Investor Presentaiton
New Zealand stressed exposures.
Business stressed exposures as a % of business TCE
■Watchlist & substandard
90+ day past due and not impaired
■Impaired
17
19
New Zealand
■ Property
■Manufacturing
Agriculture, forestry
& fishing
Wholesale trade
5.5
4.9
4.4
3.3
3.4
3.3
3.1
2.9
3.2
2.6
2.8
■Construction
5.0
2.3
2.4
4.0
47
0.2
3.0
2.9
2.5
2.2
2.4
Other
1.5
0.1
0.2
0.9
0.8
0.5
0.0
0.1
0.0
0.1
0.1
0.2
0.3
0.3
0.1 0.1 0.3
0.3
Sep-13 Sep-14 Sep-15 Sep-16
Sep-17
Sep-18
Sep-19
Mar-20
Sep-20
Mar-21
Agribusiness portfolio
Milk price (NZ$)
Mar-20
Sep-20
Mar-21
Kg Ms
$10
TCE (NZ$bn)
$9
9.6
10.0
10.1
Westpac
Economics
forecast
$8
$7
Agriculture as a % of
$6
7.6
7.9
7.7
total TCE
$5
$4
7.90
% of portfolio graded
6.69
7.14
$3 6.12
6.35
9.8
8.2
8.0
as 'stressed'1
$2
$1
% of portfolio in
$0
0.48
0.48
0.29
impaired
2016/17 2017/18 2018/19
2019/20 2020/21
1 Includes impaired exposures.
92 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
Dairy portfolio summary
Overall portfolio health remains sound with risk
profiles improving as a result of the higher milk
prices paid over the last two seasons. Focus
remains on supporting existing dairy customers
with proven long-term viability
Global dairy prices have increased on the back of
rebounding Chinese and South-East Asian
demand. Fonterra has revised its 2020/21 milk
price forecast range to $7.30/kg - $7.90/kg, while
Westpac has lifted its forecast to $7.90/kg
Uncertainty around environmental regulations,
rising compliance costs, Fonterra's financial
performance and labour shortages are ongoing
risks to the dairy sector outlook
Westpac GROUPView entire presentation