Westpac Banking : market update presentation - July 2022 (PDF 3MB)

Market update

27 JULY 2022

WESTPAC BANKING CORPORATION

ABN 33 007 457 141

Session overview.

Strategic priorities,

CORE progress

Peter King

Chief Executive Officer

Becoming a

net-zero bank

Peter King

Chief Executive Officer

Anthony Miller

Chief Executive,

Westpac Institutional Bank

Digital first

banking

Chris de Bruin

Chief Executive,

Consumer & Business Bank

2 Westpac Market Update - July 2022

Momentum on our strategic priorities - two years on.

Fix

Address outstanding issues

• CORE program on track and delivering change
• Major remediation programs in final stages
• Largely addressed financial crime issues - next phase to lift capability

Simplify

Streamline and focus the business

• Announced sales of 9 businesses (of 11)
• New operating model working well
• Significant progress on digital

Perform

Sustainable long-term returns

• Reorientating to growth
• Lifting return focus
• • New 2023 capital range
  • Cost reset underway
• Climate change - net zero commitment

3 Westpac Market Update - July 2022

Customer Outcomes and Risk Excellence (CORE) program.

• CORE program in place to address enforceable undertaking signed December 2020
• Aims to strengthen risk governance, accountability and risk culture
• CEO and Group Executive accountability
• Quarterly external assurance
• Three-yearprogram, 19 workstreams

CORE activities progress1

Design Implement Embed

100% 77% 20%

~95% of
100% of
Implement	Embed
activities	activities
targeted to	targeted to
be complete	be complete

Mar

Jun

Sep

Dec

Mar

Jun

Sep

Dec

Mar

Jun

Sep

Dec

2021

2022

2023

1 At 30 June 2022. Completed activities have been finalised by Westpac. Activities still may be subject to Promontory Australia review.

4 Westpac Market Update - July 2022

CORE program - measuring progress towards five target states.

1	We are a well-run	Key employee survey results			Issues raised by first line
(% score out of 100)				risk management
business where risk is
90%					90%(Not 2nd or 3rd lines) (%)
	actively managed	85%			"Clear in how expected	85%
		"People constructively
		80%challenge.."		to manage risks"		80%
		75%					75%
	A simplified organisational					70%
2	70%				93%
			65%		76%
construct with clear	65%	69%	75%	89%	67%
60%		60%
	accountabilities	55%					55%
		50%	Sep-20	Jun-22			50%	Sep-20	Jun-22
	Three lines of defence		Sep-20	Jun-22
3
is understood and	High-rated issues		Key controls requiring	Improved data quality
	embedded
		(No. of open issues)		improvement (%)		management
	Our people understand						(Rating out of 5)
4
risks and proactively
	manage them		233						4.22
				10.8%	9.9%		2.64
5	We're known for		118
execution excellence		Sep-20	Jun-22	Sep-20	Jun-22		Sep-20	Jun-22
	and getting it done

5 Westpac Market Update - July 2022