Westpac 3Q20 Update email to shareholders

ASX Release


18 AUGUST 2020

Westpac 3Q20 Update email to shareholders

Westpac Banking Corporation (“Westpac”) today provides the attached 3Q20
Update email to shareholders.










For further information:

David Lording Andrew Bowden
Group Head of Media Relations Head of Investor Relations
0419 683 411 0438 284 863


This document has been authorised for release by Tim Hartin, General Manager & Company
Secretary.



Level 18, 275 Kent Street
Sydney, NSW, 2000

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WESTPAC 3Q20 UPDATE INCLUDING 1H20 DIVIDEND UPDATE
Westpac today released an update on its Third Quarter 2020 (3Q20) results, including
details of asset quality and provisioning. The update was accompanied by the release
of Westpac’s June 2020 Pillar 3 report which provides a summary of the Group’s
capital position and asset quality.
The full update can be found on our Investor Centre.
Results snapshot 3Q20 compared to quarterly average of First Half 2020 (1H20)
Unaudited statutory net profit for 3Q20 was $1.12bn. Quarterly average of
1H20 statutory net profit was $595m
Unaudited cash earnings
1
for 3Q20 was $1.32bn, which was higher than 1H20
quarterly average of $497m (up 19% excluding notable items
2
). Most of the
increase was due to lower impairment charges and lower insurance claims
(following major storms/bushfires in 1H20)
Impairment charge $826m, further increasing provisions and provisioning cover
Net interest margin 2.05% for 3Q20
Common equity tier 1 capital ratio of 10.80% at 30 June 2020
The Board has decided not to pay a First Half 2020 dividend
Dividend
Given Westpac’s desire to retain a strong balance sheet and the ongoing uncertainty in
the operating environment, the Board has now decided it is prudent not to pay a First
Half 2020 dividend. Westpac will next consider dividends as part of finalising its Full
Year 2020 results.
Comments from Westpac Group CEO, Peter King
“Westpac’s priority has been to remain strong so we can continue supporting
customers through this challenging period.
“We have maintained our strong balance sheet and increased provisions for bad debts
to support our prudent approach to managing impairments.

 
“Our third quarter 2020 result excluding notables is higher than first half average,
mostly due to lower impairment charges. Nevertheless, the impact of the COVID-19
pandemic is clear as activity fell and margins declined.

“While there have been some signs that the economy is performing better than early
expectations, significant uncertainty remains, particularly given the unpredictability of
COVID-19 outbreaks and their local impacts.

“We continue to offer deferral support where needed, although following our three-
month customer check-ins the number of outstanding mortgage deferral customers is
down around 40 per cent. However, many mortgage and business customers continue
to require assistance and we are committed to supporting them.

“While the domestic and global outlook remains highly uncertain, Westpac continues to
be well positioned to support our customers.”

Need more information
If you have any questions regarding your dividend or management of your
shareholding, please contact Link either by email:
Westpac@linkmarketservices.com.au or by telephone on +61 1800 804 255.

Yours sincerely,

Westpac Investor Relations

1. Cash earnings is a non-GAAP measure. Refer to Westpac’s First Half 2020 Financial Results
announcement for details.
2. Notable items includes provisions for: estimated customer refunds, payments, associated costs,
and litigation and provisions along with costs associated with restructuring the Group‘s wealth
business and costs associated with the AUSTRAC proceedings and response. Refer to
Westpac’s First Half 2020 Financial Results announcement for further details.

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