Items affecting Westpac’s Second Half 2020 Results

ASX
Release


26 OCTOBER 2020

Items affecting Westpac’s Second Half 2020 results and details of changes
to divisions

Items affecting results

Westpac today announced that its cash earnings in 2H20 will be reduced by $1,220m
(after tax) arising from notable items. Statutory net profit will also be reduced by these
items. The notable items include new items of $816m (after tax), combined with the
previously announced additional $404m provision (after tax) for AUSTRAC matters.

In aggregate, these notable items are estimated to reduce the Group’s CET1 capital
ratio by 24 basis points, noting that some items have no impact on capital as they are
already capital deductions.

The after tax impact of notable items includes:
• write-down of goodwill and intangibles associated with Westpac Life Insurance
Services Ltd (WLIS) and our Auto Finance business along with a write-down of
capitalised software. These items total $568m after tax;
• an increase in the provision and costs associated with the AUSTRAC
proceedings of $415m after tax. This includes the previously announced $404m
in provisions associated with the court approved civil penalty and AUSTRAC’s
legal costs;
• an increase in provisions for customer refunds, repayments, associated costs,
and litigation provisions of $182m after tax;
• asset sales and revaluations, the net impact of which reduces cash earnings by
$55m after tax. This includes the revaluation of Life insurance liabilities and a
loss on the agreed sale of our vendor finance business. These items totalling
$267m after tax were partly offset by a benefit after tax of $212m from a
revaluation of the Group’s holding in Zip Co Limited
1
.

Details of these items are in Appendix 1 and a summary of line item impacts can be
found in Appendix 2.



1
This refers to a revaluation of Westpac’s holding in Zip Co Limited that occurred in 2H20 prior to the sale of the
holding as announced on 22 October 2020. The sale of Zip Co Limited is expected to result in a pre-tax gain on sale of
approximately $26m to be reflected in Westpac’s 1H21 results.

Level 18, 275 Kent Street
Sydney, NSW, 2000

Page 2 of 15


Changes to the presentation of Westpac Group’s 2020 Full Year Financial Results

Following changes to its divisional structure earlier in the year, Westpac is also releasing
details of changes to the presentation of its Full Year 2020 Results. These changes
include:
- Creation of the Specialist Businesses division announced with our First Half
2020 Results. This includes moving businesses from the Consumer, Business
and WIB divisions and reallocating certain centrally managed costs across
divisions;
- The movement of certain SME and Business products from the Business division
to the Consumer division to better reflect our new Lines of Business operating
structure; and
- A revision to the classification of notable items. This change results in a minor
restatement of 1H20 and FY19 notable items
2
.

The impact of the revision to the definition of notable items on prior periods is included in
Appendix 3 and other affected tables are in Appendix 4 attached to this disclosure.


The three changes above have no impact on the Group’s cash earnings, reported net
profit or balance sheet in prior periods. However, the changes do impact divisional cash
earnings (and individual line items) and balance sheet items in prior periods.

We are scheduled to announce our 2020 Full Year results on Monday, 2 November
2020.

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.

2
The following revisions have been made due to the reclassification of notable items: FY19 notable items have been
reduced by $83m after tax for Asset sales. 1H20 notable items have been increased by $114m after tax for the write-
off of deferred acquisition costs associated with the exit of Group Life insurance and the write-down of intangible
assets. For total notable items in 1H20 and FY20 refer to Appendix 3.

Page 3 of 15


Appendix 1 – Details of items affecting Westpac’s 2H20
Summary 2H20 Cash
earnings
(post tax)
Detail
Write-down of
goodwill and
other
intangibles
$568m
• Following a review, the valuation of our life insurance business did
not support the carrying value of its intangibles and so they have
been written down. The cost of this write-down was $406m.
• Lower returns in the Group’s Auto Finance business has resulted in
a $125m write-down of intangibles.
• The impact of COVID-19 on asset values combined with the
previously announced review of capitalised software has
contributed to an impairment of capitalised software for some IT
systems. The pre-tax cost of this write off is $71m.
AUSTRAC
matters
$415m
• The Federal Court has approved the $1.3bn penalty in the
Statement of Agreed Facts and Admissions with AUSTRAC. We
have increased our penalty provision by $400m in 2H20, adding to
the $900m raised in 1H20.
• $20m in costs of remediating identified issues in 2H20, along with
legal costs (including AUSTRAC’s legal costs of $4m).
Additional
provisions for
customer
refunds
payments,
associated costs
and litigation
provisions
$182m Continued customer remediation reviews have led to an increase in
provisions with most of the increase related to previously disclosed
matters. Main contributors in 2H20 provisions (pre-tax) include:
• $37m in net interest income, mostly due to previously identified
refunds to certain business customers who were provided with
business loans where they should have been provided a consumer
loan covered by the National Consumer Credit Protection Act and
the National Credit Code.
• $78m in non-interest income mostly related to:
- New provisions for refunds to customers for insurance trail
commissions that were incorrectly charged following
implementation of Future of Financial Advice reforms;
- Increase in provisions for aligned advisor remediation following
the completion of further reviews;
- Increase in provisions for BT customers where certain wealth
fees were inadequately disclosed; partly offset by
- Reduced provisions for salaried advice and for customers on
our platforms who were not advised of certain corporate actions
following the completion of additional reviews.
• $104m in additional costs for implementing the remediation
program, including to accelerate customer payments.
• $38m for litigation matters, including settlements.
Asset sales and
revaluations
$55m
• Following its latest valuation, a loss has been recognised on
insurance liabilities associated with the Group’s disability
insurance. Reduces non-interest income by $260m;
• Following the decision to discontinue WLIS Group Life products
$7m in expenses were recognised;
• Loss on the agreed sale of our vendor finance business. The
portfolio was sold at a discount to book (recorded loss), with
potential earn-out payments on performance over the next 3 years
(to be recognised as earned in future years); partly offset by
• Gain on revaluation of our holding in Zip Co Limited of $303m (in
non-interest income). This refers to a revaluation that occurred in
2H20 and was prior to the sale of the holding as announced on 22
October 2020
3
.



3
Sale of Zip Co Limited is expected to result in a pre-tax gain on sale of approximately $26m to be reflected in
Westpac’s 1H21 results.

Page 4 of 15


Appendix 2 – Summary of 2H20 notable items
2H20 ($m) Consumer Business
New
Zealand
(in $A)
Specialist
Businesses
Group
Businesses
Total
Net interest
income
- (34) (3) - - (37)
Net fee income 4 (3) (4) (45) 62 14
Net wealth
management
& insurance
income
- - - (260) (92) (352)
Other income - - - - 303 303
Non-interest
income
4 (3) (4) (305) 273 (35)
Operating
expenses
(31) (106) 1 (653) (494) (1,283)
Core earnings (27) (143) (6) (958) (221) (1,355)
Income tax
benefit/
expense
8 43 2 138 (56) 135
Cash
earnings
(19) (100) (4) (820) (277) (1,220)

2H20 ($m)
AUSTRAC
and related
matters
Refunds,
payments,
costs &
litigation
Intangible
write-downs
Asset sales /
revaluations
Total
Net interest
income
- (37) - - (37)
Net fee income - 14 - - 14
Net wealth
management &
insurance income
- (92) - (260) (352)
Other income - - - 303 303
Non-interest
income
- (78) - 43 (35)
Staff expenses - (62) - (3) (65)
Occupancy
expenses
- - - - -
Technology
expenses
- (1) (95) (4) (100)
Other expenses (420) (79) (507) (112) (1,118)
Operating
expenses
(420) (142) (602) (119) (1,283)
Core earnings (420) (257) (602) (76) (1,355)
Income tax
benefit/expense
5 75 34 21 135
Cash earnings (415) (182) (568) (55) (1,220)

Page 5 of 15


Appendix 3 – Summary 1H20 and FY19 notable items by new divisional structure
4,5

1H20 ($m) Consumer Business
New
Zealand
(in $A)
Specialist
Businesses
Group
Businesses
Total
Net interest
income
5 (107) (4) - - (106)
Net fee income - 5 (3) (7) (142) (147)
Net wealth
management
& insurance
income
- - - (97) 16 (81)
Other income - - - - - -
Non-interest
income
- 5 (3) (104) (126) (228)
Operating
expenses
(33) (24) - (41) (1,158) (1,256)
Core earnings (28) (126) (7) (145) (1,284) (1,590)
Income tax
benefit/
expense
8 38 2 43 100 191
Cash
earnings
(20) (88) (5) (102) (1,184) (1,399)

1H20
4
($m)
AUSTRAC
and related
matters
Refunds,
payments,
costs &
litigation
Intangible
write-downs
Asset sales /
revaluations
Total
Net interest
income
- (106) - - (106)
Net fee income - (147) - - (147)
Net wealth
management &
insurance income
- 16 - (97) (81)
Other income - - - - -
Non-interest
income
- (131) - (97) (228)
Staff expenses - (61) - - (61)
Occupancy
expenses
- - - - -
Technology
expenses
- (3) (66) - (69)
Other expenses (1,058) (68) - - (1,126)
Operating
expenses
(1,058) (132) (66) - (1,256)
Core earnings (1,058) (369) (66) (97) (1,590)
Income tax
benefit/expense
31 111 20 29 191
Cash earnings (1,027) (258) (46) (68) (1,399)


4
Revision of 1H20 notable items refers to inclusion of Intangible write-downs and Asset sales / revaluations
categories.

Page 6 of 15


FY19 ($m) Consumer Business
New
Zealand
(in $A)
Specialist
Businesses
Group
Businesses
Total
Net interest
income
(85) (246) (13) - - (344)
Net fee income (2) (12) (4) (43) (222) (283)
Net wealth
management
& insurance
income
- - - - (537) (537)
Other income - - 38 3 42 83
Non-interest
income
(2) (12) 34 (40) (717) (737)
Operating
expenses
25 (57) (15) (30) (384) (461)
Core earnings (62) (315) 6 (70) (1,101) (1,542)
Income tax
benefit/
expense
29 95 9 23 339 495
Cash
earnings
(33) (220) 15 (47) (762) (1,047)

FY19
5
($m)
Refunds,
payments, costs
& litigation
Asset sales /
revaluations
Wealth reset Total
Net interest
income
(344) - - (344)
Net fee income (283) - - (283)
Net wealth
management &
insurance income
(537) - - (537)
Other income - 83 - 83
Non-interest
income
(820) 83 - (737)
Staff expenses (99) - (169) (268)
Occupancy
expenses
- - - -
Technology
expenses
(11) - (24) (35)
Other expenses (110) - (48) (158)
Operating
expenses
(220) - (241) (461)
Core earnings (1,384) 83 (241) (1,542)
Income tax
benefit/expense
426 - 69 495
Cash earnings (958) 83 (172) (1,047)




5
Revision of FY19 notable items refers to inclusion of the Asset sales / revaluations category.

Page 7 of 15


Appendix 4 – Full Year Financial Results Template

1.3 Cash earnings results
Half Ye ar
Half Ye ar
% M o v' tFull Ye arFull Ye ar% M o v' t
Se ptM arch
Se pt 20 -
Se ptSe pt
Se pt 20 -
$m20202020
M ar 202020
2019Se pt 19
Net interest income
8,66616,953
Non-interest income1,675
3,702
Net operating incom e10,341
20,655
Operating expenses(6,160)(10,031)
Core earnings4,181
10,624
Impairment charges(2,238)
(794)
Operating profit before incom e tax1,943
9,830
Income tax expense
(949)(2,975)
Net profit for the period
994
6,855
Net prof it attributable to non-controlling interests
(1)
(6)
Cash earnings
9936,849
Add back notable items1,3991,047
Cash earnings excluding notable item s2,392
7,896

Page 8 of 15




2.0 Divis ional Cas h Earning Sum m ary
Note 2. Segm ent reporting
Half Ye ar Se pt 2020
We s tpac We s tpac
Ins titutional Ze alandSpe cialis tGroup
$m
Consum er Business
Ban k(A$)
Businesses
BusinessesGroup
Net interest income
Non-interest income
Net operating incom e
Operating expenses
Core earnings
Impairment (charges) / benef its
Operating profit before incom e tax
Income tax expense
Net profit
Net prof it attributable to NCI
Cash earnings
Add back notable items
Cash earnings excluding notable item s
Cash earnings for the period
Net cash earnings adjustments
Net profit for the period attributable to ow ners of WBC
Balance sheet
Loans
Deposits and other borrow ings
Half Ye ar M arch 2020
We s tpac We s tpac
Ins titutional Ze alandSpe cialis tGroup
$mConsum er BusinessBan k
(A$)Businesses
BusinessesGroup
Net interest income
4,2342,144605940
2874568,666
Non-interest income326311556167428(113)1,675
Net operating incom e 4,5602,4551,1611,10771534310,341
Operating expenses(2,035)(1,068)(619)(516)(420)(1,502)(6,160)
Core earnings2,5251,387542591295(1,159)4,181
Impairment (charges) / benef its(416)(697)(293)(200)(160)(472)(2,238)
Operating profit before incom e tax2,109690249391135(1,631)1,943
Income tax (expense) / benef it(637)(212)(102)(110)(41)153(949)
Net profit1,47247814728194(1,478)994
Net prof it attributable to NCI----(1)-(1)
Cash earnings1,47247814728193(1,478)993
Add back notable items2088-51021,1841,399
Cash earnings excluding notable item s1,492566147286195(294)2,392
Cash earnings for the period
1,47247814728193
(1,478)993
Net cash earnings adjustments
---11(63)249197
Net profit for the period attributable to ow ners of WBC
1,47247814729230
(1,229)1,190
Balance sheet
Loans
395,625144,95978,59584,77816,269(548)719,678
Deposits and other borrow ings
208,427142,175109,97770,725
9,62541,991582,920
M ov't Se pt 20 - M arch 20
We s tpac We s tpac
Ins titutional Ze alandSpe cialis tGroup
%Consum er BusinessBan k(A$)BusinessesBusinessesGroup
Net interest income
Non-interest income
Net operating incom e
Operating expenses
Core earnings
Impairment (charges) / benef its
Operating profit before incom e tax
Income tax expense
Net profit
Net prof it attributable to NCI
Cash earnings
Add back notable items
Cash earnings excluding notable item s
Cash earnings for the period
Net cash earnings adjustments
Net profit for the period attributable to ow ners of WBC
Balance sheet
Loans
Deposits and other borrow ings

Page 9 of 15





2.0 Divis ional Cas h Earning Sum m ary
Note 2. Segm ent reporting
Full Ye ar Se pt 2020
We s tpac
We s tpac
Ins titutional Ze alandSpe cialis tGroup
$mConsum er BusinessBan k(A$)BusinessesBusinessesGroup
Net interest income
Non-interest income
Net operating incom e
Operating expenses
Core earnings
Impairment (charges) / benef its
Operating profit before incom e tax
Income tax expense
Net profit
Net prof it attributable to NCI
Cash earnings
Add back notable items
Cash earnings excluding notable item s
Cash earnings for the period
Net cash earnings adjustments
Net profit for the period attributable to ow ners of WBC
Balance sheet
Loans
Deposits and other borrow ings
Full Ye ar Se pt 2019
We s tpac
We s tpac
Ins titutional Ze alandSpe cialis tGroup
$mConsum er BusinessBan k(A$)BusinessesBusinessesGroup
Net interest income8,1304,4561,3371,86055561516,953
Non-interest income6955941,1954231,412(617)3,702
Net operating incom e 8,8255,0502,5322,2831,967(2)20,655
Operating expenses(3,794)(2,094)(1,220)(939)(847)(1,137)(10,031)
Core earnings5,0312,9561,3121,3441,120(1,139)10,624
Impairment (charges) / benef its(582)(172)(31)10(111)92(794)
Operating profit before incom e tax4,4492,7841,2811,3541,009(1,047)9,830
Income tax (expense) / benef it(1,333)(838)(356)(369)(292)213(2,975)
Net profit3,1161,946925985717(834)6,855
Net prof it attributable to NCI----(5)(1)(6)
Cash earnings3,1161,946925985712(835)6,849
Add back notable items33220-(15)477621,047
Cash earnings excluding notable item s3,1492,166925970759(73)7,896
Cash earnings for the period
3,1161,946925985712(835)6,849
Net cash earnings adjustments
---(1)(45)(19)(65)
Net profit for the period attributable to ow ners of WBC
3,1161,946925984667(854)6,784
Balance sheet
Loans
399,279146,86773,57278,00517,216(169)714,770
Deposits and other borrow ings
207,578142,55899,00560,8019,27744,028563,247
M ov't Se pt 20 - Se pt 19
We s tpac
We s tpac
Ins titutional Ze alandSpe cialis tGroup
%Consum er BusinessBan k(A$)BusinessesBusinessesGroup
Net interest income
Non-interest income
Net operating incom e
Operating expenses
Core earnings
Impairment (charges) / benef its
Operating profit before incom e tax
Income tax expense
Net profit
Net prof it attributable to NCI
Cash earnings
Add back notable items
Cash earnings excluding notable item s
Cash earnings for the period
Net cash earnings adjustments
Net profit for the period attributable to ow ners of WBC
Balance sheet
Loans
Deposits and other borrow ings

Page 10 of 15




3.1 Consum er
Half Ye arHalf Ye ar% M o v' tFull Ye arFull Ye ar% M o v' t
Se pt
M archSe pt 20 -Se ptSe ptSe pt 20 -
$m20202020M ar 2020202019Se pt 19
Net interest income4,2348,130
Non-interest income326695
Net operating incom e4,5608,825
Operating expenses(2,035)(3,794)
Core earnings2,5255,031
Impairment charges(416)(582)
Profit before incom e tax2,1094,449
Income tax expense and NCI(637)(1,333)
Cash earnings1,4723,116
Add back notable items2033
Cash earnings excluding notable item s1,4923,149
Expense to income ratio44.63%42.99%
Net interest margin2.33%2.22%
As at
As at% M o v' tAs atAs at% M o v' t
30 Se pt31 M arch
Se pt 20 -
30 Se pt30 Se pt
Se pt 20 -
$bn20202020M ar 2020202019Se pt 19
Custom er deposits
Term deposits50.055.9
Other158.4151.7
Total custom er deposits208.4207.6
Net loans
Mortgages385.8388.6
Other11.412.1
Provisions(1.6)(1.4)
Total net loans395.6399.3
Deposit to loan ratio52.68%51.99%
Total assets404.3407.0
TCE464.2469.3
Average interest earning assets363.6365.9
Cre dit quality
As atAs atAs atAs at
30 Se pt31 M arch30 Se pt31 M arch
%2020202020192019
Impairment charges to average loans annualised0.21%0.16%0.14%
Mortgage 90+ day delinquencies0.94%0.90%0.84%
Other consumer loans 90+ day delinquencies1.96%1.75%1.67%
Total stressed exposures to TCE0.83%0.79%0.73%

Page 11 of 15



3.2 Business

Half Ye ar
Half Ye ar
% M o v' tFull Ye ar
Full Ye ar
% M o v' t
Se pt
M arch
Se pt 20 -
Se pt
Se pt
Se pt 20 -
$m
2020
2020
M ar 20
2020
2019
Se pt 19
Net interest income
2,144
4,456
Non-interest income
311
594
Net operating incom e
2,455
5,050
Operating expenses
(1,068)
(2,094)
Core earnings
1,387
2,956
Impairment charges
(697)
(172)
Profit before incom e tax
690
2,784
Income tax expense and NCI
(212)
(838)
Cash earnings
478
1,946
Add back notable items
88
220
Cash earnings excluding notable item s566
2,166
Expense to income ratio
43.50%
41.47%
Net interest margin
3.05%
3.16%
As at
As at
% M o v' t
As at
As at% M o v' t
30 Se pt31 M arch
Se pt 20 -
30 Se pt
30 Se pt
Se pt 20 -
$bn
2020
2020
M ar 20
2020
2019
Se pt 19
Custom er deposits
Term deposits
57.363.4
Other84.9
79.2
Total custom er deposits142.2
142.6
Net loans
Mortgages
59.960.8
Business86.1
86.6
Other
0.70.7
Provisions(1.7)
(1.2)
Total net loans
145.0
146.9
Deposit to loan ratio
98.07%
97.07%
Total assets150.1
151.6
TCE184.0
184.3
Average interest earning assets
140.5
140.8
Cre dit qualityAs at
As at
As atAs at
30 Se pt
31 M arch30 Se pt
31 M arch
%2020
2020
20192019
Impairment charges to average loans annualised
0.95%0.20%
0.04%
Mortgage 90+ day delinquencies
0.93%0.84%
0.72%
Other consumer loans 90+ day delinquencies1.29%
1.38%1.03%
Business: impaired exposures to TCE0.71%
0.63%0.60%
Total stressed exposures to TCE3.07%2.88%
2.49%

Page 12 of 15



3.3 We s tpac Ins titutional Bank (WIB)
Half Ye arHalf Ye ar% M o v' tFull Ye arFull Ye ar% M o v' t
Se ptM archSe pt 20 -Se ptSe ptSe pt 20 -
$m20202020M ar 2020202019Se pt 19
Net interest income6051,337
Non-interest income5561,195
Net operating incom e1,1612,532
Operating expenses(619)(1,220)
Core earnings5421,312
Impairment charges(293)(31)
Profit before incom e tax2491,281
Income tax expense and NCI(102)(356)
Cash earnings147925
Expense to income ratio53.32%48.18%
Net interest margin1.46%1.59%
As atAs at% M o v' tAs atAs at% M o v' t
30 Se pt31 M arch
Se pt 20 -
30 Se pt30 Se pt
Se pt 20 -
$bn20202020M ar 2020202019Se pt 19
Customer deposits110.099.0
Net loans
Loans79.073.8
Provisions(0.4)(0.2)
Total net loans78.673.6
Deposit to loan ratio139.95%134.51%
Total assets109.495.0
TCE172.7172.6
Average interest earning assets82.984.2
Impairment charges to average loans annualised0.80%0.04%
Impaired exposures to TCE0.15%0.06%
Total stressed exposures to TCE1.09%0.59%
Revenue contributionHalf Ye arHalf Ye ar% M o v' tFull Ye arFull Ye ar% M o v' t
Se ptM archSe pt 20 -Se ptSe ptSe pt 20 -
$m20202020M ar 2020202019Se pt 19
Lending and deposit revenue7071,522
Markets, sales and f ee income389817
Total custom er revenue1,0962,339
Derivative valuation adjustments(93)(64)
Trading revenue174241
Other(16)16
Total WIB revenue1,1612,532

Page 13 of 15




3.4 We s tpac Ne w Ze aland
Half Ye arHalf Ye ar% M o v' tFull Ye arFull Ye ar% M o v' t
Se ptM archSe pt 20 -Se ptSe ptSe pt 20 -
NZ $m
20202020M ar 202020
2019Se pt 19
Net interest income
9871,967
Non-interest income175448
Net operating incom e1,1622,415
Operating expenses
(541)(993)
Core earnings6211,422
Impairment (charges) / benef its(211)10
Profit before incom e tax4101,432
Income tax expense and NCI(115)(390)
Cash earnings2951,042
Add back notable items5(16)
Cash earnings excluding notable item s3001,026
Expense to income ratio46.56%41.12%
Net interest margin2.06%2.16%
As atAs at% M o v' tAs atAs at% M o v' t
30 Se pt31 M arch
Se pt 20 -
30 Se pt30 Se pt
Se pt 20 -
NZ$bn
20202020M ar 2020202019
Se pt 19
Custom er deposits
Term deposits32.8
33.5
Other36.3
31.0
Total custom er deposits
69.164.5
Net loans
Mortgages53.3
51.5
Business32.531.1
Other1.71.9
Provisions(0.5)(0.3)
Total net loans87.084.2
Deposit to loan ratio79.43%76.60%
Total assets105.097.1
TCE125.1117.3
Third party liquid assets14.410.3
Average interest earning assets95.891.1
Total f unds10.911.5
Cre dit qualityAs atAs at
As atAs at
30 Se pt31 M arch30 Se pt31 M arch
%
2020202020192019
Impairment charges/(benef its) to average loans annualised0.49%
(0.06%)0.03%
Mortgage 90+ day delinquencies
0.27%0.13%0.14%
Other consumer loans 90+ day delinquencies1.59%
0.82%1.02%
Impaired exposures to TCE
0.17%0.08%0.13%
Total stressed exposures to TCE1.64%1.66%1.57%

Page 14 of 15






3.5 Specialist Businesses
Half Ye ar
Half Ye ar
% M o v' t
Full Ye ar
Full Ye ar
% M o v' t
Se pt
M arch
Se pt 20 -Se pt
Se ptSe pt 20 -
$m
2020
2020
M ar 20
2020
2019
Se pt 19
Net interest income
287
555
Non-interest income
428
1,412
Net operating incom e
715
1,967
Operating expenses(420)(847)
Core earnings
295
1,120
Impairment charges
(160)
(111)
Profit before incom e tax135
1,009
Income tax expense and NCI(42)
(297)
Cash earnings
93712
Add back notable items
102
47
Cash earnings excluding notable item s
195
759
Expense to income ratio58.74%43.06%
As atAs at% M o v' tAs atAs at% M o v' t
30 Se pt31 M arch
Se pt 20 -
30 Se pt30 Se pt
Se pt 20 -
$bn
2020
2020
M ar 20
2020
2019
Se pt 19
Deposits9.6
9.3
Net loans
Loans
16.7
17.5
Provisions(0.4)(0.3)
Total net loans16.317.2
Deposit to loan ratio
58.90%
54.07%
Total f unds
179.1
207.2
TCE20.621.9
Average f unds203.8
196.3
Cash earnings excluding notable item sHalf Ye ar
Half Ye ar
% M o v' tFull Ye ar
Full Ye ar% M o v' t
Se ptM arch
Se pt 20 -
Se ptSe ptSe pt 20 -
$m
20202020
M ar 202020
2019Se pt 19
Banking
34
166
Insurance
32261
Superannuation, platf orms and investments
129
332
Total cash earnings (ex notable item s)195
759
Insurance key metrics
Half Ye arHalf Ye ar% M o v' t
Full Ye arFull Ye ar% M o v' t
Se pt
M archSe pt 20 -
Se pt
Se ptSe pt 20 -
2020
2020M ar 20
2020
2019Se pt 19
Life Insurance in-force prem ium s ($m )
Lif e insurance in-f orce premiums at start of period
1,2121,277
Sales / New Business67
88
Lapses(71)
(153)
Life insurance in-force prem ium s at end of period1,2081,212
Claims ratios for the Insurance Business (%)
Lif e insurance
54%51%
General insurance107%
62%
Lenders mortgage insurance15%
20%
Gross written premiums ($m)
General insurance
273538
Lenders mortgage insurance89
160
As atAs at% M o v' tAs at% M o v' t
30 Se ptNe tOthe r
30 Se ptSe pt 20 -
31 M arch
Se pt 20 -
$bn2020
Inflow sOutflow sFlo w s
M ov't2019Se pt 19
2020M ar 20
Superannuation
40.635.3
Platf orms
123.0105.0
Packaged f unds
43.638.8
Total funds207.2
179.1

Page 15 of 15




3.6 Group Businesses

Half Ye ar
Half Ye ar
% M o v' t
Full Ye ar
Full Ye ar
% M o v' t
Se ptM arch
Se pt 20 -
Se pt
Se pt
Se pt 20 -
$m
2020
2020
M ar 20
2020
2019
Se pt 19
Net interest income
456
615
Non-interest income
(113)
(617)
Net operating incom e
343
(2)
Operating expenses(1,502)(1,137)
Core earnings(1,159)(1,139)
Impairment (charges) / benef its(472)92
Profit/(loss) before incom e tax(1,631)(1,047)
Income tax
benefit
and NCI
153
212
Cash earnings
(1,478)
(835)
Add back notable item s
Costs associated w ith AUSTRAC proceedings including a provision f or a potential penalty
1,027
-
Estimated customer ref unds, payments, associated costs and litigation
157590
Wealth restructuring-172
Cash earnings excluding notable item s(294)(73)
Treasury
Half Ye ar
Half Ye ar
% M o v' t
Full Ye ar
Full Ye ar
% M o v' t
Se pt
M arch
Se pt 20 -
Se pt
Se pt
Se pt 20 -
$m
20202020
M ar 20
2020
2019
Se pt 19
Net interest income
429
512
Non-interest income
(1)
5
Net operating incom e
428
517
Cash earnings273315
Tre as ury Value at Ris k (VaR)
$m
Ave rage
Hig hLow
Half Year September 2020
Half Year March 2020
46.3
176.733.7
Half Year September 2019
35.1
41.1
28.6