Westpac 1H19 results template and supporting information

ASX
Release

15 April 2019

Westpac Group 2019 Interim Financial Results Template
The Westpac Group has today released the template for its 2019 Interim Financial Results. The
Excel template outlines the changes that are expected to be made in the presentation of Westpac’s
Interim Financial Results and details how key information will be presented (including providing
updated comparative data).
1
The template is available on the Westpac website at
www.westpac.com.au/investorcentre
.
The changes can be summarised as:
1. Changes associated with the adoption of new accounting standards;
2. Changes to the income statement and balance sheet to improve how information is
presented; and
3. Changes across divisional earnings and divisional balance sheets (which have no impact
on the Group result).
The changes have no impact on the Group’s cash earnings, reported net profit or total
assets/liabilities in prior periods but do impact profit and loss (P&L) line items and components of
the balance sheet. To improve comparability, as the accounting standard changes apply
prospectively from 1H19, Westpac is providing proforma cash earnings for FY18 comparatives.
These proforma changes appear in the template.
Appendices 1 and 2 provide details of these changes as well as providing additional background
on how the calculation of impairment charges and provisions have changed. Tables showing
selected updated disclosures are provided in Appendix 3.
It is important to note that these changes do not reflect the recent update to the Group’s
organisational structure announced on 19 March 2019. This was effective on 1 April 2019 and will
be reflected in the Group’s Full Year 2019 results.
The Westpac Group is scheduled to announce its 2019 Interim Financial Results on Monday,
6 May 2019. An Excel spreadsheet of the Interim Financial Results will also be published on the
Westpac website on that date.

Ends.





For Further Information

David Lording
Head of Media Relations

M. 0419 683 411


Andrew Bowden
Head of Investor Relations
T. 02 8253 4008
M. 0438 284 863
1
Some of these changes are subject to review and may change in our 2019 Interim Financial Results

WESTPAC BANKING CORPORATION ABN 33 007 457 141

Appendix 1

For financial year 2019, Westpac adopted new accounting standards (AASB 9 and AASB 15). In
addition, the Group has elected to make certain presentation changes to the balance sheet and
income statement to improve consistency and relevance to users. A summary of key changes
follows:
1. AASB 15 has provided more precise guidance around netting of income and expenses. Certain
items previously netted will now be presented on a gross basis. This includes support
payments from credit card scheme providers which were previously netted against related
expenditures such as marketing, product development, and IT development. The gross amount
received and the expenses incurred are now reflected in fee income and operating expenses
respectively;
2. New accounting standards have defined ‘interest’ income more precisely. As a result,
Business Bank line fees are now treated as net interest income;
3. Costs related to redeeming credit card loyalty points were previously in operating expenses but
are now in fee income, alongside card related income linked to the loyalty program. Both these
items are recognised as points are redeemed;
4. Westpac adopted AASB 9 from 1 October 2018. This means impairment charges have moved
to an expected loss model. This impacts the calculation of impairment charges (P&L) and
impairment provisions (balance sheet). These changes have not been applied to prior periods;
5. As previously advised, on transition to AASB 9 the treatment of the interest carrying adjustment
has changed. This increases both the impairment charge and net interest income.
2

6. Changes have been made to the classification and presentation of certain balance sheet items.
Some balance sheet items had been classified by the nature of the counterparty (for example
regulatory deposits with central banks and balances due to/from financial institutions). These
items will now be classified based on the nature of the item. This has no impact on total loans,
total assets, total deposits or total liabilities. These changes will be presented in Westpac’s
2019 Interim Financial Results announcement, and have not been included in the template;
7. We have realigned divisional earnings and balance sheet disclosures where the management
of certain customers or customer groups belong to a different division:
• Certain commercial customers, previously managed in Business Bank have been
migrated to Westpac Institutional Bank (WIB). The lending, deposits and revenues
associated with these customers are now reported in WIB; and
• Following a review, some revenue recognised in Consumer Bank related to Business
Bank and BT Financial Group customers. This revenue has now been allocated to the
appropriate division;
8. The Group’s expense allocation methodology has been refined to improve the allocation of
support costs to divisions. This will see a greater proportion of strategy, human resources,
finance and risk management costs allocated to divisions from Group Businesses; and
9. Following a review, the allocation of total committed exposures has been refined. Treasury
exposures (related to balance sheet management and liquidity) were previously reflected in
WIB. These are now included in Group Businesses. In addition, the total committed
exposures relating to certain small business customers have now been allocated to Consumer
Bank from Business Bank. These changes also impact certain credit metrics in Consumer
Bank, Business Bank and WIB.

2
This is because the interest carrying adjustment now only applies to Stage 3 loans (impaired and 90+ day past due and
not impaired).

Explanatory slides on
impact of changes in
accounting standards
for Westpac

15 April 2019
Westpac Banking Corporation | ABN 33 007 457 141
Financial results based on cash earnings unless otherwise stated. Refer to the 2018 Full Year
Investor Discussion Pack for definition.
Appendix 2

Slides supporting Interim Financial Results template - April 2019
Summary
1 See slide 3 for further details.

No change to FY18 cash earnings of $8,065m
•Changes have no impact on cash earnings or reported net profit for prior
periods
•However certain line items within cash earnings have changed and
therefore some performance metrics are impacted
Proforma FY18 cash earnings line item comparatives provided
•Prior period line items have been prepared on a proforma basis
•Statutory accounting changes apply prospectively to reported net profit
from 1 October 2018
Major line item presentational changes
•AASB 15 has provided more precise guidance around netting. Certain
income and expenses previously reported on a net basis are now
presented on a gross basis
•All Business Bank line fees are now included in interest income (some
were previously in fee income)
•Costs related to redeeming credit card loyalty points are now in fee income,
alongside card related income linked to the loyalty program
•As advised in our FY18 results, the treatment of the interest carrying
adjustment has changed, increasing both net interest income and
impairment charges
1
Adoption of AASB 9 at 1 October 2018
•On adoption, impairment charges moved to an expected loss model. As
previously advised, this impacted the calculation of impairment charges
(P&L) and impairment provisions (balance sheet). These changes have not
been applied to prior periods
2
In FY19, Westpac has implemented new accounting standards and revised certain disclosures. This has a number of
implications on the way the Group’s financial statements will be presented and how impairment charges are determined.
This pack, together with the results template, explain the changes that have been implemented in 1H19.
Fix format
Statutory net profit ($m)
FY18
as reported
FY18
(updated
disclosure)
Reported net profit 8,095 8,095
Cash earnings ($m)
FY18
as reported
Changes
FY18
Proforma
Net interest income 16,339 848 17,187
Non-interest income 5,612 (634) 4,978
Net operating income 21,951 214 22,165
Operating expenses (9,586) (112) (9,698)
Impairment charges (710) (102) (812)
Cash earnings 8,065 - 8,065
Net interest margin (%) 2.11% 11bps 2.22%
Impairment charges to
average loans (bps)
10bps 2bps 12bps
Expense to income ratio (%) 43.67% 8bps 43.75%

1 All on a proforma basis except card loyalty redemptions which are restated in reported net profit. 2 Expenditure includes marketing, product development and IT system development costs. 3 This is because the
interest carrying adjustment now only applies to Stage 3 loans (Impaired and 90+ day past due and not impaired).

FY18 Cash
earnings ($m)

Line fees
Card scheme support
and card related
expenditure
Card loyalty
redemption costs
Interest carrying
adjustment
Other
Proforma
impact
Net interest 667 - - 115 66 848
Non-interest (667) 190 (126) - (31) (634)
Expenses - (190) 126 - (48) (112)
Impairments - - - (115) 13 (102)
Total 0 0 0 0 0 0
How changes will be reflected in Westpac’s accounts ( = updated for changes,  = no change)
Cash earnings – will be presented on a proforma basis to assist comparability
1
FY18 proforma
    
FY19
    
Reported net profit – Majority of changes apply prospectively from 1H19 so comparisons between FY19 and FY18 will be difficult
FY18
    
FY19     
• Accounting standards
have defined ‘interest’
income more
precisely. As a result
Business Bank line
fees are now treated
as net interest income
• Certain items previously
netted are now presented
on a gross basis. This
includes support
payments from credit card
scheme providers which
were netted against
related expenditure
2
. The
gross amount received
and expenses incurred
are now reflected in fee
income, and operating
expenses respectively
•Costs related to
redeeming credit card
loyalty points were
previously in operating
expenses but are now in
fee income, alongside
card related income linked
to the loyalty program.
Both these items are
recognised as points are
redeemed
• As previously advised, on
transition to AASB 9 the
treatment of the interest
carrying adjustment
changes. This increases
both impairment charges
and net interest income
3

• Variety of smaller, non-
volume related charges
now in operating
expenses, as opposed to
being netted against
revenue
• Cost of debt recoveries
were previously netted in
impairment charges, now
in expenses
Slides supporting Interim Financial Results template - April 2019
Presentational changes




3

0.14
0.39
0.55
98.92
Stage 2 category reflects loans that are
graded as still performing in our internal risk
grades but have experienced a significant
increase in credit risk since origination.
Migration from Stage 1 to Stage 2 is driven
primarily by changes in PD
2
risk grade. In
retail portfolios, customer and account
behaviours, including arrears, are key
drivers of risk grade movements
Slides supporting Interim Financial Results template - April 2019
AASB 9 : Changes to calculation of impairment charges
1 Diagram is not to scale for comparability purposes. 2 Probability of default.
4
Fully
performing
Watchlist &
substandard
Impaired
90+ day past
due and not
impaired
Stage 1
Stage 2
Stage 3
Collective
provisions
Impaired
asset
provisions
Conceptual comparison of prior disclosure with new disclosure
1


•Stage 1: Performing
•Provision amount: 12 months expected loss
based on future economic conditions
•Provision compared to AASB 139: Similar
methodology, dependent on AASB 139
emergence period.



•Stage 2: Performing but significant increase in
credit risk since origination
•Provision amount: Lifetime expected loss
based on future economic conditions
•Provision compared to AASB 139: Increase
in provision to reflect lifetime expected losses

•Stage 3: Non-performing and impaired assets
•Provision amount: Lifetime expected credit
losses based on future economic conditions
•Provision compared to AASB 139:
Generally consistent with AASB 139
Exposures as a % of TCE (not to scale)
30-Sep-18
1-Oct-18
Non-stressed
but significant
increase in
credit risk

Appendix 3
2019 Interim Financial Results
Template

1.1 Reported results

% Mov't
% Mov't

Half YearHalf YearHalf YearMar 19 -Mar 19 -
$mMarch 19Sept 18March 18Sept 18Mar 18
Net interest income
8,2278,278
Net fee income
1,1461,278
Net wealth management and insurance income
1,110951
Trading income
458487
Other income
(17)89
Net operating income before operating expenses
and impairment charges
10,92411,083
Operating expenses
(4,911)(4,655)
Net profit before impairment charges and
income tax expense
6,0136,428
Impairment charges
(317)(393)
Profit before income tax
5,6966,035
Income tax expense
(1,797)(1,835)
Net profit for the period
3,8994,200
Net profit attributable to non-controlling interests
(2)(2)
Net profit attributable to owners of Westpac
Banking Corporation3,8974,198

1.2 Key financial information
% Mov't
% Mov't
Half Year
March 19
Half Year
Sept 18
Half Year
March 18
Mar 19 -
Sept 18
Mar 19 - Mar
18
Shareholder value
Earnings per ordinary share (cents)113.8123.7
Weighted average ordinary shares (millions)3,4213,392
Fully franked dividends per ordinary share (cents)9494
Return on average ordinary equity12.34%13.79%
Average ordinary equity ($m)62,97861,051
Average total equity ($m)63,02661,065
Net tangible asset per ordinary share ($)15.3915.00
Business performance
Interest spread1.92%2.00%
Benefit of net non-interest bearing assets, liabilities and equity0.18%0.16%
Net interest margin 2.10%2.16%
Average interest-earning assets ($m)782,834767,011
Expense to income ratio44.96%42.00%
Capital, funding and liquidity
Common equity Tier 1 capital ratio
- APRA Basel III 10.63%10.50%
- Internationally comparable16.14%16.13%
Credit risk weighted assets (credit RWA) ($m) 362,749361,391
Total risk weighted assets (RWA) ($m) 425,384415,744
Liquidity coverage ratio (LCR)133%134%
Net stable funding ratio (NSFR)114%112%
Asset quality
Gross impaired assets to gross loans0.20%0.22%
Gross impaired assets to equity and total provisions2.09%2.33%
Gross impaired asset provisions to gross impaired assets46.12%45.54%
Total committed exposures (TCE) ($m)1,038,0061,023,017
Total stressed exposures as a % of TCE1.08%
1.09%
Total loan provisions to gross loans43bps45bps
Mortgage 90+ day delinquencies0.67%0.65%
Other consumer loans 90+ day delinquencies1.64%1.64%
Collectively assessed provisions to credit RWA73bps75bps
Balance sheet ($m)
Loans709,690701,393
Total assets879,592871,855
Deposits and other borrowings559,285547,736
Total liabilities815,019809,190
Total equity64,57362,665
Wealth Management
Average Group Funds ($bn)217.3217.3
Life insurance in-force premiums (Australia) ($m)
1,2771,276
General insurance gross written premiums (Australia) ($m)
252251

1.3 Cash earnings results
% Mov't% Mov't
$m
Half Year
March 19
Half Year
Sept 18
Half Year
March 18
Mar 19 -
Sept 18
Mar 19 -
Mar 18
Net interest income
8,4708,717
Non-interest income
2,4562,522
Net operating income
10,92611,239
Operating expenses
(5,007)(4,691)
Core earnings
5,9196,548
Impairment charges
(368)(444)
Operating profit before income tax
5,5516,104
Income tax expense
(1,735)(1,851)
Net profit
3,8164,253
Net profit attributable to non-controlling interests
(2)(2)
Cash earnings3,8144,251
1.3.1 Key financial information - cash earnings basis
% Mov't% Mov't
Half Year
March 19
Half Year
Sept 18
Half Year
March 18
Mar 19 -
Sept 18
Mar 19 -
Mar 18
Shareholder value
Cash earnings per ordinary share (cents)
111.2125.0
Economic profit ($m)
1,3952,049
Weighted average ordinary shares (millions)
3,4293,400
Dividend payout ratio
84.66%75.28%
Cash earnings on average ordinary equity (ROE)
12.08%13.96%
Cash earnings on average tangible ordinary equity (ROTE)
14.27%16.60%
Average ordinary equity ($m)
62,97861,051
Average tangible ordinary equity ($m)
53,32751,344
Business performance
Interest spread
1.98%2.11%
Benefit of net non-interest bearing assets, liabilities and equity
0.18%0.17%
Net interest margin
2.16%2.28%
Average interest-earning assets ($m)
782,834767,011
Expense to income ratio
45.83%41.74%
Full time equivalent employees (FTE)
35,02935,720
Revenue per FTE ($ '000's)
309317
Effective tax rate
31.26%30.32%
Impairment charges
Loan impairment charges to average loans annualised
10bps13bps
Net write-offs to average customer loans annualised
14bps13bps

1.3.1 Reconciliation of reported results to cash earnings

% Mov't% Mov't

Half YearHalf YearHalf YearMar 19 -Mar 19 -
$mMarch 19Sept 18March 18Sept 18Mar 18
NET PROFIT ATTRIBUTABLE TO OWNERS OF
WESTPAC BANKING CORPORATION
3,8974,198
Amortisation of intangible assets
-17
Fair value (gain)/loss on economic hedges
(163)37
Ineffective hedges
49
Adjustments related to Pendal (previously BTIM)
73-
Treasury shares
3(10)
Total cash earnings adjustments (post-tax)
(83)53
Cash earnings
3,8144,251

2.1 Divisional cash earnings summary
Half Year March 19
BT FinancialWestpacWestpac

Consumer
BusinessGroupInstitutional
New ZealandGroup
$mBankBank(Australia)Bank(A$)BusinessesGroup
Net interest income
Non-interest income
Net operating income
Operating expenses
Core earnings
Impairment (charges) / benefits
Operating profit before income tax
Income tax expense
Net profit
Non-controlling interests
Cash earnings
Half Year Sept 18
BT FinancialWestpacWestpac

Consumer
BusinessGroupInstitutionalNew ZealandGroup
$mBankBank(Australia)Bank(A$)BusinessesGroup
Net interest income
3,7602,362302754
917375
8,470
Non-interest income
392315735812181212,456
Net operating income
4,1522,6771,0371,5661,09839610,926
Operating expenses
(1,883)(967)(682)(771)(429)(275)
(5,007)
Core earnings
2,2691,7103557956691215,919
Impairment (charges) / benefits
(236)
(164)(4)91314(368)
Operating profit before income tax
2,0331,5463518046821355,551
Income tax expense
(620)(466)(110)(264)(188)(87)(1,735)
Net profit
1,4131,080241540494
483,816
Non-controlling interests
-
--(2)--(2)
Cash earnings
1,4131,080241538494483,814
Mov't Mar 19 - Sept 18

BT FinancialWestpacWestpac

Consumer
BusinessGroupInstitutionalNew ZealandGroup
%BankBank
(Australia)Bank(A$)BusinessesGroup
Net interest income
Non-interest income
Net operating income
Operating expenses
Core earnings
Impairment (charges) / benefits
Operating profit before income tax
Income tax expense
Net profit
Non-controlling interests
Cash earnings

2.1 Divisional cash earnings summary
Half Year March 19
BT FinancialWestpacWestpac

Consumer
BusinessGroupInstitutional
New ZealandGroup
$mBankBank(Australia)Bank(A$)BusinessesGroup
Net interest income
Non-interest income
Net operating income
Operating expenses
Core earnings
Impairment (charges) / benefits
Operating profit before income tax
Income tax expense
Net profit
Non-controlling interests
Cash earnings
Half Year March 18
BT FinancialWestpacWestpac

Consumer
BusinessGroupInstitutionalNew ZealandGroup
$mBankBank(Australia)Bank(A$)BusinessesGroup
Net interest income
4,0892,328294688
882436
8,717
Non-interest income
370311881753192152,522
Net operating income
4,4592,6391,1751,4411,07445111,239
Operating expenses
(1,766)(948)(590)(678)(426)(283)
(4,691)
Core earnings
2,6931,6915857636481686,548
Impairment (charges) / benefits
(250)
(148)(4)6(35)(13)(444)
Operating profit before income tax
2,4431,5435817696131556,104
Income tax expense
(734)(463)(175)(212)(173)(94)(1,851)
Net profit
1,7091,080406557440
614,253
Non-controlling interests
-
--(3)-1(2)
Cash earnings
1,7091,080406554440624,251
Mov't Mar 19 - Mar 18

BT FinancialWestpacWestpac

Consumer
BusinessGroupInstitutionalNew ZealandGroup
%BankBank
(Australia)Bank(A$)BusinessesGroup
Net interest income
Non-interest income
Net operating income
Operating expenses
Core earnings
Impairment (charges) / benefits
Operating profit before income tax
Income tax expense
Net profit
Non-controlling interests
Cash earnings

2.2.1 Net interest income
% Mov't% Mov't
$m
Half Year
March 19
Half Year
Sept 18
Half Year
March 18
Mar 19 -
Sept 18
Mar 19 -
Mar 18
Net interest income
Net interest income excluding Treasury & Markets8,0828,258
Treasury net interest income322396
Market net interest income6663
Net interest income8,4708,717
Average interest-earning assets
Loans665,227651,943
Third party liquid assets97,90993,357
Other interest-earning assets19,69821,711
Average interest-earning assets782,834767,011
Net interest margin
Group net interest margin2.16%2.28%
Group net interest margin excluding Treasury & Markets2.06%2.16%

2.2.2 Loans

As atAs atAs at
% Mov't% Mov't
$m
31 March
2019
30 Sept
2018
31 March
2018
Mar 19 -
Sept 18
Mar 19 -
Mar 18
Australia619,630610,397
Housing444,741437,239
Personal22,99723,752
Business154,347151,904
Provisions(2,455)(2,498)
New Zealand (A$)74,04574,687

New Zealand (NZ$)80,86079,557
Housing48,89347,907
Personal
2,0402,128
Business30,25129,898
Provisions(324)(376)
Other overseas (A$)16,01516,309
Total loans709,690701,393

2.2.3 Deposits and other borrowings
As atAs atAs at
% Mov't% Mov't
$m
31 March
2019
30 Sept
2018
31 March
2018
Mar 19 -
Sept 18
Mar 19 -
Mar 18
Customer deposits
Australia446,667429,852
At call233,052227,021
Term171,832161,864
Non-interest bearing41,78340,967
New Zealand (A$)56,67157,856
New Zealand (NZ$)61,88761,628
At call23,33924,164
Term32,64531,595
Non-interest bearing5,9035,869
Other overseas (A$)14,41314,355
Total customer deposits517,751502,063
Certificates of deposit41,53445,673
Australia28,74630,387
New Zealand (A$)1,116521
Other overseas (A$)11,67214,765
Total deposits and other borrowings559,285547,736

2.2.5 Non-Interest Income
% Mov't% Mov't
$m
Half Year
March 19
Half Year
Sept 18
Half Year
March 18
Mar 19 -
Sept 18
Mar 19 -
Mar 18
Net fee income8931,017
Net wealth management and insurance income1,088929
Trading income419507
Other income5669
Non-interest income 2,4562,522

2.2.8 Operating Expenses
% Mov't% Mov't
$m
Half Year
March 19
Half Year
Sept 18
Half Year
March 18
Mar 19 -
Sept 18
Mar 19 -
Mar 18
Staff expenses(2,518)(2,419)
Occupancy expenses(477)(475)
Technology expenses(1,086)(1,058)
Other expenses(926)(739)
Total operating expenses (5,007)(4,691)
Investment Spend
% Mov't% Mov't
$m
Half Year
March 19
Half Year
Sept 18
Half Year
March 18
Mar 19 -
Sept 18
Mar 19 -
Mar 18
Expensed312271
Capitalised software and fixed assets494387
Total806658
Growth and productivity479411
Regulatory change214163
Other technology11384
Total806658

2.2.9 Impairment charges
% Mov't% Mov't
$m
Half Year
March 19
Half Year
Sept 18
Half Year
March 18
Mar 19 -
Sept 18
Mar 19 -
Mar 18
Individually assessed provisions (IAPs)
New IAPs(198)(173)
Write-backs8367
Recoveries85107
Total IAPS, writebacks and recoveries(30)1
Collectively assessed provisions (CAPs)
Write-offs(428)(430)
Other changes in CAPs90(15)
Total new CAPs(338)(445)
Impairment charges (368)(444)

2.3.1 Credit Quality key metrics
As atAs atAs at
31 March30 Sept31 March
201920182018
Stressed exposures by credit grade as a % of TCE:
Impaired
0.14%0.15%
90 days past due and not impaired
0.39%0.37%
Watchlist and substandard
0.55%0.57%
Total stressed exposures
1.08%1.09%

Gross impaired assets to TCE for business and institutional:
Business Australia
0.54%0.55%
Business New Zealand
0.50%0.74%
Institutional 0.02%0.04%

Mortgage 90+ day delinquencies:
Group
0.67%0.65%
Australia
0.72%0.69%
New Zealand
0.11%0.16%

Other consumer loans 90+ day delinquencies:
Group1.64%1.64%
Australia1.73%1.71%
New Zealand0.62%0.86%

Other:
Gross impaired assets to gross loans 0.20%0.22%
Gross impaired asset provisions to gross impaired assets46.12%45.54%
Total loan provisions to gross loans43bps45bps
Collective assessed provisions to credit risk weighted assets73bps75bps
Total provisions to credit risk weighted assets84bps88bps
Loan impairment charges to average loans annualised10bps13bps
Net write-offs to average loans annualised14bps13bps

2.4.1 Balance sheet
As atAs atAs at% Mov't% Mov't
$m
31 March
2019
30 Sept
2018
31 March
2018
Mar 19 -
Sept 18
Mar 19 -
Mar 18
Assets
Cash and balances with central banks
26,78821,932
Collateral paid
4,7873,835
Trading securities and financial assets measured at fair value,
available-for-sale securities and investment securities
84,25186,450
Derivative financial instruments
24,10126,904
Loans
709,690701,393
Life insurance assets
9,45010,481
Other assets
20,52520,860
Total assets
879,592871,855
Liabilities
Collateral received
2,1843,331
Deposits and other borrowings559,285547,736
Other financial liabilities
28,10529,750
Derivative financial instruments
24,40724,066
Debt issues
172,596174,138
Life insurance liabilities
7,5978,763
Loan capital
17,26518,333
Other liabilities
3,5803,073
Total liabilities
815,019809,190
Equity
Total equity attributable to owners of Westpac Banking Corporation
64,52162,615
Non-controlling interests
5250
Total equity64,57362,665

3.1 Consumer Bank
% Mov't% Mov't
$m
Half Year
March 19
Half Year
Sept 18
Half Year
March 18
Mar 19 -
Sept 18
Mar 19 -
Mar 18
Net interest income3,7604,089
Non-interest income392370
Net operating income4,1524,459
Operating expenses(1,883)(1,766)
Core earnings2,2692,693
Impairment charges(236)(250)
Operating profit before tax2,0332,443
Tax and non-controlling interests(620)(734)
Cash earnings1,4131,709
Economic profit8221,255
Expense to income ratio45.35%39.61%
Net interest margin2.14%2.40%
As atAs atAs at% Mov't% Mov't
$bn
31 March
2019
30 Sept
2018
31 March
2018
Mar 19 -
Sept 18
Mar 19 -
Mar 18
Deposits
Term deposits63.9 58.1
Other142.3 141.3
Total deposits206.2 199.4
Net loans
Mortgages373.0 366.0
Other13.3 13.6
Provisions(0.9) (0.9)
Total net loans385.4 378.7
Deposit to loan ratio53.50%52.65%
Total assets392.5 386.0
TCE452.7 445.7
Average interest-earning assets350.3 342.2
As atAs atAs at
31 March
2019
30 Sept
2018
31 March
2018
Credit quality
Loan impairment charges to average loans annualised0.12%0.13%
Mortgage 90+ day delinquencies0.74%0.72%
Other consumer loans 90+ day delinquencies1.50%1.61%
Total stressed assets to TCE0.65%0.64%

3.2 Business Bank
% Mov't% Mov't
$m
Half Year
March 19
Half Year
Sept 18
Half Year
March 18
Mar 19 -
Sept 18
Mar 19 -
Mar 18
Net interest income
2,3622,328
Non-interest income
315311
Net operating income
2,6772,639
Operating expenses
(967)(948)
Core earnings
1,7101,691
Impairment charges
(164)(148)
Operating profit before tax
1,5461,543
Tax and non-controlling interests
(466)(463)
Cash earnings
1,0801,080
Economic profit
711717
Expense to income ratio
36.12%35.92%
Net interest margin3.17%3.19%
As atAs atAs at% Mov't% Mov't
$bn
31 March
2019
30 Sept
2018
31 March
2018
Mar 19 -
Sept 18
Mar 19 -
Mar 18
Deposits
Term deposits
46.8 45.0
Other
63.9 63.1
Total deposits
110.7 108.1
Net loans
Mortgages
54.9 54.7
Business
90.5 89.3
Other
8.3 8.6
Provisions
(1.1) (1.1)
Total net loans
152.6 151.5
Deposit to loan ratio
72.54%71.35%
Total assets
156.4 154.7
TCE
191.8 192.2
Average interest-earning assets148.4 146.3
As atAs atAs at
31 March
2019
30 Sept
2018
31 March
2018
Credit quality
Loan impairment charges to average loans annualised
0.21%0.20%
Mortgage 90+ day delinquencies
0.73%0.66%
Other consumer loans 90+ day delinquencies
2.11%1.90%
Business: impaired assets to TCE
0.55%0.55%
Total stressed assets to TCE2.79%2.56%

3.3 BT Financial Group (Australia)
% Mov't% Mov't
$m
Half Year
March 19
Half Year
Sept 18
Half Year
March 18
Mar 19 -
Sept 18
Mar 19 -
Mar 18
Net interest income302294
Non-interest income735881
Net operating income1,0371,175
Operating expenses(682)(590)
Core earnings355585
Impairment charges(4)(4)
Operating profit before tax351581
Tax and non-controlling interests(110)(175)
Cash earnings241406
Economic profit117335
Expense to income ratio65.77%50.21%
Income on invested capital33 25
As atAs atAs at% Mov't% Mov't
$bn
31 March
2019
30 Sept
2018
31 March
2018
Mar 19 -
Sept 18
Mar 19 -
Mar 18
Deposits33.0 31.7
Net loans
Loans21.0 20.8
Provisions- -
Total net loans21.020.8
Deposit to loan ratio157.14%152.40%
Total funds205.6 197.7
Average funds205.2 198.2
Cash earnings% Mov't% Mov't
$m
Half Year
March 19
Half Year
Sept 18
Half Year
March 18
Mar 19 -
Sept 18
Mar 19 -
Mar 18
Funds Management business74255
Insurance145133
Total Funds Management and Insurance219388
Capital and other22 18
Total cash earnings241 406

3.3.1 Funds Management business
% Mov't% Mov't
$m
Half Year
March 19
Half Year
Sept 18
Half Year
March 18
Mar 19 -
Sept 18
Mar 19 -
Mar 18
Net interest income300290
Non-interest income434614
Net operating income734904
Operating expenses(619)(533)
Core earnings115371
Impairment charges(4)(5)
Operating profit before tax111366
Tax and non-controlling interests(37)(111)
Cash earnings74255
Expense to income ratio84.33%58.96%
Movement of Group Funds
As at
As atAs at% Mov't% Mov't
31 March
2019
Net
Flows
Other
Mov't
30 Sept
2018
31 March
2018
Mar 19 -
Sept 18
Mar 19 -
Mar 18
Superannuation39.337.4
Platforms122.9118.6
Packaged Funds39.638.0
Other3.83.7
Total Funds205.6197.7
3.3.2 Insurance business
% Mov't% Mov't
$m
Half Year
March 19
Half Year
Sept 18
Half Year
March 18
Mar 19 -
Sept 18
Mar 19 -
Mar 18
Net interest income23
Non-interest income269243
Net operating income271246
Operating expenses(60)(55)
Core earnings211191
Impairment (charges) / benefits--
Operating profit before tax211191
Tax and non-controlling interests(66)(58)
Cash earnings145133
Expense to income ratio22.14%22.36%
Cash earnings% Mov't% Mov't
$m
Half Year
March 19
Half Year
Sept 18
Half Year
March 18
Mar 19 -
Sept 18
Mar 19 -
Mar 18
Life Insurance7175
General Insurance6243
Lenders Mortgage Insurance1215
Total cash earnings145133
Insurance key metrics
Life Insurance in-force premiums% Mov't% Mov't
$m
Half Year
March 19
Half Year
Sept 18
Half Year
March 18
Mar 19 -
Sept 18
Mar 19 -
Mar 18
Life Insurance in-force premiums at start of period
1,2761,068
Sales / New Business
80283
Lapses(79)(75)
Life Insurance in-force premiums at end of period1,2771,276
Claims ratios for Insurance Business% Mov't% Mov't
(%)
Half Year
March 19
Half Year
Sept 18
Half Year
March 18
Mar 19 -
Sept 18
Mar 19 -
Mar 18
Life Insurance
4244
General Insurance
3754
Lenders Mortgage Insurance
1120
Gross written premiums% Mov't% Mov't
$m
Half Year
March 19
Half Year
Sept 18
Half Year
March 18
Mar 19 -
Sept 18
Mar 19 -
Mar 18
General Insurance gross written premium252251
Lenders Mortgage Insurance gross written premium9090
$bnInflowsOutflows

3.4 Westpac Institutional Bank
% Mov't% Mov't
$m
Half Year
March 19
Half Year
Sept 18
Half Year
March 18
Mar 19 -
Sept 18
Mar 19 -
Mar 18
Net interest income754688
Non-interest income812753
Net operating income1,5661,441
Operating expenses(771)(678)
Core earnings795763
Impairment (charges) / benefits96
Operating profit before tax804769
Tax and non-controlling interests(266)(215)
Cash earnings538554
Economic profit259227
Expense to income ratio49.23%47.05%
Net interest margin1.74%1.60%
As atAs atAs at% Mov't% Mov't
$bn
31 March
2019
30 Sept
2018
31 March
2018
Mar 19 -
Sept 18
Mar 19 -
Mar 18
Deposits104.9 99.0
Net loans
Loans77.7 76.6
Provisions(0.3) (0.3)
Total net loans77.4 76.3
Deposit to loan ratio 135.53%129.75%
Total assets102.5 105.0
TCE173.2 167.5
Average interest-earning assets86.3 86.4
Loan impairment charges/(benefits) to average loans annualised(0.02%)(0.02%)
Impaired assets to TCE0.03%0.06%
Total stressed assets to TCE0.66%0.78%
Total Funds- 6.6
Revenue contribution
% Mov't% Mov't
$m
Half Year
March 19
Half Year
Sept 18
Half Year
March 18
Mar 19 -
Sept 18
Mar 19 -
Mar 18
Lending and deposit revenue862807
Markets, sales and fee income439451
Total customer revenue1,3011,258
Derivative valuation adjustments14-
Trading revenue60161
Hastings18023
Other11(1)
Total WIB revenue1,566 1,441

3.5 Westpac New Zealand
% Mov't% Mov't
NZ$m
Half Year
March 19
Half Year
Sept 18
Half Year
March 18
Mar 19 -
Sept 18
Mar 19 -
Mar 18
Net interest income
994964
Non-interest income
196210
Net operating income
1,1901,174
Operating expenses
(464)(466)
Core earnings
726708
Impairment (charges) / benefits
13(38)
Operating profit before tax
739670
Tax and non-controlling interests
(205)(188)
Cash earnings
534482
Economic profit
252207
Expense to income ratio
38.99%39.69%
Net interest margin2.25%2.24%
As atAs atAs at% Mov't% Mov't
NZ$bn
31 March
2019
30 Sept
2018
31 March
2018
Mar 19 -
Sept 18
Mar 19 -
Mar 18
Customer Deposits
Term deposits
32.6 31.6
Other
29.3 30.0
Total customer deposits
61.9 61.6
Net loans
Mortgages
48.9 47.9
Business
29.8 29.5
Other
2.0 2.1
Provisions
(0.3) (0.4)
Total net loans
80.4 79.1
Deposit to loan ratio
76.99%77.88%
Total assets
90.0 89.8
TCE
112.0 111.7
Third party liquid assets
7.5 8.6
Average interest-earning assets
88.1 86.3
Total Funds10.7 10.3
As atAs atAs at
31 March
2019
30 Sept
2018
31 March
2018
Credit quality
Loan impairment charges/(benefits) to average loans annualised
(0.03%)0.10%
Mortgage 90+ day delinquencies
0.11%0.16%
Other consumer loans 90+ day delinquencies
0.62%0.86%
Impaired assets to TCE
0.15%0.21%
Total stressed assets to TCE1.57%1.86%

3.6 Group Businesses
% Mov't% Mov't
$m
Half Year
March 19
Half Year
Sept 18
Half Year
March 18
Mar 19 -
Sept 18
Mar 19 -
Mar 18
Net interest income
375436
Non-interest income
2115
Net operating income
396451
Operating expenses
(275)(283)
Core earnings
121168
Impairment (charges) / benefits
14(13)
Operating profit before tax
135155
Tax and non-controlling interests
(87)(93)
Cash earnings4862
Treasury% Mov't% Mov't
$m
Half Year
March 19
Half Year
Sept 18
Half Year
March 18
Mar 19 -
Sept 18
Mar 19 -
Mar 18
Net interest income
331406
Non-interest income
46
Net operating income
335412
Cash earnings211269

Note 1. Interest spread and margin analysis (cash earnings basis)
Half Year
March 19
Half Year
Sept 18
Half Year
March 18
Group
Average interest-earning assets ($m)782,834767,011
Net interest income ($m)8,4708,717
Interest spread1.98%2.11%
Benefit of net non-interest bearing assets, liabilities and equity0.18%0.17%
Net interest margin2.16%2.28%
Analysis by division
Average interest-earning assets ($m)
Consumer Bank350,332342,168
Business Bank148,434146,252
BT Financial Group 18,95018,388
Westpac Institutional Bank86,25086,380
Westpac New Zealand (A$)81,29179,021
Group Businesses97,57794,802
Group total782,834767,011
Westpac New Zealand (NZ$)88,13286,309
Net interest income ($m)
Consumer Bank3,7604,089
Business Bank2,3622,328
BT Financial Group 302294
Westpac Institutional Bank754688
Westpac New Zealand (A$)917882
Group Businesses375436
Group total8,4708,717
Westpac New Zealand (NZ$)994964
Interest margin
Consumer Bank2.14%2.40%
Business Bank3.17%3.19%
BT Financial Group 3.18%3.21%
Westpac Institutional Bank1.74%1.60%
Westpac New Zealand (NZ$)2.25%2.24%
Group Businesses0.77%0.92%
Group total2.16%2.28%

Note 2. Average balance sheet and interest rates (cash earnings basis)

AverageInterestAverageAverageInterestAverageAverageInterestAverage

balance ratebalance ratebalance
rate

$m$m%$m$m%$m$m%
Assets
Interest earning assets
Collateral paid
8,242741.87,927551.4
Trading securities and other financial assets measured at fair value
23,591281
2.424,648
2832.3
Available-for-sale securities
62,0549843.261,023
9303.1
Investment securities
------
Loans and other receivables
688,94715,5794.5673,41315,2514.5
Total interest earning assets and interest income782,83416,9184.3767,01116,5194.3
Non-interest earning assets
Derivative financial instruments
35,27134,130
Life insurance assets
10,57510,753
All other assets
64,52564,102
Total non-interest earning assets110,371108,985
Total assets893,205875,996
Liabilities
Interest bearing liabilities
Collateral received
3,035271.82,782
181.3
Deposits and other borrowings
505,0474,6531.8494,8714,3681.8
Loan capital
18,059398
4.4
17,935376
4.2
Other interest bearing liabilities
196,0643,3703.4193,1883,040
3.2
Total interest bearing liabilities and interest expense722,2058,4482.3708,7767,8022.2
Non-interest bearing liabilities
Deposits and other borrowings
48,05347,108
Derivative financial instruments
38,08936,916
Life insurance policy liabilities
8,7369,013
All other liabilities
13,096
13,118
Total non-interest bearing liabilities107,974106,155
Total liabilities830,179814,931
Shareholders' equity
62,97861,051
Non-controlling interests
4814
Total equity63,02661,065
Total liabilities and equity893,205875,996
Loans and other receivables
Australia
583,74313,3394.6573,58813,1494.6
New Zealand
74,8921,8154.872,9071,7764.9
Other overseas
30,3124252.826,9183262.4
Deposits and other borrowings
Australia
424,2143,7281.8419,7863,5801.7
New Zealand
52,4586192.450,2725772.3
Other overseas28,3753062.224,813211
1.7
Half YearHalf YearHalf Year
31 March 201930 September 201831 March 2018

Note 3. Net interest income (cash earnings basis)
% Mov't% Mov't
Half YearHalf YearHalf YearMar 19 -Mar 19 -
$mMarch 19Sept 18March 18Sept 18Mar 18
Interest income
Cash and balances with central banks185141
Collateral paid7455
Net ineffectiveness on qualifying hedges--
Trading securities and financial assets measured at FVIS281283
Available-for-sale securities984930
Investment securities--
Loans15,37515,094
Other interest income1916
Total interest income16,91816,519
Interest expense
Collateral received(27)(18)
Deposits and other borrowings(4,653)(4,368)
Trading liabilities(579)(564)
Debt issues(2,392)(2,088)
Loan capital(398)(376)
Bank levy(192)(186)
Other interest expense(207)(202)
Total interest expense(8,448)(7,802)
Total net interest income8,4708,717

Note 4. Non-interest income (cash earnings basis)
% Mov't% Mov't
Half YearHalf YearHalf YearMar 19 -Mar 19 -
$mMarch 19Sept 18March 18Sept 18Mar 18
Net fee income
Facility fees387405
Transaction fees644624
Other non-risk fee income(32)103
Fee income9991,132
Credit card loyalty programs(56)(70)
Other transaction fees(50)(45)
Fee expenses(106)(115)
Net fee income 8931,017
Net wealth management and insurance income
Wealth management income638507
Life insurance premium income758652
General and lenders mortgage insurance net
premiums earned232240
Total insurance premiums990892
Life insurance commissions, investment income
and other income417205
General and lenders mortgage insurance commissions,
investment and other income2228
Total insurance commissions, investment income
and other income439233
Life insurance claims and changes in life
insurance liabilities(855)(541)
General and lenders mortgage insurance claims
incurred, underwriting and commission expenses(124)(162)
Total insurance claims, changes in policy
liabilities and commissions(979)(703)
Net wealth management and insurance income1,088929
Trading income419507
Other operating income
Dividends received from other entities21
Net gain on sale of associates--
Net gain on disposal of assets1410
Net gain/(loss) on derivatives held for risk
management purposes1814
Net gain/(loss) on financial instruments measured
at fair value1226
Gain/(loss) on disposal of controlled entities-(9)
Rental income on operating leases1214
Share of associates' net profit/(loss)(7)(3)
Other516
Total other operating income5669
Total non-interest income2,4562,522
Wealth management and insurance income reconciliation
% Mov't% Mov't
Half YearHalf YearHalf YearMar 19 -Mar 19 -
$m March 19Sept 18March 18Sept 18Mar 18
BTFG non-interest income735881
Net fee and banking income101(61)
BTFG net wealth management and insurance income 836820
NZ net wealth management and insurance income7277
WIB net wealth management income18032
Total net wealth management and insurance income1,088929

Note 5. Operating expenses (cash earnings basis)
% Mov't% Mov't
$m
Half Year
March 19
Half Year
Sept 18
Half Year
March 18
Mar 19 -
Sept 18
Mar 19 -
Mar 18
Staff expenses
Employee remuneration, entitlements and on-costs2,2022,140
Superannuation expense189197
Share based payments4748
Restructuring costs8034
Total staff expenses2,5182,419

Occupancy expenses
Operating lease rentals313319
Depreciation of property and equipment7985
Other8571
Total occupancy expenses477475
Technology expenses
Amortisation and impairment of software assets317303
Depreciation and impairment of IT equipment6873
Technology services383346
Software and maintenance and licenses169193
Telecommunications110105
Data processing3938
Total technology expenses1,0861,058
Other expenses
Professional and processing services482420
Amortisation and impairment of intangible assets9518
Postage and stationery8795
Advertising98105
Non-lending losses9340
Other expenses7161
Total other expenses926739
Operating expenses5,0074,691

Note 8. Group earnings reconciliation
Six months to 31 March 2019

Fair value




Amortisation
(gain)/loss

Adjustment



Reportedof intangible
on economicIneffectiverelated toTreasuryPresentation
Cash
$mresultsassets
hedgeshedgesPendalshareschanges
earnings
Net interest income
Non-interest income
Net operating income
Operating expenses
Core earnings
Impairment charges
Operating profit before tax
Income tax expense
Net profit
Net profit attributable to
non-controlling interests
NET PROFIT ATTRIBUTABLE TO
OWNERS OF WBC
WBC Cash Earnings adjustments:
Amortisation of intangible assets
Fair value (gain)/loss on economic
hedges
Ineffective hedges
Adjustment related to Pendal
Treasury shares
Cash earnings

Six months to 31 March 2019 PolicyholderMerchantsOtherInterest


Operatingtaxand cardfees andcarrying
Presentation
$m
leasesrecoveriesLine Feesschemesexpenses
adjustment
changes
Net interest income
Non-interest income
Net operating income
Operating expenses
Core earnings
Impairment charges
Operating profit before tax
Income tax expense
Net profit
Net profit attributable to
non-controlling interests
NET PROFIT ATTRIBUTABLE TO
OWNERS OF WBC
Six months to 30 September 2018

Fair value


Amortisation
(gain)/loss

Adjustment


Reportedof intangible
on economicIneffectiverelated toTreasuryPresentationCash
$mresultsassets
hedgeshedges
Pendalshareschangesearnings
Net interest income8,227-(194)5--4328,470
Non-interest income2,697-(38)-1042(309)2,456
Net operating income10,924-(232)5104212310,926
Operating expenses(4,911)-----(96)(5,007)
Core earnings6,013-(232)51042275,919
Impairment charges(317)-----(51)(368)
Operating profit before tax5,696-(232)51042(24)5,551
Income tax expense(1,797)-69(1)(31)124(1,735)
Net profit3,899-(163)4733-3,816
Net profit attributable to
non-controlling interests(2)------(2)
NET PROFIT ATTRIBUTABLE TO
OWNERS OF WBC3,897-(163)4733-3,814
WBC Cash Earnings adjustments:
Amortisation of intangible assets
-------
-
Fair value (gain)/loss on economic
hedges
(163)-163-
----
Ineffective hedges4--(4)----
Adjustment related to Pendal73---(73)---
Treasury shares3----(3)--
Cash earnings
3,814
------
3,814

Cash earnings adjustments

Cash Earnings adjustments

Six months to 30 September 2018 PolicyholderMerchantsOtherInterest

Operatingtaxand cardfees andcarrying
Presentation
$m
leases
recoveriesLine fees
schemesexpensesadjustment
Changes
Net interest income--340-3557
432
Non-interest income(35)(24)(340)113(23)-
(309)
Net operating income(35)(24)-1131257
123
Operating expenses35--(113)(18)-
(96)
Core earnings-(24)--(6)57
27
Impairment charges----6(57)
(51)
Operating profit before tax-(24)----
(24)
Income tax expense-24----
24
Net profit------
-
Net profit attributable to
non-controlling interests------
-
NET PROFIT ATTRIBUTABLE TO
OWNERS OF WBC------
-
Six months to 31 March 2018

Fair value



Amortisation(gain)/loss

Adjustment


Reported
of intangibleon economicIneffectiverelated toTreasuryPresentationCash
$mresults
assetshedges
hedgesPendalshareschangesearnings
Net interest income8,278-1013--4168,717
Non-interest income2,805-43--(11)(315)2,522
Net operating income11,083-5313-(11)10111,239
Operating expenses(4,655)25----(61)(4,691)
Core earnings6,428255313-(11)406,548
Impairment charges(393)-----(51)(444)
Operating profit before tax6,035255313-(11)(11)6,104
Income tax expense(1,835)(8)(16)(4)-111(1,851)
Net profit4,20017379-(10)-4,253
Net profit attributable to
non-controlling interests(2)------(2)
NET PROFIT ATTRIBUTABLE TO
OWNERS OF WBC4,19817379-(10)-4,251
WBC Cash Earnings
adjustments:
Amortisation of intangible assets
17(17)---
---
Fair value (gain)/loss on economic
hedges37-(37)-----
Ineffective hedges9--(9)----
Adjustment related to Pendal--------
Treasury shares(10)----10--
Cash earnings
4,251-
-----
4,251
Six months to 31 March 2018 PolicyholderMerchantOtherInterest


Operatingtaxand cardfees andcarryingPresentation
$m
leasesrecoveriesLine feesschemesexpensesadjustmentchanges
Net interest income--327-3158416
Non-interest income(46)(11)(327)90(21)-(315)
Net operating income(46)(11)-901058101
Operating expenses46--(90)(17)-(61)
Core earnings-(11)--(7)5840
Impairment charges----7(58)(51)
Operating profit before tax-(11)----(11)
Income tax expense-11----11
Net profit-------
Net profit attributable to
-
non-controlling interests-------
NET PROFIT ATTRIBUTABLE TO
OWNERS OF WBC-------

Cash Earnings adjustments

Note 9. Divisional result and economic profit
Six months to 31 March 2019BT FinancialWestpac

Consumer BusinessGroupInstitutionalWestpac New
$mGroupBankBank(Australia)BankZealand
Reported results
Cash earnings adjustments
Cash earnings
Franking benefit
Adjusted cash earnings
Average equity
Capital charge
Economic profit
Return on average equity
(including intangibles)
Six months to September 2018BT FinancialWestpac

ConsumerBusinessGroupInstitutionalWestpac New
$mGroupBankBank(Australia)BankZealand
Reported results3,8971,4131,080168538497
Cash earnings adjustments(83)--73-(3)
Cash earnings3,8141,4131,080241538494
Franking benefit1,05443432677156-
Adjusted cash earnings4,8681,8471,406318694494
Average equity62,97818,59512,6073,6417,8954,708
Capital charge(3,473)(1,025)(695)(201)(435)(260)
Economic profit1,395822711117259234
Return on average equity
(including intangibles)12.1%12.6%14.0%8.4%12.7%19.0%
Six months to 31 March 2018BT FinancialWestpac

ConsumerBusinessGroupInstitutionalWestpac New
$mGroupBankBank(Australia)BankZealand
Reported results4,1981,6941,078406554450
Cash earnings adjustments53152--(10)
Cash earnings4,2511,7091,080406554440
Franking benefit1,147513324123123-
Adjusted cash earnings5,3982,2221,404529677440
Average equity61,05117,62612,5273,5458,1964,614
Capital charge(3,349)(967)(687)(194)(450)(253)
Economic profit2,0491,255717335227187
Return on average equity
(including intangibles)14.0%16.0%14.1%14.5%12.6%
17.3%

6.7.2 Westpac New Zealand division performance (A$ Equivalent to Section 3.5)
% Mov't% Mov't
$m
Half Year
March 19
Half Year
Sept 18
Half Year
March 18
Mar 19 -
Sept 18
Mar 19 -
Mar 18
Net interest income917882
Non-interest income181192
Net operating income1,0981,074
Operating expenses(429)(426)
Core earnings669648
Impairment (charges) / benefits13(35)
Operating profit before tax682613
Tax and non-controlling interests(188)(173)
Cash earnings494440
Economic profit234187
Expense to income ratio38.99%39.69%
Net interest margin2.25%2.24%
As atAs atAs at% Mov't% Mov't
$bn
31 March
2019
30 Sept
2018
31 March
2018
Mar 19 -
Sept 18
Mar 19 -
Mar 18
Customer deposits56.757.9
Net loans73.674.3
Deposit to loan ratio76.99%77.88%
Total assets82.484.3
TCE102.5104.9
Third party liquid assets6.98.1
Average interest-earning assets81.379.0
Total funds9.89.7