Investor Presentaiton
Cash earnings and reported net profit reconciliation.
Cash earnings¹ policy
Westpac uses a measure of performance referred to as cash earnings to assess financial
performance at both a Group and segment level
To calculate cash earnings, reported net profit is adjusted for:
Material items that key decision makers at Westpac believe do not reflect our
operating performance
Items that are not normally considered when dividends are recommended, such as the
impact of economic hedges
Accounting reclassifications between individual line items that do not impact reported
results
Westpac will no longer be reporting on a cash earnings basis from 1 October 2022.
Details on the implication of these changes will be announced before the 1H23 result
Reported net profit and cash earnings ($bn)
■Reported profit Cash earnings
8.1
8.1
6.8
6.8
FY18
FY19
2.3
2.6
FY20
Results
Change
Change
FY22
FY22-FY21 2H221H22
($m)
(%)
(%)
Cash earnings
5,276
(1)
(30)
Cash EPS
(cents)
148.0
1
(27)
Reported net
5,694
4
(26)
profit
Reported EPS
(cents)
159.9
7
(24)
Reported net profit and cash earnings adjustments ($m)
FY21
FY22
5,458
5,694
Reported net profit
5.7
5.5
5.4
5.3
Fair value (gain)/loss on economic hedges
(138)
(470)
Ineffective hedges
32
32
52
52
Cash earnings
5,352
5,276
FY21
FY22
1 Cash earnings is not a measure of cash flow or net profit determined on a cash accounting basis, as it includes non-cash items reflected in net profit determined in accordance with AAS (Australian Accounting Standards). The specific adjustments
outlined include both cash and non-cash items. Cash earnings is reported net profit adjusted for material items to ensure they appropriately reflect profits available to ordinary shareholders. All adjustments shown are after tax. For further details refer to
page 125.
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Westpac Group 2022 Full Year Results Presentation & Investor Discussion Pack
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