Westpac New Zealand Economic and Sustainability Strategy Update slide image

Westpac New Zealand Economic and Sustainability Strategy Update

Wholesale funding profile Funding composition (%) Term maturities by financial year (NZD $bn) 3 DMTN ■ EMTN 1 3 8 ■Wholesale Offshore <1Yr 4.5 131 10 4 13 4 10 -3 9 10 Wholesale Onshore <1Yr 9 ■Wholesale Offshore >1Yr 3.0 ■Wholesale Onshore >1Yr 71 74 64 ■Intercompany Loan 1.5 FY19 FY20 1H21 Equity (incl. AT1 + T2) ■Customer Deposits 0.0 2021 2022 Core Funding Ratio (%) Core Funding Ratio -RBNZ Core Funding Limit 90% 80.5% 80% 70% 60% 50% 40% 50.0% 17 23 Mar-19 Sep-19 Mar-20 Sep-20 Mar-21 ■Covered 2023 ■FLP1 Wholesale funding (%) 2024 2025+ By Type ■Domestic Medium Term Notes By Currency NZD ■NZ Certificates of Deposit 19 20 ■ USD 20 ■ Euro Medium Term Notes 20 US Commercial Paper 6 16 Covered Bonds ■FLP 37 33 ■ EUR ■CHF 36 1 ■ HKD 1 The FLP is the RBNZ's Funding for Lending Program. The FLP offers secured term central bank funding to registered banks, with the aim of lowering funding costs to stimulate lending growth across the economy and help reduce interest rates for borrowers. Under the FLP, the RBNZ will offer 3-year funding to eligible institutions. The funding will be structured as floating rate Repurchase Transactions priced at the Official Cash Rate (OCR), each for a term of three years. Participants may access the funding over a 2-year transaction period. 13
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