Investor Presentaiton
Provisions lower from improved outlook.
Provisions for impairments
Total impairment provisions ($m)
■Overlay
Loan provisions to gross loans (bps)
Impaired asset provisions to impaired assets (%)
Collectively assessed provisions to credit RWA (bps)
Expected Credit Loss¹ (ECL) ($m)
Provisions
Mar-20 Sep-20 Mar-21
80
88
79
Stage 1 CAP
50
41
47
Stage 2 CAP
6,159
140
154
142
■Stage 3 CAP
5,788
Stage 3 IAP
708
5,508
795
958
1,032
7,865
1,019
Higher overlay to
address the
potential for loss
once COVID-19
support measures
unwind
3,922
853
171
3,995
229
818
766
2,247
2,317
Lower CAP from
improved asset
quality metrics,
1,806
better economic
outlook
Currently holding ~$1.6bn
in impairment provisions
above the base case
economic scenario
5,482
3,902
Forecasts for base case
economic scenario²
GDP growth
Unemployment
Residential property prices
Reported
probability-weighted
ECL
100% base case 100% downside
ECL
ECL
1,578
1,642
September 2020
March 20213
1,561
1,327
1,051
2021
2022
2021
2022
943
2.5%
2.7%
4.0%
3.0%
925
606
611
564
Lower new IAPS
412
7.5%
6.7%
6.0%
5.3%
(0.4%)
7.5%
10.0%
Mar-19
10.0%
Sep-19
Mar-20
Sep-20
Mar-21
1 Includes ECL Overlays and IAP. Excludes provisions for debt securities. 2 GDP and residential property price growth is annual growth to December each year. Unemployment rate forecast is at year end. 3 Forecast date is February 2021. 4 Overlay from Mar-20
includes New Zealand overlay.
60
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
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