Investor Presentaiton
WIB 2H22 performance.
Westpac Institutional Bank
Change
Cash earnings ($m)
DVA charge and lower customer
markets income, partly offset by higher
non-customer markets income
AIEA up 13%, NIM increased
17bps from deposit spreads and
balance sheet growth: loans up
15% and deposits up 11%
Higher staff expenses, payments and
technology investments and uplift in
ESG capabilities
Lower impairment charge
due to lower IAP, higher
write-backs and less impact
from overlays
Key financial metrics
2H21 1H22
2H22
on 1H22
Revenue ($m)
1,084
1,069
1,180
10%
Net interest margin (%)
1.24
1.17
1.34
17bps
Expense to income ratio
67.4
54.0
51.2
(279bps)
(ex notable items (%))
Net loans
67.7
74.0
85.2
15%
Customer deposits
99.3
104.7 116.6
11%
148
(37)
(27)
31
(40)
Customer deposit to loan ratio (%)
146.6
141.5 136.8
(Large)
381
306
Stressed exposures to TCE (%)
0.64
0.20
0.35
15bps
Change
Key operating metrics
2H21
1H22
2H22
on 1H22
Up $75m or 25%
Customer revenue¹ ($m)
1,073
1,127 1,236
10%
(831)
Derivative valuation adjustment (DVA) ($m)
44
(29)
(59)
103%
Trading revenue (non-customer) ($m)
25
45
34
34
50
64
88%
2H21
1H22
Net interest
income
Non-interest
income
Operating
expenses
Impairment
charges
Tax and NCI
2H22
Other²
(58)
(63) (61)
(3%)
Revenue per average FTE ($'000)
426
415
455
10%
1 WIB customer revenue is lending revenue, deposit revenue, sales and fee income. 2 Other includes bank levy and capital benefit.
101 Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack
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