Sign in

    Brian D. Johnson

    Research Analyst at Jefferies

    Brian D. Johnson's questions to WESTPAC BANKING (WEBNF) leadership

    Brian D. Johnson's questions to WESTPAC BANKING (WEBNF) leadership • Q1 2022

    Question

    Brian D. Johnson of Jefferies sought to reconcile management's focus on an $8 billion absolute cost target with the Chair's commentary on a cost-to-income ratio, especially given the current revenue pressures.

    Answer

    CEO Peter Francis King firmly stated that the bank's commitment is to the $8 billion absolute cost target. He explained that the cost-to-income ratio is subject to revenue volatility from interest rates and competition, making the absolute cost figure the key metric for the company's reset plan.

    Ask Fintool Equity Research AI

    Brian D. Johnson's questions to WESTPAC BANKING (WEBNF) leadership • Q1 2021

    Question

    Brian D. Johnson from Jefferies Financial Group Inc. asked if the improved asset quality outlook negates the expected procyclical rise in credit RWA, and also requested an update on the progress of shrinking the institutional business.

    Answer

    CEO Peter Francis King stated that given the improved economic forecast, the procyclical RWA impact will be less than previously modeled but would not commit to it being zero. CFO Michael Rowland added that the bank is well progressed in reducing its institutional business footprint, with a bit more to complete in the current half.

    Ask Fintool Equity Research AI

    Brian D. Johnson's questions to WESTPAC BANKING (WEBNF) leadership • Q3 2020

    Question

    Brian D. Johnson requested a specific explanation for the AUSTRAC reference to terrorism financing risks and questioned the appropriateness of maintaining a 5% weighting to the upside economic scenario in the ECL provisioning model, given the increased provisions.

    Answer

    CEO Peter Francis King directed the AUSTRAC question to a prior market release from July 28 concerning SMRs and TTRs, stating the description is a broad bucket of AUSTRAC's remit. Regarding provisioning, he noted the key debate is the weighting between the base and downside scenarios, not the upside, which is unlikely to go to zero.

    Ask Fintool Equity Research AI