Investor Presentaiton
Provision cover by portfolio category.
Credit quality
Exposures as a % of TCE
Fully
performing
portfolio
H
growth
93.10
92.10
95.72
95.77
Stage 1 exposures
increased, mainly
mortgages and
institutional TCE
Stage 1 provisions
Provisioning to TCE (%)
Sep-19
Mar-20
Sep-20
Mar-21
Fully performing portfolio
Small cover as low probability of
default (PD)
0.09
0.12
0.11
0.10
Stage 2 provisions
Non-stressed but significant
5.99
increase in credit risk
Stage 2 reduction
5.30
driven by improved
Lifetime expected loss based on
4.32
6.78
3.41
3.29
Non-stressed
but significant
risk profile /
macroeconomic
future economic conditions
2.96
increase in
3.03
0.85
outlook and COVID-19
Watchlist & substandard
credit risk
package run-off
0.75
Still performing but higher cover
5.27
10.67
8.25
9.07
reflects deterioration
0.62
Watchlist &
0.55
substandard
Stage 3 provisions
0.80
0.66
90+ day past
0.48
0.50
due and not
impaired
Impaired
0.17
0.20
0.26
0.19
Stage 3 exposures
decreased, from net
transfers to Stages 1
and 2, mainly
mortgages
(delinquency
performance) and
90+ day past due and not impaired
In default but strong security
11.07
11.61
11.98
12.91
Impaired assets
Sep-19 Mar-20 Sep-20 Mar-21
institutional (portfolio
run-off)
In default. High provision cover
reflects expected recovery
44.92
50.09
41.45
47.03
61
Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
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