122 million). |
Income tax
Income tax | 6 Months Ended |
Mar. 31, 2023 | |
Income tax | |
Income tax | Note 6. Income tax The following table reconciles income tax expense to the profit before income tax: Half Year Half Year Half Year % Mov’t March Sept March Mar 23 Mar 23 $m 2023 2022 2022 - Sept 22 - Mar 22 Profit before income tax 5,625 3,751 4,718 50 19 Tax at the Australian company tax rate of 30% 1,688 1,126 1,415 50 19 The effect of amounts which are not deductible/(assessable) in calculating taxable income: Hybrid capital distributions 54 39 28 38 93 Life insurance: Tax adjustment on policyholder earnings - (1) - (100) - Other non-assessable items (1) (63) (34) (98) (97) Other non-deductible items 10 362 47 (97) (79) Adjustment for overseas tax rates (16) (16) (15) - 7 Income tax (over)/under provided in prior periods - (84) 7 (100) (100) Other items 1 (115) (27) (14) large large Total income tax expense 2 1,620 1,336 1,434 21 13 Effective income tax rate 28.80% 35.62% 30.39% large ( 159 bps) 1. 2. |
Earnings per share
Earnings per share | 6 Months Ended |
Mar. 31, 2023 | |
Earnings per share | |
Earnings per share | Note 7. Earnings per share Basic earnings per share (EPS) is calculated by dividing the net profit attributable to owners of WBC by the weighted average number of ordinary shares on issue during the period, adjusted for treasury shares. Diluted EPS is calculated by adjusting the basic EPS by assuming all dilutive potential ordinary shares are converted. Half Year March 2023 Half Year Sept 2022 Half Year March 2022 Basic Diluted Basic Diluted Basic Diluted Net profit attributable to owners of WBC ($m) 4,001 4,001 2,414 2,414 3,280 3,280 Adjustment for RSP dividends 3 (2) - (1) - (2) - Adjustment for potential dilution: Distributions to convertible loan capital holders 4 - 186 - 133 - 100 Adjusted net profit attributable to owners of WBC 3,999 4,187 2,413 2,547 3,278 3,380 Weighted average number of ordinary shares (millions) Weighted average number of ordinary shares on issue 3,506 3,506 3,501 3,501 3,626 3,626 Treasury shares (including RSP share rights) 3 (5) (5) (5) (5) (4) (4) Adjustment for potential dilution: Share-based payments - 3 - 4 - 3 Convertible loan capital 4 - 384 - 361 - 321 Adjusted weighted average number of ordinary shares 3,501 3,888 3,496 3,861 3,622 3,946 Earnings per ordinary share (cents) 114.2 107.7 69.0 66.0 90.5 85.7 3. Some shares under the RSP have not vested and are not outstanding ordinary shares but do receive dividends. These RSP dividends are deducted to show the profit attributable to ordinary shareholders. 4. The Group has issued convertible loan capital which may convert into ordinary shares in the future. These convertible loan capital instruments are potentially dilutive instruments, and diluted EPS is therefore calculated as if the instruments had been converted at the beginning of the respective period or, if later, the instruments’ issue date. |
Loans
Loans | 6 Months Ended |
Mar. 31, 2023 | |
Loans | |
Loans | Note 8. Loans As at As at As at % Mov’t 31 March 30 Sept 31 March Mar 23 Mar 23 $m 2023 2022 2022 - Sept 22 - Mar 22 Australia Housing 472,570 467,382 458,278 1 3 Personal 12,028 12,832 14,128 (6) (15) Business 169,891 170,636 156,763 - 8 Total Australia 654,489 650,850 629,169 1 4 New Zealand Housing 61,081 56,211 57,780 9 6 Personal 1,116 1,058 1,116 5 - Business 30,668 28,855 29,294 6 5 Total New Zealand 92,865 86,124 88,190 8 5 Total other overseas 7,047 6,879 6,392 2 10 Gross loans 754,401 743,853 723,751 1 4 Provision for ECL on loans (Note 9) (4,470) (4,206) (4,195) 6 7 Total loans 1,2 749,931 739,647 719,556 1 4 1. Total loans included securitised loans of $4,019 million as at 31 March 2023 (30 September 2022: $4,747 million, 31 March 2022: $4,808 million). The level of securitised loans excludes loans where Westpac is the holder of related debt securities. 2. Total loans included assets pledged for the covered bond programs of $40,483 million as at 31 March 2023 (30 September 2022: $38,455 million, 31 March 2022: $35,052 million). |
Provisions for expected credit
Provisions for expected credit losses | 6 Months Ended |
Mar. 31, 2023 | |
Provisions for expected credit losses | |
Provisions for expected credit losses | Note 9. Provision for expected credit losses Loans and credit commitments The following table shows the provision for ECL on loans and credit commitments by stage: As at As at As at % Mov’t 31 March 30 Sept 31 March Mar 23 Mar 23 $m 2023 2022 2022 - Sept 22 - Mar 22 Performing - Stage 1 891 885 1,078 1 (17) Performing - Stage 2 2,628 2,341 2,107 12 25 Non-performing - Stage 3 1,393 1,399 1,490 - (7) Total provision for ECL on loans and credit commitments 4,912 4,625 4,675 6 5 Presented as: Provision for ECL on loans (Note 8) 4,470 4,206 4,195 6 7 Provision for ECL on credit commitments (Note 13) 442 419 480 5 (8) Total provision for ECL on loans and credit commitments 4,912 4,625 4,675 6 5 Of which: Individually assessed provisions 382 452 501 (15) (24) Collectively assessed provisions 4,530 4,173 4,174 9 9 Total provision for ECL on loans and credit commitments 4,912 4,625 4,675 6 5 Gross loans and credit commitments 962,804 943,952 924,937 2 4 Coverage ratio on loans (%) 0.59% 0.57% 0.58% 2 bps 1 bps Coverage ratio on loans and credit commitments (%) 0.51% 0.49% 0.51% 2 bps - Note 9. Provision for expected credit losses (continued) Movement in provision for ECL on loans and credit commitments The reconciliation of the provision for ECL tables for loans and credit commitments has been determined by an aggregation of monthly movements over the year. The key line items in the reconciliation represent the following: ● “Transfers between stages” lines represent transfers between Stage 1, Stage 2 and Stage 3 prior to remeasurement of the provision for ECL; ● “Business activity during the period” line represents new accounts originated during the period net of those that were de-recognised due to final repayments during the period; ● “Net remeasurement of provision for ECL” line represents the impact on the provision for ECL due to changes in credit quality during the year (including transfers between stages), changes in portfolio overlays, changes due to forward-looking economic scenarios and partial repayments and additional draw-downs on existing facilities during the period; and ● “Write-offs” represent a reduction in the provision for ECL as a result of de-recognition of exposures where there is no reasonable expectation of full recovery. Non- Consolidated Performing performing $m Stage 1 Stage 2 Stage 3 Total Balance as at 30 September 2021 936 2,091 1,972 4,999 Transfers to Stage 1 461 (398) (63) - Transfers to Stage 2 (102) 509 (407) - Transfers to Stage 3 (8) (198) 206 - Business activity during the period 255 (149) (200) (94) Net remeasurement of provision for ECL (463) 264 535 336 Write-offs - - (566) (566) Exchange rate and other adjustments (1) (12) 13 - Balance as at 31 March 2022 1,078 2,107 1,490 4,675 Transfers to Stage 1 451 (394) (57) - Transfers to Stage 2 (133) 493 (360) - Transfers to Stage 3 (6) (185) 191 - Business activity during the period 99 (95) (140) (136) Net remeasurement of provision for ECL (603) 425 594 416 Write-offs - - (368) (368) Exchange rate and other adjustments (1) (10) 49 38 Balance as at 30 September 2022 885 2,341 1,399 4,625 Transfers to Stage 1 694 (619) (75) - Transfers to Stage 2 (159) 408 (249) - Transfers to Stage 3 (4) (247) 251 - Business activity during the period 136 54 (136) 54 Net remeasurement of provision for ECL (670) 677 456 463 Write-offs - - (271) (271) Exchange rate and other adjustments 9 14 18 41 Balance as at 31 March 2023 891 2,628 1,393 4,912 The following table provides further details of the provision for ECL on loans and credit commitments by class and stage: Non- Performing performing $m Stage 1 Stage 2 Stage 3 Total Housing 264 680 498 1,442 Personal 124 315 150 589 Business 690 1,112 842 2,644 Balance as at 31 March 2022 1,078 2,107 1,490 4,675 Housing 143 1,095 415 1,653 Personal 99 250 123 472 Business 643 996 861 2,500 Balance as at 30 September 2022 885 2,341 1,399 4,625 Housing 171 1,123 454 1,748 Personal 91 268 127 486 Business 629 1,237 812 2,678 Balance as at 31 March 2023 891 2,628 1,393 4,912 Note 9. Provision for expected credit losses (continued) Impact of overlays on the provision for ECL on loans and credit commitments The following table attributes the provision for ECL on loans and credit commitments between modelled ECL and portfolio overlays. Portfolio overlays are used to capture risk of increased uncertainty relating to forward-looking economic conditions, or areas of potential risk and uncertainty in the portfolio, that are not captured in the underlying modelled ECL. As at As at As at 31 March 30 Sept 31 March $m 2023 2022 2022 Modelled provision for ECL on loans and credit commitments 4,192 3,925 3,539 Overlays 720 700 1,136 Total provision for ECL on loans and credit commitments 4,912 4,625 4,675 Details of changes related to forward-looking economic inputs and portfolio overlays, based on reasonable and supportable information up to the date of this report, are provided below. Modelled provision for ECL on loans and credit commitments The modelled provision for ECL on loans and credit commitments is a probability weighted estimate based on three scenarios which together represent the Group’s view of the forward-looking distribution of potential loss outcomes. The change in provisions as a result of changes in modelled ECL are reflected through the “net remeasurement of provision for ECL” line item. Portfolio overlays are used to capture potential risk and uncertainty in the portfolio that are not captured in the underlying modelled ECL. The base case scenario uses Westpac Economic forecasts which forecast further interest rate rises and residential/ commercial price reductions due to the current high inflationary environment. Economic forecasts (from Westpac Economics) used for the different reporting periods are as follows: Key economic assumptions for base case scenario 31 March 2023 30 September 2022 31 March 2022 Annual GDP Forecast growth of 1.0% for calendar year 2023 and 1.5% for calendar year 2024 Forecast growth of 3.4% for calendar year 2022 and 1.0% for calendar year 2023 Forecast growth of 5.5% for calendar year 2022 and 2.7% for calendar year 2023 Commercial property index Forecast price contraction of 9.4% for calendar year 2023 and forecast growth of 1.4% for calendar year 2024 Forecast price contraction of 4.7% for calendar year 2022 and 3.0% for calendar year 2023 Forecast price contraction of 3.1% for calendar year 2022 and growth of 2.1% for calendar year 2023 Residential property prices Forecast price contraction of 7.8% for calendar year 2023 and forecast growth of 2.0% for calendar year 2024 Forecast price contraction of 6.5% for calendar year 2022 and 7.8% for calendar year 2023 Forecast price appreciation of 1.6% for calendar year 2022 and contraction of 7.0% for calendar 2023 Cash rate Forecast cash rate of 3.85% at December 2023 and 2.85% at December 2024 Forecast cash rate of 3.35% at December 2022 and 3.6% at December 2023 Forecast to increase to 50 bps by December 2022 and then to 150 bps by December 2023 Unemployment rate: Australia Forecast rate of 4.7% at December 2023 and 5.1% at December 2024 Forecast rate of 3.1% at December 2022 and 4.4% at December 2023 Forecast rate of 3.8% at December 2022 and 3.9% at December 2023 New Zealand Forecast rate of 4.0% at December 2023 and 5.1% at December 2024 Forecast rate of 3.4% at December 2022 and 3.8% at December 2023 Forecast rate of 3.0% at December 2022 and 3.3% at December 2023. The downside scenario is a more severe scenario with expected credit losses higher than the base case. The more severe loss outcome for the downside is generated under a recession in which the combination of negative GDP growth, declines in commercial and residential property prices and an increase in the unemployment rate simultaneously impact expected credit losses across all portfolios from the reporting date. The assumptions in this scenario and relativities to the base case will be monitored having regard to the emerging economic conditions and updated where necessary. The upside scenario represents a modest improvement to the base case. Note 9. Provision for expected credit losses (continued) The following sensitivity table shows the reported provision for ECL on loans and credit commitments based on the probability weighted scenarios and what the provision for ECL on loans and credit commitments would be assuming a 100% weighting to the base case scenario and to the downside scenario (with all other assumptions held constant). As at As at As at 31 March 30 Sept 31 March $m 2023 2022 2022 Reported probability-weighted ECL 4,912 4,625 4,675 100% base case ECL 3,391 2,983 2,993 100% downside ECL 6,836 6,680 6,752 If 1% of the Stage 1 gross exposure from loans and credit commitments (calculated on a 12 month ECL) was reflected in Stage 2 (calculated on a lifetime ECL) the provision for ECL on loans and credit commitments would increase by $95 million (30 September 2022: $113 million, 31 March 2022: $205 million) for the Group based on applying the average provision coverage ratios by stage to the movement in the gross exposure by stage. The following table indicates the economic weights applied by the Group at 31 March 2023, 30 September 2022 and 31 March 2022: As at As at As at 31 March 30 Sept 31 March Scenario weightings (%) 2023 2022 2022 Upside 5 5 5 Base 50 50 50 Downside 45 45 45 The Group’s definition of default is aligned to APRA’s regulatory definition of default, which is contained in Prudential Standard APS 220 Credit Risk Management. The Group applied APRA’s amendments to this definition in the period, which resulted in an increase in non- performing exposures. This was primarily due to the extension of the period over which certain credit exposures remain classified as non-performing before reclassification to performing. There was no material impact on the provision for ECL. Portfolio overlays Portfolio overlays are used to address areas of risk, including significant uncertainties that are not captured in the underlying modelled ECL. Determination of portfolio overlays requires expert judgement and is thoroughly documented and subject to comprehensive internal governance and oversight. Overlays are continually reassessed and if the risk is judged to have changed (increased or decreased), or is subsequently captured in the modelled ECL, the overlay will be released or remeasured. The Group’s total overlays as at 31 March 2023 were $720 million (30 September 2022: $700 million; 31 March 2022: $1,136 million) and comprise: ● $489 million for consumers reflecting potential high consumer stress primarily from rising interest rates, higher inflation, higher unemployment and other risks (30 September 2022: $480 million; 31 March 2022: $270 million); ● $100 million relating to certain industries reflecting potential supply chain disruptions and labour shortages (30 September 2022: $150 million; 31 March 2022: $247 million); ● $131 million for extreme weather events including the expected impact on customers of recent flooding and cyclones in NZ; (30 September 2022: $70 million; 31 March 2022: $70 million); and ● Nil relating to COVID-19 impacts. Overlay has been removed as modelled outcomes now capture the risks (30 September 2022: nil ; 31 March 2022: $549 million). The change in provisions as a result of changes in portfolio overlays are reflected through the “net remeasurement of provision for ECL” line in Movement in provision for ECL on loans and credit commitments table. Note 9. Provision for expected credit losses (continued) Total provision for ECL As at As at As at 31 March 30 Sept 31 March $m 2023 2022 2022 Provision for ECL on loans and credit commitments 4,912 4,625 4,675 Provision for ECL on debt securities at amortised cost 1 6 6 4 Provision for ECL on debt securities at FVOCI 2 5 4 3 Total provision for ECL 4,923 4,635 4,682 1. 2. Reconciliation of impairment charges Half Year Half Year Half Year March Sept March $m 2023 2022 2022 Loans and credit commitments: Business activity during the period 54 (136) (94) Net remeasurement of the provision for ECL 463 416 336 Impairment charges for debt securities at amortised cost - 3 1 Impairment charges for debt securities at FVOCI 1 - (2) Recoveries (128) (87) (102) Impairment charges/(benefits) 390 196 139 |
Credit Quality
Credit Quality | 6 Months Ended |
Mar. 31, 2023 | |
Credit Quality | |
Credit Quality | Note 10. Credit quality Credit risk ratings system The principal objective of the credit risk rating system is to reliably assess the credit risk to which the Group is exposed. The Group has two main approaches to this assessment. Transaction-managed customers Transaction managed customers are generally customers with business lending exposures. They are individually assigned a Customer Risk Grade (CRG), corresponding to their expected probability of default (PD). Each facility is assigned a loss given default (LGD). The Group’s risk rating system has a tiered scale of risk grades for both non-defaulted customers and defaulted customers. Non-defaulted CRGs are mapped to Moody’s and S&P Global Ratings (S&P) external senior unsecured ratings. The table below shows Westpac’s high level CRGs for transaction-managed portfolios mapped to the Group’s credit quality disclosure categories and to their corresponding external rating. Transaction-managed Financial statement disclosure Westpac CRG Moody’s Rating S&P Rating Strong A Aaa – AAA – – B A1 – A+ – – C Baa1 – BBB+ – – Good/satisfactory D Ba1 – BB+ – Westpac Rating Weak E Watch list F Special Mention Weak/default/non-performing G Substandard/Default H Default Note 10. Credit quality (continued) Program-managed portfolio The program-managed portfolio generally includes retail products including mortgages, personal lending (including credit cards) as well as SME lending. These customers are grouped into pools of similar risk. Pools are created by analysing similar risk characteristics that have historically predicted that an account is likely to go into default. Customers grouped according to these predictive characteristics are assigned a PD and LGD relative to their pool. The credit quality of these pools is based on a combination of behavioural factors, delinquency trends, PD estimates and loan to valuation ratio (housing loans only). The following table shows the credit quality of loans and undrawn credit commitments. As at 31 March 2023 As at 30 Sept 22 As at 31 March 2022 $m Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Loans - housing Strong 403,099 39,960 - 443,059 393,754 41,790 - 435,544 401,201 24,367 - 425,568 Good/satisfactory 37,045 36,023 - 73,068 36,862 35,581 - 72,443 48,746 24,248 - 72,994 Weak 2,037 11,436 4,421 17,894 1,916 10,133 3,916 15,965 2,057 11,216 4,568 17,841 Total loans - housing 442,181 87,419 4,421 534,021 432,532 87,504 3,916 523,952 452,004 59,831 4,568 516,403 Loans - personal Strong 4,854 111 - 4,965 4,961 99 - 5,060 4,890 84 - 4,974 Good/satisfactory 6,142 1,153 - 7,295 6,903 1,056 - 7,959 8,092 1,113 - 9,205 Weak 176 475 240 891 232 433 213 878 288 530 253 1,071 Total loans - personal 11,172 1,739 240 13,151 12,096 1,588 213 13,897 13,270 1,727 253 15,250 Loans - business Strong 77,166 11,397 - 88,563 82,280 5,704 - 87,984 76,014 784 - 76,798 Good/satisfactory 81,213 29,909 - 111,122 87,770 23,018 - 110,788 94,954 13,197 - 108,151 Weak 72 4,300 3,172 7,544 84 4,031 3,117 7,232 185 3,897 3,067 7,149 Total loans - business 158,451 45,606 3,172 207,229 170,134 32,753 3,117 206,004 171,153 17,878 3,067 192,098 Undrawn credit commitments Strong 155,647 9,800 - 165,447 150,424 7,235 - 157,659 154,459 2,590 - 157,049 Good/satisfactory 32,907 8,573 - 41,480 34,011 6,946 - 40,957 37,519 5,369 - 42,888 Weak 113 966 397 1,476 100 1,036 347 1,483 116 812 321 1,249 Total undrawn credit commitments 188,667 19,339 397 208,403 184,535 15,217 347 200,099 192,094 8,771 321 201,186 Total strong 640,766 61,268 - 702,034 631,419 54,828 - 686,247 636,564 27,825 - 664,389 Total good/ satisfactory 157,307 75,658 - 232,965 165,546 66,601 - 232,147 189,311 43,927 - 233,238 Total weak 2,398 17,177 8,230 27,805 2,332 15,633 7,593 25,558 2,646 16,455 8,209 27,310 Total loans and undrawn credit commitments 800,471 154,103 8,230 962,804 799,297 137,062 7,593 943,952 828,521 88,207 8,209 924,937 |
Deposits and other borrowings
Deposits and other borrowings | 6 Months Ended |
Mar. 31, 2023 | |
Deposits and other borrowings | |
Deposits and other borrowings | Note 11. Deposits and other borrowings 1 As at As at As at % Mov’t 31 March 30 Sept 31 March Mar 23 Mar 23 $m 2023 2022 2022 - Sept 22 - Mar 22 Australia Certificates of deposit 32,227 30,507 27,048 6 19 Non-interest bearing, repayable at call 54,967 55,180 54,829 - - Other interest bearing at call 349,419 352,544 361,609 (1) (3) Other interest bearing term 140,704 127,921 104,865 10 34 Total Australia 577,317 566,152 548,351 2 5 New Zealand Certificates of deposit 2,618 2,588 2,783 1 (6) Non-interest bearing, repayable at call 12,251 12,674 14,706 (3) (17) Other interest bearing at call 28,395 27,517 30,188 3 (6) Other interest bearing term 34,057 28,423 27,945 20 22 Total New Zealand 77,321 71,202 75,622 9 2 Other overseas Certificates of deposit 13,922 13,200 14,903 5 (7) Non-interest bearing, repayable at call 1,340 1,178 1,008 14 33 Other interest bearing at call 2,047 1,883 1,696 9 21 Other interest bearing term 4,405 5,514 4,026 (20) 9 Total other overseas 21,714 21,775 21,633 - - Total deposits and other borrowings 676,352 659,129 645,606 3 5 1. Non-interest bearing relates to instruments which do not carry a rate of interest. |
Fair values of financial assets
Fair values of financial assets and financial liabilities | 6 Months Ended |
Mar. 31, 2023 | |
Fair values of financial assets and financial liabilities | |
Fair values of financial assets and financial liabilities | Note 12. Fair values of financial assets and financial liabilities Fair Valuation Control Framework The Group uses a Fair Valuation Control Framework where the fair value is either determined or validated by a function independent of the transaction. This framework formalises the policies and procedures used to achieve compliance with relevant accounting, industry and regulatory standards. The framework includes specific controls relating to: ● The revaluation of financial instruments; ● Independent price verification; ● Fair value adjustments; and ● Financial reporting. A key element of the framework is the Revaluation Committee, comprising senior valuation specialists from within the Group. The Revaluation Committee reviews the application of the agreed policies and procedures to assess that a fair value measurement basis has been applied. The method of determining fair value differs depending on the information available. Fair value hierarchy A financial instrument’s categorisation within the valuation hierarchy is based on the lowest level input that is significant to the fair value measurement. The Group categorises all fair value instruments according to the hierarchy described below. Valuation techniques The Group applies market accepted valuation techniques in determining the fair valuation of over the counter (OTC) derivatives. This includes CVA and FVA, which incorporate credit risk and funding costs and benefits that arise in relation to uncollateralised derivative positions, respectively. The specific valuation techniques, the observability of the inputs used in valuation models and the subsequent classification for each significant product category are outlined as follows: Level 1 instruments (Level 1) The fair value of financial instruments traded in active markets is based on recent unadjusted quoted prices. These prices are based on actual arm’s length basis transactions. The valuations of Level 1 instruments require little or no management judgement. Instrument Balance sheet category Includes Valuation Exchange traded products Derivatives Exchange traded interest rate futures and options and commodity and carbon futures All these instruments are traded in liquid, active markets where prices are readily observable. No modelling or assumptions are used in the valuation. FX products Derivatives FX spot and futures contracts Equity products Derivatives Trading securities and financial assets measured at FVIS Other financial liabilities Listed equities and equity indices Debt instruments Trading securities and financial assets measured at FVIS Investment securities Other financial liabilities Australian Commonwealth and New Zealand government bonds Life insurance assets Life insurance assets included in assets held for sale Listed equities, exchange traded derivatives and short sale of listed equities within controlled managed investment schemes Note 12. Fair values of financial assets and financial liabilities (continued) Level 2 instruments (Level 2) The fair value for financial instruments that are not actively traded is determined using valuation techniques which maximise the use of observable market prices. Valuation techniques include: ● The use of market standard discounting methodologies; ● Option pricing models; and ● Other valuation techniques widely used and accepted by market participants. Instrument Balance sheet category Includes Valuation Interest rate products Derivatives Interest rate and inflation swaps, swaptions, caps, floors, collars and other non-vanilla interest rate derivatives Industry standard valuation models are used to calculate the expected future value of payments by product, which is discounted back to a present value. The model’s interest rate inputs are benchmark and active quoted interest rates in the swap, bond and futures markets. Interest rate volatilities are sourced from brokers and consensus data providers. If consensus prices are not available, these are classified as Level 3 instruments. FX products Derivatives FX swaps, FX forward contracts, FX options and other non-vanilla FX derivatives Derived from market observable inputs or consensus pricing providers using industry standard models. If consensus prices are not available, these are classified as Level 3 instruments. Other credit products Derivatives Single name and index credit default swaps Valued using an industry standard model that incorporates the credit spread as its principal input. Credit spreads are obtained from consensus data providers. If consensus prices are not available, these are classified as Level 3 instruments. Commodity products Derivatives Commodity and carbon derivatives Valued using industry standard models. The models calculate the expected future value of deliveries and payments and discount them back to a present value. The model inputs include forward curves, volatilities implied from market observable inputs, discount curves and underlying spot and futures prices. The significant inputs are market observable or available through a consensus data service. If consensus prices are not available, these are classified as Level 3 instruments. Equity products Derivatives Exchange traded equity options, OTC equity options and equity warrants Due to low liquidity, exchange traded options are Level 2. Valued using industry standard models based on observable parameters such as stock prices, dividends, volatilities and interest rates. Asset backed debt instruments Trading securities and financial assets measured at FVIS Investment securities Australian residential mortgage backed securities (RMBS) and other asset backed securities (ABS) Valued using an industry approach to value floating rate debt with prepayment features. Australian RMBS are valued using prices sourced from a consensus data provider. If consensus prices are not available these are classified as Level 3 instruments. Non-asset backed debt instruments Trading securities and financial assets measured at FVIS Investment securities Other financial liabilities State and other government bonds, corporate bonds and commercial paper Repurchase agreements and reverse repurchase agreements over non-asset backed debt securities Valued using observable market prices, which are sourced from independent pricing services, broker quotes or inter-dealer prices. If prices are not available from these sources, these are classified as Level 3 instruments. Loans at fair value Loans Fixed rate bills and syndicated loans Discounted cash flow approach, using a discount rate which reflects the terms of the instrument and the timing of cash flows, adjusted for creditworthiness, or expected sale amount. Certificates of deposit Deposits and other borrowings Certificates of deposit Discounted cash flow using market rates offered for deposits of similar remaining maturities. Debt issues at fair value Debt issues Debt issues Discounted cash flows, using a discount rate which reflects the terms of the instrument and the timing of cash flows adjusted for market observable changes in Westpac’s implied credit worthiness. Note 12. Fair values of financial assets and financial liabilities (continued) Instrument Balance sheet category Includes Valuation Life insurance assets and liabilities Life insurance assets included in assets held for sale Life insurance liabilities included in liabilities held for sale Corporate bonds, OTC derivatives, units in unlisted unit trusts, life insurance contract liabilities, life investment contract liabilities and external liabilities of managed investment schemes controlled by statutory life funds Valued using observable market prices or other widely used and accepted valuation techniques utilising observable market input. Level 3 instruments (Level 3) Financial instruments valued where at least one input that could have a significant effect on the instrument’s valuation is not based on observable market data due to illiquidity or complexity of the product. These inputs are generally derived and extrapolated from other relevant market data and calibrated against current market trends and historical transactions. These valuations are calculated using a high degree of management judgement. Instrument Balance sheet category Includes Valuation Debt instruments Trading securities and financial assets measured at FVIS Investment securities Certain debt securities with low observability, usually issued via private placement These securities are evaluated by an independent pricing service or based on third party revaluations. Due to their illiquidity and/or complexity these are classified as Level 3 assets. Equity instruments Trading securities and financial assets measured at FVIS Investment securities Strategic equity investments Valued using valuation techniques appropriate to the instrument, including the use of recent arm’s length transactions where available, discounted cash flow approach or reference to the net assets of the entity. Due to their illiquidity, complexity and/or use of unobservable inputs into valuation models, they are classified as Level 3 assets. The following tables summarise the attribution of financial instruments measured at fair value to the fair value hierarchy. $m Level 1 Level 2 Level 3 Total As at 31 March 2023 Financial assets measured at fair value on a recurring basis Trading securities and financial assets measured at FVIS 10,885 19,578 11 30,474 Derivative financial instruments 17 20,317 12 20,346 Investment securities 2,905 69,150 414 72,469 Loans - 106 24 130 Total financial assets measured at fair value on a recurring basis 13,807 109,151 461 123,419 Financial liabilities measured at fair value on a recurring basis Deposits and other borrowings - 48,769 - 48,769 Other financial liabilities 1,361 10,088 - 11,449 Derivative financial instruments 12 20,725 54 20,791 Debt issues - 5,655 - 5,655 Total financial liabilities measured at fair value on a recurring basis 1,373 85,237 54 86,664 Note 12. Fair values of financial assets and financial liabilities (continued) $m Level 1 Level 2 Level 3 Total As at 30 September 2022 Financial assets measured at fair value on a recurring basis Trading securities and financial assets measured at FVIS 2,039 22,275 18 24,332 Derivative financial instruments 68 41,202 13 41,283 Investment securities 12,634 62,263 387 75,284 Loans - 45 27 72 Total financial assets measured at fair value on a recurring basis 14,741 125,785 445 140,971 Financial liabilities measured at fair value on a recurring basis Deposits and other borrowings - 46,331 - 46,331 Other financial liabilities 2,006 9,319 - 11,325 Derivative financial instruments 51 39,494 23 39,568 Debt issues - 6,740 - 6,740 Total financial liabilities measured at fair value on a recurring basis 2,057 101,884 23 103,964 As at 31 March 2022 Financial assets measured at fair value on a recurring basis Trading securities and financial assets measured at FVIS 5,474 18,260 4 23,738 Derivative financial instruments 38 18,204 27 18,269 Investment securities 11,838 57,287 439 69,564 Loans - 217 32 249 Assets held for sale 1,057 1,422 - 2,479 Total financial assets measured at fair value on a recurring basis 18,407 95,390 502 114,299 Financial liabilities measured at fair value on a recurring basis Deposits and other borrowings - 44,743 - 44,743 Other financial liabilities 1,090 5,767 - 6,857 Derivative financial instruments 26 25,288 33 25,347 Debt issues - 6,294 - 6,294 Liabilities held for sale - 414 - 414 Total financial liabilities measured at fair value on a recurring basis 1,116 82,506 33 83,655 Note 12. Fair values of financial assets and financial liabilities (continued) Reconciliation of non-market observables The following table summarises the changes in financial instruments measured at fair value derived from non-market observable valuation techniques (Level 3). Half Year March 2023 Trading securities and financial assets measured at Investment Total Level 3 Total Level 3 $m FVIS Securities Other 1 assets Derivatives liabilities Balance as at beginning of period 18 387 40 445 23 23 Gains/(losses) on assets / (gains)/losses on liabilities recognised in: Income statement - - (4) (4) (2) (2) Other comprehensive income - (32) - (32) - - Acquisitions and issues 21 60 25 106 43 43 Disposals and settlements - (1) (18) (19) (3) (3) Transfer into or out of non-market observables (29) - (8) (37) (7) (7) Foreign currency translation impacts 1 - 1 2 - - Balance as at end of period 11 414 36 461 54 54 Unrealised gains/(losses) recognised in the income statement for financial instrument held as at end of period - - 8 8 (41) (41) 1. Transfers into and out of Level 3 have occurred due to changes in observability in the significant inputs into the valuation models used to determine the fair value of the related financial instruments. Transfers in and transfers out are reported using the end of period fair values. Significant unobservable inputs Sensitivities to reasonably possible changes in non-market observable valuation assumptions would not have a material impact on the Group’s reported results. Day one profit or loss The closing balance of unrecognised day one profit was nil as at 31 March 2023 (30 September 2022: $1 million, 31 March 2022: $1 million). Financial instruments not measured at fair value The following table summarises the estimated fair value of financial instruments not measured at fair value for the Group. As at 31 March 2023 As at 30 Sept 2022 As at 31 March 2022 Carrying Fair Carrying Fair Carrying Fair $m amount value amount value amount value Financial assets not measured at fair value Cash and balances with central banks 117,886 117,886 105,257 105,257 102,410 102,410 Collateral paid 4,093 4,093 6,216 6,216 7,374 7,374 Investment securities 1,083 1,083 1,181 1,179 878 878 Loans 749,801 744,302 739,575 732,511 719,307 716,281 Other financial assets 7,343 7,343 5,626 5,626 4,896 4,896 Assets held for sale - - 20 20 26 26 Total financial assets not measured at fair value 880,206 874,707 857,875 850,809 834,891 831,865 Financial liabilities not measured at fair value Collateral received 3,577 3,577 6,371 6,371 2,170 2,170 Deposits and other borrowings 627,583 627,823 612,798 613,134 600,863 600,982 Other financial liabilities 48,653 48,653 45,035 45,035 44,488 44,488 Debt issues 2 143,297 142,666 138,128 137,452 127,335 127,247 Loan capital 2 31,025 30,688 31,254 30,671 29,036 29,413 Liabilities held for sale - - 31 31 17 17 Total financial liabilities not measured at fair value 854,135 853,407 833,617 832,694 803,909 804,317 2. A detailed description of how fair value is derived for financial instruments not measured at fair value is disclosed in Note 23 of the 2022 Annual Report |
Provisions, contingent liabilit
Provisions, contingent liabilities, contingent assets and credit commitments | 6 Months Ended |
Mar. 31, 2023 | |
Provisions, contingent liabilities, contingent assets and credit commitments | |
Provisions, contingent liabilities, contingent assets and credit commitments | Note 13. Provisions, contingent liabilities, contingent assets and credit commitments Provisions are recognised for present obligations arising from past events where a payment (or other economic transfer) is likely to be necessary to settle the obligation and can be reliably estimated. Provisions raised by the Group are set out in the table in the “Provisions” section below. Where it is not probable there will be an outflow of economic resources or where a liability cannot be reliably estimated a contingent liability may exist. Provisions As at 31 March 2023 Annual Compliance, leave and Litigation Provision for regulation Long other and non- impairment Lease Restructuring and service employee lending on credit restoration and other remediation $m leave benefits losses commitments obligations provisions provisions Total Balance as at beginning of period 450 922 83 419 208 355 513 2,950 Additions 45 575 12 29 1 65 59 786 Utilisation (23) (859) (20) - (13) (128) (172) (1,215) Reversal of unutilised provisions - - (1) (6) - (8) (82) (97) Balance as at end of period 472 638 74 442 196 284 318 2,424 Compliance, regulation and remediation provisions Provisions for the Half Year 2023 in respect of compliance, regulation and remediation include estimates of: ● Customer refunds associated with matters of potential historical misconduct; ● Costs of completing remediation programs; and ● Potential non-lending losses and costs connected with certain litigation and regulatory investigations. It is possible that the final outcome could be below or above the provision, if the actual outcome differs from the assumptions used in estimating the provision. Remediation processes may change over time as further facts emerge and such changes could result in a change to the final exposure. Certain litigation As at 31 March 2023, the Group held provisions in respect of potential non-lending losses and costs connected with certain litigation, including a class action against Westpac Banking Corporation and two former subsidiaries, Westpac General Insurance Limited (now known as Allianz Australia General Insurance Limited) and Westpac Life Insurance Services Limited (now known as TAL Life Insurance Services Limited) in the Federal Court of Australia in relation to Westpac’s sale of consumer credit insurance products to customers. This class action has settled pending court approval. The settlement amount agreed between the parties is included in the 31 March 2023 provisions. As at the date of this report, the proposed settlement has not yet been approved by the Court. Consequently, there remains some uncertainty in respect of the settlement and the actual aggregate expense to Westpac associated with this matter. Certain of the entities mentioned above are no longer part of the Group following the sale of those entities. Westpac has provided warranties and indemnities to the acquirer for certain pre-completion matters, conduct and risks. Restructuring provisions The Group carries restructuring provisions for committed business restructures and branch closures. The provisions held primarily relate to separation costs and redundancies. The decrease in the current year mostly relates to the utilisation of provisions associated with completed business sales. Refer to Note 17 for further details. Lease restoration obligations The lease restoration provision reflects an estimate of the cost of making good leasehold premises at the end of the Group’s property leases. Note 13. Provisions, contingent liabilities, contingent assets and credit commitments (continued) Contingent liabilities Contingent liabilities are possible obligations whose existence will be confirmed only by uncertain future events and present obligations where the transfer of economic resources is not probable or cannot be reliably measured. Contingent liabilities are not recognised on the balance sheet but are disclosed unless the outflow of economic resource is remote. Regulatory investigations, reviews and inquiries Regulators, statutory authorities and other bodies routinely conduct investigations, reviews and inquiries involving the financial services sector, both in Australia and overseas. These actions may consider a range of subject matters, and in Australia, a number of investigations and reviews are currently considering potential misconduct in relation to credit and financial services. Matters the subject of such reviews are also assessed for their impact on customers, with customer remediation undertaken where appropriate in accordance with the Group’s Customer Remediation Policy and Customer Remediation Standard. Domestic regulators, statutory authorities and other bodies such as ASIC, ACCC, APRA, AUSTRAC, BCCC, the OAIC, the ATO and the Fair Work Ombudsman, as well as certain international regulators such as the Reserve Bank of New Zealand, Financial Markets Authority and Commerce Commission in New Zealand, Bank of Papua New Guinea, Monetary Authority of Singapore and Hong Kong Monetary Authority, from time to time conduct investigations, reviews or inquiries, (some of which may be industry wide), covering a range of matters (including potential contraventions and non-compliance) that involve, or may in the future, involve the Group. These currently include investigations by the OAIC in relation to certain practices and systems for compliance with the Privacy Act 1988 It is uncertain what (if any) actions will result following the conclusion of these investigations or matters. No provisions have yet been made in relation to any financial liability that might arise in the event proceedings are pursued in relation to the matters outlined above, as any potential future liability of that kind cannot be reliably estimated at this time. Such investigations, reviews or inquiries have previously resulted, and may in the future result in litigation (including class action proceedings and criminal proceedings), significant fines and penalties, infringement notices, enforcement action including enforceable undertakings, requirement to undertake a review, referral to the relevant Commonwealth or State Director of Public Prosecutions for consideration for criminal prosecution, imposition of capital or liquidity requirements, licence revocation, suspension or variation, customer remediation or other sanctions or action being taken by regulators or other parties. Investigations have in some instances resulted, and could in the future result, in findings of a significant number of breaches of obligations. This in turn could lead to significant financial and other penalties. Prior penalties and contraventions by Westpac in relation to similar issues can also affect penalties that may be imposed. Litigation There are ongoing Court proceedings, claims and possible claims against the Group. Contingent liabilities exist in respect of actual and potential claims and proceedings, including those listed below. An assessment of the Group’s likely loss has been made on a case-by-case basis for the purpose of the financial statements but cannot always be reliably estimated, including in relation to those listed below. As at 31 March 2023, no provision is held for potential losses that may arise in relation to the matters below. Regulatory litigation ● On 5 May 2021, ASIC filed civil proceedings against Westpac alleging that it had engaged in insider trading and unconscionable conduct and failed to comply with its Australian financial services licence obligations. The allegations relate to interest rate hedging activity by Westpac during its involvement in the 2016 Ausgrid privatisation transaction. Westpac has filed its response to ASIC’s claim. A hearing date for this matter has been set down for 18 March 2024. Note 13. Provisions, contingent liabilities, contingent assets and credit commitments (continued) Class actions ● The class action against BT Funds Management Limited (BTFM) and a former subsidiary, Westpac Life Insurance Services Limited (now known as TAL Life Insurance Services Limited) (WLIS) (referred to as ‘the respondents’) in the Federal Court of Australia, in relation to aspects of BTFM’s BT Super for Life former cash investment option, has settled pending court approval. In December 2022, the respondents paid the agreed settlement amount to a trust account held by the solicitors for the applicant so no provision remains. As at the date of this Report, the proposed settlement has not yet been approved by the Court. Consequently, there remains some uncertainty in respect of the settlement and the actual aggregate expense to Westpac associated with this matter. Certain of the entities mentioned above are no longer part of the Group following the sale of those entities. Westpac has provided warranties and indemnities to the acquirer for certain pre-completion matters, conduct and risks. ● Westpac is defending a class action proceeding which was commenced in December 2019 in the Federal Court of Australia on behalf of certain investors who acquired an interest in Westpac securities between 16 December 2013 and 19 November 2019. The proceeding involves allegations relating to market disclosure issues connected to Westpac’s monitoring of financial crime over the relevant period, and matters which were the subject of the AUSTRAC civil proceedings. The damages sought on behalf of members of the class have not yet been specified. However, in the course of a procedural hearing, the applicant indicated that a preliminary estimate of the losses that may be alleged in respect of a subset of potential group members exceeded $1 billion. While it remains unclear how the applicant will ultimately formulate their estimate of alleged damages claimed on behalf of group members, it is possible that the claim may be higher (or lower) than the amount referred to above. Given the time period and the nature of the claims alleged to be in question, along with the reduction in our market capitalisation at the time of the commencement of the AUSTRAC civil proceedings, it is likely that any total alleged damages (when, and if, ultimately articulated by the applicant) will be significant. Westpac continues to deny both that its disclosure was inappropriate and, as such, that any group member has incurred damage. ● On 15 July 2020, a class action was commenced against Westpac Banking Corporation and St.George Finance Limited (SGF) in the Supreme Court of Victoria in relation to flex commissions paid to auto dealers from 1 March 2013 to 31 October 2018. This proceeding is one of three class actions commenced against a number of lenders in the auto finance industry. It is alleged that Westpac and SGF are liable for the unfair conduct of dealers acting as credit representatives and engaged in misleading or deceptive conduct. The damages sought are unspecified. Westpac and SGF are defending the proceedings. Westpac no longer pays flex commissions following an industry wide ban issued by ASIC on 1 November 2018. Westpac is aware, including from media reports and other publicly available material, that at least one other class action (and possibly more) against Westpac entities is being investigated. For example, in July 2020 and again in October 2022, a law firm publicly stated that it is investigating a class action against Asgard and BTFM alleging that Asgard and BTFM did not act in the best interests of members of certain superannuation funds when obtaining group insurance policies. Westpac has not been served with a claim in relation to this matter and has no further information about the scope of the proposed claim beyond the public statements issued by the law firm involved. Internal reviews and remediation As in prior periods, Westpac is continuing to undertake a number of reviews to identify and resolve issues that have the potential to impact our customers, employees, other stakeholders and reputation. These internal reviews continue to identify issues in respect of which we are taking, or will take, steps to put things right, including so that our customers and employees (as applicable) are not disadvantaged from certain past practices, including by making compensation/remediation payments and providing refunds where appropriate. These issues include, among other things, compliance with lending obligations (including responsible lending); conflicts of interest; payroll processes, including as they relate to employee entitlements; regulatory reporting; oversight and sufficiency of training, policies and procedures; AML and CTF processes and procedures; product disclosure; destruction and retention of personal information; and impacts from inadequate product governance, including the way some product terms and conditions are operationalised. In relation to our New Zealand business, these issues include compliance with the requirements of the New Zealand Credit Contracts and Consumer Finance Act 2003 In addition, Westpac is currently addressing uplifts required in relation to its compliance with the Common Reporting Standard. Note 13. Provisions, contingent liabilities, contingent assets and credit commitments (continued) By undertaking these reviews, we can also improve our processes and controls, including those of our contractors, agents, and authorised credit representatives. An assessment of the Group’s likely loss has been made on a case-by-case basis for the purpose of the financial statements but cannot always be reliably estimated. Even where Westpac has remediated or compensated customers, employees or issues, there can still be the risk of regulators challenging the basis, scope or pace of remediation, taking enforcement action (including enforceable undertakings and contrition payments), or imposing fines/penalties or other sanctions, including civil or criminal prosecutions. Contingent liabilities may exist in respect of actual or potential claims or proceedings (which could be brought by customers, employees/unions, regulators or criminal prosecutors), compensation/remediation payments and/or refunds identified as part of these reviews. Australian Financial Complaints Authority Contingent liabilities also exist in relation to customer complaints brought before the Australian Financial Complaints Authority (AFCA). AFCA has the power to make determinations about complaints and can award compensation up to certain thresholds. Financial Claims Scheme Under the Financial Claims Scheme (FCS), the Australian Government provides depositors a free guarantee of deposits in eligible ADIs of up to and including $250,000, per account holder for protected accounts in an eligible ADI. The FCS applies to an eligible ADI if APRA has applied for the winding up of the ADI or a statutory manager (under the Banking Act 1958 The Financial Claims Scheme (ADIs) Levy Act Exposures to third parties relating to divested businesses The Group has potential exposures relating to warranties, indemnities and other commitments it has provided to third parties in connection with various divestments of businesses and assets. The warranties, indemnities and other commitments cover a range of matters, conduct and risks, including certain compliance, regulatory investigations and litigation matters outlined in this Note 13. Contingent tax risk Tax and regulatory authorities in Australia and in other jurisdictions review, in the normal course of business, the direct and indirect taxation treatment of transactions (both historical and present-day transactions) undertaken by the Group. The Group also responds to various notices and requests for information it receives from tax and regulatory authorities. These reviews, notices and requests may result in additional tax liabilities (including interest and penalties). The Group has assessed these and other taxation matters arising in Australia and elsewhere, including seeking independent advice. Settlement risk The Group is subject to a credit risk exposure in the event that another counterparty fails to settle for its payments clearing activities (including foreign exchange). The Group seeks to minimise credit risk arising from settlement risk in the payments system by aligning our processing method with the legal certainty of settlement in the relevant clearing mechanism. Parent entity guarantees and undertakings to subsidiaries Consistent with 2022, Westpac Banking Corporation, as the parent entity of the Group, makes the following guarantees and undertakings to its subsidiaries: ● Letters of comfort for certain subsidiaries which recognise that Westpac has a responsibility that those subsidiaries continue to meet their obligations; and ● Guarantees to certain wholly owned subsidiaries which are Australian financial services or credit licensees to comply with legislative requirements. All but two guarantees are capped at $20 million per year (with an automatic reinstatement for another $20 million) and two specific guarantees are capped at $2 million (with an automatic reinstatement for another $2 million). Note 13. Provisions, contingent liabilities, contingent assets and credit commitments (continued) Contingent assets The credit commitments shown in the following table also constitute contingent assets. These commitments would be classified as loans in the balance sheet on the contingent event occurring. Undrawn credit commitments The Group enters into various arrangements with customers which are only recognised in the balance sheet when called upon. These arrangements include commitments to extend credit, bill endorsements, financial guarantees, standby letters of credit and underwriting facilities. They expose the Group to liquidity risk when called upon and also to credit risk if the customer fails to repay the amounts owed at the due date. The maximum exposure to credit loss is the contractual or notional amount of the instruments. Some of the arrangements can be cancelled by the Group at any time and a significant portion is expected to expire without being drawn. The actual liquidity and credit risk exposure varies in line with amounts drawn and may be less than the amounts disclosed. The Group uses the same credit policies when entering into these arrangements as it does for on-balance sheet instruments. Refer to Notes 12 and 22 of the 2022 Annual Report for further details of credit risk and liquidity risk management, respectively. Undrawn credit commitments excluding derivatives are as follows: As at As at As at % Mov’t 31 March 30 Sept 31 March Mar 23 Mar 23 $m 2023 2022 2022 - Sept 22 - Mar 22 Undrawn credit commitments Letters of credit and guarantees 1 11,936 11,868 11,716 1 2 Commitments to extend credit 2 195,765 188,183 189,415 4 3 Other 702 48 55 large large Total undrawn credit commitments 208,403 200,099 201,186 4 4 1. Standby letters of credit are undertakings to pay, against presentation documents, an obligation in the event of a default by a customer. Guarantees are unconditional undertakings given to support the obligations of a customer to third parties. The Group may hold cash as collateral for certain guarantees issued. 2. Commitments to extend credit include all obligations on the part of the Group to provide credit facilities. As facilities may expire without being drawn upon, the notional amounts do not necessarily reflect future cash requirements. In addition to the commitments disclosed above, as at March 2023, the Group had $ 7.4 billion of credit exposures that were offered and accepted but still revocable (September 2022: $8.6 billion; March 2022 $8.8 billion). These represent part of Westpac Group’s maximum exposure to credit risk. |
Shareholders' equity
Shareholders' equity | 6 Months Ended |
Mar. 31, 2023 | |
Shareholders' equity | |
Shareholders' equity | Note 14. Shareholders’ equity As at As at As at 31 March 30 Sept 31 March $m 2023 2022 2022 Share capital Ordinary share capital, fully paid 39,824 39,666 39,667 Treasury shares 1 (702) (655) (651) Total share capital 39,122 39,011 39,016 NCI 44 57 54 1. 31 March 2023: 5,396,087 unvested RSP treasury shares held (30 September 2022: 5,086,660 , 31 March 2022: 5,076,534 ). Ordinary Shares Westpac does not have authorised capital and the ordinary shares have no par value. Ordinary shares entitle the holder to participate in dividends and, in the event of Westpac winding up, to a share of the proceeds in proportion to the number of and amounts paid on the shares held. Each ordinary share entitles the holder to one vote, either in person or by proxy, at a shareholder meeting. Reconciliation of movement in number of ordinary shares Half Year Half Year Half Year March Sept March 2023 2022 2022 Balance as at beginning of period 3,501,127,694 3,501,127,694 3,668,591,808 Dividend reinvestment plan 2 7,949,266 - - Issued shares for the period 7,949,266 - - Off-market share buy-back 3 - - (167,464,114) Balance as at end of period 3,509,076,960 3,501,127,694 3,501,127,694 2. The price per share for the issuance of shares in relation to the DRP for the 2022 final dividend was $23.86 . The DRP for the 2022 interim dividend (as well as 2021 final dividend) had no impact on the number of ordinary shares on issue as Westpac arranged for the purchase of the necessary shares from the market and transfer to participants of 9,971,443 ordinary shares (2021 final dividend: 10,286,188 ordinary shares) at an average price of $23.96 (2021 final dividend: $22.34 ). 3. On 14 February 2022, the Group announced the successful completion of its $3.5 billion off-market share buy-back of Westpac ordinary shares. 167,464,114 ordinary shares were bought back at $20.90 , and comprised a fully franked dividend component of $9.56 per share ($ 1,601 million) and a capital component of $11.34 per share ($ 1,902 million including transaction costs). The shares bought back were subsequently cancelled. Ordinary shares purchased on market Half Year March 2023 Average price Consolidated Number ($) For share-based payment arrangements: Employee share plan (ESP) 1,156,722 23.79 RSP 4 2,061,377 23.40 Westpac Performance Plan (WPP) - share rights exercised 170,226 22.81 Net number of ordinary shares purchased on market 3,388,325 4. Ordinary shares allocated to employees under the RSP are classified as treasury shares until the shares vest. Note 14. Shareholders’ equity (continued) Reconciliation of movement in reserves Half Year Half Year Half Year March Sept March $m 2023 2022 2022 Debt securities at FVOCI reserve Balance as at beginning of period 62 223 443 Net gains/(losses) from changes in fair value 13 (187) (142) Income tax effect - 50 38 Transferred to income statement (65) (49) (205) Income tax effect 21 16 62 Loss allowance on debt securities measured at FVOCI 1 - (2) Other (15) 9 29 Balance as at end of period 17 62 223 Equity securities at FVOCI reserve Balance as at beginning of period 136 190 44 Net gains/(losses) from changes in fair value (34) (54) 146 Income tax effect 9 - - Balance as at end of period 111 136 190 Share-based payment reserve Balance as at beginning of period 1,893 1,866 1,806 Share-based payment expense 58 27 60 Balance as at end of period 1,951 1,893 1,866 Cash flow hedge reserve Balance as at beginning of period 813 1,049 196 Net gains/(losses) from changes in fair value 522 82 1,222 Income tax effect (156) (21) (362) Transferred to income statement (418) (424) (10) Income tax effect 124 127 3 Balance as at end of period 885 813 1,049 Foreign currency translation reserve Balance as at beginning of period (505) (407) (241) Exchange differences on translation of foreign operations 553 (133) (367) Gains/(losses) on net investment hedges (175) 35 201 Balance as at end of period (127) (505) (407) Other reserves Balance as at beginning of period (21) (20) (21) Transactions with owners - (1) 1 Balance as at end of period (21) (21) (20) Total reserves 2,816 2,378 2,901 |
Notes to the consolidated cash
Notes to the consolidated cash flow statements | 6 Months Ended |
Mar. 31, 2023 | |
Notes to the consolidated cash flow statements | |
Notes to the consolidated cash flow statement | Note 15. Notes to the consolidated cash flow stateme nt Reconciliation of net cash provided by/(used in) operating activities to profit after income tax expense for the period is set out below: Half Year Half Year Half Year % Mov’t March Sept March Mar 23 Mar 23 $m 2023 2022 2022 - Sept 22 - Mar 22 Profit after income tax expense 4,005 2,415 3,284 66 22 Adjustments: Depreciation, amortisation and impairment 536 776 805 (31) (33) Impairment charges/(benefits) 518 283 241 83 115 Net decrease/(increase) in current and deferred tax 256 326 101 (21) 153 (Increase)/decrease in accrued interest receivable (558) (485) (59) 15 large (Decrease)/increase in accrued interest payable 1,350 769 25 76 large (Decrease)/increase in provisions (526) (85) (536) large (2) Other non-cash items 413 2,038 (169) (80) large Cash flows from operating activities before changes in operating assets and liabilities 5,994 6,037 3,692 (1) 62 Net (increase)/decrease in: Collateral paid 1,898 1,769 (3,293) 7 large Trading securities and financial assets measured at FVIS (4,967) (1,644) (2,106) large 136 Derivative financial instruments (165) (553) 3,004 (70) large Loans (5,074) (23,709) (12,636) (79) (60) Other financial assets (148) (447) 726 (67) large Life insurance assets and liabilities - 133 133 (100) (100) Other assets 26 37 (17) (30) large Net increase/(decrease) in: Collateral received (2,781) 3,827 (184) large large Deposits and other borrowings 13,464 13,296 21,758 1 (38) Other financial liabilities (328) 5,738 1,382 large large Other liabilities (4) 8 3 large large Net cash provided by/(used in) operating activities 7,915 4,492 12,462 76 (36) Note 15. Notes to the consolidated cash flow statement (continued) Details of the assets and liabilities over which control ceased Details of the businesses over which control ceased are provided in Note 17. Half Year Half Year Half Year March Sept March $m 2023 2022 2022 Assets: Cash and balances with central banks 18 169 - Loans - - 965 Other financial assets 18 54 12 Life insurance assets - 2,180 186 Deferred tax assets - 39 - Intangible assets 55 - - Other assets - 156 12 Total assets 91 2,598 1,175 Liabilities: Other financial liabilities 22 32 2 Current tax liabilities - - 2 Life insurance liabilities - 300 (115) Provisions 1 48 4 Deferred tax liabilities - - 34 Other liabilities - 177 36 Total liabilities 23 557 (37) Total equity attributable to owners of WBC 68 2,041 1,212 Cash proceeds received (net of transaction costs) 311 896 1,388 Expected receivable (completion settlement)/deferred consideration - 33 113 Total consideration 311 929 1,501 Gain/(loss) on disposal 243 (1,112) 289 Reconciliation of cash proceeds from disposal: Cash proceeds received (net of transaction costs) 311 896 1,388 Less: Cash deconsolidated (18) (169) - Cash consideration received (net of transaction costs and cash held) 293 727 1,388 Businesses disposed During Half Year 2023, Westpac disposed of its 100% interest in AAML to Mercer (Australia). In addition, on 1 April 2023, Westpac merged its BT personal and corporate superannuation funds to Mercer Super Trust. Non-cash financing activities Half Year Half Year Half Year % Mov’t March Sept March Mar 23 Mar 23 $m 2023 2022 2022 - Sept 22 - Mar 22 Shares issued under the dividend reinvestment plan 190 - - - - Increase in lease liabilities 158 146 98 8 61 Restricted cash Certain of our foreign operations are required to maintain reserves or minimum balances with central banks in their respective countries of operation, totalling $328 million (30 September 2022: $303 million, 31 March 2022: $480 million) which are included in cash and balances with central banks. |
Subsequent events
Subsequent events | 6 Months Ended |
Mar. 31, 2023 | |
Subsequent events | |
Subsequent events | Note 16. Subsequent events Since 31 March 2023, the Board has determined to pay a fully franked interim dividend of 70 cents per fully paid ordinary share. The dividend is expected to be $2,456 million. The dividend is not recognised as a liability at 31 March 2023. The proposed payment date of the dividend is 27 June 2023. The Board has determined to satisfy the DRP for the 2023 interim dividend by arranging for the purchase of existing shares by a third party. The market price used to determine the number of shares allocated to DRP participants will be set over the 10 trading days commencing 17 May 2023 and will not include a discount. No other matters have arisen since the half year ended 31 March 2023, which are not otherwise dealt with in this 2023 Interim Financial Report, that have significantly affected or may significantly affect the operations of the Group, the results of its operations or the state of affairs of the Group in subsequent periods. |
Assets and liabilities held for
Assets and liabilities held for sale | 6 Months Ended |
Mar. 31, 2023 | |
Assets and liabilities held for sale | |
Assets and liabilities held for sale | Note 17. Assets and liabilities held for sale The assets and liabilities of certain businesses were classified as held for sale. As these businesses do not constitute a major line of business for the Group, they have not been classified as discontinued operations. Transactions completed during First Half 2023 Advance Asset Management Limited and BT Superannuation funds The sale of Advance Asset Management Limited to Mercer (Australia) completed on 31 March 2023. This sale resulted in a pre-tax gain on sale of $243 million ($256 million post-tax). On 1 April 2023, Westpac merged its BT personal and corporate superannuation funds with Mercer Super Trust also. In Half Year 2023, an expense recovery of $53 million has been recognised in operating expenses. Both businesses included in the Specialist Business division. Balance sheet presentation Details of the assets and liabilities held for sale are as follows: As at As at As at 31 March 30 Sept 31 March $m 2023 2022 2022 Assets held for sale Cash and balances with central banks - - 8 Other financial assets - 20 18 Life insurance assets - - 2,479 Deferred tax assets - - 43 Intangible assets - 55 - Other assets - - 152 Total assets held for sale - 75 2,700 Liabilities held for sale Other financial liabilities - 31 17 Life insurance liabilities - - 414 Provisions - 1 65 Deferred tax liabilities - - 3 Other liabilities - - 185 Total liabilities held for sale - 32 684 |
Financial statements preparat_2
Financial statements preparation (Policies) | 6 Months Ended |
Mar. 31, 2023 | |
Financial statements preparation | |
Financial statements preparation | Financial statements preparation This general purpose Interim Financial Report for the half year ended 31 March 2023 has been prepared in accordance with Australian Accounting Standard AASB 134 Interim Financial Reporting Corporations Act 2001 (Cth) The Interim Financial Report does not include all the notes of the type normally included in an Annual Financial Report. Accordingly, this Interim Financial Report is to be read in conjunction with the Annual Financial Report for the year ended 30 September 2022 and any relevant public announcements made by Westpac during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001 (Cth) The Interim Financial Report complies with current Australian Accounting Standards (AAS) as they relate to interim financial reports. The Interim Financial Report was authorised for issue by the Board of Directors on 7 May 2023. All amounts have been rounded in accordance with ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191, to the nearest million dollars, unless otherwise stated. Accounting policies The accounting policies adopted in the preparation of this Interim Financial Report are consistent with those in the Annual Financial Report for the year ended 30 September 2022. |
Critical accounting assumptions and estimates | Critical accounting assumptions and estimates In preparing the Interim Financial Report, the application of the Group’s accounting policies requires the use of judgement, assumptions and estimates. The areas of judgement, assumptions and estimates in the Interim Financial Report, including the key sources of estimation uncertainty, are consistent with those in the Annual Financial Report for the year ended 30 September 2022. Details on specific judgements in relation to the calculation of provision for ECL including overlays are included in Note 9. |
Amendments to Accounting Standards effective this period | Amendments to Accounting Standards effective this period No new accounting standards have been adopted by the Group for the half year ended 31 March 2023. There have been no amendments to existing accounting standards that have had a material impact to the Group. |
Future developments in accounting standards | Future developments in accounting standards There are no new standards or amendments to existing standards that are not yet effective that are expected to have a material impact on the Group. |
Interest rate benchmark reform | Interest rate benchmark reform The IBOR reform and the enterprise-wide IBORs Transition Programme the Group has established to manage the impacts of this reform are detailed in Note 22.4 of the Group’s 2022 Annual Report. A number of IBORs had a 31 December 2021 cessation date. The Group ceased to enter into new contracts referencing these rates and the Group’s exposures to contracts which reference these rates have either matured or transitioned to an alternative reference rate (ARR) with the exception of a small number of trades with immaterial balances. Certain US LIBOR tenors have not yet transitioned to an ARR as they have a cessation date of 30 June 2023. The Group has monitoring controls in place to assess US LIBOR exposures on a regular basis and an overall Programme objective to transition away from USD LIBOR transactions. For the Group’s derivative exposures, almost all have bilateral adherence from our counterparties to the fallback clauses issued by the International Swaps and Derivatives Association (ISDA) in the ISDA 2020 IBOR Fallbacks Protocol which provides a standardised process to identify the appropriate ARR at the relevant benchmark transition date. For the Group’s non-derivative exposures, the Group is engaging with its customers and counterparties to transition or include appropriate fallback provisions. Due to the nature of these contracts, these fallback provisions will be determined bilaterally with the customer or counterparty rather than the standardised basis provided by the ISDA protocols applicable to our derivative contracts. In addition, the Group’s exposure to new contracts referencing these rates is limited by regulatory guidelines whereby transactions from 31 December 2021 can only be entered into for risk management purposes. |
Segment reporting (Tables)
Segment reporting (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Segment reporting | |
Schedule of segment results for the Group | The tables present the segment results for the Group: Consumer Westpac and Westpac New Notable Business Institutional Zealand Specialist Group Items Income $m Consumer Business Banking Bank (A$) Businesses Businesses Total (pre-tax) statement Half Year March 2023 Net interest income 4,693 2,043 6,736 712 1,145 216 393 9,202 (89) 9,113 Net fee income 266 163 429 296 82 22 (2) 827 - 827 Net wealth management and insurance income 22 - 22 - 17 308 - 347 - 347 Trading income - - - 375 18 22 (6) 409 (22) 387 Other income 9 2 11 33 (1) 41 2 86 243 329 Notable Items - - - - - 243 (111) 132 (132) - Net operating income 4,990 2,208 7,198 1,416 1,261 852 276 11,003 - 11,003 Operating expenses 1 (2,301) (914) (3,215) (617) (574) (280) (302) (4,988) - (4,988) Notable Items - - - - - - - - - - Total operating expenses (2,301) (914) (3,215) (617) (574) (280) (302) (4,988) - (4,988) Pre-provision profit 2,689 1,294 3,983 799 687 572 (26) 6,015 - 6,015 Impairment (charges)/benefits (170) (78) (248) 4 (142) (2) (2) (390) - (390) Profit before income tax expense 2,519 1,216 3,735 803 545 570 (28) 5,625 - 5,625 Income tax (expense)/benefit 2 (756) (365) (1,121) (229) (154) (73) (43) (1,620) - (1,620) Net profit attributable to NCI - - - - - (4) - (4) - (4) Net profit attributable to owners of WBC 1,763 851 2,614 574 391 493 (71) 4,001 - 4,001 Notable Items (post-tax) 2 - - - - - 256 (78) 178 Balance sheet Loans 479,761 85,568 565,329 84,697 91,943 8,086 (124) 749,931 Deposits and other borrowings 293,565 133,442 427,007 112,662 77,321 10,046 49,316 676,352 1. Impairment of assets (including goodwill and other intangible assets) were insignificant for all segments except for the following: - Specialist Businesses: First Half 2023: nil (Second Half 2022: nil , First Half 2022: $167 million); - Group Businesses: First Half 2023: nil (Second Half 2022: $159 million, First Half 2022: $7 million). 2. The tax impact of Notable Items was a reduction to income tax (expense)/benefit of $46 million in First Half 2023 (Second Half 2022: $135 million reduction, First Half 2022: $89 million addition). Note 2. Segment reporting (continued) Consumer and Westpac Westpac New Notable Business Institutional Zealand Specialist Group Items Income $m Consumer Business Banking Bank (A$) Businesses Businesses Total (pre-tax) statement Half Year Sept 2022 Net interest income 4,608 1,704 6,312 629 1,073 232 339 8,585 288 8,873 Net fee income 248 165 413 303 99 17 (5) 827 (1) 826 Net wealth management and insurance income 25 - 25 - 15 375 - 415 (8) 407 Trading income - - - 249 18 21 (7) 281 40 321 Other income 15 2 17 2 (4) 5 46 66 (1,117) (1,051) Notable Items - - - - (12) (1,120) 334 (798) 798 - Net operating income 4,896 1,871 6,767 1,183 1,189 (470) 707 9,376 - 9,376 Operating expenses 1 (2,254) (915) (3,169) (607) (538) (313) (412) (5,039) (390) (5,429) Notable Items (66) - (66) - - (150) (174) (390) 390 - Total operating expenses (2,320) (915) (3,235) (607) (538) (463) (586) (5,429) - (5,429) Pre-provision profit 2,576 956 3,532 576 651 (933) 121 3,947 - 3,947 Impairment (charges)/benefits (228) 15 (213) (27) 16 29 (1) (196) - (196) Profit before income tax expense 2,348 971 3,319 549 667 (904) 120 3,751 - 3,751 Income tax (expense)/benefit 2 (703) (292) (995) (168) (192) 50 (31) (1,336) - (1,336) Net profit attributable to NCI - - - - - (1) - (1) - (1) Net profit attributable to owners of WBC 1,645 679 2,324 381 475 (855) 89 2,414 - 2,414 Notable Items (post-tax) 2 (47) - (47) - (10) (1,112) 116 (1,053) Balance sheet Loans 474,604 84,897 559,501 85,182 85,285 9,866 (187) 739,647 Deposits and other borrowings 280,574 133,335 413,909 116,552 71,202 9,457 48,009 659,129 1. Impairment of assets (including goodwill and other intangible assets) were insignificant for all segments except for the following: - Specialist Businesses: First Half 2023: nil (Second Half 2022: nil , First Half 2022: $167 million); - Group Businesses: First Half 2023: nil (Second Half 2022: $159 million, First Half 2022: $7 million). 2. The tax impact of Notable Items was a reduction to income tax (expense)/benefit of $46 million in First Half 2023 (Second Half 2022: $135 million reduction, First Half 2022: $89 million addition). Note 2. Segment reporting (continued) Consumer Westpac and Westpac New Notable Business Institutional Zealand Specialist Group Items Income $m Consumer Business Banking Bank (A$) Businesses Businesses Total (pre-tax) statement Half Year March 2022 Net interest income 4,377 1,323 5,700 481 1,034 242 564 8,021 267 8,288 Net fee income 265 162 427 302 86 29 1 845 - 845 Net wealth management and insurance income 26 - 26 - 39 379 - 444 (43) 401 Trading income - - - 267 25 20 27 339 4 343 Other income 33 3 36 23 1 14 8 82 271 353 Notable Items - - - - 132 109 258 499 (499) - Net operating income 4,701 1,488 6,189 1,073 1,317 793 858 10,230 - 10,230 Operating expenses 1 (2,369) (984) (3,353) (581) (534) (370) (304) (5,142) (231) (5,373) Notable Items - - - - - (215) (16) (231) 231 - Total operating expenses (2,369) (984) (3,353) (581) (534) (585) (320) (5,373) - (5,373) Pre-provision profit 2,332 504 2,836 492 783 208 538 4,857 - 4,857 Impairment (charges)/benefits 27 (158) (131) (58) 9 38 3 (139) - (139) Profit before income tax expense 2,359 346 2,705 434 792 246 541 4,718 - 4,718 Income tax (expense)/benefit 2 (713) (107) (820) (128) (190) (111) (185) (1,434) - (1,434) Net profit attributable to NCI - - - - - (3) (1) (4) - (4) Net profit attributable to owners of WBC 1,646 239 1,885 306 602 132 355 3,280 - 3,280 Notable Items (post-tax) 2 - - - - 129 (114) 164 179 Balance sheet Loans 465,697 80,949 546,646 73,950 87,361 11,730 (131) 719,556 Deposits and other borrowings 276,161 134,716 410,877 104,661 75,622 8,362 46,084 645,606 1. Impairment of assets (including goodwill and other intangible assets) were insignificant for all segments except for the following: - Specialist Businesses: First Half 2023: nil (Second Half 2022: nil , First Half 2022: $167 million); - Group Businesses: First Half 2023: nil (Second Half 2022: $159 million, First Half 2022: $7 million). 2. The tax impact of Notable Items was a reduction to income tax (expense)/benefit of $46 million in First Half 2023 (Second Half 2022: $135 million reduction, First Half 2022: $89 million addition). Half Year Half Year Half Year % Mov’t March Sept March Mar 23 Mar 23 $m 2023 2022 2022 - Sept 22 - Mar 22 Notable Items after tax Economic hedges (121) 266 204 large large Hedge ineffectiveness 43 (33) (19) large large Provisions for litigation, fines and penalties 3 - (68) (65) (100) (100) Asset sales and revaluations 256 (1,089) 213 large 20 The write-down of assets - (129) (154) (100) (100) Total Notable Items after tax 178 (1,053) 179 large (1) 3. Second Half 2022 and First Half 2022 also included provisions for estimated customer refunds and payments and associated costs. |
Net Interest Income and Avera_2
Net Interest Income and Average Balance Sheet and Interest Rates (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Net interest income and average balance sheet and interest rates | |
Schedule of net interest income | Half Year Half Year Half Year % Mov’t March Sept March Mar 23 Mar 23 $m 2023 2022 2022 - Sept 22 - Mar 22 Interest income 1 Calculated using the effective interest method Cash and balances with central banks 1,806 637 46 184 large Collateral paid 269 64 4 large large Investment securities 918 620 506 48 81 Loans 16,276 11,549 9,547 41 70 Other financial assets 10 2 - large - Assets held for sale - - 6 - (100) Total interest income calculated using the effective interest method 19,279 12,872 10,109 50 91 Other Net ineffectiveness on qualifying hedges 62 (50) (27) large large Trading securities and financial assets measured at FVIS 498 224 123 122 large Total other 560 174 96 large large Total interest income 19,839 13,046 10,205 52 94 Interest expense Calculated using the effective interest method Collateral received (142) (60) (4) 137 large Deposits and other borrowings (6,151) (2,098) (712) 193 large Debt issues (2,268) (1,406) (851) 61 167 Loan capital (620) (586) (440) 6 41 Other financial liabilities (234) (117) (45) 100 large Total interest expense calculated using the effective interest method (9,415) (4,267) (2,052) 121 large Other Deposits and other borrowings (801) (350) (49) 129 large Trading liabilities 2 (188) 717 452 large large Debt issues (116) (62) (31) 87 large Bank levy (164) (163) (177) 1 (7) Other interest expense (42) (48) (60) (13) (30) Total other (1,311) 94 135 large large Total interest expense (10,726) (4,173) (1,917) 157 large Net interest income 9,113 8,873 8,288 3 10 1. Included items relating to compliance, regulation and remediation costs recognised as a $9 million addition to net interest income (Second Half 2022: $8 million reduction, First Half 2022: $9 million addition). Refer to Note 13 for further details. 2. Includes net impact of Treasury balance sheet management activities. |
Summary of the average daily balances of the Group's interest earning assets and interest bearing liabilities | Average balance sheet and interest rates Half Year March 2023 Half Year Sept 2022 Half Year March 2022 Average Average Average Average Average Average balance Interest rate balance Interest rate balance Interest rate $m $m % $m $m % $m $m % Assets Interest earning assets Loans 1 699,735 16,276 4.7 683,786 11,549 3.4 669,815 9,547 2.9 Housing 481,538 10,174 4.2 472,098 7,349 3.1 468,207 6,317 2.7 Personal 13,485 556 8.3 14,471 582 8.0 15,618 618 7.9 Business 204,712 5,546 5.4 197,217 3,618 3.7 185,990 2,612 2.8 Trading securities and financial assets measured at FVIS 29,044 498 3.4 23,426 224 1.9 22,243 123 1.1 Investment securities 76,015 918 2.4 77,783 620 1.6 77,779 506 1.3 Other interest earning assets 2 129,414 2,147 3.3 116,786 653 1.1 101,392 23 - Assets held for sale - - - 5 - - 846 6 1.4 Total interest earning assets and interest income 934,208 19,839 4.3 901,786 13,046 2.9 872,075 10,205 2.3 Non-interest earning assets Derivative financial instruments 25,290 28,479 18,283 Assets held for sale 60 1,843 3,048 All other assets 3 58,365 59,492 64,427 Total non-interest earning assets 83,715 89,814 85,758 Total assets 1,017,923 991,600 957,833 Liabilities Interest bearing liabilities Deposits and other borrowings 599,545 6,952 2.3 581,038 2,448 0.8 570,842 761 0.3 Certificates of deposit 45,447 799 3.5 48,068 347 1.4 46,544 48 0.2 At call 386,455 3,520 1.8 389,417 1,158 0.6 391,719 342 0.2 Term 167,643 2,633 3.1 143,553 943 1.3 132,579 371 0.6 Repurchase agreements 41,310 228 1.1 39,807 112 0.6 35,740 38 0.2 Loan capital 33,649 620 3.7 30,910 586 3.8 30,504 440 2.9 Other interest bearing liabilities 4 174,925 2,926 3.4 167,147 1,027 1.2 149,307 678 0.9 Total interest bearing liabilities and interest expense 849,429 10,726 2.5 818,902 4,173 1.0 786,393 1,917 0.5 Non-interest bearing liabilities Deposits and other borrowings 68,678 69,082 69,413 Derivative financial instruments 29,765 30,434 19,035 Liabilities held for sale 26 590 775 All other liabilities 5 (969) 3,072 11,087 Total non-interest bearing liabilities 97,500 103,178 100,310 Total liabilities 946,929 922,080 886,703 Shareholders’ equity 70,947 69,467 71,073 NCI 47 53 57 Total equity 70,994 69,520 71,130 Total liabilities and equity 1,017,923 991,600 957,833 Loans Australia 602,493 13,791 4.6 590,428 9,679 3.3 574,439 8,015 2.8 New Zealand 90,605 2,304 5.1 86,989 1,755 4.0 89,021 1,448 3.3 Other overseas 6,637 181 5.5 6,369 115 3.6 6,355 84 2.7 Deposits and other borrowings Australia 516,397 5,547 2.2 498,319 1,760 0.7 489,642 489 0.2 New Zealand 63,422 1,017 3.2 60,312 522 1.7 61,263 243 0.8 Other overseas 19,726 388 3.9 22,407 166 1.5 19,937 29 0.3 1. Loans are net of Stage 3 provision for ECL, where interest income is determined based on their carrying value. Stage 1 and 2 provisions for ECL are not included in the average interest earning assets balance, as interest income is determined based on the gross value of loans and other receivables. 2. Interest income includes net ineffectiveness on qualifying hedges. 3. Includes property and equipment, intangible assets, deferred tax assets, non-interest bearing loans relating to mortgage offset accounts and all other non-interest earning assets. 4. Includes net impact of Treasury balance sheet management activities and the Bank Levy. 5. Includes other financial liabilities, provisions, current and deferred tax liabilities and all other non-interest bearing liabilities. |
Non-interest income (Tables)
Non-interest income (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Non-interest income | |
Schedule of non-interest income | Non-interest income 1 Half Year Half Year Half Year % Mov’t March Sept March Mar 23 Mar 23 $m 2023 2022 2022 - Sept 22 - Mar 22 Net fees Facility fees 338 342 344 (1) (2) Transaction fees 589 576 556 2 6 Other non-risk fee income 68 50 72 36 (6) Fee income 995 968 972 3 2 Credit card loyalty programs (81) (66) (60) 23 35 Transaction fee related expenses (87) (76) (67) 14 30 Fee expenses (168) (142) (127) 18 32 Net fees 827 826 845 - (2) Net wealth management and insurance Net wealth management income 347 365 361 (5) (4) Life insurance premium income - 314 520 (100) (100) Life insurance investment and other income 2 - (12) (129) (100) (100) Total insurance premium, investment and other income - 302 391 (100) (100) Life insurance claims, changes in life insurance liabilities and other expenses - (260) (351) (100) (100) Total insurance claims, changes in insurance liabilities and other expenses - (260) (351) (100) (100) Net wealth management and insurance 347 407 401 (15) (13) Trading 387 321 343 21 13 Other Dividends received from other entities - 1 3 (100) (100) Net gain/(loss) on sale/derecognition of associates 1 12 13 (92) (92) Net gain/(loss) on disposal of assets - (1) (2) (100) (100) Net gain/(loss) on hedging of overseas operations - 1 (1) (100) (100) Net gain/(loss) on derivatives held for risk management purposes 3 - 2 7 (100) (100) Net gain/(loss) on financial instruments measured at fair value 29 (4) 16 large 81 Net gain/(loss) on disposal of controlled entities and other businesses 4 268 (1,112) 289 large (7) Rental income on operating leases 5 7 9 (29) (44) Share of associates’ net profit/(loss) (3) (4) (3) (25) - Other 29 47 22 (38) 32 Total other 329 (1,051) 353 large (7) Total non-interest income 1,890 503 1,942 large (3) 1. Includes items relating to compliance, regulation and remediation costs recognised as an addition in non-risk fee income, net wealth management income and other income totalled $ 8 million for First Half 2023 (Second Half 2022: $56 million reduction, First Half 2022: $8 million reduction). Refer to Note 13 for further details. 2. Includes policyholder tax recoveries. 3. Income from derivatives held for risk management purposes reflects the impact of economic hedges of earnings. 4. First Half 2023 included a profit on sale of $243 million for AAML, Second Half 2022 included $1,112 million loss on sale of Australian life insurance business, while First Half 2022 included $170 million gain on sale of auto finance and $119 million gain on sale of NZ life insurance. |
Operating expenses (Tables)
Operating expenses (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Operating expenses | |
Schedule of operating expenses | Operating expenses 1 Half Year Half Year Half Year % Mov’t March Sept March Mar 23 Mar 23 $m 2023 2022 2022 - Sept 22 - Mar 22 Staff Employee remuneration, entitlements and on-costs 2,545 2,527 2,584 1 (2) Superannuation 270 255 278 6 (3) Share-based payments 44 42 46 5 (4) Restructuring costs 33 60 74 (45) (55) Total staff 2,892 2,884 2,982 - (3) Occupancy Operating lease rentals 81 91 79 (11) 3 Depreciation and impairment of property and equipment 2 227 365 261 (38) (13) Other 64 60 58 7 10 Total occupancy 372 516 398 (28) (7) Technology Amortisation and impairment of software assets 2 250 318 337 (21) (26) Depreciation and impairment of IT equipment 58 92 85 (37) (32) Technology services 352 377 342 (7) 3 Software maintenance and licences 296 258 248 15 19 Telecommunications 59 72 72 (18) (18) Data processing 39 40 41 (3) (5) Total technology 1,054 1,157 1,125 (9) (6) Other Professional and processing services 413 554 460 (25) (10) Amortisation and impairment of other intangible assets and deferred expenditure 2 1 1 122 - (99) Postage and stationery 67 70 74 (4) (9) Advertising 79 77 81 3 (2) Non-lending losses 1 59 45 (98) (98) Other expenses 109 111 86 (2) 27 Total other 670 872 868 (23) (23) Total operating expenses 4,988 5,429 5,373 (8) (7) 1. Operating expenses included items relating to compliance, regulation and remediation costs were a reduction of $ 6 million (Second Half 2022: $46 million addition; First Half 2022: $17 million addition). Refer to Note 13 for further details. 2. Nil impairment expenses for the First Half 2023. Significant impairment expenses in comparative periods included: ● Property and equipment (Second Half 2022: $ 116 million, First Half 2022: $1 million); ● Capitalised software assets (Second Half 2022: $56 million, First Half 2022: $54 million); ● Goodwill and other intangible assets (Second Half 2022: nil , First Half 2022: $122 million). |
Income tax (Tables)
Income tax (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Income tax | |
Schedule of income tax reconciled to profit before income tax | The following table reconciles income tax expense to the profit before income tax: Half Year Half Year Half Year % Mov’t March Sept March Mar 23 Mar 23 $m 2023 2022 2022 - Sept 22 - Mar 22 Profit before income tax 5,625 3,751 4,718 50 19 Tax at the Australian company tax rate of 30% 1,688 1,126 1,415 50 19 The effect of amounts which are not deductible/(assessable) in calculating taxable income: Hybrid capital distributions 54 39 28 38 93 Life insurance: Tax adjustment on policyholder earnings - (1) - (100) - Other non-assessable items (1) (63) (34) (98) (97) Other non-deductible items 10 362 47 (97) (79) Adjustment for overseas tax rates (16) (16) (15) - 7 Income tax (over)/under provided in prior periods - (84) 7 (100) (100) Other items 1 (115) (27) (14) large large Total income tax expense 2 1,620 1,336 1,434 21 13 Effective income tax rate 28.80% 35.62% 30.39% large ( 159 bps) 1. 2. |
Earnings per share (Tables)
Earnings per share (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Earnings per share | |
Schedule of earnings per share | Basic earnings per share (EPS) is calculated by dividing the net profit attributable to owners of WBC by the weighted average number of ordinary shares on issue during the period, adjusted for treasury shares. Diluted EPS is calculated by adjusting the basic EPS by assuming all dilutive potential ordinary shares are converted. Half Year March 2023 Half Year Sept 2022 Half Year March 2022 Basic Diluted Basic Diluted Basic Diluted Net profit attributable to owners of WBC ($m) 4,001 4,001 2,414 2,414 3,280 3,280 Adjustment for RSP dividends 3 (2) - (1) - (2) - Adjustment for potential dilution: Distributions to convertible loan capital holders 4 - 186 - 133 - 100 Adjusted net profit attributable to owners of WBC 3,999 4,187 2,413 2,547 3,278 3,380 Weighted average number of ordinary shares (millions) Weighted average number of ordinary shares on issue 3,506 3,506 3,501 3,501 3,626 3,626 Treasury shares (including RSP share rights) 3 (5) (5) (5) (5) (4) (4) Adjustment for potential dilution: Share-based payments - 3 - 4 - 3 Convertible loan capital 4 - 384 - 361 - 321 Adjusted weighted average number of ordinary shares 3,501 3,888 3,496 3,861 3,622 3,946 Earnings per ordinary share (cents) 114.2 107.7 69.0 66.0 90.5 85.7 3. Some shares under the RSP have not vested and are not outstanding ordinary shares but do receive dividends. These RSP dividends are deducted to show the profit attributable to ordinary shareholders. 4. The Group has issued convertible loan capital which may convert into ordinary shares in the future. These convertible loan capital instruments are potentially dilutive instruments, and diluted EPS is therefore calculated as if the instruments had been converted at the beginning of the respective period or, if later, the instruments’ issue date. |
Loans (Tables)
Loans (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Loans | |
Schedule of loan portfolio disaggregated by location of booking office and product type | As at As at As at % Mov’t 31 March 30 Sept 31 March Mar 23 Mar 23 $m 2023 2022 2022 - Sept 22 - Mar 22 Australia Housing 472,570 467,382 458,278 1 3 Personal 12,028 12,832 14,128 (6) (15) Business 169,891 170,636 156,763 - 8 Total Australia 654,489 650,850 629,169 1 4 New Zealand Housing 61,081 56,211 57,780 9 6 Personal 1,116 1,058 1,116 5 - Business 30,668 28,855 29,294 6 5 Total New Zealand 92,865 86,124 88,190 8 5 Total other overseas 7,047 6,879 6,392 2 10 Gross loans 754,401 743,853 723,751 1 4 Provision for ECL on loans (Note 9) (4,470) (4,206) (4,195) 6 7 Total loans 1,2 749,931 739,647 719,556 1 4 1. Total loans included securitised loans of $4,019 million as at 31 March 2023 (30 September 2022: $4,747 million, 31 March 2022: $4,808 million). The level of securitised loans excludes loans where Westpac is the holder of related debt securities. 2. Total loans included assets pledged for the covered bond programs of $40,483 million as at 31 March 2023 (30 September 2022: $38,455 million, 31 March 2022: $35,052 million). |
Provisions for expected credi_2
Provisions for expected credit losses (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Provisions for expected credit losses | |
Schedule of provision for ECL | As at As at As at 31 March 30 Sept 31 March $m 2023 2022 2022 Provision for ECL on loans and credit commitments 4,912 4,625 4,675 Provision for ECL on debt securities at amortised cost 1 6 6 4 Provision for ECL on debt securities at FVOCI 2 5 4 3 Total provision for ECL 4,923 4,635 4,682 1. 2. |
Reconciliation of impairment charges | Half Year Half Year Half Year March Sept March $m 2023 2022 2022 Loans and credit commitments: Business activity during the period 54 (136) (94) Net remeasurement of the provision for ECL 463 416 336 Impairment charges for debt securities at amortised cost - 3 1 Impairment charges for debt securities at FVOCI 1 - (2) Recoveries (128) (87) (102) Impairment charges/(benefits) 390 196 139 |
Loans and credit commitments | |
Provisions for expected credit losses | |
Schedule of provision for ECL | The following table shows the provision for ECL on loans and credit commitments by stage: As at As at As at % Mov’t 31 March 30 Sept 31 March Mar 23 Mar 23 $m 2023 2022 2022 - Sept 22 - Mar 22 Performing - Stage 1 891 885 1,078 1 (17) Performing - Stage 2 2,628 2,341 2,107 12 25 Non-performing - Stage 3 1,393 1,399 1,490 - (7) Total provision for ECL on loans and credit commitments 4,912 4,625 4,675 6 5 Presented as: Provision for ECL on loans (Note 8) 4,470 4,206 4,195 6 7 Provision for ECL on credit commitments (Note 13) 442 419 480 5 (8) Total provision for ECL on loans and credit commitments 4,912 4,625 4,675 6 5 Of which: Individually assessed provisions 382 452 501 (15) (24) Collectively assessed provisions 4,530 4,173 4,174 9 9 Total provision for ECL on loans and credit commitments 4,912 4,625 4,675 6 5 Gross loans and credit commitments 962,804 943,952 924,937 2 4 Coverage ratio on loans (%) 0.59% 0.57% 0.58% 2 bps 1 bps Coverage ratio on loans and credit commitments (%) 0.51% 0.49% 0.51% 2 bps - |
Movement in provisions for ECL on loans and credit commitments | Non- Consolidated Performing performing $m Stage 1 Stage 2 Stage 3 Total Balance as at 30 September 2021 936 2,091 1,972 4,999 Transfers to Stage 1 461 (398) (63) - Transfers to Stage 2 (102) 509 (407) - Transfers to Stage 3 (8) (198) 206 - Business activity during the period 255 (149) (200) (94) Net remeasurement of provision for ECL (463) 264 535 336 Write-offs - - (566) (566) Exchange rate and other adjustments (1) (12) 13 - Balance as at 31 March 2022 1,078 2,107 1,490 4,675 Transfers to Stage 1 451 (394) (57) - Transfers to Stage 2 (133) 493 (360) - Transfers to Stage 3 (6) (185) 191 - Business activity during the period 99 (95) (140) (136) Net remeasurement of provision for ECL (603) 425 594 416 Write-offs - - (368) (368) Exchange rate and other adjustments (1) (10) 49 38 Balance as at 30 September 2022 885 2,341 1,399 4,625 Transfers to Stage 1 694 (619) (75) - Transfers to Stage 2 (159) 408 (249) - Transfers to Stage 3 (4) (247) 251 - Business activity during the period 136 54 (136) 54 Net remeasurement of provision for ECL (670) 677 456 463 Write-offs - - (271) (271) Exchange rate and other adjustments 9 14 18 41 Balance as at 31 March 2023 891 2,628 1,393 4,912 |
Schedule of provision for ECL by class and stage | Non- Performing performing $m Stage 1 Stage 2 Stage 3 Total Housing 264 680 498 1,442 Personal 124 315 150 589 Business 690 1,112 842 2,644 Balance as at 31 March 2022 1,078 2,107 1,490 4,675 Housing 143 1,095 415 1,653 Personal 99 250 123 472 Business 643 996 861 2,500 Balance as at 30 September 2022 885 2,341 1,399 4,625 Housing 171 1,123 454 1,748 Personal 91 268 127 486 Business 629 1,237 812 2,678 Balance as at 31 March 2023 891 2,628 1,393 4,912 |
Schedule of impact of overlays on the provision for ECL | As at As at As at 31 March 30 Sept 31 March $m 2023 2022 2022 Modelled provision for ECL on loans and credit commitments 4,192 3,925 3,539 Overlays 720 700 1,136 Total provision for ECL on loans and credit commitments 4,912 4,625 4,675 |
Summary of key macroeconomic assumptions for base case scenario | Economic forecasts (from Westpac Economics) used for the different reporting periods are as follows: Key economic assumptions for base case scenario 31 March 2023 30 September 2022 31 March 2022 Annual GDP Forecast growth of 1.0% for calendar year 2023 and 1.5% for calendar year 2024 Forecast growth of 3.4% for calendar year 2022 and 1.0% for calendar year 2023 Forecast growth of 5.5% for calendar year 2022 and 2.7% for calendar year 2023 Commercial property index Forecast price contraction of 9.4% for calendar year 2023 and forecast growth of 1.4% for calendar year 2024 Forecast price contraction of 4.7% for calendar year 2022 and 3.0% for calendar year 2023 Forecast price contraction of 3.1% for calendar year 2022 and growth of 2.1% for calendar year 2023 Residential property prices Forecast price contraction of 7.8% for calendar year 2023 and forecast growth of 2.0% for calendar year 2024 Forecast price contraction of 6.5% for calendar year 2022 and 7.8% for calendar year 2023 Forecast price appreciation of 1.6% for calendar year 2022 and contraction of 7.0% for calendar 2023 Cash rate Forecast cash rate of 3.85% at December 2023 and 2.85% at December 2024 Forecast cash rate of 3.35% at December 2022 and 3.6% at December 2023 Forecast to increase to 50 bps by December 2022 and then to 150 bps by December 2023 Unemployment rate: Australia Forecast rate of 4.7% at December 2023 and 5.1% at December 2024 Forecast rate of 3.1% at December 2022 and 4.4% at December 2023 Forecast rate of 3.8% at December 2022 and 3.9% at December 2023 New Zealand Forecast rate of 4.0% at December 2023 and 5.1% at December 2024 Forecast rate of 3.4% at December 2022 and 3.8% at December 2023 Forecast rate of 3.0% at December 2022 and 3.3% at December 2023. |
Summary of the the probability weighted scenarios | The following sensitivity table shows the reported provision for ECL on loans and credit commitments based on the probability weighted scenarios and what the provision for ECL on loans and credit commitments would be assuming a 100% weighting to the base case scenario and to the downside scenario (with all other assumptions held constant). As at As at As at 31 March 30 Sept 31 March $m 2023 2022 2022 Reported probability-weighted ECL 4,912 4,625 4,675 100% base case ECL 3,391 2,983 2,993 100% downside ECL 6,836 6,680 6,752 |
Summary of macroeconomic scenario weightings | The following table indicates the economic weights applied by the Group at 31 March 2023, 30 September 2022 and 31 March 2022: As at As at As at 31 March 30 Sept 31 March Scenario weightings (%) 2023 2022 2022 Upside 5 5 5 Base 50 50 50 Downside 45 45 45 |
Credit Quality (Tables)
Credit Quality (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Credit Quality | |
Schedule of credit quality of loans and credit commitments | The following table shows the credit quality of loans and undrawn credit commitments. As at 31 March 2023 As at 30 Sept 22 As at 31 March 2022 $m Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Loans - housing Strong 403,099 39,960 - 443,059 393,754 41,790 - 435,544 401,201 24,367 - 425,568 Good/satisfactory 37,045 36,023 - 73,068 36,862 35,581 - 72,443 48,746 24,248 - 72,994 Weak 2,037 11,436 4,421 17,894 1,916 10,133 3,916 15,965 2,057 11,216 4,568 17,841 Total loans - housing 442,181 87,419 4,421 534,021 432,532 87,504 3,916 523,952 452,004 59,831 4,568 516,403 Loans - personal Strong 4,854 111 - 4,965 4,961 99 - 5,060 4,890 84 - 4,974 Good/satisfactory 6,142 1,153 - 7,295 6,903 1,056 - 7,959 8,092 1,113 - 9,205 Weak 176 475 240 891 232 433 213 878 288 530 253 1,071 Total loans - personal 11,172 1,739 240 13,151 12,096 1,588 213 13,897 13,270 1,727 253 15,250 Loans - business Strong 77,166 11,397 - 88,563 82,280 5,704 - 87,984 76,014 784 - 76,798 Good/satisfactory 81,213 29,909 - 111,122 87,770 23,018 - 110,788 94,954 13,197 - 108,151 Weak 72 4,300 3,172 7,544 84 4,031 3,117 7,232 185 3,897 3,067 7,149 Total loans - business 158,451 45,606 3,172 207,229 170,134 32,753 3,117 206,004 171,153 17,878 3,067 192,098 Undrawn credit commitments Strong 155,647 9,800 - 165,447 150,424 7,235 - 157,659 154,459 2,590 - 157,049 Good/satisfactory 32,907 8,573 - 41,480 34,011 6,946 - 40,957 37,519 5,369 - 42,888 Weak 113 966 397 1,476 100 1,036 347 1,483 116 812 321 1,249 Total undrawn credit commitments 188,667 19,339 397 208,403 184,535 15,217 347 200,099 192,094 8,771 321 201,186 Total strong 640,766 61,268 - 702,034 631,419 54,828 - 686,247 636,564 27,825 - 664,389 Total good/ satisfactory 157,307 75,658 - 232,965 165,546 66,601 - 232,147 189,311 43,927 - 233,238 Total weak 2,398 17,177 8,230 27,805 2,332 15,633 7,593 25,558 2,646 16,455 8,209 27,310 Total loans and undrawn credit commitments 800,471 154,103 8,230 962,804 799,297 137,062 7,593 943,952 828,521 88,207 8,209 924,937 |
Deposits and other borrowings (
Deposits and other borrowings (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Deposits and other borrowings | |
Schedule of deposits and other borrowings | Deposits and other borrowings 1 As at As at As at % Mov’t 31 March 30 Sept 31 March Mar 23 Mar 23 $m 2023 2022 2022 - Sept 22 - Mar 22 Australia Certificates of deposit 32,227 30,507 27,048 6 19 Non-interest bearing, repayable at call 54,967 55,180 54,829 - - Other interest bearing at call 349,419 352,544 361,609 (1) (3) Other interest bearing term 140,704 127,921 104,865 10 34 Total Australia 577,317 566,152 548,351 2 5 New Zealand Certificates of deposit 2,618 2,588 2,783 1 (6) Non-interest bearing, repayable at call 12,251 12,674 14,706 (3) (17) Other interest bearing at call 28,395 27,517 30,188 3 (6) Other interest bearing term 34,057 28,423 27,945 20 22 Total New Zealand 77,321 71,202 75,622 9 2 Other overseas Certificates of deposit 13,922 13,200 14,903 5 (7) Non-interest bearing, repayable at call 1,340 1,178 1,008 14 33 Other interest bearing at call 2,047 1,883 1,696 9 21 Other interest bearing term 4,405 5,514 4,026 (20) 9 Total other overseas 21,714 21,775 21,633 - - Total deposits and other borrowings 676,352 659,129 645,606 3 5 1. Non-interest bearing relates to instruments which do not carry a rate of interest. |
Fair values of financial asse_2
Fair values of financial assets and financial liabilities (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Fair values of financial assets and financial liabilities | |
Summary of the attribution of financial instruments measured at fair value to the fair value hierarchy | The following tables summarise the attribution of financial instruments measured at fair value to the fair value hierarchy. $m Level 1 Level 2 Level 3 Total As at 31 March 2023 Financial assets measured at fair value on a recurring basis Trading securities and financial assets measured at FVIS 10,885 19,578 11 30,474 Derivative financial instruments 17 20,317 12 20,346 Investment securities 2,905 69,150 414 72,469 Loans - 106 24 130 Total financial assets measured at fair value on a recurring basis 13,807 109,151 461 123,419 Financial liabilities measured at fair value on a recurring basis Deposits and other borrowings - 48,769 - 48,769 Other financial liabilities 1,361 10,088 - 11,449 Derivative financial instruments 12 20,725 54 20,791 Debt issues - 5,655 - 5,655 Total financial liabilities measured at fair value on a recurring basis 1,373 85,237 54 86,664 Note 12. Fair values of financial assets and financial liabilities (continued) $m Level 1 Level 2 Level 3 Total As at 30 September 2022 Financial assets measured at fair value on a recurring basis Trading securities and financial assets measured at FVIS 2,039 22,275 18 24,332 Derivative financial instruments 68 41,202 13 41,283 Investment securities 12,634 62,263 387 75,284 Loans - 45 27 72 Total financial assets measured at fair value on a recurring basis 14,741 125,785 445 140,971 Financial liabilities measured at fair value on a recurring basis Deposits and other borrowings - 46,331 - 46,331 Other financial liabilities 2,006 9,319 - 11,325 Derivative financial instruments 51 39,494 23 39,568 Debt issues - 6,740 - 6,740 Total financial liabilities measured at fair value on a recurring basis 2,057 101,884 23 103,964 As at 31 March 2022 Financial assets measured at fair value on a recurring basis Trading securities and financial assets measured at FVIS 5,474 18,260 4 23,738 Derivative financial instruments 38 18,204 27 18,269 Investment securities 11,838 57,287 439 69,564 Loans - 217 32 249 Assets held for sale 1,057 1,422 - 2,479 Total financial assets measured at fair value on a recurring basis 18,407 95,390 502 114,299 Financial liabilities measured at fair value on a recurring basis Deposits and other borrowings - 44,743 - 44,743 Other financial liabilities 1,090 5,767 - 6,857 Derivative financial instruments 26 25,288 33 25,347 Debt issues - 6,294 - 6,294 Liabilities held for sale - 414 - 414 Total financial liabilities measured at fair value on a recurring basis 1,116 82,506 33 83,655 |
Summary of changes in financial instruments measured at fair value on a recurring basis derived from non-market observable valuation techniques (Level 3) | The following table summarises the changes in financial instruments measured at fair value derived from non-market observable valuation techniques (Level 3). Half Year March 2023 Trading securities and financial assets measured at Investment Total Level 3 Total Level 3 $m FVIS Securities Other 1 assets Derivatives liabilities Balance as at beginning of period 18 387 40 445 23 23 Gains/(losses) on assets / (gains)/losses on liabilities recognised in: Income statement - - (4) (4) (2) (2) Other comprehensive income - (32) - (32) - - Acquisitions and issues 21 60 25 106 43 43 Disposals and settlements - (1) (18) (19) (3) (3) Transfer into or out of non-market observables (29) - (8) (37) (7) (7) Foreign currency translation impacts 1 - 1 2 - - Balance as at end of period 11 414 36 461 54 54 Unrealised gains/(losses) recognised in the income statement for financial instrument held as at end of period - - 8 8 (41) (41) 1. |
Schedule of estimated fair value and fair value hierarchy of financial instruments not measured at fair value | The following table summarises the estimated fair value of financial instruments not measured at fair value for the Group. As at 31 March 2023 As at 30 Sept 2022 As at 31 March 2022 Carrying Fair Carrying Fair Carrying Fair $m amount value amount value amount value Financial assets not measured at fair value Cash and balances with central banks 117,886 117,886 105,257 105,257 102,410 102,410 Collateral paid 4,093 4,093 6,216 6,216 7,374 7,374 Investment securities 1,083 1,083 1,181 1,179 878 878 Loans 749,801 744,302 739,575 732,511 719,307 716,281 Other financial assets 7,343 7,343 5,626 5,626 4,896 4,896 Assets held for sale - - 20 20 26 26 Total financial assets not measured at fair value 880,206 874,707 857,875 850,809 834,891 831,865 Financial liabilities not measured at fair value Collateral received 3,577 3,577 6,371 6,371 2,170 2,170 Deposits and other borrowings 627,583 627,823 612,798 613,134 600,863 600,982 Other financial liabilities 48,653 48,653 45,035 45,035 44,488 44,488 Debt issues 2 143,297 142,666 138,128 137,452 127,335 127,247 Loan capital 2 31,025 30,688 31,254 30,671 29,036 29,413 Liabilities held for sale - - 31 31 17 17 Total financial liabilities not measured at fair value 854,135 853,407 833,617 832,694 803,909 804,317 2. |
Provisions, contingent liabil_2
Provisions, contingent liabilities, contingent assets and credit commitments (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Provisions, contingent liabilities, contingent assets and credit commitments | |
Schedule of changes in provisions | As at 31 March 2023 Annual Compliance, leave and Litigation Provision for regulation Long other and non- impairment Lease Restructuring and service employee lending on credit restoration and other remediation $m leave benefits losses commitments obligations provisions provisions Total Balance as at beginning of period 450 922 83 419 208 355 513 2,950 Additions 45 575 12 29 1 65 59 786 Utilisation (23) (859) (20) - (13) (128) (172) (1,215) Reversal of unutilised provisions - - (1) (6) - (8) (82) (97) Balance as at end of period 472 638 74 442 196 284 318 2,424 |
Summary of undrawn credit commitments and maturity analysis | Undrawn credit commitments excluding derivatives are as follows: As at As at As at % Mov’t 31 March 30 Sept 31 March Mar 23 Mar 23 $m 2023 2022 2022 - Sept 22 - Mar 22 Undrawn credit commitments Letters of credit and guarantees 1 11,936 11,868 11,716 1 2 Commitments to extend credit 2 195,765 188,183 189,415 4 3 Other 702 48 55 large large Total undrawn credit commitments 208,403 200,099 201,186 4 4 1. Standby letters of credit are undertakings to pay, against presentation documents, an obligation in the event of a default by a customer. Guarantees are unconditional undertakings given to support the obligations of a customer to third parties. The Group may hold cash as collateral for certain guarantees issued. 2. Commitments to extend credit include all obligations on the part of the Group to provide credit facilities. As facilities may expire without being drawn upon, the notional amounts do not necessarily reflect future cash requirements. In addition to the commitments disclosed above, as at March 2023, the Group had $ 7.4 billion of credit exposures that were offered and accepted but still revocable (September 2022: $8.6 billion; March 2022 $8.8 billion). These represent part of Westpac Group’s maximum exposure to credit risk. |
Shareholders' equity (Tables)
Shareholders' equity (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Shareholders' equity | |
Summary of share capital by class | As at As at As at 31 March 30 Sept 31 March $m 2023 2022 2022 Share capital Ordinary share capital, fully paid 39,824 39,666 39,667 Treasury shares 1 (702) (655) (651) Total share capital 39,122 39,011 39,016 NCI 44 57 54 1. 31 March 2023: 5,396,087 unvested RSP treasury shares held (30 September 2022: 5,086,660 , 31 March 2022: 5,076,534 ). Reconciliation of movement in number of ordinary shares Half Year Half Year Half Year March Sept March 2023 2022 2022 Balance as at beginning of period 3,501,127,694 3,501,127,694 3,668,591,808 Dividend reinvestment plan 2 7,949,266 - - Issued shares for the period 7,949,266 - - Off-market share buy-back 3 - - (167,464,114) Balance as at end of period 3,509,076,960 3,501,127,694 3,501,127,694 2. The price per share for the issuance of shares in relation to the DRP for the 2022 final dividend was $23.86 . The DRP for the 2022 interim dividend (as well as 2021 final dividend) had no impact on the number of ordinary shares on issue as Westpac arranged for the purchase of the necessary shares from the market and transfer to participants of 9,971,443 ordinary shares (2021 final dividend: 10,286,188 ordinary shares) at an average price of $23.96 (2021 final dividend: $22.34 ). 3. On 14 February 2022, the Group announced the successful completion of its $3.5 billion off-market share buy-back of Westpac ordinary shares. 167,464,114 ordinary shares were bought back at $20.90 , and comprised a fully franked dividend component of $9.56 per share ($ 1,601 million) and a capital component of $11.34 per share ($ 1,902 million including transaction costs). The shares bought back were subsequently cancelled. Ordinary shares purchased on market Half Year March 2023 Average price Consolidated Number ($) For share-based payment arrangements: Employee share plan (ESP) 1,156,722 23.79 RSP 4 2,061,377 23.40 Westpac Performance Plan (WPP) - share rights exercised 170,226 22.81 Net number of ordinary shares purchased on market 3,388,325 4. Ordinary shares allocated to employees under the RSP are classified as treasury shares until the shares vest. |
Schedule of reconciliation of movement in reserves | Half Year Half Year Half Year March Sept March $m 2023 2022 2022 Debt securities at FVOCI reserve Balance as at beginning of period 62 223 443 Net gains/(losses) from changes in fair value 13 (187) (142) Income tax effect - 50 38 Transferred to income statement (65) (49) (205) Income tax effect 21 16 62 Loss allowance on debt securities measured at FVOCI 1 - (2) Other (15) 9 29 Balance as at end of period 17 62 223 Equity securities at FVOCI reserve Balance as at beginning of period 136 190 44 Net gains/(losses) from changes in fair value (34) (54) 146 Income tax effect 9 - - Balance as at end of period 111 136 190 Share-based payment reserve Balance as at beginning of period 1,893 1,866 1,806 Share-based payment expense 58 27 60 Balance as at end of period 1,951 1,893 1,866 Cash flow hedge reserve Balance as at beginning of period 813 1,049 196 Net gains/(losses) from changes in fair value 522 82 1,222 Income tax effect (156) (21) (362) Transferred to income statement (418) (424) (10) Income tax effect 124 127 3 Balance as at end of period 885 813 1,049 Foreign currency translation reserve Balance as at beginning of period (505) (407) (241) Exchange differences on translation of foreign operations 553 (133) (367) Gains/(losses) on net investment hedges (175) 35 201 Balance as at end of period (127) (505) (407) Other reserves Balance as at beginning of period (21) (20) (21) Transactions with owners - (1) 1 Balance as at end of period (21) (21) (20) Total reserves 2,816 2,378 2,901 |
Notes to the consolidated cas_2
Notes to the consolidated cash flow statement (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Notes to the consolidated cash flow statements | |
Summary of reconciliation of net cash provided by/(used in) operating activities to net profit for the year | Half Year Half Year Half Year % Mov’t March Sept March Mar 23 Mar 23 $m 2023 2022 2022 - Sept 22 - Mar 22 Profit after income tax expense 4,005 2,415 3,284 66 22 Adjustments: Depreciation, amortisation and impairment 536 776 805 (31) (33) Impairment charges/(benefits) 518 283 241 83 115 Net decrease/(increase) in current and deferred tax 256 326 101 (21) 153 (Increase)/decrease in accrued interest receivable (558) (485) (59) 15 large (Decrease)/increase in accrued interest payable 1,350 769 25 76 large (Decrease)/increase in provisions (526) (85) (536) large (2) Other non-cash items 413 2,038 (169) (80) large Cash flows from operating activities before changes in operating assets and liabilities 5,994 6,037 3,692 (1) 62 Net (increase)/decrease in: Collateral paid 1,898 1,769 (3,293) 7 large Trading securities and financial assets measured at FVIS (4,967) (1,644) (2,106) large 136 Derivative financial instruments (165) (553) 3,004 (70) large Loans (5,074) (23,709) (12,636) (79) (60) Other financial assets (148) (447) 726 (67) large Life insurance assets and liabilities - 133 133 (100) (100) Other assets 26 37 (17) (30) large Net increase/(decrease) in: Collateral received (2,781) 3,827 (184) large large Deposits and other borrowings 13,464 13,296 21,758 1 (38) Other financial liabilities (328) 5,738 1,382 large large Other liabilities (4) 8 3 large large Net cash provided by/(used in) operating activities 7,915 4,492 12,462 76 (36) |
Summary of the assets and liabilities over which control ceased | Half Year Half Year Half Year March Sept March $m 2023 2022 2022 Assets: Cash and balances with central banks 18 169 - Loans - - 965 Other financial assets 18 54 12 Life insurance assets - 2,180 186 Deferred tax assets - 39 - Intangible assets 55 - - Other assets - 156 12 Total assets 91 2,598 1,175 Liabilities: Other financial liabilities 22 32 2 Current tax liabilities - - 2 Life insurance liabilities - 300 (115) Provisions 1 48 4 Deferred tax liabilities - - 34 Other liabilities - 177 36 Total liabilities 23 557 (37) Total equity attributable to owners of WBC 68 2,041 1,212 Cash proceeds received (net of transaction costs) 311 896 1,388 Expected receivable (completion settlement)/deferred consideration - 33 113 Total consideration 311 929 1,501 Gain/(loss) on disposal 243 (1,112) 289 Reconciliation of cash proceeds from disposal: Cash proceeds received (net of transaction costs) 311 896 1,388 Less: Cash deconsolidated (18) (169) - Cash consideration received (net of transaction costs and cash held) 293 727 1,388 |
Schedule of non-cash financing activities | Half Year Half Year Half Year % Mov’t March Sept March Mar 23 Mar 23 $m 2023 2022 2022 - Sept 22 - Mar 22 Shares issued under the dividend reinvestment plan 190 - - - - Increase in lease liabilities 158 146 98 8 61 |
Assets and liabilities held f_2
Assets and liabilities held for sale (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Assets and liabilities held for sale | |
Schedule of assets and liabilities that have been presented as held for sale | Details of the assets and liabilities held for sale are as follows: As at As at As at 31 March 30 Sept 31 March $m 2023 2022 2022 Assets held for sale Cash and balances with central banks - - 8 Other financial assets - 20 18 Life insurance assets - - 2,479 Deferred tax assets - - 43 Intangible assets - 55 - Other assets - - 152 Total assets held for sale - 75 2,700 Liabilities held for sale Other financial liabilities - 31 17 Life insurance liabilities - - 414 Provisions - 1 65 Deferred tax liabilities - - 3 Other liabilities - - 185 Total liabilities held for sale - 32 684 |
Segment reporting - Narrative (
Segment reporting - Narrative (Details) $ in Millions | 35 Months Ended |
Mar. 31, 2023 AUD ($) item | |
Business | |
Segment reporting | |
Maximum exposure | $ | $ 200 |
Specialist Businesses | |
Segment reporting | |
Cumulative number of businesses sold | item | 9 |
Segment reporting - Segment res
Segment reporting - Segment results (Details) - AUD ($) $ in Millions | 6 Months Ended | ||
Mar. 31, 2023 | Sep. 30, 2022 | Mar. 31, 2022 | |
Income Statement | |||
Net interest income | $ 9,113 | $ 8,873 | $ 8,288 |
Net fee income | 827 | 826 | 845 |
Net wealth management and insurance | 347 | 407 | 401 |
Trading income | 387 | 321 | 343 |
Other income | 329 | (1,051) | 353 |
Net operating income | 11,003 | 9,376 | 10,230 |
Operating expenses | (4,988) | (5,429) | (5,373) |
Total operating expenses | (4,988) | (5,429) | (5,373) |
Pre-provision profit | 6,015 | 3,947 | 4,857 |
Impairment (charges)/benefits | (390) | (196) | (139) |
Profit before income tax expense | 5,625 | 3,751 | 4,718 |
Income tax (expense)/benefit | (1,620) | (1,336) | (1,434) |
Net profit attributable to NCI | (4) | (1) | (4) |
Net profit attributable to owners of Westpac Banking Corporation (WBC) | 4,001 | 2,414 | 3,280 |
Notable items (post tax) | 178 | (1,053) | 179 |
Balance sheet | |||
Loans | 749,931 | 739,647 | 719,556 |
Deposits and other borrowings | 676,352 | 659,129 | 645,606 |
Addition (Reduction) to Income tax attributable to notable items | (46) | (135) | 89 |
Specialist Businesses | |||
Balance sheet | |||
Impairment of assets, including goodwill and other intangible assets | 0 | 0 | 167 |
Group Businesses | |||
Balance sheet | |||
Impairment of assets, including goodwill and other intangible assets | 0 | 159 | 7 |
Operating segments | Total | |||
Income Statement | |||
Net interest income | 9,202 | 8,585 | 8,021 |
Net fee income | 827 | 827 | 845 |
Net wealth management and insurance | 347 | 415 | 444 |
Trading income | 409 | 281 | 339 |
Other income | 86 | 66 | 82 |
Notable items | 132 | (798) | 499 |
Net operating income | 11,003 | 9,376 | 10,230 |
Operating expenses | (4,988) | (5,039) | (5,142) |
Notable items | (390) | (231) | |
Total operating expenses | (4,988) | (5,429) | (5,373) |
Pre-provision profit | 6,015 | 3,947 | 4,857 |
Impairment (charges)/benefits | (390) | (196) | (139) |
Profit before income tax expense | 5,625 | 3,751 | 4,718 |
Income tax (expense)/benefit | (1,620) | (1,336) | (1,434) |
Net profit attributable to NCI | (4) | (1) | (4) |
Net profit attributable to owners of Westpac Banking Corporation (WBC) | 4,001 | 2,414 | 3,280 |
Notable items (post tax) | 178 | (1,053) | 179 |
Balance sheet | |||
Loans | 749,931 | 739,647 | 719,556 |
Deposits and other borrowings | 676,352 | 659,129 | 645,606 |
Operating segments | Consumer and Business Banking | |||
Income Statement | |||
Net interest income | 6,736 | 6,312 | 5,700 |
Net fee income | 429 | 413 | 427 |
Net wealth management and insurance | 22 | 25 | 26 |
Other income | 11 | 17 | 36 |
Net operating income | 7,198 | 6,767 | 6,189 |
Operating expenses | (3,215) | (3,169) | (3,353) |
Notable items | (66) | ||
Total operating expenses | (3,215) | (3,235) | (3,353) |
Pre-provision profit | 3,983 | 3,532 | 2,836 |
Impairment (charges)/benefits | (248) | (213) | (131) |
Profit before income tax expense | 3,735 | 3,319 | 2,705 |
Income tax (expense)/benefit | (1,121) | (995) | (820) |
Net profit attributable to owners of Westpac Banking Corporation (WBC) | 2,614 | 2,324 | 1,885 |
Notable items (post tax) | (47) | ||
Balance sheet | |||
Loans | 565,329 | 559,501 | 546,646 |
Deposits and other borrowings | 427,007 | 413,909 | 410,877 |
Operating segments | Consumer | |||
Income Statement | |||
Net interest income | 4,693 | 4,608 | 4,377 |
Net fee income | 266 | 248 | 265 |
Net wealth management and insurance | 22 | 25 | 26 |
Other income | 9 | 15 | 33 |
Net operating income | 4,990 | 4,896 | 4,701 |
Operating expenses | (2,301) | (2,254) | (2,369) |
Notable items | (66) | ||
Total operating expenses | (2,301) | (2,320) | (2,369) |
Pre-provision profit | 2,689 | 2,576 | 2,332 |
Impairment (charges)/benefits | (170) | (228) | 27 |
Profit before income tax expense | 2,519 | 2,348 | 2,359 |
Income tax (expense)/benefit | (756) | (703) | (713) |
Net profit attributable to owners of Westpac Banking Corporation (WBC) | 1,763 | 1,645 | 1,646 |
Notable items (post tax) | (47) | ||
Balance sheet | |||
Loans | 479,761 | 474,604 | 465,697 |
Deposits and other borrowings | 293,565 | 280,574 | 276,161 |
Operating segments | Business | |||
Income Statement | |||
Net interest income | 2,043 | 1,704 | 1,323 |
Net fee income | 163 | 165 | 162 |
Other income | 2 | 2 | 3 |
Net operating income | 2,208 | 1,871 | 1,488 |
Operating expenses | (914) | (915) | (984) |
Total operating expenses | (914) | (915) | (984) |
Pre-provision profit | 1,294 | 956 | 504 |
Impairment (charges)/benefits | (78) | 15 | (158) |
Profit before income tax expense | 1,216 | 971 | 346 |
Income tax (expense)/benefit | (365) | (292) | (107) |
Net profit attributable to owners of Westpac Banking Corporation (WBC) | 851 | 679 | 239 |
Balance sheet | |||
Loans | 85,568 | 84,897 | 80,949 |
Deposits and other borrowings | 133,442 | 133,335 | 134,716 |
Operating segments | Westpac Institutional Bank | |||
Income Statement | |||
Net interest income | 712 | 629 | 481 |
Net fee income | 296 | 303 | 302 |
Trading income | 375 | 249 | 267 |
Other income | 33 | 2 | 23 |
Net operating income | 1,416 | 1,183 | 1,073 |
Operating expenses | (617) | (607) | (581) |
Total operating expenses | (617) | (607) | (581) |
Pre-provision profit | 799 | 576 | 492 |
Impairment (charges)/benefits | 4 | (27) | (58) |
Profit before income tax expense | 803 | 549 | 434 |
Income tax (expense)/benefit | (229) | (168) | (128) |
Net profit attributable to owners of Westpac Banking Corporation (WBC) | 574 | 381 | 306 |
Balance sheet | |||
Loans | 84,697 | 85,182 | 73,950 |
Deposits and other borrowings | 112,662 | 116,552 | 104,661 |
Operating segments | Westpac New Zealand | |||
Income Statement | |||
Net interest income | 1,145 | 1,073 | 1,034 |
Net fee income | 82 | 99 | 86 |
Net wealth management and insurance | 17 | 15 | 39 |
Trading income | 18 | 18 | 25 |
Other income | (1) | (4) | 1 |
Notable items | (12) | 132 | |
Net operating income | 1,261 | 1,189 | 1,317 |
Operating expenses | (574) | (538) | (534) |
Total operating expenses | (574) | (538) | (534) |
Pre-provision profit | 687 | 651 | 783 |
Impairment (charges)/benefits | (142) | 16 | 9 |
Profit before income tax expense | 545 | 667 | 792 |
Income tax (expense)/benefit | (154) | (192) | (190) |
Net profit attributable to owners of Westpac Banking Corporation (WBC) | 391 | 475 | 602 |
Notable items (post tax) | (10) | 129 | |
Balance sheet | |||
Loans | 91,943 | 85,285 | 87,361 |
Deposits and other borrowings | 77,321 | 71,202 | 75,622 |
Operating segments | Specialist Businesses | |||
Income Statement | |||
Net interest income | 216 | 232 | 242 |
Net fee income | 22 | 17 | 29 |
Net wealth management and insurance | 308 | 375 | 379 |
Trading income | 22 | 21 | 20 |
Other income | 41 | 5 | 14 |
Notable items | 243 | (1,120) | 109 |
Net operating income | 852 | (470) | 793 |
Operating expenses | (280) | (313) | (370) |
Notable items | (150) | (215) | |
Total operating expenses | (280) | (463) | (585) |
Pre-provision profit | 572 | (933) | 208 |
Impairment (charges)/benefits | (2) | 29 | 38 |
Profit before income tax expense | 570 | (904) | 246 |
Income tax (expense)/benefit | (73) | 50 | (111) |
Net profit attributable to NCI | (4) | (1) | (3) |
Net profit attributable to owners of Westpac Banking Corporation (WBC) | 493 | (855) | 132 |
Notable items (post tax) | 256 | (1,112) | (114) |
Balance sheet | |||
Loans | 8,086 | 9,866 | 11,730 |
Deposits and other borrowings | 10,046 | 9,457 | 8,362 |
Operating segments | Group Businesses | |||
Income Statement | |||
Net interest income | 393 | 339 | 564 |
Net fee income | (2) | (5) | 1 |
Trading income | (6) | (7) | 27 |
Other income | 2 | 46 | 8 |
Notable items | (111) | 334 | 258 |
Net operating income | 276 | 707 | 858 |
Operating expenses | (302) | (412) | (304) |
Notable items | (174) | (16) | |
Total operating expenses | (302) | (586) | (320) |
Pre-provision profit | (26) | 121 | 538 |
Impairment (charges)/benefits | (2) | (1) | 3 |
Profit before income tax expense | (28) | 120 | 541 |
Income tax (expense)/benefit | (43) | (31) | (185) |
Net profit attributable to NCI | (1) | ||
Net profit attributable to owners of Westpac Banking Corporation (WBC) | (71) | 89 | 355 |
Notable items (post tax) | (78) | 116 | 164 |
Balance sheet | |||
Loans | (124) | (187) | (131) |
Deposits and other borrowings | 49,316 | 48,009 | 46,084 |
Notable Items (pre-tax) | |||
Income Statement | |||
Net interest income | (89) | 288 | 267 |
Net fee income | (1) | ||
Net wealth management and insurance | (8) | (43) | |
Trading income | (22) | 40 | 4 |
Other income | 243 | (1,117) | 271 |
Notable items | $ (132) | 798 | (499) |
Operating expenses | (390) | (231) | |
Notable items | $ 390 | $ 231 |
Segment reporting - Notable Ite
Segment reporting - Notable Items after tax (Details) - AUD ($) $ in Millions | 6 Months Ended | ||
Mar. 31, 2023 | Sep. 30, 2022 | Mar. 31, 2022 | |
Segment reporting | |||
Economic hedges | $ (121) | $ 266 | $ 204 |
Hedge ineffectiveness | $ 43 | (33) | (19) |
Provision for litigation, fines and penalties | (68) | (65) | |
Provisions for litigation, fines and penalties, percentage movement from prior period | (100.00%) | ||
Provisions for litigation, fines and penalties, percentage movement from same period in prior year | (100.00%) | ||
Asset sales and revaluations | $ 256 | (1,089) | 213 |
Asset sales and revaluations, percentage movement from same period in prior year | 20% | ||
The write-down of assets | (129) | (154) | |
The write-down of assets, percentage movement from prior period | (100.00%) | ||
The write-down of assets, percentage movement from same period in prior year | (100.00%) | ||
Total notable items after tax | $ 178 | $ (1,053) | $ 179 |
Total notable items after tax, percentage movement from same period in prior year | (1.00%) |
Net Interest Income and Avera_3
Net Interest Income and Average Balance Sheet and Interest Rates - Net interest income (Details) - AUD ($) $ in Millions | 6 Months Ended | ||
Mar. 31, 2023 | Sep. 30, 2022 | Mar. 31, 2022 | |
Calculated using the effective interest rate method | |||
Cash and balances with central banks | $ 1,806 | $ 637 | $ 46 |
Cash and balances with central banks, percentage movement from prior period | 184% | ||
Collateral paid | $ 269 | 64 | 4 |
Investment securities | $ 918 | 620 | 506 |
Investment securities, percentage movement from prior period | 48% | ||
Investment securities, percentage movement from same period in prior year | 81% | ||
Loans | $ 16,276 | 11,549 | 9,547 |
Loans, percentage movement from prior period | 41% | ||
Loans, percentage movement from same period in prior year | 70% | ||
Other financial assets | $ 10 | 2 | |
Assets held for sale | 6 | ||
Assets held for sale, percentage movement from same period in prior year | (100.00%) | ||
Total interest income calculated using the effective interest rate method | $ 19,279 | 12,872 | 10,109 |
Total interest income calculated using the effective interest rate method, percentage movement from prior period | 50% | ||
Total interest income calculated using the effective interest rate method, percentage movement from same period in prior year | 91% | ||
Other | |||
Net ineffectiveness on qualifying hedges | $ 62 | (50) | (27) |
Trading securities and financial assets measured at FVIS | $ 498 | 224 | 123 |
Trading securities and financial assets measured at FVIS, percentage movement from prior period | 122% | ||
Total other | $ 560 | 174 | 96 |
Total interest income | $ 19,839 | 13,046 | 10,205 |
Interest income, percentage movement from prior period | 52% | ||
Interest income, percentage movement from same period of prior year | 94% | ||
Calculated using the effective interest rate method | |||
Collateral received | $ (142) | (60) | (4) |
Collateral received, percentage movement from prior period | 137% | ||
Deposits and other borrowings | $ (6,151) | (2,098) | (712) |
Deposits and other borrowings, percentage movement from prior period | 193% | ||
Debt issues | $ (2,268) | (1,406) | (851) |
Debt issues, percentage movement from prior period | 61% | ||
Debt issues, percentage movement from same period in prior year | 167% | ||
Loan capital | $ (620) | (586) | (440) |
Loan capital, percentage movement from prior period | 6% | ||
Loan capital, percentage movement from same period in prior year | 41% | ||
Other financial liabilities | $ (234) | (117) | (45) |
Other financial liabilities, percentage movement from prior period | 100% | ||
Total interest expense calculated using the effective interest rate method | $ (9,415) | (4,267) | (2,052) |
Interest expense, percentage movement from prior period | 121% | ||
Other | |||
Deposits and other borrowings | $ (801) | (350) | (49) |
Deposits and other borrowings, percentage movement from prior period | 129% | ||
Trading liabilities | $ (188) | 717 | 452 |
Debt issues | $ (116) | (62) | (31) |
Debt issues, percentage movement from prior period | 87% | ||
Bank levy | $ (164) | (163) | (177) |
Bank levy, percentage movement from prior period | 1% | ||
Bank levy, percentage movement from same period in prior year | (7.00%) | ||
Other interest expense | $ (42) | (48) | (60) |
Other interest expense, percentage movement from prior period | (13.00%) | ||
Other interest expense, percentage movement from same period in prior year | (30.00%) | ||
Total other | $ (1,311) | 94 | 135 |
Total interest expense | $ (10,726) | (4,173) | (1,917) |
Interest expense, percentage movement from prior period | 157% | ||
Net interest income | $ 9,113 | 8,873 | 8,288 |
Net interest income, percentage movement from prior period | 3% | ||
Net interest income, percentage movement from same period of prior year | 10% | ||
Addition to interest income related to compliance, regulation and remediation costs | $ 9 | $ 9 | |
Reduction in interest income related to compliance, regulation and remediation costs | $ 8 |
Net Interest Income and Avera_4
Net Interest Income and Average Balance Sheet and Interest Rates - Average balance sheet and interest rates - Assets (Details) - AUD ($) $ in Millions | 6 Months Ended | ||
Mar. 31, 2023 | Sep. 30, 2022 | Mar. 31, 2022 | |
Interest earning assets | |||
Average balance | $ 934,208 | $ 901,786 | $ 872,075 |
Interest income | $ 19,839 | $ 13,046 | $ 10,205 |
Average rate % | 4.30% | 2.90% | 2.30% |
Non-interest earning assets | |||
Average balance | $ 83,715 | $ 89,814 | $ 85,758 |
Total assets | |||
Average balance | 1,017,923 | 991,600 | 957,833 |
Loans | |||
Interest earning assets | |||
Average balance | 699,735 | 683,786 | 669,815 |
Interest income | $ 16,276 | $ 11,549 | $ 9,547 |
Average rate % | 4.70% | 3.40% | 2.90% |
Loans | Australia | |||
Interest earning assets | |||
Average balance | $ 602,493 | $ 590,428 | $ 574,439 |
Interest income | $ 13,791 | $ 9,679 | $ 8,015 |
Average rate % | 4.60% | 3.30% | 2.80% |
Loans | New Zealand | |||
Interest earning assets | |||
Average balance | $ 90,605 | $ 86,989 | $ 89,021 |
Interest income | $ 2,304 | $ 1,755 | $ 1,448 |
Average rate % | 5.10% | 4% | 3.30% |
Loans | Other overseas | |||
Interest earning assets | |||
Average balance | $ 6,637 | $ 6,369 | $ 6,355 |
Interest income | $ 181 | $ 115 | $ 84 |
Average rate % | 5.50% | 3.60% | 2.70% |
Loans | Housing | |||
Interest earning assets | |||
Average balance | $ 481,538 | $ 472,098 | $ 468,207 |
Interest income | $ 10,174 | $ 7,349 | $ 6,317 |
Average rate % | 4.20% | 3.10% | 2.70% |
Loans | Personal | |||
Interest earning assets | |||
Average balance | $ 13,485 | $ 14,471 | $ 15,618 |
Interest income | $ 556 | $ 582 | $ 618 |
Average rate % | 8.30% | 8% | 7.90% |
Loans | Business | |||
Interest earning assets | |||
Average balance | $ 204,712 | $ 197,217 | $ 185,990 |
Interest income | $ 5,546 | $ 3,618 | $ 2,612 |
Average rate % | 5.40% | 3.70% | 2.80% |
Trading securities and financial assets measured at FVIS | |||
Interest earning assets | |||
Average balance | $ 29,044 | $ 23,426 | $ 22,243 |
Interest income | $ 498 | $ 224 | $ 123 |
Average rate % | 3.40% | 1.90% | 1.10% |
Investment securities | |||
Interest earning assets | |||
Average balance | $ 76,015 | $ 77,783 | $ 77,779 |
Interest income | $ 918 | $ 620 | $ 506 |
Average rate % | 2.40% | 1.60% | 1.30% |
Other interest earning assets | |||
Interest earning assets | |||
Average balance | $ 129,414 | $ 116,786 | $ 101,392 |
Interest income | $ 2,147 | $ 653 | 23 |
Average rate % | 3.30% | 1.10% | |
Derivative financial instruments | |||
Non-interest earning assets | |||
Average balance | $ 25,290 | $ 28,479 | 18,283 |
Assets held for sale | |||
Interest earning assets | |||
Average balance | 5 | 846 | |
Interest income | $ 6 | ||
Average rate % | 1.40% | ||
Non-interest earning assets | |||
Average balance | 60 | 1,843 | $ 3,048 |
All other assets | |||
Non-interest earning assets | |||
Average balance | $ 58,365 | $ 59,492 | $ 64,427 |
Net Interest Income and Avera_5
Net Interest Income and Average Balance Sheet and Interest Rates - Average balance sheet and interest rates - Liabilities and equity (Details) - AUD ($) $ in Millions | 6 Months Ended | ||
Mar. 31, 2023 | Sep. 30, 2022 | Mar. 31, 2022 | |
Interest bearing liabilities and interest expense | |||
Average balance | $ 849,429 | $ 818,902 | $ 786,393 |
Interest expense | $ 10,726 | $ 4,173 | $ 1,917 |
Average rate % | 2.50% | 1% | 0.50% |
Non-interest bearing liabilities | |||
Average balance | $ 97,500 | $ 103,178 | $ 100,310 |
Total liabilities | |||
Average balance | 946,929 | 922,080 | 886,703 |
Shareholders' equity | |||
Average balance | 70,947 | 69,467 | 71,073 |
NCI | |||
Average balance | 47 | 53 | 57 |
Total equity | |||
Average balance | 70,994 | 69,520 | 71,130 |
Total liabilities and equity | |||
Average balance | 1,017,923 | 991,600 | 957,833 |
Deposits and other borrowings | |||
Interest bearing liabilities and interest expense | |||
Average balance | 599,545 | 581,038 | 570,842 |
Interest expense | $ 6,952 | $ 2,448 | $ 761 |
Average rate % | 2.30% | 0.80% | 0.30% |
Non-interest bearing liabilities | |||
Average balance | $ 68,678 | $ 69,082 | $ 69,413 |
Deposits and other borrowings | Australia | |||
Interest bearing liabilities and interest expense | |||
Average balance | 516,397 | 498,319 | 489,642 |
Interest expense | $ 5,547 | $ 1,760 | $ 489 |
Average rate % | 2.20% | 0.70% | 0.20% |
Deposits and other borrowings | New Zealand | |||
Interest bearing liabilities and interest expense | |||
Average balance | $ 63,422 | $ 60,312 | $ 61,263 |
Interest expense | $ 1,017 | $ 522 | $ 243 |
Average rate % | 3.20% | 1.70% | 0.80% |
Deposits and other borrowings | Other overseas | |||
Interest bearing liabilities and interest expense | |||
Average balance | $ 19,726 | $ 22,407 | $ 19,937 |
Interest expense | $ 388 | $ 166 | $ 29 |
Average rate % | 3.90% | 1.50% | 0.30% |
Deposits and other borrowings | Certificates of deposit | |||
Interest bearing liabilities and interest expense | |||
Average balance | $ 45,447 | $ 48,068 | $ 46,544 |
Interest expense | $ 799 | $ 347 | $ 48 |
Average rate % | 3.50% | 1.40% | 0.20% |
Deposits and other borrowings | At call | |||
Interest bearing liabilities and interest expense | |||
Average balance | $ 386,455 | $ 389,417 | $ 391,719 |
Interest expense | $ 3,520 | $ 1,158 | $ 342 |
Average rate % | 1.80% | 0.60% | 0.20% |
Deposits and other borrowings | Term | |||
Interest bearing liabilities and interest expense | |||
Average balance | $ 167,643 | $ 143,553 | $ 132,579 |
Interest expense | $ 2,633 | $ 943 | $ 371 |
Average rate % | 3.10% | 1.30% | 0.60% |
Repurchase agreements | |||
Interest bearing liabilities and interest expense | |||
Average balance | $ 41,310 | $ 39,807 | $ 35,740 |
Interest expense | $ 228 | $ 112 | $ 38 |
Average rate % | 1.10% | 0.60% | 0.20% |
Loan capital | |||
Interest bearing liabilities and interest expense | |||
Average balance | $ 33,649 | $ 30,910 | $ 30,504 |
Interest expense | $ 620 | $ 586 | $ 440 |
Average rate % | 3.70% | 3.80% | 2.90% |
Other interest bearing liabilities | |||
Interest bearing liabilities and interest expense | |||
Average balance | $ 174,925 | $ 167,147 | $ 149,307 |
Interest expense | $ 2,926 | $ 1,027 | $ 678 |
Average rate % | 3.40% | 1.20% | 0.90% |
Derivative financial instruments | |||
Non-interest bearing liabilities | |||
Average balance | $ 29,765 | $ 30,434 | $ 19,035 |
Liabilities held for sale | |||
Non-interest bearing liabilities | |||
Average balance | 26 | 590 | 775 |
All other liabilities | |||
Non-interest bearing liabilities | |||
Average balance | $ (969) | $ 3,072 | $ 11,087 |
Non-interest income (Details)
Non-interest income (Details) - AUD ($) $ in Millions | 6 Months Ended | ||
Mar. 31, 2023 | Sep. 30, 2022 | Mar. 31, 2022 | |
Net fee income | |||
Facility fees | $ 338 | $ 342 | $ 344 |
Facility fees, percentage movement from prior period | (1.00%) | ||
Facility fees, percentage movement from same period in prior year | (2.00%) | ||
Transactions fees | $ 589 | 576 | 556 |
Transactions fees, percentage movement from prior period | 2% | ||
Transactions fees, percentage movement from same period in prior year | 6% | ||
Other non-risk fee income | $ 68 | 50 | 72 |
Other non-risk fee income, percentage movement from prior period | 36% | ||
Other non-risk fee income percentage movement from same period in prior year | (6.00%) | ||
Fee income | $ 995 | 968 | 972 |
Fee income, percentage movement from prior period | 3% | ||
Fee income, percentage movement from same period in prior year | 2% | ||
Credit card loyalty programs | $ (81) | (66) | (60) |
Credit card loyalty programs, percentage movement from prior period | 23% | ||
Credit card loyalty programs, percentage movement from same period in prior year | 35% | ||
Transaction fee related expenses | $ (87) | (76) | (67) |
Transaction fee related expenses, percentage movement from prior period | 14% | ||
Transaction fee related expenses, percentage movement from same period in prior year | 30% | ||
Fee expenses | $ (168) | (142) | (127) |
Fee expenses, percentage movement from prior period | 18% | ||
Fee expenses, percentage movement from same period in prior year | 32% | ||
Net fee income | $ 827 | 826 | 845 |
Net fees, percentage movement from same period of prior year | (2.00%) | ||
Net wealth management and insurance income | |||
Wealth management income | $ 347 | 365 | 361 |
Wealth management income, percentage movement from prior period | (5.00%) | ||
Wealth management income, percentage movement from same period in prior year | (4.00%) | ||
Life insurance premium income | 314 | 520 | |
Life insurance premium income, percentage movement from prior period | (100.00%) | ||
Life insurance premium income, percentage movement from same period in prior year | (100.00%) | ||
Life insurance investment and other income | (12) | (129) | |
Life insurance investment and other income, percentage movement from prior period | (100.00%) | ||
Life insurance investment and other income, percentage movement from same period in prior year | (100.00%) | ||
Total insurance premium, investment and other income | 302 | 391 | |
Total insurance premium, investment and other income, percentage movement from prior period | (100.00%) | ||
Total insurance premium, investment and other income, percentage movement from same period in prior year | (100.00%) | ||
Life insurance claims, changes in life insurance liabilities and other expenses | (260) | (351) | |
Life insurance claims, changes in life insurance liabilities and other expenses, percentage movement from prior period | (100.00%) | ||
Life insurance claims, changes in life insurance liabilities and other expenses, percentage movement from same period in prior year | (100.00%) | ||
Total insurance claims, changes in insurance liabilities and other expenses | (260) | (351) | |
Total insurance claims, changes in insurance liabilities and other expenses, percentage movement from prior period | (100.00%) | ||
Total insurance claims, changes in insurance liabilities and other expenses, percentage movement from same period in prior year | (100.00%) | ||
Net wealth management and insurance income | $ 347 | 407 | 401 |
Net wealth management and insurance, percentage movement from prior period | (15.00%) | ||
Net wealth management and insurance, percentage movement from same period of prior year | (13.00%) | ||
Trading | $ 387 | 321 | 343 |
Trading, percentage movement from prior period | 21% | ||
Trading, percentage movement from same period in prior year | 13% | ||
Other | |||
Dividends received from other entities | 1 | 3 | |
Dividends received from other entities, percentage movement from prior period | (100.00%) | ||
Dividends received from other entities, percentage movement from same period in prior year | (100.00%) | ||
Net gain/(loss) on sale/derecognition of associates | $ 1 | 12 | 13 |
Net gain/(loss) on sale/derecognition of associates, percentage movement from prior period | (92.00%) | ||
Net gain/(loss) on sale/derecognition of associates, percentage movement from same period in prior year | (92.00%) | ||
Net gain/(loss) on disposal of assets | (1) | (2) | |
Net gain/(loss) on disposal of assets, percentage movement from prior period | (100.00%) | ||
Net gain/(loss) on disposal of assets, percentage movement from same period in prior year | (100.00%) | ||
Net gain/(loss) on hedging of overseas operations | 1 | (1) | |
Net gain/(loss) on hedging of overseas operations, percentage movement from prior period | (100.00%) | ||
Net gain/(loss) on hedging of overseas operations, percentage movement from same period in prior year | (100.00%) | ||
Net gain/(loss) on derivatives held for risk management purposes | 2 | 7 | |
Net gain/(loss) on derivatives held for risk management purposes, percentage movement from prior period | (100.00%) | ||
Net gain/(loss) on derivatives held for risk management purposes, percentage movement from same period in prior year | (100.00%) | ||
Net gain/(loss) on financial instruments measured at fair value | $ 29 | (4) | 16 |
Net gain/(loss) on financial instruments measured at fair value, percentage movement from same period in prior year | 81% | ||
Net gain/(loss) on disposal of controlled entities and other businesses | $ 268 | (1,112) | 289 |
Net gain/(loss) on disposal of controlled entities, percentage movement from same period in prior year | (7.00%) | ||
Rental income on operating leases | $ 5 | 7 | 9 |
Rental income on operating leases, percentage movement from prior period | (29.00%) | ||
Rental income on operating leases, percentage movement from same period in prior year | (44.00%) | ||
Share of associates' net profit/(loss) | $ (3) | (4) | (3) |
Share of associates' net profit/(loss), percentage movement from prior period | (25.00%) | ||
Other | $ 29 | 47 | 22 |
Other, percentage movement from prior period | (38.00%) | ||
Other, percentage movement from same period in prior year | 32% | ||
Total other income | $ 329 | (1,051) | 353 |
Total other income, percentage movement from same period of prior year | (7.00%) | ||
Total non-interest income | $ 1,890 | 503 | 1,942 |
Total non-interest income, percentage movement from same period in prior year | (3.00%) | ||
Compliance, regulation and remediation costs recognised as an addition to non-risk fee income, wealth management income and other income | $ 8 | ||
Compliance, regulation and remediation costs recognised as a reduction of non-risk fee income, wealth management income and other income | 56 | 8 | |
Advance Asset Management Limited | |||
Other | |||
Net gain/(loss) on disposal of controlled entities and other businesses | $ 243 | ||
Australian life insurance business | |||
Other | |||
Net gain/(loss) on disposal of controlled entities and other businesses | $ (1,112) | ||
Auto finance | |||
Other | |||
Net gain/(loss) on disposal of controlled entities and other businesses | 170 | ||
NZ life insurance | |||
Other | |||
Net gain/(loss) on disposal of controlled entities and other businesses | $ 119 |
Operating expenses (Details)
Operating expenses (Details) - AUD ($) $ in Millions | 6 Months Ended | ||
Mar. 31, 2023 | Sep. 30, 2022 | Mar. 31, 2022 | |
Staff expenses | |||
Employee remuneration, entitlements and on-costs | $ 2,545 | $ 2,527 | $ 2,584 |
Employee remuneration, entitlements and on-costs, percentage movement from prior period | 1% | ||
Employee remuneration, entitlements and on-costs, percentage movement from same period in prior year | (2.00%) | ||
Superannuation expense | $ 270 | 255 | 278 |
Superannuation expense, percentage movement from prior period | 6% | ||
Superannuation expense, percentage movement from same period in prior year | (3.00%) | ||
Share-based payments | $ 44 | 42 | 46 |
Share-based payments, percentage movement from prior period | 5% | ||
Share-based payments, percentage movement from same period in prior year | (4.00%) | ||
Restructuring costs | $ 33 | 60 | 74 |
Restructuring costs, percentage movement from prior period | (45.00%) | ||
Restructuring costs, percentage movement from same period in prior year | (55.00%) | ||
Total staff expenses | $ 2,892 | 2,884 | 2,982 |
Total staff expenses, percentage movement from same period in prior year | (3.00%) | ||
Occupancy expenses | |||
Operating lease rentals | $ 81 | 91 | 79 |
Operating lease rentals, percentage movement from prior period | (11.00%) | ||
Operating lease rentals, percentage movement from same period in prior year | 3% | ||
Depreciation and impairment of property and equipment | $ 227 | 365 | 261 |
Depreciation and impairment of property and equipment, percentage movement from prior period | (38.00%) | ||
Depreciation and impairment of property and equipment, percentage movement from same period in prior year | (13.00%) | ||
Other | $ 64 | 60 | 58 |
Other, percentage movement from prior period | 7% | ||
Other, percentage movement from same period in prior year | 10% | ||
Total occupancy expenses | $ 372 | 516 | 398 |
Total occupancy expenses, percentage movement from prior period | (28.00%) | ||
Total occupancy expenses, percentage movement from same period in prior year | (7.00%) | ||
Technology expenses | |||
Amortisation and impairment of software assets | $ 250 | 318 | 337 |
Amortisation and impairment of software assets, percentage movement from prior period | (21.00%) | ||
Amortisation and impairment of software assets, percentage movement from same period in prior year | (26.00%) | ||
Depreciation and impairment of IT equipment | $ 58 | 92 | 85 |
Depreciation and impairment of IT equipment, percentage movement from prior period | (37.00%) | ||
Depreciation and impairment of IT equipment, percentage movement from same period in prior year | (32.00%) | ||
Technology services | $ 352 | 377 | 342 |
Technology services, percentage movement from prior period | (7.00%) | ||
Technology services, percentage movement from same period in prior year | 3% | ||
Software maintenance and licences | $ 296 | 258 | 248 |
Software maintenance and licences, percentage movement from prior period | 15% | ||
Software maintenance and licences, percentage movement from same period in prior year | 19% | ||
Telecommunications | $ 59 | 72 | 72 |
Telecommunications, percentage movement from prior period | (18.00%) | ||
Telecommunications, percentage movement from same period in prior year | (18.00%) | ||
Data processing | $ 39 | 40 | 41 |
Data processing, percentage movement from prior period | (3.00%) | ||
Data processing, percentage movement from same period in prior year | (5.00%) | ||
Total technology expenses | $ 1,054 | 1,157 | 1,125 |
Total technology expenses, percentage movement from prior period | (9.00%) | ||
Total technology expenses, percentage movement from same period in prior year | (6.00%) | ||
Other expenses | |||
Professional and processing services | $ 413 | 554 | 460 |
Professional and processing services, percentage movement from prior period | (25.00%) | ||
Professional and processing services, percentage movement from same period in prior year | (10.00%) | ||
Amortisation and impairment of other intangible assets and deferred expenditure | $ 1 | 1 | 122 |
Amortisation and impairment of other intangible assets and deferred expenditure, percentage movement from same period in prior year | (99.00%) | ||
Postage and stationery | $ 67 | 70 | 74 |
Postage and stationery, percentage movement from prior period | (4.00%) | ||
Postage and stationery, percentage movement from same period in prior year | (9.00%) | ||
Advertising | $ 79 | 77 | 81 |
Advertising, percentage movement from prior period | 3% | ||
Advertising, percentage movement from same period in prior year | (2.00%) | ||
Non-lending losses | $ 1 | 59 | 45 |
Non-lending losses, percentage movement from prior period | (98.00%) | ||
Non-lending losses, percentage movement from same period in prior year | (98.00%) | ||
Other expenses | $ 109 | 111 | 86 |
Other expenses, percentage movement from prior period | (2.00%) | ||
Other expenses, percentage movement from same period in prior year | 27% | ||
Total other expenses | $ 670 | 872 | 868 |
Total other expenses, percentage movement from prior period | (23.00%) | ||
Total other expenses, percentage movement from same period in prior year | (23.00%) | ||
Total operating expenses | $ 4,988 | 5,429 | 5,373 |
Total operating expenses, percentage movement from prior period | (8.00%) | ||
Total operating expenses, percentage movement from same period of prior year | (7.00%) | ||
Addition (Reduction) to compliance, regulation and remediation costs | $ (6) | 46 | 17 |
Impairment | $ 0 | ||
Capitalised software assets | |||
Other expenses | |||
Impairment | 56 | 54 | |
Goodwill and other intangible assets | |||
Other expenses | |||
Impairment | 0 | 122 | |
Property and equipment | |||
Other expenses | |||
Impairment | $ 116 | $ 1 |
Income tax (Details)
Income tax (Details) - AUD ($) $ in Millions | 6 Months Ended | ||
Mar. 31, 2023 | Sep. 30, 2022 | Mar. 31, 2022 | |
Income tax expense reconciled to profit before income tax | |||
Profit before income tax | $ 5,625 | $ 3,751 | $ 4,718 |
Profit before income tax, percentage movement from prior period | 50% | ||
Profit before income tax, percentage movement from same period in prior year | 19% | ||
Tax at the Australian company tax rate of 30% | $ 1,688 | 1,126 | 1,415 |
Australian company tax rate (as a percent) | 30% | ||
Tax at the Australian company tax rate of 30%, percentage movement from prior period | 50% | ||
Tax at the Australian company tax rate of 30%, percentage movement from same period in prior year | 19% | ||
The effect of amounts which are not deductible/(assessable) in calculating taxable income | |||
Hybrid capital distributions | $ 54 | 39 | 28 |
Hybrid capital distributions, percentage movement from prior period | 38% | ||
Hybrid capital distributions, percentage movement from same period in prior year | 93% | ||
Life insurance: Tax adjustment on policyholder earnings | (1) | ||
Life insurance: Tax adjustment on policyholder earnings, percentage movement from prior period | (100.00%) | ||
Other non-assessable items | $ (1) | (63) | (34) |
Other non-assessable items, percentage movement from prior period | (98.00%) | ||
Other non-assessable items, percentage movement from same period in prior year | (97.00%) | ||
Other non-deductible items | $ 10 | 362 | 47 |
Other non-deductible items, percentage movement from prior period | (97.00%) | ||
Other non-deductible items, percentage movement from same period in prior year | (79.00%) | ||
Adjustment for overseas tax rates | $ (16) | (16) | (15) |
Adjustment for overseas tax rates, percentage movement from same period in prior year | 7% | ||
Income tax (over)/under provided in prior years | (84) | 7 | |
Income tax (over)/under provided in prior years, percentage movement from prior period | (100.00%) | ||
Income tax (over)/under provided in prior years, percentage movement from same period in prior year | (100.00%) | ||
Other items | $ (115) | (27) | (14) |
Total income tax expense | $ 1,620 | $ 1,336 | $ 1,434 |
Total income tax expense, percentage movement from prior period | 21% | ||
Total income tax expense, percentage movement from same period of prior year | 13% | ||
Effective income tax rate | 28.80% | 35.62% | 30.39% |
Effective income tax rate, percentage movement from same period in prior year | 1.59% | ||
Tax losses on sale of AAML | $ 86 |
Earnings per share - Basic (Det
Earnings per share - Basic (Details) - AUD ($) $ / shares in Units, shares in Millions, $ in Millions | 6 Months Ended | ||
Mar. 31, 2023 | Sep. 30, 2022 | Mar. 31, 2022 | |
Earnings per share | |||
Net profit attributable to owners of WBC | $ 4,001 | $ 2,414 | $ 3,280 |
Adjustment for RSP dividends | (2) | (1) | (2) |
Adjusted net profit attributable to owners of WBC | $ 3,999 | $ 2,413 | $ 3,278 |
Weighted average number of ordinary shares | |||
Weighted average number of ordinary shares on issue | 3,506 | 3,501 | 3,626 |
Treasury shares (including RSP share rights) | (5) | (5) | (4) |
Adjusted weighted average number of ordinary shares | 3,501 | 3,496 | 3,622 |
Earnings per ordinary share (cents) | $ 1.142 | $ 0.690 | $ 0.905 |
Earnings per share - Diluted (D
Earnings per share - Diluted (Details) - AUD ($) $ / shares in Units, shares in Millions, $ in Millions | 6 Months Ended | ||
Mar. 31, 2023 | Sep. 30, 2022 | Mar. 31, 2022 | |
Earnings per share | |||
Net profit attributable to owners of WBC | $ 4,001 | $ 2,414 | $ 3,280 |
Adjustment for potential dilution: | |||
Distributions to convertible loan capital holders | 186 | 133 | 100 |
Adjusted net profit attributable to owners of WBC | $ 4,187 | $ 2,547 | $ 3,380 |
Weighted average number of ordinary shares | |||
Weighted average number of ordinary shares on issue | 3,506 | 3,501 | 3,626 |
Treasury shares (including RSP share rights) | (5) | (5) | (4) |
Adjustment for potential dilution: | |||
Share-based payments | 3 | 4 | 3 |
Convertible loan capital | 384 | 361 | 321 |
Adjusted weighted average number of ordinary shares | 3,888 | 3,861 | 3,946 |
Earnings per ordinary share (cents) | $ 1.077 | $ 0.660 | $ 0.857 |
Loans (Details)
Loans (Details) - AUD ($) $ in Millions | 6 Months Ended | ||
Mar. 31, 2023 | Sep. 30, 2022 | Mar. 31, 2022 | |
Loan portfolio, disaggregated by location of booking office and product type | |||
Loans | $ 749,931 | $ 739,647 | $ 719,556 |
Loans, percentage movement from prior period | 1% | ||
Loans, percentage movement from same period of prior year | 4% | ||
Securitised loans | $ 4,019 | 4,747 | 4,808 |
Assets pledged for covered bond programs | 40,483 | 38,455 | 35,052 |
Gross amount | |||
Loan portfolio, disaggregated by location of booking office and product type | |||
Loans | $ 754,401 | 743,853 | 723,751 |
Loans, percentage movement from prior period | 1% | ||
Loans, percentage movement from same period of prior year | 4% | ||
Provision | Provision for ECL on loans | |||
Loan portfolio, disaggregated by location of booking office and product type | |||
Loans | $ (4,470) | (4,206) | (4,195) |
Loans, percentage movement from prior period | 6% | ||
Loans, percentage movement from same period of prior year | 7% | ||
Australia | Gross amount | |||
Loan portfolio, disaggregated by location of booking office and product type | |||
Loans | $ 654,489 | 650,850 | 629,169 |
Loans, percentage movement from prior period | 1% | ||
Loans, percentage movement from same period of prior year | 4% | ||
Australia | Housing | Gross amount | |||
Loan portfolio, disaggregated by location of booking office and product type | |||
Loans | $ 472,570 | 467,382 | 458,278 |
Loans, percentage movement from prior period | 1% | ||
Loans, percentage movement from same period of prior year | 3% | ||
Australia | Personal | Gross amount | |||
Loan portfolio, disaggregated by location of booking office and product type | |||
Loans | $ 12,028 | 12,832 | 14,128 |
Loans, percentage movement from prior period | (6.00%) | ||
Loans, percentage movement from same period of prior year | (15.00%) | ||
Australia | Business | Gross amount | |||
Loan portfolio, disaggregated by location of booking office and product type | |||
Loans | $ 169,891 | 170,636 | 156,763 |
Loans, percentage movement from same period of prior year | 8% | ||
New Zealand | Gross amount | |||
Loan portfolio, disaggregated by location of booking office and product type | |||
Loans | $ 92,865 | 86,124 | 88,190 |
Loans, percentage movement from prior period | 8% | ||
Loans, percentage movement from same period of prior year | 5% | ||
New Zealand | Housing | Gross amount | |||
Loan portfolio, disaggregated by location of booking office and product type | |||
Loans | $ 61,081 | 56,211 | 57,780 |
Loans, percentage movement from prior period | 9% | ||
Loans, percentage movement from same period of prior year | 6% | ||
New Zealand | Personal | Gross amount | |||
Loan portfolio, disaggregated by location of booking office and product type | |||
Loans | $ 1,116 | 1,058 | 1,116 |
Loans, percentage movement from prior period | 5% | ||
New Zealand | Business | Gross amount | |||
Loan portfolio, disaggregated by location of booking office and product type | |||
Loans | $ 30,668 | 28,855 | 29,294 |
Loans, percentage movement from prior period | 6% | ||
Loans, percentage movement from same period of prior year | 5% | ||
Other overseas | Gross amount | |||
Loan portfolio, disaggregated by location of booking office and product type | |||
Loans | $ 7,047 | $ 6,879 | $ 6,392 |
Loans, percentage movement from prior period | 2% | ||
Loans, percentage movement from same period of prior year | 10% |
Provisions for expected credi_3
Provisions for expected credit losses - Provision for ECL on loans and credit commitments by stage (Details) $ in Millions | 6 Months Ended | |||
Mar. 31, 2023 AUD ($) | Sep. 30, 2022 AUD ($) | Mar. 31, 2022 AUD ($) | Sep. 30, 2021 AUD ($) | |
Loans and credit commitments | ||||
Gross loans and credit commitments | $ 962,804 | $ 943,952 | $ 924,937 | |
Gross loans and credit commitments, percentage movement from prior period | 2% | |||
Gross loans and credit commitments, percentage movement from same period in prior year | 4% | |||
Coverage ratio on loans (%) | 0.59% | 0.57% | 0.58% | |
Coverage ratio on loans, basis points movement from prior period | 0.02 | |||
Coverage ratio on loans, basis points movement from same period in prior year | 0.01 | |||
Coverage ratio on loans and credit commitments (%) | 0.51% | 0.49% | 0.51% | |
Coverage ratio on loans and credit commitments, basis points movement from prior period | 0.02 | |||
Provisions for ECL on loans and credit commitments | ||||
Loans and credit commitments | ||||
Provisions for expected credit losses | $ 4,912 | $ 4,625 | $ 4,675 | |
Provisions for expected credit losses, percentage movement from prior period | 6% | |||
Provisions for expected credit losses, percentage movement from same period in prior year | 5% | |||
Provisions for ECL on loans and credit commitments | Individually assessed | ||||
Loans and credit commitments | ||||
Provisions for expected credit losses | $ 382 | 452 | 501 | |
Provisions for expected credit losses, percentage movement from prior period | (15.00%) | |||
Provisions for expected credit losses, percentage movement from same period in prior year | (24.00%) | |||
Provisions for ECL on loans and credit commitments | Collectively assessed | ||||
Loans and credit commitments | ||||
Provisions for expected credit losses | $ 4,530 | 4,173 | 4,174 | |
Provisions for expected credit losses, percentage movement from prior period | 9% | |||
Provisions for expected credit losses, percentage movement from same period in prior year | 9% | |||
Provision for ECL on loans | ||||
Loans and credit commitments | ||||
Provisions for expected credit losses | $ 4,470 | 4,206 | 4,195 | |
Provisions for expected credit losses, percentage movement from prior period | 6% | |||
Provisions for expected credit losses, percentage movement from same period in prior year | 7% | |||
Provision for ECL on credit commitments | ||||
Loans and credit commitments | ||||
Provisions for expected credit losses | $ 442 | 419 | 480 | |
Provisions for expected credit losses, percentage movement from prior period | 5% | |||
Provisions for expected credit losses, percentage movement from same period in prior year | (8.00%) | |||
Loans and credit commitments | Provisions for ECL on loans and credit commitments | ||||
Loans and credit commitments | ||||
Provisions for expected credit losses | $ 4,912 | 4,625 | 4,675 | $ 4,999 |
Provisions for expected credit losses, percentage movement from prior period | 6% | |||
Provisions for expected credit losses, percentage movement from same period in prior year | 5% | |||
Loans and credit commitments | Performing - Stage 1 | Provisions for ECL on loans and credit commitments | ||||
Loans and credit commitments | ||||
Provisions for expected credit losses | $ 891 | 885 | 1,078 | 936 |
Provisions for expected credit losses, percentage movement from prior period | 1% | |||
Provisions for expected credit losses, percentage movement from same period in prior year | (17.00%) | |||
Loans and credit commitments | Performing - Stage 2 | Provisions for ECL on loans and credit commitments | ||||
Loans and credit commitments | ||||
Provisions for expected credit losses | $ 2,628 | 2,341 | 2,107 | 2,091 |
Provisions for expected credit losses, percentage movement from prior period | 12% | |||
Provisions for expected credit losses, percentage movement from same period in prior year | 25% | |||
Loans and credit commitments | Non-performing - Stage 3 | Provisions for ECL on loans and credit commitments | ||||
Loans and credit commitments | ||||
Provisions for expected credit losses | $ 1,393 | $ 1,399 | $ 1,490 | $ 1,972 |
Provisions for expected credit losses, percentage movement from same period in prior year | (7.00%) |
Provisions for expected credi_4
Provisions for expected credit losses - Movement in provision for ECL on loans and credit commitments (Details) - AUD ($) $ in Millions | 6 Months Ended | ||
Mar. 31, 2023 | Sep. 30, 2022 | Mar. 31, 2022 | |
Provisions for ECL on loans and credit commitments | |||
Provisions for expected credit losses | |||
Balance at the beginning of the period | $ 4,625 | $ 4,675 | |
Balance at the end of the period | 4,912 | 4,625 | $ 4,675 |
Loans and credit commitments | |||
Provisions for expected credit losses | |||
Business activity during the year | 54 | (136) | (94) |
Net remeasurement of provision for ECL | 463 | 416 | 336 |
Loans and credit commitments | Provisions for ECL on loans and credit commitments | |||
Provisions for expected credit losses | |||
Balance at the beginning of the period | 4,625 | 4,675 | 4,999 |
Business activity during the year | 54 | (136) | (94) |
Net remeasurement of provision for ECL | 463 | 416 | 336 |
Write-offs | (271) | (368) | (566) |
Exchange rate and other adjustments | 41 | 38 | |
Balance at the end of the period | 4,912 | 4,625 | 4,675 |
Loans and credit commitments | Performing - Stage 1 | Provisions for ECL on loans and credit commitments | |||
Provisions for expected credit losses | |||
Balance at the beginning of the period | 885 | 1,078 | 936 |
Transfers to Stage 1 | 694 | 451 | 461 |
Transfers to Stage 2 | (159) | (133) | (102) |
Transfers to Stage 3 | (4) | (6) | (8) |
Business activity during the year | 136 | 99 | 255 |
Net remeasurement of provision for ECL | (670) | (603) | (463) |
Exchange rate and other adjustments | 9 | (1) | (1) |
Balance at the end of the period | 891 | 885 | 1,078 |
Loans and credit commitments | Performing - Stage 2 | Provisions for ECL on loans and credit commitments | |||
Provisions for expected credit losses | |||
Balance at the beginning of the period | 2,341 | 2,107 | 2,091 |
Transfers to Stage 1 | (619) | (394) | (398) |
Transfers to Stage 2 | 408 | 493 | 509 |
Transfers to Stage 3 | (247) | (185) | (198) |
Business activity during the year | 54 | (95) | (149) |
Net remeasurement of provision for ECL | 677 | 425 | 264 |
Exchange rate and other adjustments | 14 | (10) | (12) |
Balance at the end of the period | 2,628 | 2,341 | 2,107 |
Loans and credit commitments | Non-performing - Stage 3 | Provisions for ECL on loans and credit commitments | |||
Provisions for expected credit losses | |||
Balance at the beginning of the period | 1,399 | 1,490 | 1,972 |
Transfers to Stage 1 | (75) | (57) | (63) |
Transfers to Stage 2 | (249) | (360) | (407) |
Transfers to Stage 3 | 251 | 191 | 206 |
Business activity during the year | (136) | (140) | (200) |
Net remeasurement of provision for ECL | 456 | 594 | 535 |
Write-offs | (271) | (368) | (566) |
Exchange rate and other adjustments | 18 | 49 | 13 |
Balance at the end of the period | $ 1,393 | $ 1,399 | $ 1,490 |
Provisions for expected credi_5
Provisions for expected credit losses - Provision for ECL on loans and credit commitments by class and stage (Details) - Loans and credit commitments - AUD ($) $ in Millions | Mar. 31, 2023 | Sep. 30, 2022 | Mar. 31, 2022 |
Provisions for expected credit losses | |||
Provisions for ECL/Impairment charges | $ 4,912 | $ 4,625 | $ 4,675 |
Performing - Stage 1 | |||
Provisions for expected credit losses | |||
Provisions for ECL/Impairment charges | 891 | 885 | 1,078 |
Performing - Stage 2 | |||
Provisions for expected credit losses | |||
Provisions for ECL/Impairment charges | 2,628 | 2,341 | 2,107 |
Non-performing - Stage 3 | |||
Provisions for expected credit losses | |||
Provisions for ECL/Impairment charges | 1,393 | 1,399 | 1,490 |
Housing | |||
Provisions for expected credit losses | |||
Provisions for ECL/Impairment charges | 1,748 | 1,653 | 1,442 |
Housing | Performing - Stage 1 | |||
Provisions for expected credit losses | |||
Provisions for ECL/Impairment charges | 171 | 143 | 264 |
Housing | Performing - Stage 2 | |||
Provisions for expected credit losses | |||
Provisions for ECL/Impairment charges | 1,123 | 1,095 | 680 |
Housing | Non-performing - Stage 3 | |||
Provisions for expected credit losses | |||
Provisions for ECL/Impairment charges | 454 | 415 | 498 |
Personal | |||
Provisions for expected credit losses | |||
Provisions for ECL/Impairment charges | 486 | 472 | 589 |
Personal | Performing - Stage 1 | |||
Provisions for expected credit losses | |||
Provisions for ECL/Impairment charges | 91 | 99 | 124 |
Personal | Performing - Stage 2 | |||
Provisions for expected credit losses | |||
Provisions for ECL/Impairment charges | 268 | 250 | 315 |
Personal | Non-performing - Stage 3 | |||
Provisions for expected credit losses | |||
Provisions for ECL/Impairment charges | 127 | 123 | 150 |
Business | |||
Provisions for expected credit losses | |||
Provisions for ECL/Impairment charges | 2,678 | 2,500 | 2,644 |
Business | Performing - Stage 1 | |||
Provisions for expected credit losses | |||
Provisions for ECL/Impairment charges | 629 | 643 | 690 |
Business | Performing - Stage 2 | |||
Provisions for expected credit losses | |||
Provisions for ECL/Impairment charges | 1,237 | 996 | 1,112 |
Business | Non-performing - Stage 3 | |||
Provisions for expected credit losses | |||
Provisions for ECL/Impairment charges | $ 812 | $ 861 | $ 842 |
Provisions for expected credi_6
Provisions for expected credit losses - Impact of overlays on the provision for ECL on loans and credit commitments (Details) - AUD ($) $ in Millions | 6 Months Ended | ||
Mar. 31, 2023 | Sep. 30, 2022 | Mar. 31, 2022 | |
Provisions for expected credit losses | |||
Modelled provision for ECL on loans and credit commitments | $ 4,192 | $ 3,925 | $ 3,539 |
Overlays | 720 | 700 | 1,136 |
Total provision for ECL on loans and credit commitments | $ 4,912 | $ 4,625 | $ 4,675 |
Provisions for expected credi_7
Provisions for expected credit losses - Forecast assumptions (Details) | 6 Months Ended | ||
Mar. 31, 2023 | Sep. 30, 2022 | Mar. 31, 2022 | |
Calendar year 2022 | |||
Provisions for expected credit losses | |||
Annual GDP, percentage of forecast growth (contraction) | 3.40% | 5.50% | |
Commercial property index, percentage of forecast growth (contraction) | (4.70%) | (3.10%) | |
Residential property prices, percentage of forecast appreciation (contraction) | (6.50%) | 1.60% | |
Calendar year 2023 | |||
Provisions for expected credit losses | |||
Annual GDP, percentage of forecast growth (contraction) | 1% | 1% | 2.70% |
Commercial property index, percentage of forecast growth (contraction) | (9.40%) | (3.00%) | 2.10% |
Residential property prices, percentage of forecast appreciation (contraction) | (7.80%) | (7.80%) | (7.00%) |
Calendar Year 2024 | |||
Provisions for expected credit losses | |||
Annual GDP, percentage of forecast growth (contraction) | 1.50% | ||
Commercial property index, percentage of forecast growth (contraction) | 1.40% | ||
Residential property prices, percentage of forecast appreciation (contraction) | 2% | ||
December 2022 | |||
Provisions for expected credit losses | |||
Cash rate (percentage) | 3.35% | ||
Cash rate (in basis points) | 0.0050 | ||
December 2023 | |||
Provisions for expected credit losses | |||
Cash rate (percentage) | 3.85% | 3.60% | |
Cash rate (in basis points) | 0.0150 | ||
December 2024 | |||
Provisions for expected credit losses | |||
Cash rate (percentage) | 2.85% | ||
Australia | December 2022 | |||
Provisions for expected credit losses | |||
Unemployment rate, percentage | 3.10% | 3.80% | |
Australia | December 2023 | |||
Provisions for expected credit losses | |||
Unemployment rate, percentage | 4.70% | 4.40% | 3.90% |
Australia | December 2024 | |||
Provisions for expected credit losses | |||
Unemployment rate, percentage | 5.10% | ||
New Zealand | December 2022 | |||
Provisions for expected credit losses | |||
Unemployment rate, percentage | 3.40% | 3% | |
New Zealand | December 2023 | |||
Provisions for expected credit losses | |||
Unemployment rate, percentage | 4% | 3.80% | 3.30% |
New Zealand | December 2024 | |||
Provisions for expected credit losses | |||
Unemployment rate, percentage | 5.10% |
Provisions for expected credi_8
Provisions for expected credit losses - Sensitivity (Details) - AUD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Mar. 31, 2022 | |
Provisions for expected credit losses | ||||
Percentage of gross exposure from loans and credit commitments stage 1 reflected in stage 2 | 1% | 1% | 1% | |
Staging sensitivity, increase in provision for ECL | $ 95 | $ 113 | $ 205 | |
Upside scenario | ||||
Provisions for expected credit losses | ||||
Percentage of weight assigned to scenario | 5% | 5% | 5% | |
Base case scenario | ||||
Provisions for expected credit losses | ||||
Percentage of weight assigned to scenario | 50% | 50% | 50% | |
Downside scenario | ||||
Provisions for expected credit losses | ||||
Percentage of weight assigned to scenario | 45% | 45% | 45% | |
Provision for ECL | Reported probability-weighted ECL | ||||
Provisions for expected credit losses | ||||
Adjustment to ECL based on probability weighted scenario | $ 4,912 | $ 4,625 | $ 4,675 | |
Provision for ECL | 100% base case ECL | ||||
Provisions for expected credit losses | ||||
Adjustment to ECL based on probability weighted scenario | 3,391 | 2,983 | 2,993 | |
Provision for ECL | 100% downside ECL | ||||
Provisions for expected credit losses | ||||
Adjustment to ECL based on probability weighted scenario | $ 6,836 | $ 6,680 | $ 6,752 |
Provisions for expected credi_9
Provisions for expected credit losses - Portfolio Overlays (Details) - AUD ($) $ in Millions | 6 Months Ended | ||
Mar. 31, 2023 | Sep. 30, 2022 | Mar. 31, 2022 | |
Provisions for expected credit losses | |||
Overlays | $ 720 | $ 700 | $ 1,136 |
Potential high consumer stress from rising interest rates, higher inflation, higher unemployment, and other risks | |||
Provisions for expected credit losses | |||
Overlays | 489 | 480 | 270 |
Supply chain disruptions and labour shortages | |||
Provisions for expected credit losses | |||
Overlays | 100 | 150 | 247 |
Extreme weather events | |||
Provisions for expected credit losses | |||
Overlays | 131 | 70 | 70 |
COVID-19 impacts | |||
Provisions for expected credit losses | |||
Overlays | $ 0 | $ 0 | $ 549 |
Provisions for expected cred_10
Provisions for expected credit losses - Total provision for ECL (Details) - AUD ($) $ in Millions | Mar. 31, 2023 | Sep. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 |
Provisions for ECL on loans and credit commitments | ||||
Provisions for expected credit losses | ||||
Provisions for expected credit losses | $ 4,912 | $ 4,625 | $ 4,675 | |
Provisions for ECL | ||||
Provisions for expected credit losses | ||||
Provisions for expected credit losses | 4,923 | 4,635 | 4,682 | |
Loans and credit commitments | Provisions for ECL on loans and credit commitments | ||||
Provisions for expected credit losses | ||||
Provisions for expected credit losses | 4,912 | 4,625 | 4,675 | $ 4,999 |
Debt securities at amortised cost | Provision for ECL on debt securities at amortised cost | ||||
Provisions for expected credit losses | ||||
Provisions for expected credit losses | 6 | 6 | 4 | |
Debt securities at FVOCI | Provision for ECL on debt securities at FVOCI | ||||
Provisions for expected credit losses | ||||
Provisions for expected credit losses | $ 5 | $ 4 | $ 3 |
Provisions for expected cred_11
Provisions for expected credit losses - Reconciliation of impairment charges (Details) - AUD ($) $ in Millions | 6 Months Ended | ||
Mar. 31, 2023 | Sep. 30, 2022 | Mar. 31, 2022 | |
Reconciliation of impairment charges | |||
Recoveries | $ (128) | $ (87) | $ (102) |
Impairment charges/(benefits) | 390 | 196 | 139 |
Loans and credit commitments | |||
Reconciliation of impairment charges | |||
Business activity during the year | 54 | (136) | (94) |
Net remeasurement of provision for ECL | 463 | 416 | 336 |
Debt Securities | Amortised cost | |||
Reconciliation of impairment charges | |||
Impairment charges | $ 3 | 1 | |
Debt Securities | FVOCI | |||
Reconciliation of impairment charges | |||
Impairment charges | $ 1 | $ (2) |
Credit Quality (Details)
Credit Quality (Details) - Credit risk - AUD ($) $ in Millions | Mar. 31, 2023 | Sep. 30, 2022 | Mar. 31, 2022 |
Loans | Housing | |||
Credit quality | |||
Exposure to credit risk | $ 534,021 | $ 523,952 | $ 516,403 |
Loans | Housing | Performing - Stage 1 | |||
Credit quality | |||
Exposure to credit risk | 442,181 | 432,532 | 452,004 |
Loans | Housing | Performing - Stage 2 | |||
Credit quality | |||
Exposure to credit risk | 87,419 | 87,504 | 59,831 |
Loans | Housing | Non-performing - Stage 3 | |||
Credit quality | |||
Exposure to credit risk | 4,421 | 3,916 | 4,568 |
Loans | Housing | Strong | |||
Credit quality | |||
Exposure to credit risk | 443,059 | 435,544 | 425,568 |
Loans | Housing | Strong | Performing - Stage 1 | |||
Credit quality | |||
Exposure to credit risk | 403,099 | 393,754 | 401,201 |
Loans | Housing | Strong | Performing - Stage 2 | |||
Credit quality | |||
Exposure to credit risk | 39,960 | 41,790 | 24,367 |
Loans | Housing | Good/satisfactory | |||
Credit quality | |||
Exposure to credit risk | 73,068 | 72,443 | 72,994 |
Loans | Housing | Good/satisfactory | Performing - Stage 1 | |||
Credit quality | |||
Exposure to credit risk | 37,045 | 36,862 | 48,746 |
Loans | Housing | Good/satisfactory | Performing - Stage 2 | |||
Credit quality | |||
Exposure to credit risk | 36,023 | 35,581 | 24,248 |
Loans | Housing | Weak | |||
Credit quality | |||
Exposure to credit risk | 17,894 | 15,965 | 17,841 |
Loans | Housing | Weak | Performing - Stage 1 | |||
Credit quality | |||
Exposure to credit risk | 2,037 | 1,916 | 2,057 |
Loans | Housing | Weak | Performing - Stage 2 | |||
Credit quality | |||
Exposure to credit risk | 11,436 | 10,133 | 11,216 |
Loans | Housing | Weak | Non-performing - Stage 3 | |||
Credit quality | |||
Exposure to credit risk | 4,421 | 3,916 | 4,568 |
Loans | Personal | |||
Credit quality | |||
Exposure to credit risk | 13,151 | 13,897 | 15,250 |
Loans | Personal | Performing - Stage 1 | |||
Credit quality | |||
Exposure to credit risk | 11,172 | 12,096 | 13,270 |
Loans | Personal | Performing - Stage 2 | |||
Credit quality | |||
Exposure to credit risk | 1,739 | 1,588 | 1,727 |
Loans | Personal | Non-performing - Stage 3 | |||
Credit quality | |||
Exposure to credit risk | 240 | 213 | 253 |
Loans | Personal | Strong | |||
Credit quality | |||
Exposure to credit risk | 4,965 | 5,060 | 4,974 |
Loans | Personal | Strong | Performing - Stage 1 | |||
Credit quality | |||
Exposure to credit risk | 4,854 | 4,961 | 4,890 |
Loans | Personal | Strong | Performing - Stage 2 | |||
Credit quality | |||
Exposure to credit risk | 111 | 99 | 84 |
Loans | Personal | Good/satisfactory | |||
Credit quality | |||
Exposure to credit risk | 7,295 | 7,959 | 9,205 |
Loans | Personal | Good/satisfactory | Performing - Stage 1 | |||
Credit quality | |||
Exposure to credit risk | 6,142 | 6,903 | 8,092 |
Loans | Personal | Good/satisfactory | Performing - Stage 2 | |||
Credit quality | |||
Exposure to credit risk | 1,153 | 1,056 | 1,113 |
Loans | Personal | Weak | |||
Credit quality | |||
Exposure to credit risk | 891 | 878 | 1,071 |
Loans | Personal | Weak | Performing - Stage 1 | |||
Credit quality | |||
Exposure to credit risk | 176 | 232 | 288 |
Loans | Personal | Weak | Performing - Stage 2 | |||
Credit quality | |||
Exposure to credit risk | 475 | 433 | 530 |
Loans | Personal | Weak | Non-performing - Stage 3 | |||
Credit quality | |||
Exposure to credit risk | 240 | 213 | 253 |
Loans | Business | |||
Credit quality | |||
Exposure to credit risk | 207,229 | 206,004 | 192,098 |
Loans | Business | Performing - Stage 1 | |||
Credit quality | |||
Exposure to credit risk | 158,451 | 170,134 | 171,153 |
Loans | Business | Performing - Stage 2 | |||
Credit quality | |||
Exposure to credit risk | 45,606 | 32,753 | 17,878 |
Loans | Business | Non-performing - Stage 3 | |||
Credit quality | |||
Exposure to credit risk | 3,172 | 3,117 | 3,067 |
Loans | Business | Strong | |||
Credit quality | |||
Exposure to credit risk | 88,563 | 87,984 | 76,798 |
Loans | Business | Strong | Performing - Stage 1 | |||
Credit quality | |||
Exposure to credit risk | 77,166 | 82,280 | 76,014 |
Loans | Business | Strong | Performing - Stage 2 | |||
Credit quality | |||
Exposure to credit risk | 11,397 | 5,704 | 784 |
Loans | Business | Good/satisfactory | |||
Credit quality | |||
Exposure to credit risk | 111,122 | 110,788 | 108,151 |
Loans | Business | Good/satisfactory | Performing - Stage 1 | |||
Credit quality | |||
Exposure to credit risk | 81,213 | 87,770 | 94,954 |
Loans | Business | Good/satisfactory | Performing - Stage 2 | |||
Credit quality | |||
Exposure to credit risk | 29,909 | 23,018 | 13,197 |
Loans | Business | Weak | |||
Credit quality | |||
Exposure to credit risk | 7,544 | 7,232 | 7,149 |
Loans | Business | Weak | Performing - Stage 1 | |||
Credit quality | |||
Exposure to credit risk | 72 | 84 | 185 |
Loans | Business | Weak | Performing - Stage 2 | |||
Credit quality | |||
Exposure to credit risk | 4,300 | 4,031 | 3,897 |
Loans | Business | Weak | Non-performing - Stage 3 | |||
Credit quality | |||
Exposure to credit risk | 3,172 | 3,117 | 3,067 |
Undrawn credit commitments | |||
Credit quality | |||
Exposure to credit risk | 208,403 | 200,099 | 201,186 |
Undrawn credit commitments | Performing - Stage 1 | |||
Credit quality | |||
Exposure to credit risk | 188,667 | 184,535 | 192,094 |
Undrawn credit commitments | Performing - Stage 2 | |||
Credit quality | |||
Exposure to credit risk | 19,339 | 15,217 | 8,771 |
Undrawn credit commitments | Non-performing - Stage 3 | |||
Credit quality | |||
Exposure to credit risk | 397 | 347 | 321 |
Undrawn credit commitments | Strong | |||
Credit quality | |||
Exposure to credit risk | 165,447 | 157,659 | 157,049 |
Undrawn credit commitments | Strong | Performing - Stage 1 | |||
Credit quality | |||
Exposure to credit risk | 155,647 | 150,424 | 154,459 |
Undrawn credit commitments | Strong | Performing - Stage 2 | |||
Credit quality | |||
Exposure to credit risk | 9,800 | 7,235 | 2,590 |
Undrawn credit commitments | Good/satisfactory | |||
Credit quality | |||
Exposure to credit risk | 41,480 | 40,957 | 42,888 |
Undrawn credit commitments | Good/satisfactory | Performing - Stage 1 | |||
Credit quality | |||
Exposure to credit risk | 32,907 | 34,011 | 37,519 |
Undrawn credit commitments | Good/satisfactory | Performing - Stage 2 | |||
Credit quality | |||
Exposure to credit risk | 8,573 | 6,946 | 5,369 |
Undrawn credit commitments | Weak | |||
Credit quality | |||
Exposure to credit risk | 1,476 | 1,483 | 1,249 |
Undrawn credit commitments | Weak | Performing - Stage 1 | |||
Credit quality | |||
Exposure to credit risk | 113 | 100 | 116 |
Undrawn credit commitments | Weak | Performing - Stage 2 | |||
Credit quality | |||
Exposure to credit risk | 966 | 1,036 | 812 |
Undrawn credit commitments | Weak | Non-performing - Stage 3 | |||
Credit quality | |||
Exposure to credit risk | 397 | 347 | 321 |
Loans and undrawn credit commitments | |||
Credit quality | |||
Exposure to credit risk | 962,804 | 943,952 | 924,937 |
Loans and undrawn credit commitments | Performing - Stage 1 | |||
Credit quality | |||
Exposure to credit risk | 800,471 | 799,297 | 828,521 |
Loans and undrawn credit commitments | Performing - Stage 2 | |||
Credit quality | |||
Exposure to credit risk | 154,103 | 137,062 | 88,207 |
Loans and undrawn credit commitments | Non-performing - Stage 3 | |||
Credit quality | |||
Exposure to credit risk | 8,230 | 7,593 | 8,209 |
Loans and undrawn credit commitments | Strong | |||
Credit quality | |||
Exposure to credit risk | 702,034 | 686,247 | 664,389 |
Loans and undrawn credit commitments | Strong | Performing - Stage 1 | |||
Credit quality | |||
Exposure to credit risk | 640,766 | 631,419 | 636,564 |
Loans and undrawn credit commitments | Strong | Performing - Stage 2 | |||
Credit quality | |||
Exposure to credit risk | 61,268 | 54,828 | 27,825 |
Loans and undrawn credit commitments | Good/satisfactory | |||
Credit quality | |||
Exposure to credit risk | 232,965 | 232,147 | 233,238 |
Loans and undrawn credit commitments | Good/satisfactory | Performing - Stage 1 | |||
Credit quality | |||
Exposure to credit risk | 157,307 | 165,546 | 189,311 |
Loans and undrawn credit commitments | Good/satisfactory | Performing - Stage 2 | |||
Credit quality | |||
Exposure to credit risk | 75,658 | 66,601 | 43,927 |
Loans and undrawn credit commitments | Weak | |||
Credit quality | |||
Exposure to credit risk | 27,805 | 25,558 | 27,310 |
Loans and undrawn credit commitments | Weak | Performing - Stage 1 | |||
Credit quality | |||
Exposure to credit risk | 2,398 | 2,332 | 2,646 |
Loans and undrawn credit commitments | Weak | Performing - Stage 2 | |||
Credit quality | |||
Exposure to credit risk | 17,177 | 15,633 | 16,455 |
Loans and undrawn credit commitments | Weak | Non-performing - Stage 3 | |||
Credit quality | |||
Exposure to credit risk | $ 8,230 | $ 7,593 | $ 8,209 |
Deposits and other borrowings_2
Deposits and other borrowings (Details) - AUD ($) $ in Millions | 6 Months Ended | ||
Mar. 31, 2023 | Sep. 30, 2022 | Mar. 31, 2022 | |
Deposits and other borrowings | |||
Deposits and other borrowings | $ 676,352 | $ 659,129 | $ 645,606 |
Deposits and other borrowings, percentage movement from prior period | 3% | ||
Deposits and other borrowings, percentage movement from same period of prior year | 5% | ||
Australia | |||
Deposits and other borrowings | |||
Deposits and other borrowings | $ 577,317 | 566,152 | 548,351 |
Deposits and other borrowings, percentage movement from prior period | 2% | ||
Deposits and other borrowings, percentage movement from same period of prior year | 5% | ||
Australia | Certificates of deposit | |||
Deposits and other borrowings | |||
Deposits and other borrowings | $ 32,227 | 30,507 | 27,048 |
Deposits and other borrowings, percentage movement from prior period | 6% | ||
Deposits and other borrowings, percentage movement from same period of prior year | 19% | ||
Australia | Non-interest bearing, repayable at call | |||
Deposits and other borrowings | |||
Deposits and other borrowings | $ 54,967 | 55,180 | 54,829 |
Australia | Other interest bearing at call | |||
Deposits and other borrowings | |||
Deposits and other borrowings | $ 349,419 | 352,544 | 361,609 |
Deposits and other borrowings, percentage movement from prior period | (1.00%) | ||
Deposits and other borrowings, percentage movement from same period of prior year | (3.00%) | ||
Australia | Other interest bearing term | |||
Deposits and other borrowings | |||
Deposits and other borrowings | $ 140,704 | 127,921 | 104,865 |
Deposits and other borrowings, percentage movement from prior period | 10% | ||
Deposits and other borrowings, percentage movement from same period of prior year | 34% | ||
New Zealand | |||
Deposits and other borrowings | |||
Deposits and other borrowings | $ 77,321 | 71,202 | 75,622 |
Deposits and other borrowings, percentage movement from prior period | 9% | ||
Deposits and other borrowings, percentage movement from same period of prior year | 2% | ||
New Zealand | Certificates of deposit | |||
Deposits and other borrowings | |||
Deposits and other borrowings | $ 2,618 | 2,588 | 2,783 |
Deposits and other borrowings, percentage movement from prior period | 1% | ||
Deposits and other borrowings, percentage movement from same period of prior year | (6.00%) | ||
New Zealand | Non-interest bearing, repayable at call | |||
Deposits and other borrowings | |||
Deposits and other borrowings | $ 12,251 | 12,674 | 14,706 |
Deposits and other borrowings, percentage movement from prior period | (3.00%) | ||
Deposits and other borrowings, percentage movement from same period of prior year | (17.00%) | ||
New Zealand | Other interest bearing at call | |||
Deposits and other borrowings | |||
Deposits and other borrowings | $ 28,395 | 27,517 | 30,188 |
Deposits and other borrowings, percentage movement from prior period | 3% | ||
Deposits and other borrowings, percentage movement from same period of prior year | (6.00%) | ||
New Zealand | Other interest bearing term | |||
Deposits and other borrowings | |||
Deposits and other borrowings | $ 34,057 | 28,423 | 27,945 |
Deposits and other borrowings, percentage movement from prior period | 20% | ||
Deposits and other borrowings, percentage movement from same period of prior year | 22% | ||
Other overseas | |||
Deposits and other borrowings | |||
Deposits and other borrowings | $ 21,714 | 21,775 | 21,633 |
Other overseas | Certificates of deposit | |||
Deposits and other borrowings | |||
Deposits and other borrowings | $ 13,922 | 13,200 | 14,903 |
Deposits and other borrowings, percentage movement from prior period | 5% | ||
Deposits and other borrowings, percentage movement from same period of prior year | (7.00%) | ||
Other overseas | Non-interest bearing, repayable at call | |||
Deposits and other borrowings | |||
Deposits and other borrowings | $ 1,340 | 1,178 | 1,008 |
Deposits and other borrowings, percentage movement from prior period | 14% | ||
Deposits and other borrowings, percentage movement from same period of prior year | 33% | ||
Other overseas | Other interest bearing at call | |||
Deposits and other borrowings | |||
Deposits and other borrowings | $ 2,047 | 1,883 | 1,696 |
Deposits and other borrowings, percentage movement from prior period | 9% | ||
Deposits and other borrowings, percentage movement from same period of prior year | 21% | ||
Other overseas | Other interest bearing term | |||
Deposits and other borrowings | |||
Deposits and other borrowings | $ 4,405 | $ 5,514 | $ 4,026 |
Deposits and other borrowings, percentage movement from prior period | (20.00%) | ||
Deposits and other borrowings, percentage movement from same period of prior year | 9% |
Fair values of financial asse_3
Fair values of financial assets and financial liabilities - Hierarchy (Details) - Recurring - AUD ($) $ in Millions | Mar. 31, 2023 | Sep. 30, 2022 | Mar. 31, 2022 |
Fair values of financial assets and financial liabilities | |||
Financial assets measured at fair value | $ 123,419 | $ 140,971 | $ 114,299 |
Financial liabilities measured at fair value | 86,664 | 103,964 | 83,655 |
Deposits and other borrowings | |||
Fair values of financial assets and financial liabilities | |||
Financial liabilities measured at fair value | 48,769 | 46,331 | 44,743 |
Other financial liabilities | |||
Fair values of financial assets and financial liabilities | |||
Financial liabilities measured at fair value | 11,449 | 11,325 | 6,857 |
Derivative financial instruments | |||
Fair values of financial assets and financial liabilities | |||
Financial liabilities measured at fair value | 20,791 | 39,568 | 25,347 |
Debt issues | |||
Fair values of financial assets and financial liabilities | |||
Financial liabilities measured at fair value | 5,655 | 6,740 | 6,294 |
Liabilities held for sale | |||
Fair values of financial assets and financial liabilities | |||
Financial liabilities measured at fair value | 414 | ||
Trading securities and financial assets measured at FVIS | |||
Fair values of financial assets and financial liabilities | |||
Financial assets measured at fair value | 30,474 | 24,332 | 23,738 |
Derivative financial instruments | |||
Fair values of financial assets and financial liabilities | |||
Financial assets measured at fair value | 20,346 | 41,283 | 18,269 |
Investment securities | |||
Fair values of financial assets and financial liabilities | |||
Financial assets measured at fair value | 72,469 | 75,284 | 69,564 |
Loans | |||
Fair values of financial assets and financial liabilities | |||
Financial assets measured at fair value | 130 | 72 | 249 |
Assets held for sale | |||
Fair values of financial assets and financial liabilities | |||
Financial assets measured at fair value | 2,479 | ||
Level 1 | |||
Fair values of financial assets and financial liabilities | |||
Financial assets measured at fair value | 13,807 | 14,741 | 18,407 |
Financial liabilities measured at fair value | 1,373 | 2,057 | 1,116 |
Level 1 | Other financial liabilities | |||
Fair values of financial assets and financial liabilities | |||
Financial liabilities measured at fair value | 1,361 | 2,006 | 1,090 |
Level 1 | Derivative financial instruments | |||
Fair values of financial assets and financial liabilities | |||
Financial liabilities measured at fair value | 12 | 51 | 26 |
Level 1 | Trading securities and financial assets measured at FVIS | |||
Fair values of financial assets and financial liabilities | |||
Financial assets measured at fair value | 10,885 | 2,039 | 5,474 |
Level 1 | Derivative financial instruments | |||
Fair values of financial assets and financial liabilities | |||
Financial assets measured at fair value | 17 | 68 | 38 |
Level 1 | Investment securities | |||
Fair values of financial assets and financial liabilities | |||
Financial assets measured at fair value | 2,905 | 12,634 | 11,838 |
Level 1 | Assets held for sale | |||
Fair values of financial assets and financial liabilities | |||
Financial assets measured at fair value | 1,057 | ||
Level 2 | |||
Fair values of financial assets and financial liabilities | |||
Financial assets measured at fair value | 109,151 | 125,785 | 95,390 |
Financial liabilities measured at fair value | 85,237 | 101,884 | 82,506 |
Level 2 | Deposits and other borrowings | |||
Fair values of financial assets and financial liabilities | |||
Financial liabilities measured at fair value | 48,769 | 46,331 | 44,743 |
Level 2 | Other financial liabilities | |||
Fair values of financial assets and financial liabilities | |||
Financial liabilities measured at fair value | 10,088 | 9,319 | 5,767 |
Level 2 | Derivative financial instruments | |||
Fair values of financial assets and financial liabilities | |||
Financial liabilities measured at fair value | 20,725 | 39,494 | 25,288 |
Level 2 | Debt issues | |||
Fair values of financial assets and financial liabilities | |||
Financial liabilities measured at fair value | 5,655 | 6,740 | 6,294 |
Level 2 | Liabilities held for sale | |||
Fair values of financial assets and financial liabilities | |||
Financial liabilities measured at fair value | 414 | ||
Level 2 | Trading securities and financial assets measured at FVIS | |||
Fair values of financial assets and financial liabilities | |||
Financial assets measured at fair value | 19,578 | 22,275 | 18,260 |
Level 2 | Derivative financial instruments | |||
Fair values of financial assets and financial liabilities | |||
Financial assets measured at fair value | 20,317 | 41,202 | 18,204 |
Level 2 | Investment securities | |||
Fair values of financial assets and financial liabilities | |||
Financial assets measured at fair value | 69,150 | 62,263 | 57,287 |
Level 2 | Loans | |||
Fair values of financial assets and financial liabilities | |||
Financial assets measured at fair value | 106 | 45 | 217 |
Level 2 | Assets held for sale | |||
Fair values of financial assets and financial liabilities | |||
Financial assets measured at fair value | 1,422 | ||
Level 3 | |||
Fair values of financial assets and financial liabilities | |||
Financial assets measured at fair value | 461 | 445 | 502 |
Financial liabilities measured at fair value | 54 | 23 | 33 |
Level 3 | Derivative financial instruments | |||
Fair values of financial assets and financial liabilities | |||
Financial liabilities measured at fair value | 54 | 23 | 33 |
Level 3 | Trading securities and financial assets measured at FVIS | |||
Fair values of financial assets and financial liabilities | |||
Financial assets measured at fair value | 11 | 18 | 4 |
Level 3 | Derivative financial instruments | |||
Fair values of financial assets and financial liabilities | |||
Financial assets measured at fair value | 12 | 13 | 27 |
Level 3 | Investment securities | |||
Fair values of financial assets and financial liabilities | |||
Financial assets measured at fair value | 414 | 387 | 439 |
Level 3 | Loans | |||
Fair values of financial assets and financial liabilities | |||
Financial assets measured at fair value | $ 24 | $ 27 | $ 32 |
Fair values of financial asse_4
Fair values of financial assets and financial liabilities - Reconciliation of non-market observables (Details) - AUD ($) $ in Millions | 6 Months Ended | ||
Mar. 31, 2023 | Sep. 30, 2022 | Mar. 31, 2022 | |
Day one profit or loss | |||
Closing balance of unrecognised day one profit (loss) | $ 0 | $ 1 | $ 1 |
At fair value | Level 3 | |||
Assets | |||
Balance at the beginning of the period | 445 | ||
Gains/(losses) on assets / (gains)/losses on liabilities recognised in: | |||
Income statements | (4) | ||
Other comprehensive income | (32) | ||
Acquisition and issues | 106 | ||
Disposal and settlements | (19) | ||
Transfer into or out of non-market observables | (37) | ||
Foreign currency translation impacts | 2 | ||
Balance at the end of the period | 461 | ||
Unrealised gains/(losses) recognised in the income statements for financial instruments held as at end of period | 8 | ||
Liabilities | |||
Balance at the beginning of the period | 23 | ||
Gains/(losses) on assets / (gains)/losses on liabilities recognised in: | |||
Income statements | (2) | ||
Acquisition and issues | 43 | ||
Disposal and settlements | (3) | ||
Transfer into or out of non-market observables | (7) | ||
Balance at the end of the period | 54 | ||
Unrealised gains/(losses) recognised in the income statements for financial instruments held as at end of period | (41) | ||
At fair value | Level 3 | Derivatives | |||
Liabilities | |||
Balance at the beginning of the period | 23 | ||
Gains/(losses) on assets / (gains)/losses on liabilities recognised in: | |||
Income statements | (2) | ||
Acquisition and issues | 43 | ||
Disposal and settlements | (3) | ||
Transfer into or out of non-market observables | (7) | ||
Balance at the end of the period | 54 | ||
Unrealised gains/(losses) recognised in the income statements for financial instruments held as at end of period | (41) | ||
At fair value | Level 3 | Trading securities and financial assets measured at FVIS | |||
Assets | |||
Balance at the beginning of the period | 18 | ||
Gains/(losses) on assets / (gains)/losses on liabilities recognised in: | |||
Acquisition and issues | 21 | ||
Transfer into or out of non-market observables | (29) | ||
Foreign currency translation impacts | 1 | ||
Balance at the end of the period | 11 | ||
At fair value | Level 3 | Investment securities | |||
Assets | |||
Balance at the beginning of the period | 387 | ||
Gains/(losses) on assets / (gains)/losses on liabilities recognised in: | |||
Other comprehensive income | (32) | ||
Acquisition and issues | 60 | ||
Disposal and settlements | (1) | ||
Balance at the end of the period | 414 | ||
At fair value | Level 3 | Other | |||
Assets | |||
Balance at the beginning of the period | 40 | ||
Gains/(losses) on assets / (gains)/losses on liabilities recognised in: | |||
Income statements | (4) | ||
Acquisition and issues | 25 | ||
Disposal and settlements | (18) | ||
Transfer into or out of non-market observables | (8) | ||
Foreign currency translation impacts | 1 | ||
Balance at the end of the period | 36 | ||
Unrealised gains/(losses) recognised in the income statements for financial instruments held as at end of period | $ 8 |
Fair values of financial asse_5
Fair values of financial assets and financial liabilities - Not measured at fair value (Details) - Not measured at fair value - AUD ($) $ in Millions | Mar. 31, 2023 | Sep. 30, 2022 | Mar. 31, 2022 |
Fair values of financial assets and financial liabilities | |||
Financial assets | $ 880,206 | $ 857,875 | $ 834,891 |
Financial assets, Fair Value | 874,707 | 850,809 | 831,865 |
Financial liabilities | 854,135 | 833,617 | 803,909 |
Financial liabilities, Fair Value | 853,407 | 832,694 | 804,317 |
Collateral received | |||
Fair values of financial assets and financial liabilities | |||
Financial liabilities | 3,577 | 6,371 | 2,170 |
Financial liabilities, Fair Value | 3,577 | 6,371 | 2,170 |
Deposits and other borrowings | |||
Fair values of financial assets and financial liabilities | |||
Financial liabilities | 627,583 | 612,798 | 600,863 |
Financial liabilities, Fair Value | 627,823 | 613,134 | 600,982 |
Other financial liabilities | |||
Fair values of financial assets and financial liabilities | |||
Financial liabilities | 48,653 | 45,035 | 44,488 |
Financial liabilities, Fair Value | 48,653 | 45,035 | 44,488 |
Debt issues | |||
Fair values of financial assets and financial liabilities | |||
Financial liabilities | 143,297 | 138,128 | 127,335 |
Financial liabilities, Fair Value | 142,666 | 137,452 | 127,247 |
Loan capital | |||
Fair values of financial assets and financial liabilities | |||
Financial liabilities | 31,025 | 31,254 | 29,036 |
Financial liabilities, Fair Value | 30,688 | 30,671 | 29,413 |
Liabilities held for sale | |||
Fair values of financial assets and financial liabilities | |||
Financial liabilities | 31 | 17 | |
Financial liabilities, Fair Value | 31 | 17 | |
Cash and balances with central banks | |||
Fair values of financial assets and financial liabilities | |||
Financial assets | 117,886 | 105,257 | 102,410 |
Financial assets, Fair Value | 117,886 | 105,257 | 102,410 |
Collateral paid | |||
Fair values of financial assets and financial liabilities | |||
Financial assets | 4,093 | 6,216 | 7,374 |
Financial assets, Fair Value | 4,093 | 6,216 | 7,374 |
Investment securities | |||
Fair values of financial assets and financial liabilities | |||
Financial assets | 1,083 | 1,181 | 878 |
Financial assets, Fair Value | 1,083 | 1,179 | 878 |
Loans | |||
Fair values of financial assets and financial liabilities | |||
Financial assets | 749,801 | 739,575 | 719,307 |
Financial assets, Fair Value | 744,302 | 732,511 | 716,281 |
Other financial assets | |||
Fair values of financial assets and financial liabilities | |||
Financial assets | 7,343 | 5,626 | 4,896 |
Financial assets, Fair Value | $ 7,343 | 5,626 | 4,896 |
Assets held for sale | |||
Fair values of financial assets and financial liabilities | |||
Financial assets | 20 | 26 | |
Financial assets, Fair Value | $ 20 | $ 26 |
Provisions, contingent liabil_3
Provisions, contingent liabilities, contingent assets and credit commitments - Provisions and contingent liabilities (Details) $ in Millions | 6 Months Ended | |
Mar. 31, 2023 AUD ($) item | Dec. 31, 2019 AUD ($) | |
Changes in other provisions | ||
Balance at beginning of period | $ 2,950 | |
Additions | 786 | |
Utilisation | (1,215) | |
Reversal of unutilised provisions | (97) | |
Balance at end of period | 2,424 | |
Litigation | ||
Contingent liabilities | ||
Preliminary estimate of losses | $ 1,000 | |
Guarantees | Guarantees capped at $20 million per year | ||
Parent Entity guarantees and undertakings | ||
Maximum amount of initial guarantee | 20 | |
Automatic reinstatement guarantee amount | $ 20 | |
Guarantees | Guarantees capped at $2 million per year | ||
Parent Entity guarantees and undertakings | ||
Number of specific guarantees | item | 2 | |
Maximum amount of initial guarantee | $ 2 | |
Automatic reinstatement guarantee amount | 2 | |
Long service leave | ||
Changes in other provisions | ||
Balance at beginning of period | 450 | |
Additions | 45 | |
Utilisation | (23) | |
Balance at end of period | 472 | |
Annual leave and other employee benefits | ||
Changes in other provisions | ||
Balance at beginning of period | 922 | |
Additions | 575 | |
Utilisation | (859) | |
Balance at end of period | 638 | |
Litigation and non-lending losses | ||
Changes in other provisions | ||
Balance at beginning of period | 83 | |
Additions | 12 | |
Utilisation | (20) | |
Reversal of unutilised provisions | (1) | |
Balance at end of period | 74 | |
Provision for impairment on credit commitments | ||
Changes in other provisions | ||
Balance at beginning of period | 419 | |
Additions | 29 | |
Reversal of unutilised provisions | (6) | |
Balance at end of period | 442 | |
Lease restoration obligations | ||
Changes in other provisions | ||
Balance at beginning of period | 208 | |
Additions | 1 | |
Utilisation | (13) | |
Balance at end of period | 196 | |
Restructuring and other provisions | ||
Changes in other provisions | ||
Balance at beginning of period | 355 | |
Additions | 65 | |
Utilisation | (128) | |
Reversal of unutilised provisions | (8) | |
Balance at end of period | 284 | |
Compliance, regulation and remediation provisions | ||
Changes in other provisions | ||
Balance at beginning of period | 513 | |
Additions | 59 | |
Utilisation | (172) | |
Reversal of unutilised provisions | (82) | |
Balance at end of period | $ 318 |
Provisions, contingent liabil_4
Provisions, contingent liabilities, contingent assets and credit commitments - Undrawn credit commitments (Details) - AUD ($) $ in Millions | 6 Months Ended | ||
Mar. 31, 2023 | Sep. 30, 2022 | Mar. 31, 2022 | |
Undrawn credit commitments | |||
Letters of credit and guarantees | $ 11,936 | $ 11,868 | $ 11,716 |
Letters of credit and guarantees, percentage change from prior period | 1% | ||
Letters of credit and guarantees, percentage change from same period of prior year | 2% | ||
Commitments to extend credit | $ 195,765 | 188,183 | 189,415 |
Commitments to extend credit, percentage change from prior period | 4% | ||
Commitments to Extend Credit, percentage change from same period of prior year | 3% | ||
Other | $ 702 | 48 | 55 |
Total undrawn credit commitments | $ 208,403 | 200,099 | 201,186 |
Total undrawn credit commitments, percentage change from prior period | 4% | ||
Total undrawn credit commitments, percentage change from same period of prior year | 4% | ||
Credit commitments to customers offered and accepted but still revocable | $ 7,400 | $ 8,600 | $ 8,800 |
Shareholders' equity - Share ca
Shareholders' equity - Share capital (Details) - AUD ($) $ in Millions | Mar. 31, 2023 | Sep. 30, 2022 | Mar. 31, 2022 |
Shareholders' equity | |||
Ordinary share capital, fully paid | $ 39,824 | $ 39,666 | $ 39,667 |
Total treasury shares | (702) | (655) | (651) |
Total share capital | 39,122 | 39,011 | 39,016 |
NCI | $ 44 | $ 57 | $ 54 |
Number of unvested RSP treasury shares held | 5,396,087 | 5,086,660 | 5,076,534 |
Shareholders' equity - Movement
Shareholders' equity - Movement in number of ordinary shares (Details) $ / shares in Units, $ in Millions | 6 Months Ended | |||
Feb. 14, 2022 AUD ($) $ / shares shares | Mar. 31, 2023 $ / shares shares | Sep. 30, 2022 AUD ($) $ / shares shares | Mar. 31, 2022 AUD ($) $ / shares shares | |
Reconciliation of movement in number of ordinary shares | ||||
Value of shares acquired in off-market buy back | $ | $ 1 | $ 3,502 | ||
Ordinary shares | ||||
Shareholders' equity | ||||
Par value | $ / shares | $ 0 | |||
Number of votes per ordinary shares | $ / shares | 1 | |||
Reconciliation of movement in number of ordinary shares | ||||
Balance as at beginning of period | 3,501,127,694 | 3,501,127,694 | 3,668,591,808 | |
Dividend reinvestment plan | 7,949,266 | |||
Issued shares for the period | 7,949,266 | |||
Off-market share buy-back | (167,464,114) | |||
Balance as at end of period | 3,509,076,960 | 3,501,127,694 | 3,501,127,694 | |
DRP average price per share for final dividend | $ / shares | $ 23.86 | $ 23.96 | $ 22.34 | |
Value of shares acquired in off-market buy back | $ | $ 3,500 | |||
Number of shares acquired in an off-market share buy-back | 167,464,114 | |||
Average price per share of shares repurchased in an off-market buy back | $ / shares | $ 20.90 | |||
Fully franked dividend component, per share | $ / shares | $ 9.56 | |||
Fully franked dividend component, aggregate value | $ | $ 1,601 | |||
Off-market share buy-back, capital component per share | $ / shares | $ 11.34 | |||
Off-market share buy-back, transaction costs | $ | $ 1,902 | |||
Ordinary shares | Shares purchased on the market for 2021 final dividend | ||||
Reconciliation of movement in number of ordinary shares | ||||
Dividend reinvestment plan | 9,971,443 | 10,286,188 |
Shareholders' equity - Ordinary
Shareholders' equity - Ordinary shares purchased and sold on market (Details) - Ordinary shares | 6 Months Ended |
Mar. 31, 2023 $ / shares shares | |
Share-based payments | |
Net number of ordinary shares purchased/(sold) on market | 3,388,325 |
Employee Share Plan (ESP) | |
Share-based payments | |
Net number of ordinary shares purchased/(sold) on market | 1,156,722 |
Average share price, ordinary shares | $ / shares | $ 23.79 |
Restricted Share Plan (RSP) | |
Share-based payments | |
Net number of ordinary shares purchased/(sold) on market | 2,061,377 |
Average share price, ordinary shares | $ / shares | $ 23.40 |
Westpac Performance Plan (WPP) | Share rights | |
Share-based payments | |
Net number of ordinary shares purchased/(sold) on market | 170,226 |
Average share price, ordinary shares | $ / shares | $ 22.81 |
Shareholders' equity - Reconcil
Shareholders' equity - Reconciliation of movement in reserves (Details) - AUD ($) $ in Millions | 6 Months Ended | ||
Mar. 31, 2023 | Sep. 30, 2022 | Mar. 31, 2022 | |
Debt securities at FVOCI reserve | |||
Balance as at beginning of period | $ 62 | $ 223 | $ 443 |
Net gains/(losses) from changes in fair value | 13 | (187) | (142) |
Income tax effect | 50 | 38 | |
Transferred to income statement | (65) | (49) | (205) |
Income tax effect | 21 | 16 | 62 |
Loss allowance on debt securities measured at FVOCI | 1 | (2) | |
Other | (15) | 9 | 29 |
Balance as at end of period | 17 | 62 | 223 |
Equity securities at FVOCI reserve | |||
Balance as at beginning of period | 136 | 190 | 44 |
Net gains/(losses) from changes in fair value | (34) | (54) | 146 |
Income tax effect | 9 | ||
Balance as at end of period | 111 | 136 | 190 |
Share-based payment reserve | |||
Balance as at beginning of period | 1,893 | 1,866 | 1,806 |
Share-based payment expense | 58 | 27 | 60 |
Balance as at end of period | 1,951 | 1,893 | 1,866 |
Cash flow hedge reserve | |||
Balance as at beginning of period | 813 | 1,049 | 196 |
Net gains/(losses) from changes in fair value | 522 | 82 | 1,222 |
Income tax effect | (156) | (21) | (362) |
Transferred to income statements | (418) | (424) | (10) |
Income tax effect | 124 | 127 | 3 |
Balance as at end of period | 885 | 813 | 1,049 |
Foreign currency translation reserve | |||
Balance as at beginning of period | (505) | (407) | (241) |
Exchange differences on translation of foreign operations | 553 | (133) | (367) |
Gains/(losses) on net investment hedges | (175) | 35 | 201 |
Balance as at end of period | (127) | (505) | (407) |
Other reserves | |||
Balance as at beginning of period | (21) | (20) | (21) |
Transactions with owners | (1) | 1 | |
Balance as at end of period | (21) | (21) | (20) |
Total reserves | $ 2,816 | $ 2,378 | $ 2,901 |
Notes to the consolidated cas_3
Notes to the consolidated cash flow statements - Operating activities (Details) - AUD ($) $ in Millions | 6 Months Ended | ||
Mar. 31, 2023 | Sep. 30, 2022 | Mar. 31, 2022 | |
Reconciliation of net cash provided by/(used in) operating activities to net profit for the year | |||
Profit after income tax expense | $ 4,005 | $ 2,415 | $ 3,284 |
Profit after income tax expense, percentage movement from prior period | 66% | ||
Profit after income tax expense, percentage movement from same period of prior year | 22% | ||
Adjustments: | |||
Depreciation, amortisation and impairment | $ 536 | 776 | 805 |
Depreciation, amortisation and impairment, percentage movement from prior period | (31.00%) | ||
Depreciation, amortisation and impairment, percentage movement from same period in prior year | (33.00%) | ||
Impairment charges/(benefits) | $ 518 | 283 | 241 |
Impairment charges/(benefits), percentage movement from prior period | 83% | ||
Impairment charges/(benefits), percentage movement from same period in prior year | 115% | ||
Net decrease/(increase) in current and deferred tax | $ 256 | 326 | 101 |
Net decrease/(increase) in current and deferred tax, percentage movement from prior period | (21.00%) | ||
Net decrease/(increase) in current and deferred tax, percentage movement from same period in prior year | 153% | ||
(Increase)/decrease in accrued interest receivable | $ (558) | (485) | (59) |
(Increase)/decrease in accrued interest receivable, percentage movement from prior period | 15% | ||
(Decrease)/increase in accrued interest payable | $ 1,350 | 769 | 25 |
(Decrease)/increase in accrued interest payable, percentage movement from prior period | 76% | ||
(Decrease)/increase in provisions | $ (526) | (85) | (536) |
(Decrease)/increase in provisions, percentage movement from same period in prior year | (2.00%) | ||
Other non-cash items | $ 413 | 2,038 | (169) |
Other non-cash items, percentage movement from prior period | (80.00%) | ||
Cash flows from operating activities before changes in operating assets and liabilities | $ 5,994 | 6,037 | 3,692 |
Cash flows from operating activities before changes in operating assets and liabilities, percentage movement from prior period | (1.00%) | ||
Cash flows from operating activities before changes in operating assets and liabilities, percentage movement from same period in prior year | 62% | ||
Net (increase)/decrease in: | |||
Collateral paid | $ 1,898 | 1,769 | (3,293) |
Collateral paid, percentage movement from prior period | 7% | ||
Trading securities and financial assets measured at FVIS | $ (4,967) | (1,644) | (2,106) |
Trading securities and financial assets measured at FVIS, percentage movement from same period in prior year | 136% | ||
Derivative financial instruments | $ (165) | (553) | 3,004 |
Derivative financial instruments, percentage movement from prior period | (70.00%) | ||
Loans | $ (5,074) | (23,709) | (12,636) |
Loans, percentage movement from prior period | (79.00%) | ||
Loans, percentage movement from same period in prior year | (60.00%) | ||
Other financial assets | $ (148) | (447) | 726 |
Other financial assets, percentage movement from prior period | (67.00%) | ||
Life insurance assets and liabilities | 133 | 133 | |
Life insurance assets and liabilities, percentage movement from prior period | (100.00%) | ||
Life insurance assets and liabilities, percentage movement from same period in prior year | (100.00%) | ||
Other assets | $ 26 | 37 | (17) |
Other assets, percentage movement from prior period | (30.00%) | ||
Net increase/(decrease) in: | |||
Collateral received | $ (2,781) | 3,827 | (184) |
Deposits and other borrowings | $ 13,464 | 13,296 | 21,758 |
Deposits and other borrowings, percentage movement from prior period | 1% | ||
Deposits and other borrowings, percentage movement from same period in prior year | (38.00%) | ||
Other financial liabilities | $ (328) | 5,738 | 1,382 |
Other liabilities | (4) | 8 | 3 |
Net cash provided by/(used in) operating activities | $ 7,915 | $ 4,492 | $ 12,462 |
Net cash provided by/(used in) operating activities, percentage movement from prior period | 76% | ||
Net cash provided by/(used in) operating activities, percentage movement from same period in prior year | (36.00%) |
Notes to the consolidated cas_4
Notes to the consolidated cash flow statements - Details of the assets and liabilities over which control ceased (Details) - AUD ($) $ in Millions | Mar. 31, 2023 | Sep. 30, 2022 | Mar. 31, 2022 |
Assets: | |||
Cash and balances with central banks | $ 117,886 | $ 105,257 | $ 102,410 |
Loans | 749,931 | 739,647 | 719,556 |
Other financial assets | 7,343 | 5,626 | 4,896 |
Deferred tax assets | 1,703 | 1,754 | 1,831 |
Intangible assets | 10,724 | 10,327 | 10,064 |
Other assets | 582 | 734 | 600 |
Total assets | 1,019,108 | 1,014,198 | 964,749 |
Liabilities: | |||
Other financial liabilities | 60,102 | 56,360 | 51,345 |
Current tax liabilities | 363 | 219 | 21 |
Provisions | 2,424 | 2,950 | 3,035 |
Deferred tax liabilities | 164 | ||
Other liabilities | 2,854 | 2,938 | 3,379 |
Total equity attributable to owners of WBC | 72,624 | 70,452 | 70,279 |
Assets and liabilities over which control ceased | |||
Assets: | |||
Cash and balances with central banks | 18 | 169 | |
Loans | 965 | ||
Other financial assets | 18 | 54 | 12 |
Life insurance assets | 2,180 | 186 | |
Deferred tax assets | 39 | ||
Intangible assets | 55 | ||
Other assets | 156 | 12 | |
Total assets | 91 | 2,598 | 1,175 |
Liabilities: | |||
Other financial liabilities | 22 | 32 | 2 |
Current tax liabilities | 2 | ||
Life insurance liabilities | 300 | (115) | |
Provisions | 1 | 48 | 4 |
Deferred tax liabilities | 34 | ||
Other liabilities | 177 | 36 | |
Total Liabilities | 23 | 557 | (37) |
Total equity attributable to owners of WBC | $ 68 | $ 2,041 | $ 1,212 |
Notes to the consolidated cas_5
Notes to the consolidated cash flow statements - Other disclosures for entities over which control ceased (Details) - Assets and liabilities over which control ceased - AUD ($) $ in Millions | 6 Months Ended | ||
Mar. 31, 2023 | Sep. 30, 2022 | Mar. 31, 2022 | |
Details of the assets and liabilities over which control ceased | |||
Cash proceeds received (net of transaction costs) | $ 311 | $ 896 | $ 1,388 |
Expected receivable (completion settlement))/deferred consideration | 33 | 113 | |
Total consideration | 311 | 929 | 1,501 |
Gain/(loss) on disposal | $ 243 | $ (1,112) | $ 289 |
Notes to the consolidated cas_6
Notes to the consolidated cash flow statements - Reconciliation of cash proceeds from disposal (Details) - Assets and liabilities over which control ceased - AUD ($) $ in Millions | 6 Months Ended | ||
Mar. 31, 2023 | Sep. 30, 2022 | Mar. 31, 2022 | |
Reconciliation of cash proceeds from disposal | |||
Cash proceeds received (net of transaction costs) | $ 311 | $ 896 | $ 1,388 |
Less: Cash deconsolidated | (18) | (169) | |
Cash consideration received (net of transaction costs and cash held) | $ 293 | $ 727 | $ 1,388 |
Notes to the consolidated cas_7
Notes to the consolidated cash flow statements - Non-cash financing activities and restricted cash (Details) - AUD ($) $ in Millions | 6 Months Ended | ||
Mar. 31, 2023 | Sep. 30, 2022 | Mar. 31, 2022 | |
Non-cash financing activities | |||
Shares issued under the dividend reinvestment plan | $ 190 | ||
Increase in lease liabilities | $ 158 | $ 146 | $ 98 |
Increase in lease liabilities, percentage movement from prior period | 8% | ||
Increase in lease liabilities, percentage movement from same period in prior year | 61% | ||
Restricted cash | |||
Restricted cash included in cash and balances with central banks | $ 328 | $ 303 | $ 480 |
AAML | |||
Businesses disposed | |||
Proportion of ownership interest in business sold | 100% |
Subsequent events (Details)
Subsequent events (Details) $ / shares in Units, $ in Millions | 6 Months Ended |
Mar. 31, 2023 AUD ($) $ / shares | |
Subsequent events | |
Interim dividend per share determined by the Board | $ / shares | $ 0.70 |
Proposed dividend | $ | $ 2,456 |
Assets and liabilities held f_3
Assets and liabilities held for sale - Summary (Details) - Specialist Businesses - AUD ($) $ in Millions | 6 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2023 | |
Assets and liabilities held for sale | ||
Amount of expense recovery recognized in operating expenses | $ 53 | |
Disposed of by sale | Advance Asset Management Limited | ||
Assets and liabilities held for sale | ||
Pre-tax gain on sale | $ 243 | |
Post-tax gain on sale | $ 256 |
Assets and liabilities held f_4
Assets and liabilities held for sale - Balance sheet presentation (Details) - AUD ($) $ in Millions | Sep. 30, 2022 | Mar. 31, 2022 |
Assets and liabilities held for sale | ||
Total assets held for sale | $ 75 | $ 2,700 |
Total liabilities held for sale | 32 | 684 |
Held for sale | ||
Assets and liabilities held for sale | ||
Total assets held for sale | 75 | 2,700 |
Total liabilities held for sale | 32 | 684 |
Held for sale | Other financial liabilities | ||
Assets and liabilities held for sale | ||
Total liabilities held for sale | 31 | 17 |
Held for sale | Life insurance liabilities | ||
Assets and liabilities held for sale | ||
Total liabilities held for sale | 414 | |
Held for sale | Provisions | ||
Assets and liabilities held for sale | ||
Total liabilities held for sale | 1 | 65 |
Held for sale | Deferred tax liabilities | ||
Assets and liabilities held for sale | ||
Total liabilities held for sale | 3 | |
Held for sale | Other liabilities | ||
Assets and liabilities held for sale | ||
Total liabilities held for sale | 185 | |
Held for sale | Cash and balances with central banks | ||
Assets and liabilities held for sale | ||
Total assets held for sale | 8 | |
Held for sale | Other financial assets | ||
Assets and liabilities held for sale | ||
Total assets held for sale | 20 | 18 |
Held for sale | Life insurance assets | ||
Assets and liabilities held for sale | ||
Total assets held for sale | 2,479 | |
Held for sale | Deferred tax assets | ||
Assets and liabilities held for sale | ||
Total assets held for sale | 43 | |
Held for sale | Intangible assets | ||
Assets and liabilities held for sale | ||
Total assets held for sale | $ 55 | |
Held for sale | Other assets | ||
Assets and liabilities held for sale | ||
Total assets held for sale | $ 152 |