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    Matthew Wilson

    Research Analyst at Evans & Partners

    Matthew Wilson's questions to WESTPAC BANKING (WEBNF) leadership

    Matthew Wilson's questions to WESTPAC BANKING (WEBNF) leadership • Q1 2021

    Question

    Matthew Wilson of Evans & Partners questioned apparent contradictions in the Pillar 3 data, highlighting that compared to peers, Westpac has higher impaired loans and lower provision coverage, yet a lower RWA density.

    Answer

    CEO Peter Francis King attributed the lower RWA density to improved credit quality and reduced volumes in certain portfolios like credit cards. Regarding provision coverage, he noted that models differ across banks and that the volatility is expected under the new accounting standards. He reiterated confidence in the bank's provisioning levels.

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    Matthew Wilson's questions to WESTPAC BANKING (WEBNF) leadership • Q3 2020

    Question

    Matthew Wilson sought to confirm if the capitalized interest income from deferred loans was around $400 million and questioned the capital management strategy, asking how the bank balances the risk of its CET1 ratio falling to 8.5% in a bad scenario against the need to fund a rebuild of the capital buffer.

    Answer

    Acting CIO Gary Thursby and CEO Peter Francis King confirmed the capitalized interest income was in that ballpark, perhaps slightly higher. CEO King acknowledged the capital sensitivity but stressed the focus is on organic capital generation and making prudent decisions like deferring the dividend. He affirmed his preparedness to use the capital buffer, noting the bank remains strong even at the 8% regulatory minimum.

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