Document and Entity Information
Document and Entity Information | 12 Months Ended |
Sep. 30, 2020shares | |
Document and Entity Information | |
Entity Registrant Name | WESTPAC BANKING CORP |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Sep. 30, 2020 |
Document Transition Report | false |
Document Shell Company Report | false |
Entity Incorporation, State or Country Code | C3 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 3,611,684,870 |
Entity Central Index Key | 0000719245 |
Current Fiscal Year End Date | --09-30 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Income statements
Income statements - AUD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Interest income | |||
Calculated using the effective interest rate method | $ 26,596 | $ 32,518 | $ 31,987 |
Other | 451 | 704 | 584 |
Total interest income | 27,047 | 33,222 | 32,571 |
Interest expense | (10,351) | (16,315) | (16,066) |
Net interest income | 16,696 | 16,907 | 16,505 |
Net fee income | 1,592 | 1,655 | 2,424 |
Net wealth management and insurance income | 751 | 1,029 | 2,061 |
Trading income | 895 | 929 | 945 |
Other income | 249 | 129 | 72 |
Net operating income before operating expenses and impairment charges | 20,183 | 20,649 | 22,007 |
Operating expenses | (12,739) | (10,106) | (9,566) |
Impairment charges | (3,178) | (794) | (710) |
Profit before income tax | 4,266 | 9,749 | 11,731 |
Income tax expense | (1,974) | (2,959) | (3,632) |
Net profit for the period | 2,292 | 6,790 | 8,099 |
Profit attributable to non-controlling interests | (2) | (6) | (4) |
Net profit attributable to owners of Westpac Banking Corporation (WBC) | $ 2,290 | $ 6,784 | $ 8,095 |
Earnings per share (cents) | |||
Basic | $ 0.637 | $ 1.965 | $ 2.375 |
Diluted | $ 0.637 | $ 1.895 | $ 2.301 |
Parent Entity | |||
Interest income | |||
Calculated using the effective interest rate method | $ 26,025 | $ 32,736 | |
Other | 598 | 776 | |
Total interest income | 26,623 | 33,512 | |
Interest expense | (12,539) | (19,295) | |
Net interest income | 14,084 | 14,217 | |
Net fee income | 1,359 | 922 | |
Trading income | 876 | 956 | |
Other income | 1,597 | 2,684 | |
Net operating income before operating expenses and impairment charges | 17,916 | 18,779 | |
Operating expenses | (10,772) | (8,631) | |
Impairment charges | (2,691) | (750) | |
Profit before income tax | 4,453 | 9,398 | |
Income tax expense | (1,795) | (2,277) | |
Net profit for the period | 2,658 | 7,121 | |
Net profit attributable to owners of Westpac Banking Corporation (WBC) | $ 2,658 | $ 7,121 |
Statements of comprehensive inc
Statements of comprehensive income - AUD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statements of comprehensive income | |||
Net profit for the year | $ 2,292 | $ 6,790 | $ 8,099 |
Gains/(losses) recognised in equity on: | |||
Available-for-sale securities | (102) | ||
Debt securities measured at fair value through other comprehensive income (FVOCI) | 357 | (46) | |
Cash flow hedging instruments | (95) | (203) | (161) |
Transferred to income statements: | |||
Available-for-sale securities | 66 | ||
Debt securities measured at FVOCI | (79) | (29) | |
Cash flow hedging instruments | 218 | 197 | 203 |
Foreign currency translation reserve | 55 | (10) | (3) |
Loss allowance on debt instruments measured at FVOCI | 2 | ||
Exchange differences on translation of foreign operations (net of associated hedges) | (168) | 182 | 181 |
Income tax on items taken to or transferred from equity: | |||
Available-for-sale securities reserve | 9 | ||
Debt instruments measured at FVOCI | (81) | 20 | |
Cash flow hedging instruments | (36) | 2 | (13) |
Items that will not be reclassified subsequently to profit or loss | |||
Gains/(losses) on equity instruments measured at FVOCI (net of tax) | (21) | 11 | |
Own credit adjustment on financial liabilities measured at fair value (net of tax) | (39) | (10) | 43 |
Remeasurement of defined benefit obligation recognised in equity (net of tax) | (115) | (276) | 45 |
Other comprehensive income for the year (net of tax) | (2) | (162) | 268 |
Total comprehensive income for the year | 2,290 | 6,628 | 8,367 |
Attributable to: | |||
Owners of WBC | 2,291 | 6,620 | 8,363 |
NCI | (1) | 8 | 4 |
Total comprehensive income for the year | 2,290 | 6,628 | $ 8,367 |
Parent Entity | |||
Statements of comprehensive income | |||
Net profit for the year | 2,658 | 7,121 | |
Gains/(losses) recognised in equity on: | |||
Debt securities measured at fair value through other comprehensive income (FVOCI) | 289 | (39) | |
Cash flow hedging instruments | (28) | (121) | |
Transferred to income statements: | |||
Debt securities measured at FVOCI | (79) | (29) | |
Cash flow hedging instruments | 150 | 128 | |
Foreign currency translation reserve | 55 | ||
Loss allowance on debt instruments measured at FVOCI | 2 | ||
Exchange differences on translation of foreign operations (net of associated hedges) | (131) | 162 | |
Income tax on items taken to or transferred from equity: | |||
Debt instruments measured at FVOCI | (62) | 18 | |
Cash flow hedging instruments | (37) | (3) | |
Items that will not be reclassified subsequently to profit or loss | |||
Gains/(losses) on equity instruments measured at FVOCI (net of tax) | 1 | (2) | |
Own credit adjustment on financial liabilities measured at fair value (net of tax) | (39) | (10) | |
Remeasurement of defined benefit obligation recognised in equity (net of tax) | (110) | (268) | |
Other comprehensive income for the year (net of tax) | 11 | (164) | |
Total comprehensive income for the year | 2,669 | 6,957 | |
Attributable to: | |||
Owners of WBC | 2,669 | 6,957 | |
Total comprehensive income for the year | $ 2,669 | $ 6,957 |
Balance Sheets
Balance Sheets - AUD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 |
Assets | ||
Cash and balances with central banks | $ 30,129 | $ 20,059 |
Collateral paid | 4,778 | 5,930 |
Trading securities and financial assets measured at fair value through income statement (FVIS) | 40,667 | 31,781 |
Derivative financial instruments | 23,367 | 29,859 |
Investment securities | 91,539 | 73,401 |
Loans | 693,059 | 714,770 |
Other financial assets | 5,474 | 5,367 |
Life insurance assets | 3,593 | 9,367 |
Investment in associates | 61 | 129 |
Property and equipment | 3,910 | 1,155 |
Deferred tax assets | 3,064 | 2,048 |
Intangible assets | 11,497 | 11,953 |
Other assets | 808 | 807 |
Total assets | 911,946 | 906,626 |
Liabilities | ||
Collateral received | 2,250 | 3,287 |
Deposits and other borrowings | 591,131 | 563,247 |
Other financial liabilities | 40,925 | 29,215 |
Derivative financial instruments | 23,054 | 29,096 |
Debt issues | 150,325 | 181,457 |
Current tax liabilities | 70 | 163 |
Life insurance liabilities | 1,396 | 7,377 |
Provisions | 5,287 | 3,169 |
Deferred tax liabilities | 126 | 44 |
Other liabilities | 5,359 | 2,238 |
Total liabilities excluding loan capital | 819,923 | 819,293 |
Loan capital | 23,949 | 21,826 |
Total liabilities | 843,872 | 841,119 |
Net assets | 68,074 | 65,507 |
Share capital: | ||
Ordinary share capital | 40,509 | 37,508 |
Treasury shares and Restricted Share Plan (RSP) treasury shares | (563) | (553) |
Reserves | 1,544 | 1,311 |
Retained profits | 26,533 | 27,188 |
Total equity attributable to owners of WBC | 68,023 | 65,454 |
NCI | 51 | 53 |
Total shareholders' equity and NCI | 68,074 | 65,507 |
Parent Entity | ||
Assets | ||
Cash and balances with central banks | 25,436 | 17,692 |
Collateral paid | 4,641 | 5,773 |
Trading securities and financial assets measured at fair value through income statement (FVIS) | 38,030 | 29,565 |
Derivative financial instruments | 22,794 | 29,283 |
Investment securities | 85,826 | 68,398 |
Loans | 607,824 | 631,936 |
Other financial assets | 4,745 | 4,615 |
Life insurance assets | 0 | |
Due from subsidiaries | 180,979 | 142,961 |
Investment in subsidiaries | 6,475 | 6,436 |
Investment in associates | 57 | 100 |
Property and equipment | 3,447 | 948 |
Deferred tax assets | 2,497 | 1,925 |
Intangible assets | 9,630 | 9,687 |
Other assets | 421 | 420 |
Total assets | 992,802 | 949,739 |
Liabilities | ||
Collateral received | 1,862 | 2,849 |
Deposits and other borrowings | 521,613 | 501,430 |
Other financial liabilities | 40,156 | 28,516 |
Derivative financial instruments | 22,779 | 28,867 |
Debt issues | 127,666 | 156,674 |
Current tax liabilities | 13 | 88 |
Due to subsidiaries | 186,263 | 148,607 |
Provisions | 4,983 | 2,980 |
Deferred tax liabilities | ||
Other liabilities | 3,770 | 1,064 |
Total liabilities excluding loan capital | 909,105 | 871,075 |
Loan capital | 23,949 | 21,826 |
Total liabilities | 933,054 | 892,901 |
Net assets | 59,748 | 56,838 |
Share capital: | ||
Ordinary share capital | 40,509 | 37,508 |
Treasury shares and Restricted Share Plan (RSP) treasury shares | (621) | (575) |
Reserves | 1,576 | 1,338 |
Retained profits | 18,284 | 18,567 |
Total equity attributable to owners of WBC | 59,748 | 56,838 |
Total shareholders' equity and NCI | $ 59,748 | $ 56,838 |
Statements of changes in equity
Statements of changes in equity - AUD ($) | Parent EntityTotal equity attributable to owners of WBC | Parent EntityShare capital | Parent EntityReserves | Parent EntityRetained profits | Parent Entity | Total equity attributable to owners of WBC | Share capital | Reserves | Retained profits | NCI | Total | ||||||
Balance at Sep. 30, 2017 | $ 61,288,000,000 | $ 34,394,000,000 | $ 794,000,000 | $ 26,100,000,000 | $ 54,000,000 | $ 61,342,000,000 | |||||||||||
Net profit for the year | 8,095,000,000 | 8,095,000,000 | 4,000,000 | 8,099,000,000 | |||||||||||||
Net other comprehensive income for the year | 268,000,000 | 180,000,000 | 88,000,000 | 268,000,000 | |||||||||||||
Total comprehensive income for the year | 8,363,000,000 | 180,000,000 | 8,183,000,000 | 4,000,000 | 8,367,000,000 | ||||||||||||
Transactions in capacity as equity holders | |||||||||||||||||
Dividends on ordinary shares | [1] | (6,400,000,000) | (6,400,000,000) | (6,400,000,000) | |||||||||||||
Dividend reinvestment plan | 631,000,000 | 631,000,000 | 631,000,000 | ||||||||||||||
Conversion of Convertible Preference Shares | 566,000,000 | 566,000,000 | 566,000,000 | ||||||||||||||
Other equity movements | |||||||||||||||||
Share-based payment arrangements | 103,000,000 | 103,000,000 | 103,000,000 | ||||||||||||||
Exercise of employee share options and rights | 3,000,000 | 3,000,000 | 3,000,000 | ||||||||||||||
Purchase of shares (net of issue costs) | (35,000,000) | (35,000,000) | (35,000,000) | ||||||||||||||
Net (acquisition)/disposal of treasury shares | 2,000,000 | 2,000,000 | 2,000,000 | ||||||||||||||
Other | (6,000,000) | (6,000,000) | |||||||||||||||
Total contributions and distributions | (5,130,000,000) | 1,167,000,000 | 103,000,000 | (6,400,000,000) | (6,000,000) | (5,136,000,000) | |||||||||||
Balance at Sep. 30, 2018 | $ 55,356,000,000 | $ 35,546,000,000 | $ 1,114,000,000 | $ 18,696,000,000 | 64,521,000,000 | 35,561,000,000 | 1,077,000,000 | 27,883,000,000 | 52,000,000 | 64,573,000,000 | |||||||
Impact on adoption of new accounting standards | (500,000,000) | 2,000,000 | (502,000,000) | (725,000,000) | 2,000,000 | (727,000,000) | (725,000,000) | ||||||||||
Restated opening balance | 54,856,000,000 | 35,546,000,000 | 1,116,000,000 | 18,194,000,000 | 63,796,000,000 | 35,561,000,000 | 1,079,000,000 | 27,156,000,000 | 52,000,000 | 63,848,000,000 | |||||||
Net profit for the year | 7,121,000,000 | 7,121,000,000 | $ 7,121,000,000 | 6,784,000,000 | 6,784,000,000 | 6,000,000 | 6,790,000,000 | ||||||||||
Net other comprehensive income for the year | (164,000,000) | 114,000,000 | (278,000,000) | (164,000,000) | (164,000,000) | 122,000,000 | (286,000,000) | 2,000,000 | (162,000,000) | ||||||||
Total comprehensive income for the year | 6,957,000,000 | 114,000,000 | 6,843,000,000 | 6,957,000,000 | 6,620,000,000 | 122,000,000 | 6,498,000,000 | 8,000,000 | 6,628,000,000 | ||||||||
Transactions in capacity as equity holders | |||||||||||||||||
Dividends on ordinary shares | (6,470,000,000) | [2] | (6,470,000,000) | [2] | (6,466,000,000) | [1] | (6,466,000,000) | [1] | (6,466,000,000) | [1] | |||||||
Dividend reinvestment plan | 1,489,000,000 | 1,489,000,000 | 1,489,000,000 | 1,489,000,000 | 1,489,000,000 | 1,489,000,000 | |||||||||||
Other equity movements | |||||||||||||||||
Share-based payment arrangements | 108,000,000 | 108,000,000 | 108,000,000 | 108,000,000 | 108,000,000 | 108,000,000 | |||||||||||
Purchase of shares (net of issue costs) | (33,000,000) | (33,000,000) | (33,000,000) | (33,000,000) | (33,000,000) | ||||||||||||
Net (acquisition)/disposal of treasury shares | (69,000,000) | (69,000,000) | (62,000,000) | (62,000,000) | (62,000,000) | ||||||||||||
Other | 2,000,000 | 2,000,000 | (7,000,000) | (5,000,000) | |||||||||||||
Total contributions and distributions | (4,975,000,000) | 1,387,000,000 | 108,000,000 | (6,470,000,000) | (4,962,000,000) | 1,394,000,000 | 110,000,000 | (6,466,000,000) | (7,000,000) | (4,969,000,000) | |||||||
Balance at Sep. 30, 2019 | 56,838,000,000 | 36,933,000,000 | 1,338,000,000 | 18,567,000,000 | 56,838,000,000 | 65,454,000,000 | 36,955,000,000 | 1,311,000,000 | 27,188,000,000 | 53,000,000 | 65,507,000,000 | ||||||
Net profit for the year | 2,658,000,000 | 2,658,000,000 | 2,658,000,000 | 2,290,000,000 | 2,290,000,000 | 2,000,000 | 2,292,000,000 | ||||||||||
Net other comprehensive income for the year | 11,000,000 | 160,000,000 | (149,000,000) | 11,000,000 | 1,000,000 | 155,000,000 | (154,000,000) | (3,000,000) | (2,000,000) | ||||||||
Total comprehensive income for the year | 2,669,000,000 | 160,000,000 | 2,509,000,000 | 2,669,000,000 | 2,291,000,000 | 155,000,000 | 2,136,000,000 | (1,000,000) | 2,290,000,000 | ||||||||
Transactions in capacity as equity holders | |||||||||||||||||
Share issuances | 110,919,861 | 2,751,000,000 | 2,751,000,000 | 2,751,000,000 | |||||||||||||
Dividends on ordinary shares | (2,792,000,000) | [2] | (2,792,000,000) | [2] | (2,791,000,000) | [1] | (2,791,000,000) | [1] | (2,791,000,000) | [1] | |||||||
Dividend reinvestment plan | 273,000,000 | 273,000,000 | 273,000,000 | 273,000,000 | 273,000,000 | 273,000,000 | |||||||||||
Other equity movements | |||||||||||||||||
Share-based payment arrangements | 78,000,000 | 78,000,000 | 78,000,000 | 78,000,000 | 78,000,000 | 78,000,000 | |||||||||||
Purchase of shares (net of issue costs) | (29,000,000) | (29,000,000) | (29,000,000) | (29,000,000) | (29,000,000) | ||||||||||||
Net (acquisition)/disposal of treasury shares | (46,000,000) | (46,000,000) | (10,000,000) | (10,000,000) | (10,000,000) | ||||||||||||
Other | 6,000,000 | 6,000,000 | (1,000,000) | 5,000,000 | |||||||||||||
Total contributions and distributions | 241,000,000 | 2,955,000,000 | 78,000,000 | (2,792,000,000) | 278,000,000 | 2,991,000,000 | 78,000,000 | (2,791,000,000) | (1,000,000) | 277,000,000 | |||||||
Balance at Sep. 30, 2020 | $ 59,748,000,000 | $ 39,888,000,000 | $ 1,576,000,000 | $ 18,284,000,000 | $ 59,748,000,000 | $ 68,023,000,000 | $ 39,946,000,000 | $ 1,544,000,000 | $ 26,533,000,000 | $ 51,000,000 | $ 68,074,000,000 | ||||||
[1] | 2020 relates to 2019 final dividend of 80 cents per share ($2,791 million) (2019: 2019 interim dividend of 94 cents per share ($3,239 million) and 2018 final dividend of 94 cents per share ($3,227 million), 2018: 2018 interim dividend of 94 cents per share ($3,213 million) and 2017 final dividend of 94 cents per share ($3,187 million)), all fully franked at 30%. | ||||||||||||||||
[2] | 2020 relates to 2019 final dividend of 80 cents per share ($2,792 million) (2019: 2019 interim dividend of 94 cents per share ($3,241 million) and 2018 final dividend of 94 cents per share ($3,229 million)), all fully franked at 30%. |
Statements of changes in equi_2
Statements of changes in equity (Parenthetical) - AUD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Interim dividend (in dollars per share) | $ 0.94 | $ 0.94 | |
Interim dividend | $ 3,239 | $ 3,213 | |
Final dividend (in dollars per share) | $ 0.80 | $ 0.94 | $ 0.94 |
Final dividend | $ 2,791 | $ 3,227 | $ 3,187 |
Dividend tax rate (as a percent) | 30.00% | 30.00% | 30.00% |
Parent Entity | |||
Interim dividend (in dollars per share) | $ 0.94 | ||
Interim dividend | $ 3,241 | ||
Final dividend (in dollars per share) | $ 0.80 | $ 0.94 | |
Final dividend | $ 2,792 | $ 3,229 | |
Dividend tax rate (as a percent) | 30.00% | 30.00% |
Cash flow statements
Cash flow statements - AUD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities | |||
Interest received | $ 27,215 | $ 33,093 | $ 32,639 |
Interest paid | (11,466) | (16,486) | (15,789) |
Dividends received excluding life business | 16 | 6 | 9 |
Other non-interest income received | 2,894 | 3,865 | 4,995 |
Operating expenses paid | (8,598) | (9,080) | (7,889) |
Income tax paid excluding life business | (3,080) | (3,406) | (3,585) |
Life business: | |||
Receipts from policyholders and customers | 2,235 | 2,189 | 2,008 |
Interest and other items of similar nature | 21 | 6 | 17 |
Dividends received | 306 | 553 | 642 |
Payments to policyholders and suppliers | (2,302) | (2,250) | (2,089) |
Income tax paid | (6) | (94) | (143) |
Cash flows from operating activities before changes in operating assets and liabilities | 7,235 | 8,396 | 10,815 |
Net (increase)/decrease in: | |||
Collateral paid | 348 | (847) | 969 |
Trading securities and financial assets measured at FVIS | (8,756) | (7,629) | 3,492 |
Derivative financial instruments | 1,851 | 7,605 | 8,584 |
Loans | 18,272 | (4,188) | (24,740) |
Other financial assets | 273 | 336 | 859 |
Life insurance assets and liabilities | (277) | (134) | (230) |
Other assets | 70 | (13) | 10 |
Net increase/(decrease) in: | |||
Collateral received | (1,096) | 1,007 | (295) |
Deposits and other borrowings | 28,910 | 1,113 | 23,928 |
Other financial liabilities | 11,817 | 1,463 | (3,632) |
Other liabilities | 4 | (5) | 10 |
Net cash provided by/(used in) operating activities | 58,651 | 7,104 | 19,770 |
Cash flows from investing activities | |||
Proceeds from available-for-sale securities | 23,878 | ||
Purchase of available-for-sale securities | (24,376) | ||
Proceeds from investment securities | 33,080 | 19,768 | |
Purchase of investment securities | (51,332) | (29,527) | |
Proceeds/(payments) from disposal of controlled entities, net of cash disposed | (1) | 9 | |
Proceeds from disposal of associates | 45 | ||
Purchase of associates | (8) | (25) | (30) |
Proceeds from disposal of property and equipment | 58 | 157 | 91 |
Purchase of property and equipment | (240) | (280) | (310) |
Purchase of intangible assets | (1,035) | (906) | (882) |
Net cash provided by/(used in) investing activities | (19,477) | (10,769) | (1,620) |
Cash flows from financing activities | |||
Proceeds from debt issues (net of issue costs) | 34,766 | 61,484 | 59,456 |
Redemption of debt issues | (65,160) | (63,313) | (64,698) |
Payments for the principal portion of lease liabilities | (543) | ||
Issue of loan capital (net of issue costs) | 2,225 | 4,935 | 2,342 |
Redemption of loan capital | (262) | (1,662) | (2,387) |
Proceeds from share issuances | 2,751 | ||
Proceeds from exercise of employee options | 3 | ||
Purchase of shares on exercise of employee options and rights | (4) | (6) | (8) |
Shares purchased for delivery of employee share plan | (25) | (27) | (27) |
Purchase of RSP treasury shares | (46) | (69) | (71) |
Net sale/(purchase) of other treasury shares | 14 | 7 | 73 |
Payment of dividends | (2,518) | (4,977) | (5,769) |
Dividends paid to NCI | (1) | (5) | (6) |
Net cash provided by/(used in) financing activities | (28,803) | (3,633) | (11,092) |
Net increase/(decrease) in cash and balances with central banks | 10,371 | (7,298) | 7,058 |
Effect of exchange rate changes on cash and balances with central banks | (301) | 569 | 944 |
Cash and balances with central banks as at beginning of year | 20,059 | 26,788 | 18,786 |
Cash and balances with central banks as at end of year | 30,129 | 20,059 | 26,788 |
Parent Entity | |||
Cash flows from operating activities | |||
Interest received | 26,830 | 33,770 | |
Interest paid | (13,543) | (19,444) | |
Dividends received excluding life business | 763 | 2,218 | |
Other non-interest income received | 2,330 | 2,982 | |
Operating expenses paid | (6,967) | (7,491) | |
Income tax paid excluding life business | (2,732) | (3,081) | |
Life business: | |||
Cash flows from operating activities before changes in operating assets and liabilities | 6,681 | 8,954 | |
Net (increase)/decrease in: | |||
Collateral paid | 329 | (755) | |
Trading securities and financial assets measured at FVIS | (8,266) | (7,358) | |
Derivative financial instruments | 2,103 | 6,581 | |
Loans | 21,273 | (3,312) | |
Other financial assets | 283 | 324 | |
Other assets | 50 | (41) | |
Net increase/(decrease) in: | |||
Collateral received | (1,072) | 1,004 | |
Deposits and other borrowings | 20,859 | 963 | |
Other financial liabilities | 11,866 | 1,555 | |
Other liabilities | (7) | (24) | |
Net cash provided by/(used in) operating activities | 54,099 | 7,891 | |
Cash flows from investing activities | |||
Proceeds from investment securities | 29,807 | 16,483 | |
Purchase of investment securities | (47,311) | (25,719) | |
Net movement in amounts due to/from controlled entities | (665) | 2,110 | |
Net (increase)/decrease in investments in controlled entities | (315) | 94 | |
Purchase of associates | (6) | (24) | |
Proceeds from disposal of property and equipment | 32 | 143 | |
Purchase of property and equipment | (165) | (209) | |
Purchase of intangible assets | (955) | (846) | |
Net cash provided by/(used in) investing activities | (19,578) | (7,968) | |
Cash flows from financing activities | |||
Proceeds from debt issues (net of issue costs) | 27,487 | 50,375 | |
Redemption of debt issues | (55,761) | (56,347) | |
Payments for the principal portion of lease liabilities | (499) | ||
Issue of loan capital (net of issue costs) | 2,225 | 4,935 | |
Redemption of loan capital | (262) | (1,662) | |
Proceeds from share issuances | 2,751 | ||
Purchase of shares on exercise of employee options and rights | (4) | (6) | |
Shares purchased for delivery of employee share plan | (25) | (27) | |
Purchase of RSP treasury shares | (46) | (69) | |
Payment of dividends | (2,519) | (4,981) | |
Net cash provided by/(used in) financing activities | (26,653) | (7,782) | |
Net increase/(decrease) in cash and balances with central banks | 7,868 | (7,859) | |
Effect of exchange rate changes on cash and balances with central banks | (124) | 575 | |
Cash and balances with central banks as at beginning of year | 17,692 | 24,976 | |
Cash and balances with central banks as at end of year | $ 25,436 | $ 17,692 | $ 24,976 |
Financial statements preparatio
Financial statements preparation | 12 Months Ended |
Sep. 30, 2020 | |
Financial statements preparation | |
Financial statements preparation | Note 1. Financial statements preparation This financial report of Westpac Banking Corporation (the Parent Entity), together with its controlled entities (the Group or Westpac), for the year ended 30 September 2020, was authorised for issue by the Board of Directors on 1 November 2020. The Directors have the power to amend and reissue the financial report. The principal accounting policies are set out below and in the relevant notes to the financial statements. The accounting policy for the recognition and derecognition of financial assets and financial liabilities precedes Note 10. These accounting policies provide details of the accounting treatments adopted for complex balances and where accounting standards provide policy choices. These policies have been consistently applied to all the years presented, unless otherwise stated. a. Basis of preparation (i) Basis of accounting This financial report is a general purpose financial report prepared in accordance with: · the requirements for an Authorised Deposit-taking Institution (ADI) under the Banking Act 1959 (as amended); · Australian Accounting Standards (AAS) and Interpretations as issued by the Australian Accounting Standards Board (AASB); and · the Corporations Act 2001. Westpac Banking Corporation is a for-profit entity for the purposes of preparing this financial report. The financial report also complies with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and Interpretations as issued by the IFRS Interpretations Committee (IFRIC). It also includes additional disclosures required for foreign registrants by the United States Securities and Exchange Commission (US SEC). All amounts have been rounded in accordance with ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191, to the nearest million dollars, unless otherwise stated. (ii) Historical cost convention The financial report has been prepared under the historical cost convention, as modified by applying fair value accounting to financial assets and financial liabilities (including derivative instruments) measured at fair value through income statement (FVIS) or in other comprehensive income (OCI). (iii) Standards adopted during the year ended 30 September 2020 AASB 16 Leases (AASB 16) AASB 16 was adopted by the Group on 1 October 2019. AASB 16 requires all operating leases of greater than 12 months duration be presented on balance sheet by the lessee as a right-of-use (ROU) asset and lease liability. There are no significant changes to lessor accounting. The Group adopted the standard using the simplified approach of transition with no restatement of comparative information and no effect on retained earnings. The lease liabilities are measured at the present value of the remaining lease payments, discounted at the lessee’s incremental borrowing rate at 1 October 2019. On transition to the new standard, the lease liability recognised in other liabilities was $3.3 billion for the Group and $3.0 billion for the Parent Entity. The associated ROU assets of $3.2 billion for the Group and $2.9 billion for the Parent Entity were measured at an amount equal to the lease liability, less previously recognised accrued lease payments of $0.1 billion for the Group and the Parent Entity. The ROU assets are recognised in property and equipment. All leases on balance sheet give rise to a combination of interest expense on the lease liability and depreciation of the ROU asset. Interest expense is recognised in net interest income on an effective yield basis. Depreciation expense is recognised in operating expenses on a straight-line basis over the lease term. Extension options are included in a number of lease contracts. The extension options are only included in the lease term if the lease is reasonably certain to be extended, which is assessed by the Group at the lease commencement date. The assessment is reviewed if a significant event or significant change in circumstances occurs which affects this assessment and is within the control of the Group. The Group considered the impact of COVID-19 on our assessment of extension options and concluded that they were unchanged. The Group also considered the impact of COVID-19 on the carrying value of the ROU asset and determined there was no impairment. The Group used the incremental borrowing rate based on the remaining maturity of leases at the date of transition as the discount rate when determining present value. The weighted average incremental borrowing rate applied was 2.1%. Operating lease commitments disclosed under AASB 117 Leases (AASB 117) as at 30 September 2019 were $3.7 billion for the Group and $3.4 billion for the Parent Entity compared to the lease liabilities of $3.3 billion for the Group and $3.0 billion for the Parent Entity recognised under AASB 16 as at 1 October 2019. The difference is principally due to the discounting of the contractual lease payments under AASB 16. AASB Interpretation 23 Uncertainty over Income Tax Treatments (Interpretation 23) Interpretation 23 was adopted by the Group on 1 October 2019 and clarifies the recognition and measurement criteria in AASB 112 Income Taxes (AASB 112) where there is uncertainty over income tax treatments, and requires an assessment of each uncertain tax position as to whether it is probable that a taxation authority will accept the position. Where it is not considered probable, the effect of the uncertainty will be reflected in determining the relevant taxable profit or loss, tax bases, unused tax losses and unused tax credits or tax rates. The amount will be determined as either the single most likely amount or the sum of the probability weighted amounts in a range of possible outcomes, whichever better predicts the resolution of the uncertainty. Judgements will be reassessed as and when new facts and circumstances are presented. Interpretation 23 did not have a material impact on the Group. AASB 2019-3 Amendments to Australian Accounting Standards – Interest rate benchmark reform (AASB 2019-3) AASB 2019-3 was early adopted, as permitted by the standard, by the Group on 1 October 2019. AASB 2019-3 makes amendments to AASB 9 Financial Instruments (December 2014) (AASB 9), AASB 139 Financial Instruments: Recognition and Measurement (AASB 139), and AASB 7 Financial Instruments: Disclosures (AASB 7) which allows the Group to apply certain exceptions to the standard hedging requirements in respect of hedge relationships that are impacted by a market-wide interest rate benchmark reform. Specifically the exceptions allow the Group to: · Assume that the interest rate benchmark on which the hedged cash flows are based is not altered as a result of the reform when determining whether a forecast transaction is highly probable; · Assume that interest rate benchmark of the hedged item / instrument is not altered for the life of the hedge when assessing whether a hedge is expected to continue to be highly effective; · A hedge relationship impacted by uncertainty arising from benchmark interest rate reform is not required to pass the 80%-125% effectiveness test, however any actual ineffectiveness must be recorded in the income statement; and · The determination of a designated component of an exposure in portfolio hedges is only required to be made the first time that component is designated, and not when the portfolio is de-designated and re-designated. The exceptions allowed by the amendments are being applied to the Group’s LIBOR linked hedge relationships that mature after the LIBOR discontinuance date of 31 December 2021. Last year the Group established an enterprise-wide Interbank Offered Rates (IBORs) Transition Program to manage the impacts of Interest Rate Benchmark Reform (IBOR reform). The scope of the program is to address the impact of transition from IBORs to alternative reference rates (ARRs) including business, compliance, customer and technology impacts. The Governance structure of the program is well established to include a Steering Committee with its key responsibility being the governance of the program. The Committee includes senior executives from Finance, Legal, Technology, Compliance, Risk and all impacted business units. The program is executing against transition timelines with regulatory guidance in relation to COVID-19 indicating LIBOR is still expected to cease by end of December 2021. Significant activities underway include development of ARR product variations, changes required for adopting the International Swaps and Derivatives Association (ISDA) Protocol, customer outreach including management of conduct risk in customer transition and technology. Changes required for both euro short-term rate (ESTR) and secured overnight funding rate (SOFR) LCH discounting have been implemented. A key assumption made when performing hedge accounting at the reporting date is that both the hedged item and instrument will be amended from existing LIBOR linked floating rates to new ARRs on the same date. Where actual differences between those dates arise hedge ineffectiveness will be recorded in the income statement. Note 20 provides further information regarding the hedging relationships affected by the IBOR reform. Refer to Note 1 (c) - Future developments in accounting standards for details of the accounting standard issues but not yet effective dealing with phase two of the IBOR reform. (iv) Business combinations Business combinations are accounted for using the acquisition method of accounting. Acquisition cost is measured as the aggregate of the fair value at the date of acquisition of the assets given, equity instruments issued or liabilities incurred or assumed. Acquisition-related costs are expensed as incurred (except for those costs arising on the issue of equity instruments which are recognised directly in equity). Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured at fair value on the acquisition date. Goodwill is measured as the excess of the acquisition cost, the amount of any non-controlling interest and the fair value of any previous Westpac equity interest in the acquiree, over the fair value of the identifiable net assets acquired. (v) Foreign currency translation Functional and presentational currency The consolidated financial statements are presented in Australian dollars which is the Parent Entity’s functional and presentation currency. The functional currency of offshore entities is usually the main currency of the economy it operates in. Transactions and balances Foreign currency transactions are translated into the functional currency of the relevant branch or subsidiary using the exchange rates prevailing at the dates of the transactions. Foreign exchange (FX) gains and losses resulting from the settlement of such transactions and from the translation at year end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement, except when deferred in OCI for qualifying cash flow hedges and qualifying net investment hedges. Foreign operations Assets and liabilities of foreign branches and subsidiaries that have a functional currency other than the Australian dollar are translated at exchange rates prevailing on the balance date. Income and expenses are translated at average exchange rates prevailing during the year. Equity balances are translated at historical exchange rates. The resulting exchange differences are recognised in the foreign currency translation reserve and in OCI. On consolidation, exchange differences arising from the translation of borrowings and other foreign currency instruments designated as hedges of the net investment in foreign operations are reflected in the foreign currency translation reserve and in OCI. When all or part of a foreign operation is disposed or borrowings that are part of the net investments are repaid, a proportionate share of such exchange differences is recognised in the income statement as part of the gain or loss on disposal or repayment of borrowing. (vi) Comparative revisions Comparative information has been revised where appropriate to conform to changes in presentation in the current year and to enhance comparability. b. Critical accounting assumptions and estimates Applying the Group’s accounting policies requires the use of judgement, assumptions and estimates which impact the financial information. The significant assumptions and estimates used are discussed in the relevant notes below: · Note 7 Income tax · Note 13 Provisions for expected credit losses/impairment charges · Note 15 Life insurance assets and life insurance liabilities · Note 22 Fair values of financial assets and financial liabilities · Note 25 Intangible assets · Note 27 Provisions, contingent liabilities, contingent assets and credit commitments · Note 34 S uperannuation commitments Impact of COVID-19 The COVID-19 pandemic and the measures put in place domestically and globally to control the spread of the virus have had a significant impact on global economies and financial markets. As a result, this has increased the uncertainty and judgement required in relation to our critical accounting assumptions and estimates, primarily relating to: · expected credit losses; and · recoverable amount assessments of intangible assets. As there is a higher than usual degree of uncertainty associated with these assumptions and estimates, the actual economic conditions are likely to be different from those forecast which may significantly impact accounting estimates included in these financial statements. The impact of COVID-19 is discussed further in each of the related notes. c. The following new standards and interpretations which may have a material impact on the Group have been issued but are not yet effective, and unless otherwise stated, have not been early adopted by the Group: AASB 17 Insurance Contracts (AASB 17) was issued on 19 July 2017 and will be effective for the 30 September 2022 year end unless early adopted. This will replace AASB 4 Insurance Contracts (AASB 4), AASB 1023 General Insurance Contracts and AASB 1038 Life Insurance Contracts . The main changes under the standard are: · the scope of the standard may result in some contracts that are currently "unbundled", i.e. accounted for separately as insurance and investment contracts being required to be "bundled" and accounted for as an insurance contract; · portfolios of contracts (with similar risks which are managed together) will be required to be disaggregated to a more granular level by both the age of a contract and the likelihood of the contract being onerous in order to determine the recognition of profit over the contract period (i.e. the contractual service margin). The contractual service margin uses a different basis to recognise profit to the current Margin on Services approach for life insurance and therefore the pattern of profit recognition is likely to differ; · risk adjustments, which reflect uncertainties in the amount and timing of future cash flows, are required for both general and life insurance contracts rather than just general insurance contracts under the current accounting standards; · the contract boundary, which is the period over which profit is recognised, differs and is determined based on the ability to compel the policyholder to pay premiums or the substantive obligation to provide coverage/services. For some general insurance contracts (e.g. some lender mortgage insurance and reinsurance contracts) this may result in the contract boundary being longer. For life insurance, in particular term renewable contracts, the contract boundary is expected to be shorter. Both will be impacted by different patterns of profit recognition compared to the current standards; · a narrower definition of what acquisition costs may be deferred; · an election to recognise changes in assumptions regarding discount rate in OCI rather than in income statement; · an election to recognise changes in the fair value of assets supporting policy liabilities in OCI rather than through the income statement; · reinsurance contracts and the associated liability are to be determined separately to the gross contract liability and may have different contract boundaries; and · additional disclosure requirements. The standard is expected to result in a reduction in the level of deferred acquisition costs, however the quantum of this and the income statement impacts to the Group are not yet practicable to determine. AASB 2020-5 Amendments to Australian Accounting Standards - Insurance Contracts was issued on 30 July 2020. This standard includes a number of amendments to AASB 17. These amendments include: · deferral of acquisition costs for anticipated renewals outside of the initial contract boundary; · further clarity on the contractual service margin; · additional scope exclusion for credit card contracts and similar contracts that provide insurance coverage as well as optional scope exclusion for loan contracts that transfer significant insurance risk; · ability to recognise a gain in the income statement for reinsurance contracts, to offset losses from onerous contracts on initial recognition; · simplified presentation requirements; and · additional transitional relief. In addition, the effective date of AASB 17 will be deferred by two years to be applicable to the Group for the 30 September 2024 financial year. On 22 September 2020, the AASB issued AASB 2020-8 Amendments to Australian Accounting Standards - Interest Rate Benchmark Reform - Phase 2 which makes further amendments to AASB 9, AASB 139, and AASB 7 resulting from IBOR reform. Amendments are also made to AASB 4 and AASB 16. The standard is effective for the 30 September 2022 year end unless early adopted. The amendments: · allow the Group to account for a change in contractual cash flows of a financial instrument or lease liability that result specifically from IBOR reform by updating the effective interest rate rather than recognising a modification gain or loss; · allow the Group to continue hedge accounting and not trigger a de-designation when the following occurs specific to IBOR reform: - changes to hedge documentation to update the hedged risk, item and instrument; - changes to the method of assessing hedge ineffectiveness; - once the hedge relationship has been converted from LIBOR to ARR the cumulative change in fair value for ineffectiveness testing could be reset to zero if this would improve the retrospective effectiveness test; - this amendment can apply to macro cash flow and fair value hedges where subgroups can be formed within the portfolio of hedges where some are under the existing LIBOR rate and others have already changed to the ARR; · require additional disclosures including: - quantitative information regarding all financial instruments linked to LIBOR which have not been yet converted to ARR; - changes to the entity's risk management strategy arising from IBOR reform; and - the management of the Group's transition to ARR. These amendments will impact the Group's financial instruments and lease liabilities that reference a LIBOR rate as they transition to an ARR. The Group is currently assessing the impact of the standard and considering whether to early adopt the amendments as permitted by the standard. A revised Conceptual Framework (Framework) was issued in May 2019. This will be effective for the Group for the 30 September 2021 financial year. The revised Framework includes new definitions and recognition criteria for assets, liabilities, income and expenses and other relevant financial reporting concepts. The changes are not expected to have a material impact to the Group. Other amendments to existing standards that are not yet effective are not expected to have a material impact to the Group. |
Segment reporting
Segment reporting | 12 Months Ended |
Sep. 30, 2020 | |
Segment reporting | |
Segment reporting | FINANCIAL PERFORMANCE Note 2. Segment reporting Accounting policy Operating segments are presented on a basis consistent with information provided internally to Westpac’s key decision makers and reflect the management of the business, rather than the legal structure of the Group. Internally, Westpac uses ‘cash earnings’ in assessing the financial performance of its divisions. Management believes this allows the Group to: more effectively assess current year performance against prior years; compare performance across business divisions; and compare performance across peer companies. Cash earnings is viewed as a measure of the level of profit that is generated by ongoing operations and is therefore typically considered in assessing distributions, including dividends. Cash earnings is neither a measure of cash flow nor net profit determined on a cash accounting basis, as it includes both cash and non-cash adjustments to statutory net profit. To determine cash earnings, three categories of adjustments are made to statutory results: material items that key decision makers at the Westpac Group believe do not reflect ongoing operations; items that are not typically considered when dividends are recommended, such as the amortisation of intangibles, impact of Treasury shares and economic hedging impacts; and accounting reclassifications between individual line items that do not impact statutory results. Internal charges and transfer pricing adjustments have been reflected in the performance of each operating segment. Inter-segment pricing is determined on an arm’s length basis. Reportable operating segments The operating segments are defined by the customers they serve and the services they provide: · Consumer : - is responsible for sales and service of banking and financial products and services to consumer customers in Australia; and - operates under the Westpac, St.George, BankSA, Bank of Melbourne, and RAMS brands. · Business: - is responsible for sales and service of banking products and services for SME and commercial customers in Australia. SME and Commercial customers typically have facilities up to approximately $200 million; - is responsible for Private Wealth, serving the banking needs of high net worth customers across the banking brands; and - operates under the Westpac, St.George, BankSA, and Bank of Melbourne brands. · Westpac Institutional Bank (WIB): - is responsible for delivering a broad range of financial products and services to commercial, corporate, institutional and government customers with connections to Australia and New Zealand; - services include financing, transactional banking, financial and debt capital markets; and - customers are supported throughout Australia, as well as via branches and subsidiaries located in New Zealand, US, UK and Asia. · Westpac New Zealand: - is responsible for banking, wealth and insurance products and services to customers in New Zealand; - customer base includes consumers, business and institutional customers; and - operates under the Westpac brand for banking products, the Westpac Life brand for life insurance products and the BT brand for wealth products. · Specialist Businesses: - is responsible for sales and service of Auto and Vendor Finance, Australian insurance products, Superannuation, Platforms and Investments; - it is also responsible for Westpac Pacific which provides a full range of banking services in Fiji and Papua New Guinea; and - operates under the Westpac, St.George, BankSA, Bank of Melbourne and BT brands. · Group Businesses include: - Treasury, which is responsible for the management of the Group’s balance sheet including wholesale funding, capital and management of liquidity. Treasury also manages the interest rate risk and foreign exchange risks inherent in the balance sheet, including managing the mismatch between Group assets and liabilities. Treasury’s earnings are primarily sourced from managing the Group’s balance sheet and interest rate risk, (excluding Westpac New Zealand) within set risk limits; - Group Technology 1 , which comprises functions for the Australian businesses, is responsible for technology strategy and architecture, infrastructure and operations, applications development and business integration; - Core Support 2 , which comprises Group support functions, including Australian banking operations, property services, strategy, finance, risk, financial crime, compliance and conduct, compliance, legal, human resources, and customer and corporate relations; and - Group Businesses also includes earnings on capital not allocated to divisions, certain intra-group transactions that facilitate presentation of performance of the Group’s operating segments, earnings from non-core asset sales, earnings and costs associated with the Group’s Fintech investments, costs associated with customer remediation for the Advice business 3 , and certain other head office items such as centrally held provisions. 1. Costs are fully allocated to other divisions in the Group. 2. Costs are partially allocated to other divisions in the Group, with costs attributed to enterprise activity retained in Group Businesses. 3. In March 2019, Westpac announced that it was exiting the provision of personal financial advice. Revisions to segment results In 2020, Westpac implemented a change to the presentation of its divisional financial information. The change related to: · the creation of the Specialist Businesses division, which includes the following businesses: Auto and Vendor Finance, Australian insurance businesses, Superannuation, Platforms and Investments, and Westpac Pacific; and · the movement of certain small to medium size enterprise customers, and products between the Consumer and Business division to better reflect our new line of Business operating structure. This change has no impact on the Group’s overall results or balance sheet but impacts divisional results and balance sheets. Comparative divisional financial information has been restated for this change. The following tables present the segment results on a cash earnings basis for the Group: Westpac Westpac Net cash 2020 Institutional New Specialist Group earnings Income $m Consumer Business Bank Zealand Businesses Businesses Total adjustment statement Net interest income 8,547 4,163 1,111 1,832 534 899 17,086 (390) 16,696 Net fee income 471 438 544 123 89 (73) 1,592 — 1,592 Net wealth management and insurance income — 22 — 158 624 (45) 759 (8) 751 Trading income 90 97 637 27 57 20 928 (33) 895 Other income 12 3 1 11 (8) 242 261 (12) 249 Net operating income before operating expenses and impairment charges 9,120 4,723 2,293 2,151 1,296 1,043 20,626 (443) 20,183 Operating expenses 1 (4,176) (2,298) (1,316) (998) (1,548) (2,364) (12,700) (39) (12,739) Impairment charges (1,015) (1,371) (404) (302) (255) 169 (3,178) — (3,178) Profit before income tax 3,929 1,054 573 851 (507) (1,152) 4,748 (482) 4,266 Income tax expense (1,183) (320) (241) (239) 3 (158) (2,138) 164 (1,974) Profit attributable to NCI — — — — (2) — (2) — (2) Cash earnings for the year 2,746 734 332 612 (506) (1,310) 2,608 (318) 2,290 Net cash earnings adjustments — — — 7 (31) (294) (318) Net profit attributable to equity holders of WBC 2,746 734 332 619 (537) (1,604) 2,290 Balance sheet Loans 389,793 140,698 66,192 81,434 14,942 693,059 Deposits and other borrowings 219,259 151,939 102,851 68,473 9,260 39,349 591,131 1. Included in the Specialist Businesses division in operating expenses is $571 million relating to impairment of goodwill and other intangible assets for 2020. For other divisions, there was no impairment of goodwill and impairment of other intangibles assets was not material. Westpac Westpac Net cash 2019 Institutional New Specialist Group earnings Income $m Consumer Business Bank Zealand Businesses Businesses Total adjustment statement Net interest income 8,130 4,456 1,337 1,860 555 615 16,953 (46) 16,907 Net fee income 594 463 570 163 44 (179) 1,655 — 1,655 Net wealth management and insurance income — 16 — 177 1,319 (489) 1,023 6 1,029 Trading income 94 109 636 37 54 (23) 907 22 929 Other income 7 6 (11) 46 (5) 74 117 12 129 Net operating income before operating expenses and impairment charges 8,825 5,050 2,532 2,283 1,967 (2) 20,655 (6) 20,649 Operating expenses (3,794) (2,094) (1,220) (939) (847) (1,137) (10,031) (75) (10,106) Impairment charges (582) (172) (31) 10 (111) 92 (794) — (794) Profit before income tax 4,449 2,784 1,281 1,354 1,009 (1,047) 9,830 (81) 9,749 Income tax expense (1,333) (838) (356) (369) (292) 213 (2,975) 16 (2,959) Profit attributable to NCI — — — — (5) (1) (6) — (6) Cash earnings for the year 3,116 1,946 925 985 712 (835) 6,849 (65) 6,784 Net cash earnings adjustments — — — (1) (45) (19) (65) Net profit attributable to equity holders of WBC 3,116 1,946 925 984 667 (854) 6,784 Balance sheet Loans 399,279 146,867 73,572 78,005 17,216 (169) 714,770 Deposits and other borrowings 207,578 142,558 99,005 60,801 9,277 44,028 563,247 Westpac Westpac Net cash 2018 Institutional New Specialist Group earnings Income $m Consumer Business Bank Zealand Businesses Businesses Total adjustment statement Net interest income 8,092 4,619 1,320 1,799 565 792 17,187 (682) 16,505 Net fee income 645 469 572 164 80 (20) 1,910 514 2,424 Net wealth management and insurance income — 14 212 149 1,533 109 2,017 44 2,061 Trading income 100 114 641 51 42 (22) 926 19 945 Other income 21 15 48 9 9 23 125 (53) 72 Net operating income before operating expenses and impairment charges 8,858 5,231 2,793 2,172 2,229 882 22,165 (158) 22,007 Operating expenses (3,779) (1,983) (1,399) (855) (746) (936) (9,698) 132 (9,566) Impairment charges (490) (236) 20 (22) (84) — (812) 102 (710) Profit before income tax 4,589 3,012 1,414 1,295 1,399 (54) 11,655 76 11,731 Income tax expense (1,397) (908) (429) (361) (420) (71) (3,586) (46) (3,632) Profit attributable to NCI — — — — (5) 1 (4) — (4) Cash earnings for the year 3,192 2,104 985 934 974 (124) 8,065 30 8,095 Net cash earnings adjustments (15) — — 13 (76) 108 30 Net profit attributable to equity holders of WBC 3,177 2,104 985 947 898 (16) 8,095 Balance sheet Loans 396,265 146,099 75,627 73,604 18,329 (234) 709,690 Deposits and other borrowings 203,872 141,031 102,703 57,784 7,180 46,715 559,285 Reconciliation of cash earnings to net profit attributable to owners of WBC $m Cash earnings for the year 2,608 6,849 8,065 Cash earnings adjustments Amortisation of intangible assets — — (17) Fair value gain/(loss) on economic hedges (362) (35) 126 Ineffective hedges 61 20 (13) Adjustments related to Pendal (31) (45) (73) Treasury shares 14 (5) 7 Total cash earnings adjustments (318) (65) 30 Net profit attributable to owners of WBC 2,290 6,784 8,095 Revenue from products and services Details of revenue from external customers by product or service are disclosed in Notes 3 and 4. No single customer amounted to greater than 10% of the Group’s revenue. Geographic segments Geographic segments are based on the location of the office where the following items were recognised: 2020 2019 2018 $m % $m % $m % Revenue Australia 26,135 85.6 31,113 84.2 32,595 85.6 New Zealand 3,439 11.3 4,520 12.2 4,381 11.5 Other overseas 1 960 3.1 1,331 3.6 1,097 2.9 Total 30,534 100.0 36,964 100.0 38,073 100.0 Non-current assets 2 Australia 14,270 92.6 12,280 93.7 12,271 93.7 New Zealand 1,015 6.6 761 5.8 756 5.8 Other overseas 1 122 0.8 67 0.5 65 0.5 Total 15,407 100.0 13,108 100.0 13,092 100.0 1. Other overseas included Pacific Islands, Asia, the Americas and Europe. 2. Non-current assets represent property and equipment and intangible assets. |
Net interest income
Net interest income | 12 Months Ended |
Sep. 30, 2020 | |
Net interest income | |
Net interest income | Note 3. Net interest income Accounting policy Interest income and interest expense for all interest earning financial assets and interest bearing financial liabilities at amortised cost or FVOCI, detailed within the table below, are recognised using the effective interest rate method. Net income from treasury’s interest rate and liquidity management activities and the cost of the Bank levy are included in net interest income. The effective interest rate method calculates the amortised cost of a financial instrument by discounting the financial instrument’s estimated future cash receipts or payments to their present value and allocates the interest income or interest expense, including any fees, costs, premiums or discounts integral to the instrument, over its expected life. Interest income is calculated based on the gross carrying amount of financial assets in stages 1 and 2 of the Group’s expected credit losses (ECL) model and on the carrying amount net of the provision for ECL for financial assets in stage 3. For 2018 comparative year, interest income under AASB 139 is recognised net of provision for impairment on loans. Refer to Note 13 for further details of the Group’s ECL model. Consolidated Parent Entity $m Interest income 1 Calculated using the effective interest rate method Cash and balances with central banks 135 334 326 122 311 Collateral paid 75 201 129 74 197 Available-for-sale securities — — 1,914 — — Investment securities 1,521 1,919 — 1,385 1,750 Loans 24,848 30,029 29,583 21,488 26,171 Other financial assets 17 35 35 16 33 Due from subsidiaries — — — 2,940 4,274 Total interest income calculated using the effective interest rate method 26,596 32,518 31,987 26,025 32,736 Other Net ineffectiveness on qualifying hedges 87 28 (18) 77 26 Trading securities and financial assets measured at FVIS 359 662 564 338 633 Loans 5 14 38 5 14 Due from subsidiaries — — — 178 103 Total other 451 704 584 598 776 Total interest income 27,047 33,222 32,571 26,623 33,512 Interest expense Calculated using the effective interest rate method Collateral received (26) (57) (45) (23) (51) Deposits and other borrowings (4,652) (7,967) (8,141) (3,782) (6,745) Debt Issues (2,907) (4,706) (4,325) (2,549) (4,218) Due to subsidiaries — — — (3,601) (4,905) Loan capital (800) (776) (774) (800) (776) Other financial liabilities (98) (274) (318) (98) (273) Total interest expense calculated using the effective interest rate method (8,483) (13,780) (13,603) (10,853) (16,968) Other Deposits and other borrowings (402) (978) (880) (385) (961) Trading liabilities 2 (787) (915) (959) (640) (828) Debt issues (107) (163) (155) (74) (140) Bank levy (408) (391) (378) (408) (391) Due to subsidiaries — — — (29) 78 Other interest expense 3 (164) (88) (91) (150) (85) Total other (1,868) (2,535) (2,463) (1,686) (2,327) Total interest expense (10,351) (16,315) (16,066) (12,539) (19,295) Total net interest income 16,696 16,907 16,505 14,084 14,217 1. Interest income includes items relating to estimated customer refunds, payments, associated costs and litigation recognised as a reduction in interest income of $170 million (2019: $372 million, 2018: $127 million) for the Group, and $164 million (2019: $353 million) for the Parent Entity. Refer to Note 27 for further details. 2. Includes net impact of Treasury balance sheet management activities. 3. Included in other interest expense for 2020 is $64 million for the Group and $56 million for the Parent Entity relating to interest expense on lease liabilities due to the adoption of AASB 16 from 1 October 2019. Comparatives have not been restated. Refer to Notes 1 and 26 for further details. |
Non-interest income
Non-interest income | 12 Months Ended |
Sep. 30, 2020 | |
Non-interest income | |
Non-interest income | Note 4. Non-interest income Accounting policy Non-interest income includes net fee income, net wealth management and insurance income, trading income and other income. Net fee income When another party is involved in providing goods or services to a Group customer, the Group assesses whether the nature of the arrangement with its customer is as a principal provider or an agent of another party. Where the Group is acting as an agent for another party, the income earned by the Group is the net consideration received (i.e. the gross amount received from the customer less amounts paid to a third party provider). As an agent, the net consideration represents fee income for facilitating the transaction between the customer and the third party provider with primary responsibility for fulfilling the contract. Fee income Fee income is recognised when the performance obligation is satisfied by transferring the promised good or service to the customer. Fee income includes facility fees, transaction fees and other non-risk fee income. Facility fees include certain line fees, annual credit card fees and fees for providing customer bank accounts. They are recognised over the term of the facility/period of service on a straight line basis. Transaction fees are earned for facilitating banking transactions such as FX fees, telegraphic transfers and issuing bank cheques. Fees for these one-off transactions are recognised once the transaction has been completed. Transaction fees are also recognised for credit card transactions including interchange fees net of scheme charges. These are recognised once the transaction has been completed, however, a component of interchange fees received is deferred as unearned income as the Group has a future service obligation to customers under the Group’s credit card reward programs. Other non-risk fee income includes advisory and underwriting fees which are recognised when the related service is completed. Income which forms an integral part of the effective interest rate of a financial instrument is recognised using the effective interest method and recorded in interest income (for example, loan origination fees). Fee expenses Fee expenses include incremental external costs that vary directly with the provision of goods or services to customers. An incremental cost is one that would not have been incurred if a specific good or service had not been provided to a specific customer. Fee expenses which form an integral part of the effective interest rate of a financial instrument are recognised using the effective interest method and recorded in net interest income. Fee expenses include the costs associated with credit card loyalty programs which are recognised as an expense when the services are provided on the redemption of points as well as merchant transaction costs. Net wealth management and insurance income Wealth management income Wealth management fees earned for the ongoing management of customer funds and investments are recognised when the performance obligation is satisfied which is over the period of management. Insurance premium income Insurance premium income includes premiums earned for life insurance, life investment, loan mortgage insurance and general insurance products: life insurance premiums with a regular due date are recognised as revenue on an accrual basis; life investment premiums include a management fee component which is recognised as income over the period the service is provided. The deposit components of life insurance and investment contracts are not revenue and are treated as movements in life insurance liabilities; general insurance premium comprises amounts charged to policyholders, excluding taxes, and is recognised based on the likely pattern in which the insured risk is likely to emerge. The portion not yet earned based on the pattern assessment is recognised as unearned premium liability. Insurance claims expense life and general insurance contract claims are recognised as an expense when the liability is established; claims incurred in respect of life investment contracts represent withdrawals and are recognised as a reduction in life insurance liabilities. Trading income realised and unrealised gains or losses from changes in the fair value of trading assets, liabilities and derivatives are recognised in the period in which they arise (except day one profits or losses which are deferred, refer to Note 22); net income related to Treasury’s interest rate and liquidity management activities is included in net interest income. Other income - dividend income dividends on quoted shares are recognised on the ex-dividend date; dividends on unquoted shares are recognised when the company’s right to receive payment is established. Note 4. Non-interest income 1 (continued) Consolidated Parent Entity $m Net fee income Facility fees 731 730 1,365 672 680 Transaction fees 1,021 1,225 1,182 891 1,046 Other non-risk fee income 48 (76) 98 (52) (638) Fee income 1,800 1,879 2,645 1,511 1,088 Credit card loyalty programs (102) (121) (126) (71) (90) Transaction fee related expenses (106) (103) (95) (81) (76) Fee expenses (208) (224) (221) (152) (166) Net fee income 1,592 1,655 2,424 1,359 922 Net wealth management and insurance income Wealth management income 631 276 1,145 — — Life insurance premium income 1,297 1,443 1,410 — — General insurance and lenders mortgage insurance (LMI) net premium earned 499 482 472 — — Life insurance investment and other income 2 64 409 666 — — General insurance and LMI investment and other income 42 52 50 — — Total insurance premium, investment and other income 1,902 2,386 2,598 — — Life insurance claims and changes in life insurance liabilities 3 (1,284) (1,266) (1,396) — — General insurance and LMI claims and other expenses (498) (367) (286) — — Total insurance claims, changes in life insurance liabilities and other expenses (1,782) (1,633) (1,682) — — Net wealth management and insurance income 751 1,029 2,061 — — Trading income 895 929 945 876 956 Other income Dividends received from subsidiaries — — — 762 2,215 Transactions with subsidiaries — — — 579 457 Dividends received from other entities 1 6 3 1 3 Net gain/(loss) on derecognition/sale of associates 316 38 — 305 — Net gain/(loss) on disposal of assets 11 61 24 9 60 Net gain/(loss) on hedging of overseas operations — — — (8) (71) Net gain/(loss) on derivatives held for risk management purposes 4 4 (11) 8 4 (11) Net gain/(loss) on financial assets measured at fair value (78) (39) 38 (35) (25) Net gain/(loss) on disposal of controlled entities — 3 (9) — — Rental income on operating leases 54 72 107 33 50 Share of associates’ net profit/(loss) (23) (23) (10) — — Other (36) 22 (89) (53) 6 Total other income 249 129 72 1,597 2,684 Total non-interest income 3,487 3,742 5,502 3,832 4,562 1. Non-interest income includes items relating to estimated customer refunds, payments, associated costs and litigation recognised as a reduction in non-risk fee income, wealth management income and other income of $225 million (2019: $860 million, 2018: $171 million) for the Group, and $190 million (2019: $842 million) for the Parent Entity. Refer to Note 27 for further details. 2. Includes policyholder tax recoveries. 3. Life insurance claims and changes in life insurance liabilities include a $260 million loss for the Group (2019: nil, 2018: nil) recognised as a result of the liability adequacy test on life insurance contracts (refer to Note 15). It also includes a $97 million write-off of deferred acquisition costs for the Group (2019: nil, 2018: nil) as a result of Westpac Life Insurance Limited (WLIS) ceasing to provide group life insurance products to BT Super. 4. Income from derivatives held for risk management purposes reflects the impact of economic hedges of earnings. Deferred income in relation to the credit card loyalty programs for the Group was $361 million as at 30 September 2020 (2019: $322 million; 2018: $318 million) and $30 million for the Parent Entity (2019: $47 million). This will be recognised as fee income as the credit card reward points are redeemed. There were no other material contract assets or contract liabilities for the Group or the Parent Entity. |
Operating expenses
Operating expenses | 12 Months Ended |
Sep. 30, 2020 | |
Operating expenses | |
Operating expenses | Note 5. Operating expenses 1 Consolidated Parent Entity $m Staff expenses Employee remuneration, entitlements and on-costs 4,428 4,320 4,292 3,744 3,611 Superannuation expense 2 413 378 386 351 313 Share-based payments 80 108 95 76 101 Restructuring costs 94 232 114 76 202 Total staff expenses 5,015 5,038 4,887 4,247 4,227 Occupancy expenses Operating lease rentals 148 658 632 123 597 Depreciation and impairment of property and equipment 3,4 708 222 245 614 176 Other 160 143 156 145 122 Total occupancy expenses 1,016 1,023 1,033 882 895 Technology expenses Amortisation and impairment of software assets 4 970 719 620 896 653 Depreciation and impairment of IT equipment 3,4 272 129 141 244 117 Technology services 698 810 721 569 670 Software maintenance and licences 398 371 342 343 321 Telecommunications 216 207 209 190 182 Data processing 89 83 77 88 81 Total technology expenses 2,643 2,319 2,110 2,330 2,024 Other expenses Professional and processing services 1,374 1,060 824 1,184 860 Amortisation and impairment of intangible assets and deferred expenditure 4 523 9 138 116 — Postage and stationery 164 179 182 130 143 Advertising 217 245 173 172 196 Non-lending losses 1,443 58 133 1,428 43 Impairment on investments in subsidiaries — — — 272 136 Other 344 175 86 11 107 Total other expenses 4,065 1,726 1,536 3,313 1,485 Total operating expenses 12,739 10,106 9,566 10,772 8,631 1. Operating expenses include estimated costs associated with AUSTRAC proceedings of $1,478 million which includes a provision for penalty of $1,300 million (2019: nil, 2018: nil) for the Group and the Parent Entity. They also include estimated customer refunds, payments, associated costs and litigation of $317 million (2019: $196 million, 2018: $111 million) for the Group and $488 million (2019: $180 million) for the Parent Entity. Refer to Note 27 for further details. 2. Superannuation expense includes both defined contribution and defined benefit expense. Further details of the Group’s defined benefit plans are in Note 34. 3. These balances include depreciation of ROU assets of $630 million for the Group and $567 million for the Parent Entity due to the adoption of AASB 16 from 1 October 2019. Comparatives have not been restated. Refer to Notes 1 and 26 for further details. 4. Impairment expenses include: · $5 million (2019: nil, 2018: nil) for property and equipment for the Group, and $4 million (2019: nil) for the Parent Entity; · $171 million (2019: $25 million, 2018: $2 million) for computer software for the Group, and $165 million (2019: $25 million) for the Parent Entity; · $23 million (2019: nil, 2018: $1 million) for IT equipment for the Group, and $23 million (2019: nil) for the Parent Entity; and · $518 million (2019: nil, 2018: $105 million) for goodwill and other intangible assets for the Group, and $116 million (2019: nil) for the Parent Entity. |
Impairment charges
Impairment charges | 12 Months Ended |
Sep. 30, 2020 | |
Impairment charges | |
Impairment charges | Note 6. Impairment charges Accounting policy As 2018 comparatives were not restated for the Group's adoption of AASB 9 in 2019, the accounting policy applied in 2020 and 2019 differs to that applied prior to 2019. The accounting policy applied prior to 2019 is discussed in Note 39. The accounting policy applied in 2020 and 2019 is as follows. Impairment charges are based on an expected loss model which measures the difference between the current carrying amount and the present value of expected future cash flows taking into account past experience, current conditions and multiple probability-weighted macroeconomic scenarios for reasonably supportable future economic conditions. Further details of the calculation of ECL and the critical accounting assumptions and estimates relating to impairment charges are included in Note 13. Impairment charges are recognised in the income statement, with a corresponding amount recognised as follows: Loans, debt securities at amortised cost and due from subsidiaries balances: as a reduction of the carrying value of the financial asset through an offsetting provision account (refer to Note 13); Debt securities at FVOCI: in reserves in OCI with no reduction of the carrying value of the debt security (refer to Note 28); and Credit commitments: as a provision (refer to Note 27). Uncollectable loans A loan may become uncollectable in full or part if, after following the Group’s loan recovery procedures, the Group remains unable to collect that loan’s contractual repayments. Uncollectable amounts are written off against their related provision for ECL, after all possible repayments have been received. Where loans are secured, amounts are generally written off after receiving the proceeds from the security, or in certain circumstances, where the net realisable value of the security has been determined and this indicates that there is no reasonable expectation of full recovery, write-off may be earlier. Unsecured consumer loans are generally written off after 180 days past due. The Group may subsequently be able to recover cash flows from loans written off. In the period which these recoveries are made, they are recognised in the income statement. The following table details impairment charges based on the requirements of AASB 9. Consolidated Parent Entity $m Provisions raised/(released) Performing 1,437 (209) 1,147 (180) Non-performing 1,934 1,175 1,717 1,073 Recoveries (193) (172) (173) (143) Impairment charges 3,178 794 2,691 750 of which relates to: Loans and credit commitments 3,158 794 2,689 750 Debt securities at amortised cost 18 — — — Debt securities at FVOCI 2 — 2 — Impairment charges 3,178 794 2,691 750 As 2018 comparatives were not restated for the Group’s adoption of AASB 9 in 2019, the following table details impairment charges based on the requirements of AASB 139. Once AASB 9 has been effective for all comparative year ends, this table will no longer be presented. Consolidated $m Individually assessed provisions raised 371 Write-backs (150) Recoveries (179) Collectively assessed provisions raised 668 Impairment charges 710 |
Income tax
Income tax | 12 Months Ended |
Sep. 30, 2020 | |
Income tax | |
Income tax | Note 7. Income tax Accounting policy The tax expense for the year comprises current and deferred tax. Tax is recognised in the income statement, except to the extent that it relates to items recognised directly in OCI, in which case it is recognised in the statement of comprehensive income. Current tax is the tax payable for the year using enacted or substantively enacted tax rates and laws for each jurisdiction. Current tax also includes adjustments to tax payable for previous years. Deferred tax accounts for temporary differences between the carrying amounts of assets and liabilities in the financial statements and their values for taxation purposes. Deferred tax is determined using the enacted or substantively enacted tax rates and laws for each jurisdiction which are expected to apply when the assets will be realised or the liabilities settled. Deferred tax assets and liabilities have been offset where they relate to the same taxation authority, the same taxable entity or group, and where there is a legal right and intention to settle on a net basis. Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available to utilise the assets. Deferred tax is not recognised for the following temporary differences: the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither the accounting nor taxable profit or loss; the initial recognition of goodwill in a business combination; and retained earnings in subsidiaries which the Parent Entity does not intend to distribute for the foreseeable future. The Parent Entity is the head entity of a tax consolidated group with its wholly owned, Australian subsidiaries. All entities in the tax consolidated group have entered into a tax sharing agreement which, in the opinion of the Directors, limits the joint and several liabilities in the case of a default by the Parent Entity. Current and deferred tax are recognised using a ‘group allocation basis’. As head entity, the Parent Entity recognises all current tax balances and deferred tax assets arising from unused tax losses and relevant tax credits for the tax-consolidated group. The Parent Entity fully compensates/is compensated by the other members for these balances. Critical accounting assumptions and estimates The Group operates in multiple tax jurisdictions and significant judgement is required in determining the worldwide current tax liability. There are many transactions with uncertain tax outcomes and provisions are determined based on the expected outcomes. Income tax expense The income tax expense for the year reconciles to the profit before income tax as follows: Consolidated Parent Entity $m Profit before income tax 4,266 9,749 11,731 4,453 9,398 Tax at the Australian company tax rate of 30% 1,280 2,925 3,519 1,336 2,819 The effect of amounts which are not deductible/(assessable) in calculating taxable income Hybrid capital distributions 56 72 69 56 72 Life insurance: Tax adjustment on policyholder earnings (17) 8 24 — — Adjustment for life business tax rates 1 (1) (1) — — Dividend adjustments — (1) (1) (228) (664) Other non-assessable items (3) (14) (5) (3) (2) Other non-deductible items 585 12 64 468 9 Adjustment for overseas tax rates 16 (32) (28) 32 (5) Income tax (over)/under provided in prior years 1 (10) 9 1 3 Other items 55 — (18) 133 45 Total income tax expense 1,974 2,959 3,632 1,795 2,277 Income tax analysis Income tax expense comprises: Current income tax 2,954 3,370 3,704 2,417 2,711 Movement in deferred tax (981) (401) (81) (623) (437) Income tax (over)/under provision in prior years 1 (10) 9 1 3 Total income tax expense 1,974 2,959 3,632 1,795 2,277 Total Australia 1,697 2,526 3,178 1,753 2,215 Total Overseas 277 433 454 42 62 Total income tax expense 1 1,974 2,959 3,632 1,795 2,277 1. As the Bank Levy is not a levy on income, it is not included in income tax. It is included in Note 3. The effective tax rate was 46.27% in 2020 (2019: 30.35%, 2018: 30.96%). Deferred tax assets The balance comprises temporary differences attributable to: Consolidated Parent Entity $m Amounts recognised in the income statements and opening retained profits due to adoption of new accounting standards Provisions for ECL on loans and credit commitments 1,2 1,788 1,158 1,507 1,003 Provision for long service leave, annual leave and other employee benefits 335 309 308 286 Financial instruments 1 — 5 — 2 Property and equipment 223 195 198 173 Other provisions 2 606 531 570 511 Lease liabilities 3 899 — 825 — All other liabilities 3 419 366 304 358 Total amounts recognised in the income statements and opening retained profits due to adoption of new accounting standards 4,270 2,564 3,712 2,333 Amounts recognised directly in OCI Investment securities — 10 — 11 Cash flow hedges 25 52 — 28 Defined benefit 155 105 149 101 Total amounts recognised directly in OCI 180 167 149 140 Gross deferred tax assets 4,450 2,731 3,861 2,473 Set-off of deferred tax assets and deferred tax liabilities (1,386) (683) (1,364) (548) Net deferred tax assets 3,064 2,048 2,497 1,925 Movements Balance as at beginning of year 2,048 1,180 1,925 1,102 Impact on adoption of new accounting standards 1,3 948 300 872 258 Restated opening balance 2,996 1,480 2,797 1,360 Recognised in the income statements 758 472 507 476 Recognised in OCI 13 117 9 109 Set-off of deferred tax assets and deferred tax liabilities (703) (21) (816) (20) Balance as at end of year 3,064 2,048 2,497 1,925 1. Included in 2019, is the impact on adoption of AASB 9, which increased deferred tax assets by $300 million for the Group and $258 million for the Parent Entity, recognised as an opening adjustment in retained profits. The details are as follows: · Provision for ECL - $297 million for the Group and $258 million for the Parent Entity; and · Financial instruments - $3 million for the Group and nil for the Parent Entity. 2. 2019 Other provisions were restated from $590 million to $531 million for the Group, and from $561 million to $511 million for the Parent Entity, to reclassify provision for ECL on credit commitments to provisions for ECL on loans and credit commitments. 3. The adoption of AASB 16 on 1 October 2019 resulted in an increase in deferred tax assets of $948 million for the Group and $872 million for the Parent Entity. A corresponding increase was also recognised in deferred tax liabilities (refer to the following table), which resulted in a net nil impact on retained profits. Deferred tax liabilities The balance comprises temporary differences attributable to: Consolidated Parent Entity $m Amounts recognised in the income statements and opening retained profits due to adoption of new accounting standards Finance lease transactions 253 230 232 206 Property and equipment 1 933 128 864 129 Life insurance assets 43 57 — — All other assets 223 312 208 213 Total amounts recognised in the income statements and opening retained profits due to adoption of new accounting standards 1,452 727 1,304 548 Amounts recognised directly in OCI Investment securities 51 — 51 — Cash flow hedges 9 — 9 — Total amounts recognised directly in OCI 60 — 60 — Gross deferred tax liabilities 1,512 727 1,364 548 Set-off of deferred tax assets and deferred tax liabilities (1,386) (683) (1,364) (548) Net deferred tax liabilities 126 44 — — Movements Balance as at beginning of year 44 18 — 3 Impact on adoption of new accounting standards 1 948 — 872 — Restated opening balance 992 18 872 3 Recognised in the income statements (223) 71 (116) 39 Recognised in OCI 60 (24) 60 (22) Set-off of deferred tax assets and deferred tax liabilities (703) (21) (816) (20) Balance as at end of year 126 44 — — 1. The adoption of AASB 16 on 1 October 2019 resulted in an increase in deferred tax liabilities of $948 million for the Group and $872 million for the Parent Entity, which was recognised as an opening adjustment in retained profits. A corresponding increase was also recognised in deferred tax assets (refer to the previous table), which resulted in a net nil impact on retained profits. Unrecognised deferred tax balances The following potential deferred tax balances have not been recognised. The values shown are the gross balances and not tax effected. The tax effected balances would be approximately 30% of the values shown. Consolidated Parent Entity $m Unrecognised deferred tax asset Tax losses on revenue account 335 291 264 237 Unrecognised deferred tax liability Gross retained earnings of subsidiaries which the Parent Entity does not intend to distribute in the foreseeable future 55 51 — — |
Earnings per share
Earnings per share | 12 Months Ended |
Sep. 30, 2020 | |
Earnings per share | |
Earnings per share | Note 8. Earnings per share Accounting policy Basic earnings per share (EPS) is calculated by dividing the net profit attributable to shareholders by the weighted average number of ordinary shares on issue during the year, adjusted for treasury shares. Diluted EPS is calculated by adjusting the basic EPS by assuming all dilutive potential ordinary shares are converted. Refer to Notes 19 and 33 for further information on the potential dilutive instruments. 2020 2019 2018 $m Basic Diluted Basic Diluted Basic Diluted Net profit attributable to shareholders 2,290 2,290 6,784 6,784 8,095 8,095 Adjustment for RSP dividends 1 (2) (2) (6) (6) (5) — Adjustment for potential dilution: Distributions to convertible loan capital holders 2 — — — 290 — 283 Adjusted net profit attributable to shareholders 2,288 2,288 6,778 7,068 8,090 8,378 Weighted average number of ordinary shares (millions) Weighted average number of ordinary shares on issue 3,595 3,595 3,456 3,456 3,414 3,414 Treasury shares (including RSP share rights) 1 (5) (5) (6) (6) (8) (8) Adjustment for potential dilution: Share-based payments — 1 — 1 — 3 Convertible loan capital 2 — — — 278 — 232 Adjusted weighted average number of ordinary shares 3,590 3,591 3,450 3,729 3,406 3,641 Earnings per ordinary share (cents) 63.7 63.7 196.5 189.5 237.5 230.1 1. RSP is explained in Note 33. Some shares under the RSP have not vested and are not outstanding ordinary shares but do receive dividends. These RSP dividends are deducted to show the profit attributable to ordinary shareholders. Shares under the RSP were antidilutive in 2020 and 2019, but were dilutive in 2018. 2. The Group has issued convertible loan capital which may convert into ordinary shares in the future (refer to Note 19 for further details). These convertible loan capital instruments are potentially dilutive instruments, and diluted EPS is therefore calculated as if the instruments had been converted at the beginning of the year or, if later, the instruments’ issue date. In 2020, all convertible loan capital instruments were antidilutive, but were dilutive in 2019 and 2018. |
Average balance sheet and inter
Average balance sheet and interest rates | 12 Months Ended |
Sep. 30, 2020 | |
Average balance sheet and interest rates | |
Average balance sheet and interest rates | Note 9. Average balance sheet and interest rates The daily 2020 2019 2018 Average Interest Average Average Interest Average Average Interest Average balance income rate balance income rate balance income rate Consolidated $m $m % $m $m % $m $m % Assets Interest earning assets Collateral paid: Australia 13,555 56 0.4 8,428 152 1.8 5,239 86 1.6 New Zealand 373 3 0.8 364 7 1.9 252 4 1.6 Other overseas 1,804 16 0.9 2,031 42 2.1 2,594 39 1.5 Trading securities and financial assets measured at FVIS: Australia 20,300 217 1.1 20,691 468 2.3 17,420 423 2.4 New Zealand 4,728 47 1.0 3,862 85 2.2 3,538 80 2.3 Other overseas 4,601 95 2.1 4,521 109 2.4 3,160 61 1.9 Available-for-sale securities: Australia — — — — — — 55,458 1,692 3.1 New Zealand — — — — — — 3,304 136 4.1 Other overseas — — — — — — 2,778 86 3.1 Investment securities: Australia 71,402 1,347 1.9 56,875 1,691 3.0 — — — New Zealand 3,921 96 2.4 3,850 130 3.4 — — — Other overseas 2,858 78 2.7 3,062 98 3.2 — — — Loans and other receivables 1: Australia 585,643 21,315 3.6 589,427 25,931 4.4 578,679 25,700 4.4 New Zealand 85,184 3,237 3.8 79,255 3,650 4.6 73,902 3,516 4.8 Other overseas 27,349 540 2.0 26,558 859 3.2 28,620 748 2.6 Total interest earning assets and interest income 821,718 27,047 3.3 798,924 33,222 4.2 774,944 32,571 4.2 Non-Interest earning assets Derivative financial instruments 31,334 25,959 26,443 Life insurance assets 4,614 9,610 10,664 All other assets 2 62,414 60,231 61,259 Total non-interest earning assets 98,362 95,800 98,366 Total assets 920,080 894,724 873,310 1. For 2020 and 2019, loans and other receivables are net of Stage 3 provision for ECL, where interest income is determined based on their carrying value. Stages 1 and 2 provisions for ECL are not included in the average interest earning assets balance, as interest income is determined based on the gross value of loans and other receivables. For 2018, loans and other receivables are net of provision for impairment charges on loans, as under AASB 139 interest income is determined based on their carrying value, net of provision for impairment charges on loans. 2. Includes property and equipment, intangible assets, deferred tax assets, non-interest earning loans relating to mortgage offset accounts and all other non-interest earning assets. 2020 2019 2018 Average Interest Average Average Interest Average Average Interest Average balance expense rate balance expense rate balance expense rate Consolidated $m $m % $m $m % $m $m % Liabilities Interest bearing liabilities Collateral received: Australia 2,586 11 0.4 2,039 41 2.0 2,383 37 1.6 New Zealand 596 3 0.5 390 8 2.1 342 6 1.8 Other overseas 4,399 12 0.3 1,188 8 0.7 184 2 1.1 Deposits and other borrowings: Australia 435,877 3,745 0.9 425,799 7,023 1.6 422,006 7,308 1.7 New Zealand 57,096 882 1.5 54,720 1,235 2.3 51,368 1,196 2.3 Other overseas 25,660 427 1.7 26,270 687 2.6 26,599 517 1.9 Loan capital: Australia 19,554 663 3.4 15,080 632 4.2 15,028 635 4.2 New Zealand 1,833 94 5.1 1,777 91 5.1 1,645 84 5.1 Other overseas 1,324 43 3.2 1,324 53 4.0 1,324 55 4.2 Other interest bearing liabilities 1 : Australia 176,950 3,849 2.2 188,736 5,937 3.1 177,746 5,594 3.1 New Zealand 18,510 558 3.0 15,665 575 3.7 15,011 591 3.9 Other overseas 1,256 64 5.1 1,294 25 1.9 1,873 41 2.2 Total interest bearing liabilities and interest expense 745,641 10,351 1.4 734,282 16,315 2.2 715,509 16,066 2.2 Non-interest bearing liabilities Deposits and other borrowings: Australia 45,231 42,455 41,156 New Zealand 8,760 5,996 5,204 Other overseas 901 819 817 Derivative financial instruments 33,249 26,568 26,218 Life insurance liabilities 2,999 7,653 8,874 All other liabilities 2 15,233 13,187 13,484 Total non-interest bearing liabilities 106,373 96,678 95,753 Total liabilities 852,014 830,960 811,262 Shareholders’ equity 68,014 63,714 62,017 NCI 52 50 31 Total equity 68,066 63,764 62,048 Total liabilities and equity 920,080 894,724 873,310 1. Includes net impact of Treasury balance sheet management activities and the Bank Levy. 2. Includes other financial liabilities, provisions, current and deferred tax liabilities and all other non-interest bearing liabilities. Net interest income may vary from year to year due to changes in the volume of, and interest rates associated with, interest earning assets and interest bearing liabilities. The table below allocates the change in net interest income between changes in volume and interest rate for those assets and liabilities. Calculation of variances · volume changes are determined based on the movements in average asset and liability balances; and · interest rate changes are determined based on the change in interest rate associated with those assets and liabilities. Variances that arise due to a combination of volume and interest rate changes are allocated to interest rate changes. 2020 2019 Consolidated Change due to Change due to $m Volume Rate Total Volume Rate Total Interest earning assets Collateral paid: Australia 93 (189) (96) 52 14 66 New Zealand — (4) (4) 2 1 3 Other overseas (5) (21) (26) (8) 11 3 Trading securities and financial assets measured at FVIS: Australia (9) (242) (251) 79 (34) 45 New Zealand 19 (57) (38) 7 (2) 5 Other overseas 2 (16) (14) 26 22 48 Investment securities: Australia 433 (777) (344) 43 (44) (1) New Zealand 2 (36) (34) 22 (28) (6) Other overseas (7) (13) (20) 9 3 12 Loans and other receivables: Australia (167) (4,449) (4,616) 477 (246) 231 New Zealand 274 (687) (413) 255 (121) 134 Other overseas 26 (345) (319) (54) 165 111 Total change in interest income 661 (6,836) (6,175) 910 (259) 651 Interest bearing liabilities Collateral received: Australia 11 (41) (30) (5) 9 4 New Zealand 4 (9) (5) 1 1 2 Other overseas 22 (18) 4 11 (5) 6 Deposits and other borrowings: Australia 167 (3,445) (3,278) 66 (351) (285) New Zealand 54 (407) (353) 78 (39) 39 Other overseas (16) (244) (260) (6) 176 170 Loan capital: Australia 188 (157) 31 2 (5) (3) New Zealand 3 — 3 7 — 7 Other overseas — (10) (10) — (2) (2) Other interest bearing liabilities: Australia (372) (1,716) (2,088) 346 (3) 343 New Zealand 105 (122) (17) 26 (42) (16) Other overseas (1) 40 39 (13) (3) (16) Total change in interest expense 165 (6,129) (5,964) 513 (264) 249 Change in net interest income: Australia 356 (298) 58 242 40 282 New Zealand 129 (246) (117) 174 (70) 104 Other overseas 11 (163) (152) (19) 35 16 Total change in net interest income 496 (707) (211) 397 5 402 |
FINANCIAL ASSETS AND FINANCIAL
FINANCIAL ASSETS AND FINANCIAL LIABILITIES | 12 Months Ended |
Sep. 30, 2020 | |
FINANCIAL ASSETS AND FINANCIAL LIABILITIES | |
FINANCIAL ASSETS AND FINANCIAL LIABILITIES | FINANCIAL ASSETS AND FINANCIAL LIABILITIES Accounting policy Recognition Purchases and sales by regular way of financial assets, except for loans and receivables, are recognised on trade-date, the date on which the Group commits to purchase or sell the asset. Loans and receivables are recognised on settlement date, when cash is advanced to the borrowers. Financial liabilities are recognised when an obligation arises. Derecognition Financial assets are derecognised when the rights to receive cash flows from the asset have expired, or when the Group has either transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full under a ‘pass through’ arrangement and transferred substantially all the risks and rewards of ownership. There may be situations where the Group has partially transferred the risks and rewards of ownership but has neither transferred nor retained substantially all the risks and rewards of ownership. In such situations, where the Group retains control of the transferred asset, it will continue to be recognised in the balance sheet to the extent of the Group’s continuing involvement in the asset. Financial liabilities are derecognised when the obligation is discharged, cancelled or expires. Where an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, the exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, with the difference in the respective carrying amounts recognised in the income statement. The terms are deemed to be substantially different if the discounted present value of the cash flows under the new terms (discounted using the original effective interest rate) is at least 10% different from the discounted present value of the remaining cash flows of the original financial liability. Qualitative factors such as a change in the currency the instrument is denominated in, a change in the interest rate from fixed to floating and conversion features are also considered. Classification and measurement As comparatives prior to 2019 were not restated for the Group's adoption of AASB 9 in 2019, the accounting policy applied in 2020 and 2019 differs to that applied prior to 2019. The accounting policy applied prior to 2019 is discussed in Note 39. The accounting policy applied in 2020 and 2019 is as follows. Financial assets are grouped into the following classes: cash and balances with central banks; collateral paid, trading securities and financial assets measured at FVIS, derivative financial instruments, investment securities, loans, other financial assets and life insurance assets. Financial assets Financial assets are classified based on a) the business model within which the assets are managed, and b) whether the contractual cash flows of the instrument represent solely payment of principal and interest (SPPI). The Group determines the business model at the level that reflects how groups of financial assets are managed. When assessing the business model the Group considers factors including how performance and risks are managed, evaluated and reported and the frequency and volume of, and reason for, sales in previous periods and expectations of sales in future periods. When assessing whether contractual cash flows are SPPI, interest is defined as consideration primarily for the time value of money and the credit risk of the principal outstanding. The time value of money is defined as the element of interest that provides consideration only for the passage of time and not consideration for other risks or costs associated with holding the financial asset. Terms that could change the contractual cash flows so that they may not meet the SPPI criteria include contingent and leverage features, non-recourse arrangements, and features that could modify the time value of money. Debt instruments If the debt instruments have contractual cash flows which represent SPPI on the principal balance outstanding they are classified at: amortised cost if they are held within a business model whose objective is achieved through holding the financial asset to collect these cash flows; or FVOCI if they are held within a business model whose objective is achieved both through collecting these cash flows or selling the financial asset; or FVIS if they are held within a business model whose objective is achieved through selling the financial asset. Debt instruments are measured at FVIS where the contractual cash flows do not represent SPPI on the principal balance outstanding or where it is designated at FVIS to eliminate or reduce an accounting mismatch. Debt instruments at amortised cost are initially recognised at fair value and subsequently measured at amortised cost using the effective interest rate method. They are presented net of provision for ECL determined using the ECL model. Refer to Notes 6 and 13 for further details. Debt instruments at FVOCI are measured at fair value with unrealised gains and losses recognised in OCI except for interest income, impairment charges and FX gains and losses, which are recognised in the income statement. Impairment on debt instruments at FVOCI is determined using the ECL model and is recognised in the income statement with a corresponding amount in OCI. There is no reduction of the carrying value of the debt security which remains at fair value. The cumulative gain or loss recognised in OCI is subsequently recognised in the income statement when the instrument is derecognised. Debt instruments at FVIS are measured at fair value with subsequent changes in fair value recognised in the income statement. Equity securities Equity securities are measured at FVOCI where they: are not held for trading; and an irrevocable election is made by the Group. Otherwise, they are measured at FVIS. Equity securities at FVOCI are measured at fair value with unrealised gains and losses recognised in OCI, except for dividend income which is recognised in the income statement. The cumulative gain or loss recognised in OCI is not subsequently recognised in the income statement when the instrument is disposed. Equity securities at FVIS are measured at fair value with subsequent changes in fair value recognised in the income statement. Financial liabilities Financial liabilities are grouped into the following classes: collateral received, deposits and other borrowings, other financial liabilities, derivative financial instruments, debt issues and loan capital. Financial liabilities are measured at amortised cost if they are not held for trading or designated at FVIS, otherwise they are measured at FVIS. Financial assets and financial liabilities measured at FVIS are recognised initially at fair value. All other financial assets and financial liabilities are recognised initially at fair value plus or minus directly attributable transaction costs respectively. Further details of the accounting policy for each category of financial asset or financial liability mentioned above is set out in the note for the relevant item. The Group’s policies for determining the fair value of financial assets and financial liabilities are set out in Note 22. |
Trading securities and financia
Trading securities and financial assets measured at FVIS | 12 Months Ended |
Sep. 30, 2020 | |
Trading securities and financial assets measured at FVIS | |
Trading securities and financial assets measured at FVIS | Note 10. Trading securities and financial assets measured at FVIS Accounting policy Trading securities Trading securities include actively traded debt (government and other) and equity instruments and those acquired for sale in the near term. As part of its trading activities, the Group also lends and borrows securities on a collateralised basis. Securities lent remain on the Group’s balance sheet and securities borrowed are not reflected on the Group’s balance sheet, as the risks and rewards of ownership remain with the initial holder. Where cash is provided as collateral, the amount advanced to or received from third parties is recognised as a receivable in collateral paid or as a borrowing in collateral received respectively. Reverse repurchase agreements Securities purchased under these agreements are not recognised in the balance sheet, as Westpac has not obtained the risks and rewards of ownership. The cash consideration paid is recognised as a reverse repurchase agreement, which forms part of a trading portfolio that is measured at fair value. Other financial assets measured at FVIS Other financial assets measured at FVIS include: non-trading securities managed on a fair value basis; non-trading debt securities that do not have contractual cash flows that represent SPPI on the principal balance outstanding; or non-trading equity securities for which we have not made irrevocable designation to be measured at FVOCI. Gains and losses on these financial assets are recognised in the income statement. Interest earned from debt securities is recognised in interest income (Note 3) while dividends on equity securities are recognised in non-interest income (Note 4). Consolidated Parent Entity $m Trading securities 17,776 22,210 18,777 15,519 20,719 Reverse repurchase agreements 20,401 6,833 1,379 20,401 6,731 Other financial assets measured at FVIS 2,490 2,738 2,976 2,110 2,115 Total trading securities and financial assets measured at FVIS 40,667 31,781 23,132 38,030 29,565 Trading securities include the following: Consolidated Parent Entity $m Government and semi-government securities 16,625 13,328 15,585 Other debt securities 5,497 5,354 5,046 Equity securities 6 8 6 Other 82 87 82 Total trading securities 22,210 18,777 20,719 Other financial assets measured at FVIS include: Consolidated Parent Entity $m Other debt securities 2,045 2,394 2,715 1,703 2,057 Equity securities 445 344 261 407 58 Total other financial assets measured at FVIS 2,490 2,738 2,976 2,110 2,115 |
Available-for-sale securities_I
Available-for-sale securities/Investment securities | 12 Months Ended |
Sep. 30, 2020 | |
Available-for-sale securities/Investment securities | |
Available-for-sale securities / Investment securities | Note 11. Available-for-sale securities/Investment securities Accounting policy As 2018 comparatives were not restated for the Group's adoption of AASB 9 in 2019, the accounting policy applied in 2020 and 2019 differs to that applied prior to 2019. The accounting policy applied prior to 2019 is discussed in Note 39. The accounting policy applied in 2020 and 2019 is as follows. Investment securities include debt securities (government and other) and equity securities. It includes debt and equity securities that are measured at FVOCI and debt securities measured at amortised cost. These instruments are classified based on the criteria disclosed under the heading “Financial assets and financial liabilities” prior to Note 10. Debt securities measured at FVOCI Include debt instruments that have contractual cash flows which represent SPPI on the principal balance outstanding and they are held within a business model whose objective is achieved both through collecting these cash flows or selling the financial asset. These securities are measured at fair value with gains and losses recognised in OCI except for interest income, impairment charges and FX gains and losses which are recognised in the income statement. Impairment is measured using the same ECL model applied to financial assets measured at amortised cost. Impairment is recognised in the income statement with a corresponding amount in OCI with no reduction of the carrying value of the debt security which remains at fair value. Refer to Note 13 for further details. The cumulative gain or loss recognised in OCI is subsequently recognised in the income statement when the instrument is disposed. Debt securities measured at amortised cost Include debt instruments that have contractual cash flows which represent SPPI on the principal balance outstanding and are held within a business model whose objective is achieved through holding the financial asset to collect these cash flows. These securities are initially recognised at fair value plus directly attributable transaction costs. They are subsequently measured at amortised cost using the effective interest rate method and are presented net of any provision for ECL. Equity securities Equity securities are measured at FVOCI where they are not held for trading, the Group does not have control or significant influence over the investee and where an irrevocable election is made to measure them at FVOCI. These securities are measured at fair value with unrealised gains and losses recognised in OCI except for dividend income which is recognised in the income statement. The cumulative gain or loss recognised in OCI is not subsequently recognised in the income statement when the instrument is disposed. Balances recognised under AASB 9 Consolidated Parent Entity $m Investment securities Investments securities measured at FVOCI Government and semi-government debt securities 53,389 50,980 Other debt securities 19,058 17,325 Equity securities 134 66 Total investment securities measured at FVOCI 72,581 68,371 Investment securities measured at amortised cost Government and semi-government debt securities 736 — 23 Other debt securities 93 4 Total investment securities measured at amortised cost 829 27 Provision for ECL on debt securities at amortised cost (9) — — Total net investment securities measured at amortised cost 820 27 Total investment securities 73,401 68,398 The ECL recognised in relation to investment securities – debt securities are detailed in Note 13. The following table shows the maturities of the Group’s investment securities as at 30 September 2020. It also shows the weighted average yield of the Group's investment securities. There are no tax-exempt securities. Over 1 Over 5 Up to year to 5 years to Over No specific Weighted 1 year years 10 years 10 years maturity Total average 2020 $m % $m % $m % $m % $m % $m % Carrying Amount Government and semi-government securities — — Other debt securities — — — — — — Equity securities — — — — — — — — — — Total by maturity The maturity profile is determined based upon contractual terms for investment securities. Investment securities include: · US Government treasury notes of $7,271 million (2019: $10,398 million, 2018: $5,229 million); and · total holdings of debt securities, where the aggregate book value exceeds 10% of equity attributable to Westpac’s owners: - Australian Commonwealth Government totalling $15,714 million; - Queensland Treasury Corporation totalling $14,033 million; - New South Wales Treasury Corporation totalling $13,385 million; and - Treasury Corporation of Victoria totalling $10,593. Balances recognised under AASB 139 Consolidated $m Available-for-sale securities Government and semi-government securities 42,979 Other debt securities 17,756 Equity securities 384 Total available-for-sale securities 61,119 |
Loans
Loans | 12 Months Ended |
Sep. 30, 2020 | |
Loans | |
Loans | Note 12. Loans Accounting policy As 2018, 2017 and 2016 comparatives were not restated for the Group's adoption of AASB 9 in 2019, the accounting policy applied in 2020 and 2019 differs to that applied prior to 2019. The accounting policy applied prior to 2019 is discussed in Note 39. The accounting policy applied in 2020 and 2019 is as follows. Loans are financial assets initially recognised at fair value plus directly attributable transaction costs and fees. Loans are subsequently measured at amortised cost using the effective interest rate method where they have contractual cash flows which represent SPPI on the principal balance outstanding and they are held within a business model whose objective is achieved through holding the loans to collect these cash flows. They are presented net of any provision for ECL. Loans are subsequently measured at FVIS where they do not have cash flows which represent SPPI, are held within a business model whose objective is achieved by selling the financial asset, or are designated at FVIS to eliminate or reduce an accounting mismatch. Refer to Note 22 for balances which are measured at fair value and amortised cost. Loan products that have both mortgage and deposit facilities are presented gross in the balance sheet, segregating the asset and liability component, because they do not meet the criteria to be offset. Interest earned on these products is presented on a net basis in the income statement as this reflects how the customer is charged. The loan portfolio is disaggregated by location of booking office and product type, as follows: Consolidated Parent Entity $m 2020 2019 2020 2019 Australia Housing 440,933 449,201 449,192 Personal 17,081 21,247 20,848 Business 147,584 152,360 148,850 Total Australia 605,598 622,808 618,890 New Zealand Housing 51,126 47,731 — — Personal 1,360 1,709 — — Business 29,864 29,285 411 Total New Zealand 82,350 78,725 411 Total other overseas 10,713 16,845 15,738 Total loans 698,661 718,378 635,039 Provision for ECL on loans (refer to Note 13) (5,602) (3,608) (3,103) Total net loans 1 693,059 714,770 631,936 1. Total net loans include securitised loans of $7,367 million (2019: $7,737 million) for the Group and $132,506 million (2019: $91,061 million) for the Parent Entity. The following tables show loans presented based on their industry classification: Consolidated $m Australia Accommodation, cafes and restaurants 7,933 8,039 8,297 8,177 7,536 Agriculture, forestry and fishing 10,116 9,210 8,642 8,182 7,953 Construction 6,711 7,186 6,751 6,043 5,797 Finance and insurance 13,348 14,069 14,059 12,923 14,298 Government, administration and defence 730 753 628 554 675 Manufacturing 8,493 9,337 9,298 9,054 9,140 Mining 2,975 2,869 3,311 3,025 3,641 Property 44,468 44,769 45,471 43,220 44,785 Property services and business services 12,562 14,035 13,477 12,050 11,674 Services 11,675 12,099 12,158 12,950 12,362 Trade 13,268 16,144 16,501 16,063 16,044 Transport and storage 8,218 8,268 8,853 8,624 9,015 Utilities 4,962 4,077 4,350 5,237 4,025 Retail lending 454,433 466,550 463,609 451,315 429,522 Other 5,706 5,403 6,680 4,229 2,777 Total Australia 605,598 622,808 622,085 601,646 579,244 New Zealand Accommodation, cafes and restaurants 388 355 323 290 256 Agriculture, forestry and fishing 9,101 8,553 8,138 7,772 7,788 Construction 509 493 502 447 396 Finance and insurance 3,427 3,009 2,903 2,478 2,682 Government, administration and defence 94 85 114 137 163 Manufacturing 1,689 1,913 2,199 2,090 2,324 Mining 203 278 206 141 280 Property 6,667 6,412 5,997 5,858 5,925 Property services and business services 951 1,182 1,073 1,113 1,084 Services 2,119 1,973 1,733 1,810 1,396 Trade 1,949 2,344 2,509 2,163 2,333 Transport and storage 1,176 1,131 1,029 1,080 1,257 Utilities 1,303 1,429 1,003 1,237 1,600 Retail lending 52,584 49,473 46,613 45,190 45,011 Other 190 95 — — — Total New Zealand 82,350 78,725 74,342 71,806 72,495 Other overseas Accommodation, cafes and restaurants 118 109 112 97 118 Agriculture, forestry and fishing 124 150 19 5 12 Construction 51 55 71 55 147 Finance and insurance 2,298 4,628 4,774 4,289 2,767 Government, administration and defence 20 2 25 4 4 Manufacturing 1,877 3,784 3,257 2,982 2,619 Mining 336 468 322 349 535 Property 416 492 467 491 479 Property services and business services 1,545 1,610 1,684 540 526 Services 218 243 205 205 99 Trade 1,553 2,293 2,312 2,680 3,463 Transport and storage 732 997 1,232 1,389 1,186 Utilities 950 1,086 736 514 442 Retail lending 457 863 683 657 1,120 Other 18 65 178 76 — Total other overseas 10,713 16,845 16,077 14,333 13,517 Total loans 698,661 718,378 712,504 687,785 665,256 Provision for ECL on loans (refer Note 13) (5,602) (3,608) — — — Provision for impairment charges on loans — — (2,814) (2,866) (3,330) Total net loans 693,059 714,770 709,690 684,919 661,926 Parent Entity $m Australia Accommodation, cafes and restaurants 7,857 7,967 Agriculture, forestry and fishing 10,058 9,151 Construction 6,199 6,810 Finance and insurance 13,290 14,005 Government, administration and defence 709 746 Manufacturing 8,282 9,155 Mining 2,955 2,849 Property 44,468 44,707 Property services and business services 11,843 13,192 Services 11,334 11,853 Trade 13,058 15,961 Transport and storage 7,870 7,961 Utilities 4,938 4,053 Retail lending 454,259 465,535 Other 5,098 4,945 Total Australia 602,218 618,890 New Zealand Accommodation, cafes and restaurants — — Agriculture, forestry and fishing 4 5 Construction 4 8 Finance and insurance — — Government, administration and defence — — Manufacturing 70 94 Mining — — Property 1 — Property services and business services 7 7 Services — — Trade 263 297 Transport and storage 5 — Utilities — — Retail lending — — Other — — Total New Zealand 354 411 Other overseas Accommodation, cafes and restaurants 81 67 Agriculture, forestry and fishing 114 130 Construction 46 47 Finance and insurance 2,295 4,624 Government, administration and defence 20 2 Manufacturing 1,875 3,780 Mining 314 465 Property 209 226 Property services and business services 1,478 1,528 Services 196 216 Trade 1,415 2,115 Transport and storage 642 886 Utilities 894 1,036 Retail lending 359 587 Other 7 29 Total other overseas 9,945 15,738 Total loans 612,517 635,039 Provision for ECL on loans (4,693) (3,103) Total net loans 607,824 631,936 The following table shows the Group’s contractual maturity distribution of all loans by industry as at 30 September 2020: Consolidated 2020 Over 1 year $m Up to 1 year to 5 years Over 5 years Total Australia Accommodation, cafes and restaurants 3,253 4,303 377 7,933 Agriculture, forestry and fishing 3,115 6,417 584 10,116 Construction 1,604 4,241 866 6,711 Finance and insurance 6,066 4,761 2,521 13,348 Government, administration and defence 300 154 276 730 Manufacturing 3,465 4,589 439 8,493 Mining 458 1,903 614 2,975 Property 18,027 25,088 1,353 44,468 Property services and business services 2,991 8,055 1,516 12,562 Services 3,793 6,252 1,630 11,675 Trade 5,892 6,236 1,140 13,268 Transport and storage 1,593 5,977 648 8,218 Utilities 860 3,847 255 4,962 Retail lending 16,491 10,468 427,474 454,433 Other 748 3,886 1,072 5,706 Total Australia 68,656 96,177 440,765 605,598 Total New Zealand 20,555 11,481 50,314 82,350 Total other overseas 3,151 6,900 662 10,713 Total loans 92,362 114,558 491,741 698,661 2020 2019 Loans at Loans at Loans at Loans at variable fixed variable fixed Consolidated interest interest interest interest $m rates rates Total rates rates Total Interest rate segmentation of Group loans maturing after one year By offices in Australia 396,055 140,887 536,942 418,494 129,035 547,529 By offices in New Zealand 8,771 53,024 61,795 9,102 50,499 59,601 By offices in other overseas 7,216 346 7,562 9,881 943 10,824 Total loans maturing after one year 412,042 194,257 606,299 437,477 180,477 617,954 |
Provisions for expected credit
Provisions for expected credit losses/impairment charges | 12 Months Ended |
Sep. 30, 2020 | |
Provisions for expected credit losses/impairment charges | |
Provisions for expected credit losses/impairment charges | Note 13. Provisions for expected credit losses/impairment charges Accounting policy As 2018, 2017 and 2016 comparatives were not restated upon the Group's adoption of AASB 9 in 2019, the accounting policy applied in 2020 and 2019 differs to that applied prior to 2019. The accounting policy applied prior to 2019 is discussed in Note 39. The accounting policy applied in 2020 and 2019 is as follows. Note 6 provides details of impairment charges. Impairment under AASB 9 applies to all financial assets at amortised cost, lease receivables, debt securities measured at FVOCI, due from subsidiaries and credit commitments. The Expected Credit Loss (ECL) determined under AASB 9 is recognised as follows: Loans (including lease receivables), debt securities at amortised cost and due from subsidiaries: as a reduction of the carrying value of the financial asset through an offsetting provision account (refer to Notes 11 and 12); Debt securities at FVOCI: in reserves in OCI with no reduction of the carrying value of the debt security itself (refer to Notes 11 and 28); and Credit commitments: as a provision (refer to Note 27). Measurement The Group calculates the provision for ECL based on a three stage approach. ECL are a probability-weighted estimate of the cash shortfalls expected to result from defaults over the relevant timeframe. They are determined by evaluating a range of possible outcomes and taking into account the time value of money, past events, current conditions and forecasts of future economic conditions. The models use three main components to determine the ECL (as well as the time value of money) including: Probability of default (PD): the probability that a counterparty will default; Loss given default (LGD): the loss that is expected to arise in the event of a default; and Exposure at default (EAD): the estimated outstanding amount of credit exposure at the time of the default. Model stages The three stages are as follows: Stage 1: 12 months ECL – performing For financial assets where there has been no significant increase in credit risk since origination a provision for 12 months ECL is recognised. Stage 2: Lifetime ECL – performing For financial assets where there has been a significant increase in credit risk since origination but where the asset is still performing a provision for lifetime ECL is recognised. The indicators of a significant increase in credit risk are described on the following page. Stage 3: Lifetime ECL – non-performing For financial assets that are non-performing a provision for lifetime ECL is recognised. Indicators include a breach of contract with the Group such as a default on interest or principal payments, a borrower experiencing significant financial difficulties or observable economic conditions that correlate to defaults on an individual basis. Financial assets in Stage 3 are those that are in default. A default occurs when Westpac considers that the customer is unable to repay its credit obligations in full, irrespective of recourse by the Group to actions such as realising security, or the customer is more than 90 days past due on any material credit obligation. This definition is aligned to the Australian Prudential Regulation Authority (APRA) regulatory definition of default. Collective and individual assessment Financial assets that are in Stages 1 and 2 are assessed on a collective basis. This means that they are grouped in pools of similar assets with similar credit risk characteristics including the type of product and the customer risk grade. Financial assets in Stage 3 are assessed on an individual basis and calculated collectively for those below a specified threshold. Expected life In considering the lifetime timeframe for ECL in Stages 2 and 3, the standard generally requires use of the remaining contractual life adjusted, where appropriate, for prepayments, extension and other options. For certain revolving credit facilities which include both a drawn and undrawn component (e.g. credit cards and revolving lines of credit), the Group’s contractual ability to demand repayment and cancel the undrawn commitment does not limit the exposure to credit losses to the contractual notice period. For these facilities, lifetime is based on historical behaviour. Movement between stages Assets may move in both directions through the stages of the impairment model. Assets previously in Stage 2 may move back to Stage 1 if it is no longer considered that there has been a significant increase in credit risk. Similarly, assets in Stage 3 may move back to Stage 1 or Stage 2 if they are no longer assessed to be non-performing. Critical accounting assumptions and estimates Key judgements include when a significant increase in credit risk has occurred and estimation of forward -looking macroeconomic information. Other factors which can impact the provision include the borrower’s financial situation, the realisable value of collateral, the Group’s position relative to other claimants, the reliability of customer information and the likely cost and duration of recovering the loan. Significant increase in credit risk Determining when a financial asset has experienced a significant increase in credit risk since origination is a critical accounting judgement which is primarily based on changes in internal customer risk grades since origination of the facility. A change in an internal customer risk grade is based on both quantitative and qualitative factors. The change in the internal customer risk grade that the Group uses to represent a significant increase in credit risk is based on a sliding scale. This means that a higher credit quality exposure at origination would require a more significant downgrade compared to a lower credit quality exposure before it is considered to have experienced a significant increase in credit risk. The Group does not rebut the presumption that instruments that are 30 days past due have experienced a significant increase in risk but this is used as a backstop rather than the primary indicator. The deferral of payments by customers in hardship arrangements is generally treated as an indication of a significant increase in credit risk (SICR) but the deferral of payments under the current COVID-19 support packages for mortgages and business loans has not, in isolation, been treated as an indication of SICR. The Group has classified these deferral packages into different categories of risk which have been assessed for an increased likelihood of a risk of default to determine whether a SICR has occurred. The Group does not apply the low credit risk exemption which assumes investment grade facilities do not have a significant increase in credit risk. Forward-looking macroeconomic information The measurement of ECL for each stage and the assessment of significant increase in credit risk consider information about past events and current conditions as well as reasonable and supportable projections of future events and economic conditions. The estimation of forward-looking information is a critical accounting judgement. The Group considers three future macroeconomic scenarios including a base case scenario along with upside and downside scenarios. The macroeconomic variables used in these scenarios, based on current economic forecasts, include (but are not limited to) employment to population rates, real gross domestic product growth rates and residential and commercial property price indices. Base case scenario This scenario utilises the internal Westpac economics forecast used for strategic decision making and forecasting. Upside scenario This scenario represents a modest improvement on the base case scenario. Downside scenario The downside scenario is a more severe scenario with ECL higher than those under the current base case scenario. The more severe loss outcome for the downside is generated under a recession scenario in which the combination of negative GDP growth, declines in commercial and residential property prices and an increase in the unemployment rate simultaneously impact ECL across all portfolios from the reporting date. The macroeconomic scenarios are weighted based on the Group’s best estimate of the relative likelihood of each scenario. The weighting applied to each of the three macroeconomic scenarios takes into account historical frequency, current trends, and forward-looking conditions. The macroeconomic variables and probability weightings of the three macroeconomic scenarios are subject to the approval of the Group Chief Financial Officer and Chief Risk Officer with oversight from the Board of Directors (and its Committees). Where appropriate, adjustments will be made to modelled outcomes to reflect reasonable and supportable information not already incorporated in the models. Judgements can change with time as new information becomes available which could result in changes to the provision for ECL. Loans and credit commitments The reconciliation of the provision for ECL tables for loans and credit commitments has been determined by an aggregation of monthly movements over the year. The key line items in the reconciliation represent the following: · The “transfers between stages” lines represent transfers between Stage 1, Stage 2 and Stage 3 prior to remeasurement of the provision for ECL. · The “business activity during the year” line represents new accounts originated during the year net of those that were derecognised due to final repayments during the year. · The “net remeasurement of provision for ECL” line represents the impact on the provision for ECL due to changes in credit quality during the year (including transfers between stages), changes due to forward-looking economic scenarios and partial repayments and additional drawdowns on existing facilities over the year. · ”Write-offs” represent a reduction in the provision for ECL as a result of derecognition of exposures where there is no reasonable expectation of full recovery. 2020 2019 Non- Non- Consolidated Performing performing Performing performing $m Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Provision for ECL on loans Housing 185 742 977 1,904 158 352 591 1,101 Personal 180 362 232 774 232 424 248 904 Business 537 1,433 954 2,924 373 720 510 1,603 Total provision for ECL on loans (Note 12) 902 2,537 2,163 5,602 763 1,496 1,349 3,608 Provisions for ECL on credit commitments Housing 7 5 — 12 5 2 — 7 Personal 36 46 — 82 36 35 — 71 Business 139 287 10 436 80 141 6 227 Total provision for ECL on credit commitments (Note 27) 182 338 10 530 121 178 6 305 Total provisions for ECL on loans and credit commitments 1,084 2,875 2,173 6,132 884 1,674 1,355 3,913 Of which: Individually assessed provisions — — 611 611 — — 412 412 Collectively assessed provisions 1,084 2,875 1,562 5,521 884 1,674 943 3,501 Total provisions for ECL on loans and credit commitments 1,084 2,875 2,173 6,132 884 1,674 1,355 3,913 Gross loans and credit commitments 812,450 71,841 11,311 895,602 865,383 37,484 6,851 909,718 Coverage ratio (%) 0.13 4.00 19.21 0.68 0.10 4.47 19.78 0.43 2020 2019 Non- Non- Parent Entity Performing performing Performing performing $m Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Provision for ECL on loans Housing 145 630 904 1,679 137 334 557 1,028 Personal 162 297 193 652 200 369 213 782 Business 445 1,154 763 2,362 303 554 436 1,293 Total provision for ECL on loans (Note 12) 752 2,081 1,860 4,693 640 1,257 1,206 3,103 Provision for ECL on credit commitments Housing 4 5 — 9 4 1 — 5 Personal 28 35 — 63 29 32 — 61 Business 129 269 9 407 74 130 5 209 Total provision for ECL on credit commitments (Note 27) 161 309 9 479 107 163 5 275 Total provisions for ECL on loans and credit commitments 913 2,390 1,869 5,172 747 1,420 1,211 3,378 Of which: Individually assessed provisions — — 520 520 — — 364 364 Collectively assessed provisions 913 2,390 1,349 4,652 747 1,420 847 3,014 Total provisions for ECL on loans and credit commitments 913 2,390 1,869 5,172 747 1,420 1,211 3,378 Gross loans and credit commitments 712,381 61,822 10,293 784,496 764,311 32,966 6,249 803,526 Coverage ratio (%) 0.13 3.87 18.16 0.66 0.10 4.31 19.38 0.42 The following table reconciles the provisions for ECL on loans and credit commitments for the Group. Consolidated Collectively Individually Performing Non-performing assessed assessed $m Stage 1 Stage 2 Stage 3 provisions provisions Total Provision for impairment charges as at 30 September 2018 — — — 2,631 422 3,053 Restatement for adoption of AASB 9 877 1,884 1,272 (2,631) (422) 980 Restated provisions for ECL on loans and credit commitments as at 1 October 2018 877 1,884 1,272 — — 4,033 Transfers to Stage 1 1,458 (1,404) (54) — — — Transfers to Stage 2 (242) 956 (714) — — — Transfers to Stage 3 (5) (621) 626 — — — Business activity during the year 179 (19) (330) — — (170) Net remeasurement of provision for ECL (1,385) 874 1,647 — — 1,136 Write-offs — — (1,154) — — (1,154) Exchange rate and other adjustments 2 4 62 — — 68 Total provisions for ECL on loans and credit commitments as at 30 September 2019 884 1,674 1,355 — — 3,913 Transfers to Stage 1 1,578 (1,528) (50) — — — Transfers to Stage 2 (345) 1,161 (816) — — — Transfers to Stage 3 (7) (955) 962 — — — Business activity during the year 212 60 (77) — — 195 Net remeasurement of provision for ECL (1,233) 2,474 1,915 — — 3,156 Write-offs — — (1,170) — — (1,170) Exchange rate and other adjustments (5) (11) 54 — — 38 Total provisions for ECL on loans and credit commitments as at 30 September 2020 1,084 2,875 2,173 — — 6,132 The provisions for ECL on loans and credit commitments can be further disaggregated into the following classes: Consolidated Collectively Individually Housing Performing Non-performing assessed assessed $m Stage 1 Stage 2 Stage 3 provisions provisions Total Provision for impairment charges as at 30 September 2018 — — — 385 97 482 Restatement for adoption of AASB 9 130 351 501 (385) (97) 500 Restated provisions for ECL on loans and credit commitments as at 1 October 2018 130 351 501 — — 982 Transfers to Stage 1 343 (317) (26) — — — Transfers to Stage 2 (38) 396 (358) — — — Transfers to Stage 3 — (145) 145 — — — Business activity during the year 17 (35) (141) — — (159) Net remeasurement of provision for ECL (289) 104 567 — — 382 Write-offs — — (119) — — (119) Exchange rate and other adjustments — — 22 — — 22 Total provisions for ECL on loans and credit commitments as at 30 September 2019 163 354 591 — — 1,108 Transfers to Stage 1 566 (542) (24) — — — Transfers to Stage 2 (68) 472 (404) — — — Transfers to Stage 3 — (276) 276 — — — Business activity during the year 25 (53) (142) — — (170) Net remeasurement of provision for ECL (492) 798 772 — — 1,078 Write-offs — — (120) — — (120) Exchange rate and other adjustments (2) (6) 28 — — 20 Total provisions for ECL on loans and credit commitments as at 30 September 2020 192 747 977 — — 1,916 Consolidated Collectively Individually Personal Performing Non-performing assessed assessed $m Stage 1 Stage 2 Stage 3 provisions provisions Total Provision for impairment charges as at 30 September 2018 — — — 761 3 764 Restatement for adoption of AASB 9 263 589 240 (761) (3) 328 Restated provisions for ECL on loans and credit commitments as at 1 October 2018 263 589 240 — — 1,092 Transfers to Stage 1 849 (839) (10) — — — Transfers to Stage 2 (148) 368 (220) — — — Transfers to Stage 3 (2) (350) 352 — — — Business activity during the year 62 (18) (160) — — (116) Net remeasurement of provision for ECL (757) 708 838 — — 789 Write-offs — — (822) — — (822) Exchange rate and other adjustments 1 1 30 — — 32 Total provisions for ECL on loans and credit commitments as at 30 September 2019 268 459 248 — — 975 Transfers to Stage 1 744 (732) (12) — — — Transfers to Stage 2 (154) 368 (214) — — — Transfers to Stage 3 (1) (342) 343 — — — Business activity during the year 35 (37) (50) — — (52) Net remeasurement of provision for ECL (676) 694 617 — — 635 Write-offs — — (728) — — (728) Exchange rate and other adjustments — (2) 28 — — 26 Total provisions for ECL on loans and credit commitments as at 30 September 2020 216 408 232 — — 856 Consolidated Collectively Individually Business Performing Non-performing assessed assessed $m Stage 1 Stage 2 Stage 3 provisions provisions Total Provision for impairment charges as at 30 September 2018 — — — 1,485 322 1,807 Restatement for adoption of AASB 9 484 944 531 (1,485) (322) 152 Restated provisions for ECL on loans and credit commitments as at 1 October 2018 484 944 531 — — 1,959 Transfers to Stage 1 266 (248) (18) — — — Transfers to Stage 2 (56) 192 (136) — — — Transfers to Stage 3 (3) (126) 129 — — — Business activity during the year 100 34 (29) — — 105 Net remeasurement of provision for ECL (339) 62 242 — — (35) Write-offs — — (213) — — (213) Exchange rate and other adjustments 1 3 10 — — 14 Total provisions for ECL on loans and credit commitments as at 30 September 2019 453 861 516 — — 1,830 Transfers to Stage 1 268 (254) (14) — — — Transfers to Stage 2 (123) 321 (198) — — — Transfers to Stage 3 (6) (337) 343 — — — Business activity during the year 152 150 115 — — 417 Net remeasurement of provision for ECL (65) 982 526 — — 1,443 Write-offs — — (322) — — (322) Exchange rate and other adjustments (3) (3) (2) — — (8) Total provisions for ECL on loans and credit commitments as at 30 September 2020 676 1,720 964 — — 3,360 The following table reconciles the provision for ECL on loans and credit commitments for the Parent Entity. Parent Entity Collectively Individually Performing Non-performing assessed assessed $m Stage 1 Stage 2 Stage 3 provisions provisions Total Provision for impairment charges as at 30 September 2018 — — — 2,238 375 2,613 Restatement for adoption of AASB 9 741 1,605 1,113 (2,238) (375) 846 Restated provisions for ECL on loans and credit commitments as at 1 October 2018 741 1,605 1,113 — — 3,459 Transfers to Stage 1 1,191 (1,153) (38) — — — Transfers to Stage 2 (220) 860 (640) — — — Transfers to Stage 3 (3) (554) 557 — — — Business activity during the year 168 7 (358) — — (183) Net remeasurement of provision for ECL (1,130) 654 1,552 — — 1,076 Write-offs — — (1,023) — — (1,023) Exchange rate and other adjustments — 1 48 — — 49 Total provisions for ECL on loans and credit commitments as at 30 September 2019 747 1,420 1,211 — — 3,378 Transfers to Stage 1 1,150 (1,125) (25) — — — Transfers to Stage 2 (266) 930 (664) — — — Transfers to Stage 3 (6) (773) 779 — — — Business activity during the year 188 64 (45) — — 207 Net remeasurement of provision for ECL (897) 1,880 1,672 — — 2,655 Write-offs — — (1,105) — — (1,105) Exchange rate and other adjustments (3) (6) 46 — — 37 Total provisions for ECL on loans and credit commitments as at 30 September 2020 913 2,390 1,869 — — 5,172 The provisions for ECL on loans and credit commitments can be further disaggregated into the following classes: Parent Entity Collectively Individually Housing Performing Non-performing assessed assessed $m Stage 1 Stage 2 Stage 3 provisions provisions Total Provision for impairment charges as at 30 September 2018 — — — 516 82 598 Restatement for adoption of AASB 9 105 334 402 (516) (82) 243 Restated provisions for ECL on loans and credit commitments as at 1 October 2018 105 334 402 — — 841 Transfers to Stage 1 322 (302) (20) — — — Transfers to Stage 2 (36) 386 (350) — — — Transfers to Stage 3 — (141) 141 — — — Business activity during the year 15 (33) (127) — — (145) Net remeasurement of provision for ECL (265) 91 606 — — 432 Write-offs — — (115) — — (115) Exchange rate and other adjustments — — 20 — — 20 Total provisions for ECL on loans and credit commitments as at 30 September 2019 141 335 557 — — 1,033 Transfers to Stage 1 376 (365) (11) — — — Transfers to Stage 2 (44) 391 (347) — — — Transfers to Stage 3 — (233) 233 — — — Business activity during the year 19 (45) (128) — — (154) Net remeasurement of provision for ECL (343) 552 686 — — 895 Write-offs — — (111) — — (111) Exchange rate and other adjustments — — 25 — — 25 Total provisions for ECL on loans and credit commitments as at 30 September 2020 149 635 904 — — 1,688 Parent Entity Collectively Individually Personal Performing Non-performing assessed assessed $m Stage 1 Stage 2 Stage 3 provisions provisions Total Provision for impairment charges as at 30 September 2018 — — — 524 3 527 Restatement for adoption of AASB 9 215 540 200 (524) (3) 428 Restated provisions for ECL on loans and credit commitments as at 1 October 2018 215 540 200 — — 955 Transfers to Stage 1 635 (633) (2) — — — Transfers to Stage 2 (138) 319 (181) — — — Transfers to Stage 3 (1) (311) 312 — — — Business activity during the year 62 (11) (158) — — (107) Net remeasurement of provision for ECL (544) 497 753 — — 706 Write-offs — — (733) — — (733) Exchange rate and other adjustments — — 22 — — 22 Total provisions for ECL on loans and credit commitments as at 30 September 2019 229 401 213 — — 843 Transfers to Stage 1 549 (547) (2) — — — Transfers to Stage 2 (131) 313 (182) — — — Transfers to Stage 3 (1) (307) 308 — — — Business activity during the year 36 (31) (43) — — (38) Net remeasurement of provision for ECL (492) 503 573 — — 584 Write-offs — — (699) — — (699) Exchange rate and other adjustments — — 25 — — 25 Total provisions for ECL on loans and credit commitments as at 30 September 2020 190 332 193 — — 715 Parent Entity Collectively Individually Business Performing Non-performing assessed assessed $m Stage 1 Stage 2 Stage 3 provisions provisions Total Provision for impairment charges as at 30 September 2018 — — — 1,198 290 1,488 Restatement for adoption of AASB 9 421 731 511 (1,198) (290) 175 Restated provisions for ECL on loans and credit commitments as at 1 October 2018 421 731 511 — — 1,663 Transfers to Stage 1 234 (218) (16) — — — Transfers to Stage 2 (46) 155 (109) — — — Transfers to Stage 3 (2) (102) 104 — — — Business activity during the year 91 51 (73) — — 69 Net remeasurement of provision for ECL (321) 66 193 — — (62) Write-offs — — (175) — — (175) Exchange rate and other adjustments — 1 6 — — 7 Total provisions for ECL on loans and credit commitments as at 30 September 2019 377 684 441 — — 1,502 Transfers to Stage 1 225 (213) (12) — — — Transfers to Stage 2 (91) 226 (135) — — — Transfers to Stage 3 (5) (233) 238 — — — Business activity during the year 133 140 126 — — 399 Net remeasurement of provision for ECL (62) 825 413 — — 1,176 Write-offs — — (295) — — (295) Exchange rate and other adjustments (3) (6) (4) — — (13) Total provisions for ECL on loans and credit commitments as at 30 September 2020 574 1,423 772 — — 2,769 Reconciliation of impairment charges Consolidated Parent Entity $m 2020 2019 2020 2019 Loans and credit commitments: Business activitiy during the year 195 (170) 207 (183) Net remeasurement of provision for ECL 3,156 1,136 2,655 1,076 Impairment charges for debt securities at amortised cost 18 — — — Impairment charges for debt securities at FVOCI 2 — 2 — Recoveries (193) (172) (173) (143) Impairment charges (Note 6) 3,178 794 2,691 750 Impact of Overlays on the provision for ECL The following table attributes the breakup between modelled ECL and other economic overlays. Where there is increased uncertainty regarding the required forward-looking economic conditions under AASB 9, or limitations of the historical data used to calibrate the models to current stressed environments, overlays are typically used to address areas of potential risk not captured in the underlying modelled ECL. Consolidated Parent Entity $m Modelled provision for ECL 5,480 3,801 4,659 3,266 Overlays 1 652 112 513 112 Total provision for ECL 6,132 3,913 5,172 3,378 1. Included in 2020 is $577 million related to COVID-19. Details of these changes, which are based on reasonable and supportable information up to the date of this report are provided below. Modelled provision for ECL The modelled provision for ECL is a probability weighted estimate based on three scenarios which together are representative of the Group’s view of the forward-looking distribution of potential loss outcomes. The increase in provisions as a result of changes in modelled ECL are reflected through the “net remeasurement of provision for ECL” line in the “movement in provision for ECL on loans and credit commitments” table. The base case scenario uses current Westpac Economics forecasts and reflects the latest available macroeconomic view which shows a deterioration in the short term, with a subsequent recovery. The latest view considers both the economic and societal impacts of COVID-19, the Australian Government stimulus measures implemented to cushion the impacts, including the JobKeeper package and the New Zealand Government stimulus package. The Westpac Australian economics forecast assumes the following: Key macroeconomic assumptions for base case scenario 30 September 2020 30 September 2019 Forecast growth of 2.5% for calendar Annual GDP year 2021 Growth of 2.5% over the next 12 months Commercial property index Forecast price contraction of 19.3% for Reduction in the rate of growth of 1.1% calendar year 2021 over the next 12 months Residential property prices Forecast price contraction of 0.4% for Return to positive growth of 1% over the calendar year 2021 next 12 months Cash rate Forecast to remain at 10 bps over Reduction of 50 bps in the next calendar year 2021 12 months Unemployment rate: Australia Forecast to peak at 7.9% (February Increase to 5.6% over the next 2021) and fall to 7.5% at December 2021 12 months Forecast to peak at 7% (December New Zealand 2020) and then fall to 6.4% at Reduction of 50 bps in the next December 2021 12 months The downside scenario is a more severe scenario with ECL higher than the base case scenario. The more severe loss outcome for the downside is generated under a recession scenario in which the combination of negative GDP growth, declines in commercial and residential property prices and an increase in the unemployment rate simultaneously impact ECL across all portfolios from the reporting date. The assumptions in this scenario and relativities to the base case scenario will be monitored having regard to the emerging economic conditions and updated where necessary. The upside scenario represents a modest improvement to the base case. The following sensitivity table shows the reported provision for ECL based on the probability weighted scenarios and what the provision for ECL would be assuming a 100% weighting is applied to the base case scenario and to the downside scenario (with all other assumptions, including customer risk grades, held constant). Consolidated Parent Entity $m Reported probability-weighted ECL 6,132 3,913 5,172 3,378 100% base case ECL 4,750 2,748 4,051 2,387 100% downside ECL 8,315 7,065 6,956 6,067 If 1% of the stage 1 gross exposure from loans and credit commitments (calculated on a 12 month ECL) was reflected in stage 2 (calculated on a lifetime ECL) the provision for ECL would increase by $296 million (2019: $236 million) for the Group and $266 million (2019: $209 million) for the Parent Entity based on applying the average provision coverage ratios by stage to the movement in the gross exposure by stage. The following table indicates the weightings applied by the Group and Parent Entity: Macroeconomic scenario weightings (%) Upside 5.0 10.0 Base 55.0 62.5 Downside 40.0 27.5 The increase in weighting to the downside scenario since 30 September 2019 reflects the continuing uncertainty around the economic assumptions used in the base case and the asymmetric impact of downside tail risk on ECL. In particular, the current base case economic forecast indicates a relatively short and sharp economic impact followed by a subsequent recovery. There is a risk that the economic impacts of COVID-19 could be deeper or more prolonged which would result in higher credit losses than those modelled under the base case. The COVID-19 pandemic is leading to material structural shifts in the behaviour of the economy and customers, and unprecedented actions by banks, governments and regulators in response. ECL models are expected to be subject to a higher than usual level of uncertainty during this period. In this environment there is a heightened need for the application of judgement in order to reflect these evolving relationships and risks. This judgement has been applied in the form of the revision to scenario weightings and a COVID-19 overlay. COVID-19 overlay Where there is increased uncertainty regarding the required forward-looking economic conditions under AASB 9, or limitations of the historical data used to calibrate the models to current stressed environments, overlays are typically used to address areas of potential risk not captured in the underlying modelled ECL. The COVID-19 pandemic has had, and continues to have, an impact on businesses around the world and the economic environments in which they operate. There also exists significant uncertainty regarding the duration and severity of COVID-19 impacts and the associated disruption to the economy and our customers. While the impacts on the broader economy are included in the assumptions used in the economic scenarios and the weightings applied to these scenarios, these general economy wide impacts may not fully reflect the specific impact on individual customers, and therefore the potential risk is not captured in the underlying modelled ECL. As overlays require the application of expert judgment, they are documented and subject to comprehensive internal governance and oversight. The Group’s COVID-19 overlay as of September 2020 is $577 million, of which, $404 million relates to COVID-19 deferral packages. The deferral of payments by customers in hardship arrangements is generally treated as an indication of a significant increase in credit risk (SICR) but the deferral of payments under the current COVID-19 support packages for mortgages, personal and business loans has not, in isolation, been treated as an indication of SICR. As highlighted by the IASB in its guidance document ‘IFRS 9 and COVID-19’ issued on 27 March 2020, in these changed circumstances it is not appropriate to apply previously established approaches to assessing significant increase in credit risk (‘SICR’) for payment holidays in a mechanistic manner. These relief packages are available to customers who require assistance because of COVID-19 and who otherwise had up to date payment status prior to the onset of COVID-19. The relief packages allow for a deferral of payments for up to 6 months. During this period, the deferred interest will be capitalised and the deferred principal along with the capitalised interest, will be repaid over the remaining term of the loan. These packages have been designed to provide short-term cash flow support while the most significant COVID-19 restrictions are in place. A further extension allowing for up to an additional 4 month deferral up to 31 March 2021 has been announced. The extension will not be automatic and will require up-to-date financial information on each borrower to confirm that there is a reasonable prospect to repay the loan. As the situation has evolved since March 2020, the Group has classified the deferral packages into different categories of risk. Each of these categories are assigned a corresponding AASB 9 staging level based on whether SICR is deemed to have occurred because of the increased likelihood of a risk of default. The group has identified a proportion of deferral packages as higher credit risk and has identified a SICR event to have occurred on these customers. An overlay estimation has been done on this base of customers. We continue to monitor our lending portfolios closely and reassess our provisioning levels as the situation around COVID-19 evolves. At the cessation of the COVID-19 support packages, it is likely that some customers will move into general hardship arrangements (Stage 2). Exposures allocated to Stage 3 relies only on observable evidence of default. Business lending (including institutional) The business lending overlay relates to the increased credit risk relating to a portion of small business and transaction managed (<$10 million TCE) customers currently on COVID-19 relief packages or still to be reviewed. Based on this judgement we have identified $2.4 billion for the Group and $1.3 billion for the Parent Entity of business portfolio exposures on which a lifetime ECL overlay has been determined. This has resulted in a $223 million overlay for the Group and $140 million overlay for the Parent Entity for business lending exposures which is included in Stage 2 provision. Retail |
Other financial assets
Other financial assets | 12 Months Ended |
Sep. 30, 2020 | |
Other financial assets | |
Other financial assets | Note 14. Other financial assets Consolidated Parent Entity $m Accrued interest receivable 905 1,144 797 1,005 Securities sold not delivered 2,358 1,687 2,352 1,668 Trade debtors 992 998 502 517 Interbank lending 299 514 295 510 Clearing and settlement balances 630 750 558 706 Accrued fees and commissions 170 159 117 95 Other 120 115 124 114 Total other financial assets 5,474 5,367 4,745 4,615 |
Life insurance assets and life
Life insurance assets and life insurance liabilities | 12 Months Ended |
Sep. 30, 2020 | |
Life insurance assets and life insurance liabilities | |
Life insurance assets and life insurance liabilities | Note 15. Life insurance assets and life insurance liabilities Accounting policy The Group conducts its life insurance business in Australia primarily through Westpac Life Insurance Services Limited and separate statutory funds registered under the Life Insurance Act 1995 (Life Act) and in New Zealand through Westpac Life-NZ-Limited which are separate statutory funds licensed under the Insurance (Prudential Supervision) Act 2010. Life insurance assets Life insurance assets, including investments in funds managed by the Group, are designated at FVIS. Changes in fair value are recognised in non-interest income. The determination of fair value of life insurance assets involves the same judgements as other financial assets, which are described in the critical accounting assumptions and estimates in Note 22. The Life Act places restrictions on life insurance assets, including that they can only be used: to meet the liabilities and expenses of that statutory fund; to acquire investments to further the business of the statutory fund; or as a distribution, when the statutory fund has met its solvency and capital adequacy requirements. Life insurance liabilities Life insurance liabilities primarily consist of life investment contract liabilities and life insurance contract liabilities. Claims incurred in respect of life investment contracts are withdrawals of customer deposits, and are recognised as a reduction in life insurance liabilities. Life investment contract liabilities Life investment contract liabilities are designated at FVIS. Fair value is the higher of the valuation of life insurance assets linked to the life investment contract, or the minimum current surrender value (the minimum amount the Group would pay to a policyholder if their policy is voluntarily terminated before it matures or the insured event occurs). Changes in fair value are recognised in non-interest income. Life insurance contract liabilities The value of life insurance contract liabilities is calculated using the margin on services methodology (MoS), specified in the Prudential Standard LPS 340 Valuation of Policy Liabilities. MoS accounts for the associated risks and uncertainties of each type of life insurance contract written. At each reporting date, planned profit margins and an estimate of future liabilities are calculated. Profit margins are released to non-interest income over the period that life insurance is provided to policyholders (Note 4). The cost incurred of acquiring specific insurance contracts is deferred provided that these amounts are recoverable out of planned profit margins. The deferred amounts are recognised as a reduction in life insurance policy liabilities and are amortised to non-interest income over the same period as the planned profit margins. Life insurance contract liability adequacy test Life insurance contract policy liabilities are tested for liability adequacy by comparing them to the best estimate of future cash flows. Liabilities are grouped into related product groups and each group is tested against the best estimate of future cash flows. If the liability of a related product group is less than best estimate the liability is increased with the expense being recognised in non-interest income. External unit holder liabilities of managed investment schemes The life insurance statutory funds include controlling interests in managed investment schemes which are consolidated. When the managed investment scheme is consolidated, the external unit holder liabilities are recognised as a liability and included in life insurance liabilities. They are designated at FVIS. Critical accounting assumptions and estimates The key factors that affect the estimation of life insurance liabilities and related assets are: the cost of providing benefits and administering contracts; mortality and morbidity experience, which includes policyholder benefits enhancements; discontinuance rates, which affects the Group’s ability to recover the cost of acquiring new business over the life of the contracts; and the discount rate of projected future cash flows. Regulation, competition, interest rates, taxes, securities market conditions and general economic conditions also affect the estimation of life insurance liabilities. Life insurance assets Consolidated $m Investments held directly and in unit trusts Unit Trusts 333 6,764 Equities — 989 Debt Securities 2,818 1,589 Loans and other assets 442 25 Total life Insurance assets 3,593 9,367 There were no life insurance assets in the Parent Entity as at 30 September 2020 (2019: nil). Life insurance liabilities Consolidated Life investment Life insurance Reconciliation of movements in policy liabilities contracts contracts Total $m Balance as at beginning of year 8,206 8,438 (829) (841) 7,377 7,597 Movements in policy liabilities reflected in the income statement 504 12 516 Contract contributions recognised in policy liabilities 898 — — 898 Contract withdrawals recognised in policy liabilities (1,218) — — (1,218) Contract fees, expenses and tax recoveries (73) — — (73) Change in external unit holders of managed investment schemes (343) — — (343) Balance as at end of year 8,206 (829) 7,377 There were no life insurance liabilities in the Parent Entity as at 30 September 2020 (2019: nil). |
Deposits and other borrowings
Deposits and other borrowings | 12 Months Ended |
Sep. 30, 2020 | |
Deposits and other borrowings | |
Deposits and other borrowings | Note 16. Deposits and other borrowings Accounting policy Deposits and other borrowings are initially recognised at fair value and subsequently either measured at amortised cost using the effective interest rate method or at fair value. Deposits and other borrowings are designated at fair value if they are managed on a fair value basis, reduce or eliminate an accounting mismatch or contain an embedded derivative. Where they are measured at fair value, any changes in fair value (except those due to changes in credit risk) are recognised as non-interest income. The change in the fair value that is due to changes in credit risk is recognised in OCI except where it would create an accounting mismatch, in which case it is also recognised in the income statement. Refer to Note 22 for balances measured at fair value and amortised cost. Interest expense incurred is recognised in net interest income using the effective interest rate method. Consolidated Parent Entity $m Australia Certificates of deposit 26,259 26,259 Non-interest bearing, repayable at call 43,341 43,341 Other interest bearing at call 247,161 247,161 Other interest bearing term 158,564 158,564 Total Australia 475,325 475,325 New Zealand Certificates of deposit 1,058 — — Non-interest bearing, repayable at call 6,368 — — Other interest bearing at call 22,291 — — Other interest bearing term 31,084 1 — Total New Zealand 60,801 1 — Other overseas Certificates of deposit 11,414 11,414 Non-interest bearing, repayable at call 824 385 Other interest bearing at call 1,610 1,233 Other interest bearing term 13,273 13,073 Total other overseas 27,121 26,105 Total deposits and other borrowings 563,247 501,430 The following table shows average balances and average rates in each of the past three years for major categories of deposits: 2020 2019 2018 Average Average Average Average Average Average balance rate balance rate balance rate Consolidated $m % $m % $m % Australia Non-interest bearing, repayable at call 42,455 41,156 Certificates of deposit 0.8 30,367 2.0 31,424 2.0 Other interest bearing at call 0.5 237,420 1.1 228,328 1.2 Other interest bearing term 1.5 158,012 2.4 162,254 2.5 Total Australia 468,254 463,162 Overseas Non-interest bearing, repayable at call 6,815 6,021 Certificates of deposit 1.4 11,854 2.6 13,008 1.9 Other interest bearing at call 0.5 23,616 1.1 23,017 1.2 Other interest bearing term 2.3 45,520 3.0 41,942 2.8 Total overseas 87,805 83,988 Certificates of deposit and term deposits All certificates of deposit and majority of term deposits issued by foreign offices were greater than US$100,000. The maturity profile of certificates of deposit and term deposits greater than US$100,000 issued by Australian operations is set out below: Over Over 3 months 6 months Consolidated 2020 Up to to to $m 3 months 6 months 1 year Over 1 year Total Certificates of deposit greater than US$100,000 13,363 11,440 817 27 25,647 Term deposits greater than US$100,000 61,663 18,001 24,315 4,540 108,519 |
Other financial liabilities
Other financial liabilities | 12 Months Ended |
Sep. 30, 2020 | |
Other financial liabilities | |
Other financial liabilities | Note 17. Other financial liabilities Accounting policy Other financial liabilities include liabilities measured at amortised cost as well as liabilities which are measured at FVIS. Financial liabilities measured at FVIS include: trading liabilities (i.e. securities sold short); and liabilities designated at FVIS (i.e. certain repurchase agreements). Refer to Note 22 for balances measured at fair value and amortised cost. Repurchase agreements Where securities are sold subject to an agreement to repurchase at a predetermined price, they remain recognised in the balance sheet in their original category (i.e. ‘Trading securities’ or ‘Investment securities’). The cash consideration received is recognised as a liability (‘Repurchase agreements’). Repurchase agreements are designated at fair value where they are managed as part of a trading portfolio, otherwise they are measured on an amortised cost basis. Where a repurchase agreement is designated at fair value, subsequent to initial recognition, these liabilities are measured at fair value with changes in fair value (except credit risk) recognised through the income statement as they arise. The change in fair value that is attributable to credit risk is recognised in OCI except where it would create an accounting mismatch, in which case it is also recognised through the income statement. Consolidated Parent Entity $m Repurchase agreements 27,763 10,604 27,763 10,604 Interbank placements 4,981 9,884 4,710 9,834 Accrued interest payable 1,367 2,627 1,169 2,312 Securities purchased not delivered 2,291 1,398 2,291 1,395 Trade creditors and other accrued expenses 1,250 1,154 1,045 927 Settlement and clearing balances 1,005 1,222 989 1,197 Securities sold short 846 766 846 766 Other 1,422 1,560 1,343 1,481 Total other financial liabilities 40,925 29,215 40,156 28,516 |
Debt issues
Debt issues | 12 Months Ended |
Sep. 30, 2020 | |
Debt issues | |
Debt issues | Note 18. Debt issues Accounting policy Debt issues are bonds, notes, commercial paper and debentures that have been issued by entities in the Group. Debt issues are initially measured at fair value and subsequently either measured at amortised cost using the effective interest rate method or at fair value. Debt issues are designated at fair value if they reduce or eliminate an accounting mismatch or contain an embedded derivative. The change in the fair value that is due to credit risk is recognised in OCI except where it would create an accounting mismatch, in which case it is also recognised in non-interest income. Refer to Note 22 for balances measured at fair value and amortised cost. Interest expense incurred is recognised within net interest income using the effective interest rate method. In the table below, the distinction between short-term (12 months or less) and long-term (greater than 12 months) debt is based on the original maturity of the underlying security. Consolidated Parent Entity $m Short-term debt Own issuances 16,477 25,838 14,160 23,695 Total short-term debt 16,477 25,838 14,160 23,695 Long-term debt Covered bonds 36,051 38,037 31,926 33,160 Senior 89,766 109,340 81,580 99,819 Securitisation 8,000 8,190 — — Structured notes 31 52 — — Total long-term debt 133,848 155,619 113,506 132,979 Total debt issues 150,325 181,457 127,666 156,674 Movement reconciliation ($m) Balance at beginning of year 181,457 172,596 156,674 152,288 Issuances 34,766 61,484 27,487 50,375 Maturities, repayments, buy backs and reductions (65,160) (63,313) (55,761) (56,347) Total cash movements (30,394) (1,829) (28,274) (5,972) FX translation impact (1,977) 6,713 (2,005) 6,514 Fair value adjustments 81 317 81 318 Fair value hedge accounting adjustments 1,038 3,512 1,076 3,376 Other (amortisation of bond issue costs, etc) 120 148 114 150 Total non-cash movements (738) 10,690 (734) 10,358 Balance as at end of year 150,325 181,457 127,666 156,674 Consolidated $m Short-term debt Own issuances: US commercial paper 13,864 19,950 Senior debt: AUD — 100 GBP 2,437 5,366 Other 176 422 Total own issuances 16,477 25,838 Total short-term debt 16,477 25,838 Long-term debt (by currency): AUD 36,062 43,532 CHF 3,177 3,480 EUR 34,498 37,464 GBP 3,440 5,545 JPY 2,439 2,538 NZD 3,519 3,197 USD 45,917 54,490 Other 4,796 5,373 Total long-term debt 133,848 155,619 Consolidated $m Short-term borrowings US commercial paper Maximum amount outstanding at any month end 21,639 26,879 28,331 Approximate average amount outstanding 18,462 22,502 23,315 Approximate weighted average interest rate on: Average amount outstanding 1.4 2.8 2.0 Outstanding as at year end 0.4 3.2 2.5 The Group manages FX exposure from debt issuances as part of its hedging activities. Further details of the Group’s hedge accounting are in Note 20. |
Loan Capital
Loan Capital | 12 Months Ended |
Sep. 30, 2020 | |
Loan Capital | |
Loan Capital | Note 19. Loan capital Accounting policy Loan capital are instruments issued by the Group which qualify for inclusion as regulatory capital under APRA Prudential Standards. Loan capital is initially measured at fair value and subsequently measured at amortised cost using the effective interest rate method. Interest expense incurred is recognised in net interest income. Consolidated and Parent Entity $m Additional Tier 1 (AT1) loan capital Westpac capital notes 7,423 7,411 USD AT1 securities 1,941 1,913 Total AT1 loan capital 9,364 9,324 Tier 2 loan capital Subordinated notes 14,090 11,981 Subordinated perpetual notes 495 521 Total Tier 2 loan capital 14,585 12,502 Total loan capital 23,949 21,826 Movement reconciliation ($m) Balance as at beginning of year 21,826 17,265 Issuances 2,225 4,935 Maturities, repayments, buy backs and reductions (262) (1,662) Total cash movements 1,963 3,273 FX translation impact (564) 521 Fair value hedge accounting adjustments 703 748 Other (amortisation of bond issue costs, etc) 21 19 Total non-cash movements 160 1,288 Balance as at end of year 23,949 21,826 Additional Tier 1 loan capital A summary of the key terms and common features of AT1 instruments are provided below 1 . Consolidated and Parent Entity Potential scheduled Optional $m Distribution Interest rate conversion date 2 redemption date 3 Westpac capital notes (WCN) $1,311 million WCN2 (90 day bank bill rate + 3.05% p.a.) 23 September 2024 23 September 2022 1,307 1,308 x (1 - Australian corporate tax rate) $1,324 million WCN3 (90 day bank bill rate + 4.00% p.a.) 22 March 2023 22 March 2021 1,323 1,319 x (1 - Australian corporate tax rate) $1,702 million WCN4 (90 day bank bill rate + 4.90% p.a.) 20 December 2023 20 December 2021 1,698 1,694 x (1 - Australian corporate tax rate) $1,690 million WCN5 (90 day bank bill rate + 3.20% p.a.) 22 September 2027 22 September 2025 1,680 1,677 x (1 - Australian corporate tax rate) $1,423 million WCN6 (90 day bank bill rate + 3.70% p.a.) 31 July 2026 31 July 2024 1,415 1,413 x (1 - Australian corporate tax rate) Total Westpac capital notes 7,423 7,411 USD AT1 securities US$1,250 million securities 5.00% p.a. until but excluding 21 September 2027 n/a 21 September 2027 5 1,941 1,913 (first reset date). If not redeemed, converted or written-off earlier, from, and including, each reset date 4 to, but excluding, the next succeeding reset date 5 , at a fixed rate p.a. equal to the prevailing 5- year USD midmarket swap rate plus 2.89% p.a. Total USD AT1 securities 1,941 1,913 1. A$ unless otherwise noted. 2. Conversion is subject to the satisfaction of the scheduled conversion conditions. If the conversion conditions are not satisfied on the relevant scheduled conversion date, conversion will not occur until the next distribution payment date on which the scheduled conversion conditions are satisfied. 3. Westpac may elect to redeem the relevant AT1 instrument, subject to APRA’s prior written approval. 4. Every fifth anniversary thereafter is a reset date. 5. Westpac may elect to redeem on 21 September 2027 and every fifth anniversary after the first reset date is a reset date. Common features of AT1 instruments Payment conditions Quarterly distributions on the Westpac capital notes and semi-annual interest payments on the USD AT1 securities are discretionary and will only be paid if the payment conditions are satisfied, including that the payment will not result in a breach of Westpac’s capital requirements under APRA’s prudential standards; not result in Westpac becoming, or being likely to become, insolvent; or if APRA does not object to the payment. Broadly, if for any reason a distribution or interest payment has not been paid in full on the relevant payment date, Westpac must not determine or pay any dividends on Westpac ordinary shares or undertake a discretionary buy back or capital reduction of Westpac ordinary shares, unless the unpaid amount is paid in full within 20 business days of the relevant payment date or in certain other circumstances. The AT1 instruments convert into Westpac ordinary shares in the following circumstances: · Scheduled Conversion On the scheduled conversion date, provided certain conversion conditions are satisfied, it is expected that the relevant AT1 instrument 1 will be converted and holders will receive a variable number of Westpac ordinary shares calculated using the formula described in the terms of the relevant AT1 instrument, subject to a maximum conversion number. The conversion number of Westpac ordinary shares will be calculated using the face value of the relevant AT1 instrument and the Westpac ordinary share price determined over the 20 business day period prior to the scheduled conversion date, including a 1% discount. · Capital Trigger Event or Non-Viability Trigger Event Westpac will be required to convert some or all AT1 instruments into a variable number of Westpac ordinary shares upon the occurrence of a capital trigger event or non-viability trigger event. No conversion conditions apply in these circumstances. A capital trigger event occurs when Westpac determines, or APRA notifies Westpac in writing that it believes, Westpac’s Common Equity Tier 1 Capital ratio is equal to or less than 5.125% (on a level 1 or level 2 basis 2 ). A non-viability trigger event will occur when APRA notifies Westpac in writing that it believes conversion of all or some AT1 instruments (or conversion, write-off or write-down of relevant capital instruments of the Westpac Group), or public sector injection of capital (or equivalent support), in each case is necessary because without it, Westpac would become non-viable. For each AT1 instrument converted, holders will receive a variable number of Westpac ordinary shares calculated using the formula described in the terms of the relevant AT1 instrument, subject to a maximum conversion number. The conversion number of Westpac ordinary shares is calculated using the face value or outstanding principal amount of the relevant AT1 instrument and the Westpac ordinary share price determined over the 5 business day period prior to the capital trigger event date or non-viability trigger event date and includes a 1% discount. For each AT1 instrument, the maximum conversion number is set using a Westpac ordinary share price which is broadly equivalent to 20% of the Westpac ordinary share price at the time of issue. Following the occurrence of a capital trigger event or non-viability trigger event, if conversion of an AT1 instrument does not occur within five business days, holders’ rights in relation to the relevant AT1 instrument will be immediately and irrevocably terminated. · Early conversion Westpac is able to elect to convert 3 , or may be required to convert 3 , AT1 instruments early in certain circumstances. The terms of conversion and the conversion conditions are broadly similar to scheduled conversion, however the share price floor in the maximum conversion number will depend on the conversion event. Early redemption Westpac is able to elect to redeem the relevant AT1 instrument on the optional redemption date or for certain taxation or regulatory reasons, subject to APRA’s prior written approval. 1. Scheduled conversion does not apply to USD AT1 securities. 2. Level 1 comprises Westpac Banking Corporation and its subsidiary entities that have been approved by APRA as being part of a single ‘Extended Licenced Entity’ for the purpose of measuring capital adequacy. Level 2 is the consolidation of Westpac Banking Corporation and all its subsidiary entities except those entities specifically excluded by APRA regulations. The head of the Level 2 group is Westpac Banking Corporation. 3. Excludes USD AT1 securities. Tier 2 loan capital A summary of the key terms and common features of Westpac’s Tier 2 instruments are provided below 1 : Consolidated and Parent Entity Optional $m Interest rate 2 Maturity date redemption date 3 Subordinated notes CNY1,250 million subordinated notes 4.85% p.a. until but excluding 9 February 2020. Thereafter, if not redeemed, a fixed rate per annum equal to the one-year CNH HIBOR reference rate plus 0.8345% p.a. 9 February 2025 9 February 2020 4 — 260 A$350 million subordinated notes 4.50% p.a. until but excluding 11 March 2022. Thereafter, if not redeemed, a fixed rate per annum equal to the five-year AUD semi-quarterly mid-swap reference rate plus 1.95% p.a., the sum of which will be annualised. 11 March 2027 11 March 2022 361 362 S$325 million subordinated notes 4.00% p.a. until but excluding 12 August 2022. Thereafter, if not redeemed, a fixed rate per annum equal to the five-year SGD swap offer rate plus 1.54% p.a. 12 August 2027 12 August 2022 347 356 A$175 million subordinated notes 4.80% p.a. until but excluding 14 June 2023. Thereafter, if not redeemed, a fixed rate per annum equal to the five-year AUD semi-quarterly mid-swap reference rate plus 2.65% p.a., each of which will be annualised. 14 June 2028 14 June 2023 185 182 US$100 million subordinated notes Fixed 5.00% p.a. 23 February 2046 n/a 175 161 A$700 million subordinated notes Floating 90 day bank bill rate + 3.10% p.a. 10 March 2026 10 March 2021 700 697 JPY20,000 million subordinated notes Fixed 1.16% p.a. 19 May 2026 n/a 270 279 JPY10,200 million subordinated notes Fixed 1.16% p.a. 2 June 2026 n/a 137 142 JPY10,000 million subordinated notes Fixed 0.76% p.a. 9 June 2026 n/a 134 139 NZ$400 million subordinated notes 4.6950% p.a. until but excluding 1 September 2021. Thereafter, if not redeemed, a fixed rate per annum equal to the New Zealand 5-year swap rate on 1 September 2021 plus 2.60% p.a. 1 September 2026 1 September 2021 376 373 JPY8,000 million subordinated notes 0.9225% p.a. until but excluding 7 October 2021. Thereafter, if not redeemed, a fixed rate per annum equal to the five-year JPY mid-swap rate plus 1.0005% p.a. 7 October 2026 7 October 2021 107 110 US$1,500 million subordinated notes 4.322% p.a. until but excluding 23 November 2026. Thereafter, if not redeemed, a fixed rate per annum equal to the five-year USD mid-swap rate plus 2.236% p.a. 23 November 2031 23 November 2026 2,320 2,297 JPY12,000 million subordinated notes 0.87% p.a. until but excluding 6 July 2022. Thereafter, if not redeemed, a fixed rate per annum equal to the five-year JPY mid-swap rate plus 0.78% p.a. 6 July 2027 6 July 2022 161 166 JPY13,500 million subordinated notes 0.868% p.a. until but excluding 6 July 2022. Thereafter, if not redeemed, a fixed rate per annum equal to the five-year JPY mid-swap rate plus 0.778% p.a. 6 July 2027 6 July 2022 181 187 HKD600 million subordinated notes 3.15% p.a. until but excluding 14 July 2022. Thereafter, if not redeemed, a fixed rate per annum equal to the five-year HKD mid-swap rate plus 1.34% p.a. 14 July 2027 14 July 2022 111 114 A$350 million subordinated notes 4.334% p.a. until but excluding 16 August 2024. Thereafter, if not redeemed, a fixed rate per annum equal to the five-year AUD semi-quarterly mid-swap reference rate plus 1.83% p.a., each of which will be annualised. 16 August 2029 16 August 2024 349 349 A$185 million subordinated notes Fixed 5.00% p.a. 24 January 2048 n/a 185 185 A$250 million subordinated notes 90 day bank bill rate + 1.40% p.a. 16 February 2028 16 February 2023 250 250 A$130 million subordinated notes Fixed 5.00% p.a. 2 March 2048 n/a 130 130 A$725 million subordinated notes 90 day bank bill rate + 1.80% p.a. 22 June 2028 22 June 2023 714 724 US$1,000 million subordinated notes Fixed 4.421% p.a. 24 July 2039 n/a 1,707 1,606 US$1,250 million subordinated notes 4.110% p.a. until but excluding 24 July 2029. Thereafter, if not redeemed a fixed rate per annum equal to the five-year USD treasury rate plus 2% p.a. 24 July 2034 24 July 2029 1,970 1,921 A$1,000 million subordinated notes Floating 90 day bank bill rate + 1.98% p.a. 27 August 2029 27 August 2024 1,000 991 US$1,500 million subordinated notes 2.894% p.a. until but excluding 4 February 2025. Thereafter, if not redeemed, a fixed rate per annum equal to the five-year USD treasury rate plus 1.35% p.a. 4 February 2030 4 February 2025 2,220 — Total subordinated notes 14,090 11,981 1. Excludes subordinated perpetual notes. 2. Interest payments are made periodically as set out in the terms of the subordinated notes. 3. Westpac may elect to redeem the relevant Tier 2 instrument on the optional redemption date or dates, subject to APRA’s prior written approval. If not redeemed on the first optional redemption date, Westpac may elect to redeem the relevant Tier 2 instrument on any interest payment date after the first optional redemption date (except for US$1,500 million subordinated notes with an optional redemption date in November 2026, US$1,250 million subordinated notes with an optional redemption date in July 2029 and US$1,500 million subordinated notes with an optional redemption date in February 2025), subject to APRA’s prior written approval. 4. The subordinated notes were redeemed in full on the optional redemption date. Common features of subordinated notes Interest payments are subject to Westpac being solvent at the time of, and immediately following, the interest payment. These subordinated notes contain non-viability loss absorption requirements. Non-viability trigger event Westpac will be required to convert some or all subordinated notes into a variable number of Westpac ordinary shares upon the occurrence of a non-viability trigger event. A non-viability trigger event will occur on similar terms as described under AT1 loan capital. For each subordinated note converted, holders will receive a variable number of Westpac ordinary shares calculated using the formula described in the terms of the relevant Tier 2 instrument, subject to a maximum conversion number. The conversion number of Westpac ordinary shares will be calculated in a manner similar to that described under AT1 loan capital for a non-viability trigger event. For each Tier 2 instrument, the maximum conversion number is set using a Westpac ordinary share price which is broadly equivalent to 20% of the Westpac ordinary share price at the time of issue. Following the occurrence of a non-viability trigger event, if conversion of a Tier 2 instrument does not occur within five business days, holders’ rights in relation to the relevant Tier 2 instrument will be immediately and irrevocably terminated. Subordinated perpetual notes These notes have no final maturity but Westpac can choose to redeem them at par on any interest payment date falling on or after September 1991, subject to APRA approval and certain other conditions. Interest is cumulative and payable on the notes semi-annually at a rate of 6 month US$ LIBOR plus 0.15% p.a., subject to Westpac being solvent immediately after making the payment and having paid any dividend on any class of share capital of Westpac within the prior 12 month period. These notes qualify for transitional treatment as Tier 2 capital of Westpac under APRA’s Basel III capital adequacy framework. The rights of the noteholders and coupon holders are subordinated to the claims of all creditors (including depositors) of Westpac other than creditors whose claims against Westpac rank equally with, or junior to, these notes. |
Derivative financial instrument
Derivative financial instruments | 12 Months Ended |
Sep. 30, 2020 | |
Derivative financial instruments | |
Derivative financial instruments | Note 20. Derivative financial instruments Accounting policy Derivative financial instruments are instruments whose values are derived from the value of an underlying asset, reference rate or index and include forwards, futures, swaps and options. The Group uses derivative financial instruments for meeting customers’ needs, our asset and liability risk management (ALM) activities, and undertaking market making and positioning activities. Trading derivatives Derivatives which are used in our ALM activities but are not designated into a hedge accounting relationship are considered economic hedges, and are adjusted for cash earnings purposes due to the accounting mismatch between the fair value of the derivatives and the accounting treatment of the underlying exposure (refer to Note 2 for further details). These derivatives, along with derivatives used for meeting customers’ needs and undertaking market making and positioning activities, are measured at FVIS and are disclosed as trading derivatives. Hedging derivatives Hedging derivatives are those which are used in our ALM activities and have also been designated into one of three hedge accounting relationships: fair value hedge; cash flow hedge; or hedge of a net investment in a foreign operation. These derivatives are measured at fair value. These hedge designations and the associated accounting treatment are detailed below. For more details regarding the Group’s ALM activities, refer to Note 21. Fair value hedges Fair value hedges are used to hedge the exposure to changes in the fair value of an asset or liability. Changes in the fair value of derivatives and the hedged asset or liability in fair value hedges are recognised in interest income. The carrying value of the hedged asset or liability is adjusted for the changes in fair value related to the hedged risk. If a hedge is discontinued, any fair value adjustments to the carrying value of the asset or liability are amortised to net interest income over the period to maturity. If the asset or liability is sold, any unamortised adjustment is immediately recognised in net interest income. Cash flow hedges Cash flow hedges are used to hedge the exposure to variability of cash flows attributable to an asset, liability or future forecast transaction. For effective hedges, changes in the fair value of derivatives are recognised in the cash flow hedge reserve through OCI and subsequently recognised in interest income when the cash flows attributable to the asset or liability that was hedged impact the income statement. For hedges with some ineffectiveness, the changes in the fair value of the derivatives relating to the ineffective portion are immediately recognised in interest income. If a hedge is discontinued, any cumulative gain or loss remains in OCI. It is amortised to net interest income over the period which the asset or liability that was hedged also impacts the income statement. If a hedge of a forecast transaction is no longer expected to occur, any cumulative gain or loss in OCI is immediately recognised in net interest income. Net investment hedges Net investment hedges are used to hedge FX risks arising from a net investment of a foreign operation. For effective hedges, changes in the fair value of derivatives are recognised in the foreign currency translation reserve through OCI. For hedges with some ineffectiveness, the changes in the fair value of the derivatives relating to the ineffective portion are immediately recognised in non-interest income. If a foreign operation is disposed of, any cumulative gain or loss in OCI is immediately recognised in non-interest income. Total derivatives The carrying values of derivative instruments are set out in the tables below: Consolidated 2020 Total derivatives Trading Hedging carrying value $m Assets Liabilities Assets Liabilities Assets Liabilities Interest rate contracts 1 Forward rate agreements 14 (14) — — 14 (14) Swap agreements 44,366 (42,724) 5,916 (10,331) 50,282 (53,055) Options 161 (165) — — 161 (165) Total interest rate contracts 44,541 (42,903) 5,916 (10,331) 50,457 (53,234) FX contracts Spot and forward contracts 5,595 (4,797) 61 (46) 5,656 (4,843) Cross currency swap agreements (principal and interest) 4,977 (8,872) 1,450 (141) 6,427 (9,013) Options 383 (200) — — 383 (200) Total FX contracts 10,955 (13,869) 1,511 (187) 12,466 (14,056) Credit default swaps Credit protection bought — (59) — — — (59) Credit protection sold 57 — — — 57 — Total credit default swaps 57 (59) — — 57 (59) Commodity contracts 352 (204) — — 352 (204) Equities 3 — — — 3 — Total of gross derivatives 55,908 (57,035) 7,427 (10,518) 63,335 (67,553) Impact of netting arrangements (34,402) 34,819 (5,566) 9,680 (39,968) 44,499 Total of net derivatives 21,506 (22,216) 1,861 (838) 23,367 (23,054) Consolidated 2019 Total derivatives Trading Hedging carrying value $m Assets Liabilities Assets Liabilities Assets Liabilities Interest rate contracts 1 Forward rate agreements 35 (36) — — 35 (36) Swap agreements 38,383 (37,051) 4,073 (7,568) 42,456 (44,619) Options 294 (303) — — 294 (303) Total interest rate contracts 38,712 (37,390) 4,073 (7,568) 42,785 (44,958) FX contracts Spot and forward contracts 6,857 (6,393) 181 (3) 7,038 (6,396) Cross currency swap agreements (principal and interest) 8,934 (12,478) 2,172 (69) 11,106 (12,547) Options 200 (111) — - 200 (111) Total FX contracts 15,991 (18,982) 2,353 (72) 18,344 (19,054) Credit default swaps Credit protection bought — (88) — — — (88) Credit protection sold 83 - — — 83 — Total credit default swaps 83 (88) — — 83 (88) Commodity contracts 251 (187) — — 251 (187) Equities 1 (1) — — 1 (1) Total of gross derivatives 55,038 (56,648) 6,426 (7,640) 61,464 (64,288) Impact of netting arrangements (27,968) 28,703 (3,637) 6,489 (31,605) 35,192 Total of net derivatives 27,070 (27,945) 2,789 (1,151) 29,859 (29,096) Parent Entity 2020 Total derivatives Trading Hedging carrying value $m Assets Liabilities Assets Liabilities Assets Liabilities Interest rate contracts 1 Forward rate agreements 14 (14) — — 14 (14) Swap agreements 44,511 (43,108) 5,749 (9,807) 50,260 (52,915) Options 161 (165) — — 161 (165) Total interest rate contracts 44,686 (43,287) 5,749 (9,807) 50,435 (53,094) FX contracts Spot and forward contracts 5,641 (4,821) 14 (19) 5,655 (4,840) Cross currency swap agreements (principal and interest) 4,977 (8,872) 900 (9) 5,877 (8,881) Options 383 (200) — — 383 (200) Total FX contracts 11,001 (13,893) 914 (28) 11,915 (13,921) Credit default swaps Credit protection bought — (59) — — — (59) Credit protection sold 57 - — — 57 — Total credit default swaps 57 (59) — — 57 (59) Commodity contracts 352 (204) — — 352 (204) Equities 3 - — — 3 — Total of gross derivatives 56,099 (57,443) 6,663 (9,835) 62,762 (67,278) Impact of netting arrangements (34,521) 35,175 (5,447) 9,324 (39,968) 44,499 Total of net derivatives 21,578 (22,268) 1,216 (511) 22,794 (22,779) Parent Entity 2019 Total derivatives Trading Hedging carrying value $m Assets Liabilities Assets Liabilities Assets Liabilities Interest rate contracts 1 Forward rate agreements 35 (36) — — 35 (36) Swap agreements 38,489 (37,438) 3,955 (7,018) 42,444 (44,456) Options 294 (303) — — 294 (303) Total interest rate contracts 38,818 (37,777) 3,955 (7,018) 42,773 (44,795) FX contracts Spot and forward contracts 6,987 (6,389) 46 (3) 7,033 (6,392) Cross currency swap agreements (principal and interest) 8,934 (12,479) 1,613 (6) 10,547 (12,485) Options 200 (111) — — 200 (111) Total FX contracts 16,121 (18,979) 1,659 (9) 17,780 (18,988) Credit default swaps Credit protection bought — (88) — — — (88) Credit protection sold 83 — — — 83 — Total credit default swaps 83 (88) — — 83 (88) Commodity contracts 251 (187) — — 251 (187) Equities 1 (1) — — 1 (1) Total of gross derivatives 55,274 (57,032) 5,614 (7,027) 60,888 (64,059) Impact of netting arrangements (27,968) 28,703 (3,637) 6,489 (31,605) 35,192 Total of net derivatives 27,306 (28,329) 1,977 (538) 29,283 (28,867) 1. The fair value of futures contracts is settled daily with the exchange, and therefore have been excluded from this table. Hedge accounting The Group designates derivatives into hedge accounting relationships in order to manage the volatility in earnings and capital that would otherwise arise from interest rate and FX risks that may result from differences in the accounting treatment of derivatives and underlying exposures. These hedge accounting relationships and the risks they are used to hedge are described below. The Group enters into one-to-one hedge relationships to manage specific exposures where the terms of the hedged item significantly match the terms of the hedging instrument. The Group also uses dynamic hedge accounting where the hedged items are part of a portfolio of assets and/or liabilities that frequently change. In this hedging strategy, the exposure being hedged and the hedging instruments may change frequently rather than there being a one-to-one hedge accounting relationship for a specific exposure. Fair value hedges Interest rate risk The Group hedges its interest rate risk to reduce exposure to changes in fair value due to interest rate fluctuations over the hedging period. Interest rate risk arising from fixed rate debt issuances and fixed rate bonds classified as investment securities at FVOCI is hedged with single currency fixed to floating interest rate derivatives. The Group also hedges its benchmark interest rate risk from fixed rate foreign currency denominated debt issuances using cross currency swaps. In applying fair value hedge accounting the Group primarily uses one-to-one hedge accounting to manage specific exposures. The Group also uses a dynamic hedge accounting strategy for fair value portfolio hedge accounting of some fixed rate mortgages, primarily in New Zealand, to reduce exposure to changes in fair value due to interest rate fluctuations over the hedging period. These fixed rate mortgages are allocated to time buckets based on their expected repricing dates and the fixed-to-floating interest rate derivatives are designated accordingly to the capacity in the relevant time buckets. The Group hedges the benchmark interest rate which generally represents the most significant component of the changes in fair value. The benchmark interest rate is a component of interest rate risk that is observable in the relevant financial markets, for example, BBSW for AUD interest rates, LIBOR for USD interest rates and BKBM for NZD interest rates. Ineffectiveness may arise from timing or discounting differences on repricing between the hedged item and the derivative. For the portfolio hedge accounting ineffectiveness also arises from prepayment risk (i.e. the difference between actual and expected prepayment of loans). In order to manage the ineffectiveness from early repayments and accommodate new originations the portfolio hedges are de-designated and redesignated periodically. Cash flow hedges Interest rate risk The Group’s exposure to the volatility of interest cash flows from customer deposits and loans is hedged with interest rate derivatives using a dynamic hedge accounting strategy called macro cash flow hedges. Customer deposits and loans are allocated to time buckets based on their expected repricing dates. The interest rate derivatives are designated accordingly to the gross asset or gross liability positions for the relevant time buckets. The Group hedges the benchmark interest rate which generally represents the most significant component of the changes in fair value. The benchmark interest rate is a component of interest rate risk that is observable in the relevant financial markets, for example, BBSW for AUD interest rates, LIBOR for USD interest rates and BKBM for NZD interest rates. Ineffectiveness may arise from timing or discounting differences on repricing between the hedged item and the interest rate derivative. Ineffectiveness also arises if the notional values of the interest rate derivatives exceed the capacity for the relevant time buckets. The hedge accounting relationship is reviewed on a monthly basis and the hedging relationships are de-designated and redesignated if necessary. FX risk The Group’s exposure to foreign currency principal and credit margin cash flows from fixed rate foreign currency debt issuances is hedged through the use of cross currency derivatives in a one-to-one hedging relationship to manage the changes between the foreign currency and AUD. In addition, for floating rate foreign currency debt issuances, the Group hedges from foreign floating to primarily AUD or NZD floating interest rates. These exposures represent the most significant components of fair value. Ineffectiveness may arise from timing or discounting differences on repricing between the hedged item and the cross currency derivative. Net investment hedges FX risk Structural FX risk results from Westpac’s capital deployed in offshore branches and subsidiaries, where it is denominated in currencies other than Australian dollars. As exchange rates move, the Australian dollar equivalent of offshore capital is subject to change that could introduce significant variability to the Bank’s reported financial results and capital ratios. The Group uses FX forward contracts when hedging the currency translation risk arising from net investments in foreign operations. The Group currently applies hedge accounting to its net investment in New Zealand operations which is the most material offshore operation and therefore the hedged risk is the movement of the NZD against the AUD. Ineffectiveness only arises if the notional values of the FX forward contracts exceed the net investment in New Zealand operations. Economic hedges As part of the Group’s ALM activities, economic hedges may be entered into to hedge New Zealand future earnings and long term funding transactions. These hedges do not qualify for hedge accounting and the impact on the income statement of these hedges is treated as a cash earnings adjustment. This is due to the accounting mismatch between the fair value accounting of the derivatives used in the economic hedges when compared to the recognition of the New Zealand future earnings as they are earned and the amortised cost accounting of the borrowing respectively. Refer to Note 2 for further details. Interest Rate Benchmark Reform The Group's hedging relationships include hedged items and hedging instruments that are impacted by IBOR reform. As described in Note 1, the Group has early adopted AASB 2019-3 which allows certain exceptions to the standard hedging requirements in respect of hedge relationships that are impacted by this benchmark reform. The table below summarises the exposures Westpac currently has in hedging relationships maturing after 31 December 2021 which will be impacted by the IBOR reform and the quantum of those risks expressed in AUD equivalent values. The extent of the risk exposure also reflects the notional amounts of related hedging instruments. Benchmark Notional hedged exposure A$bn Consolidated Parent Entity US LIBOR GBP LIBOR CHF LIBOR JPY LIBOR Hedging instruments The following tables show the carrying value of hedging instruments and a maturity analysis of the notional amounts of the hedging instruments in one-to-one hedge relationships categorised by the types of hedge relationships and the hedged risk. Consolidated 2020 Notional amounts Over Within 1 year to Over Carrying value $m Hedging instrument Hedged risk 1 year 5 years 5 years Total Assets Liabilities One-to-one hedge relationships Fair value hedges Interest rate swap Interest rate risk 16,748 60,258 56,979 133,985 4,395 (8,810) Cross currency swap Interest rate risk 4,668 8,381 1,615 14,664 355 — Cash flow hedges Cross currency swap FX risk 5,877 9,590 1,615 17,082 1,095 (141) Net investment hedges Forward contracts FX risk 6,320 — — 6,320 61 (46) Total one-to-one hedge relationships 33,613 78,229 60,209 172,051 5,906 (8,997) Macro hedge relationships Portfolio fair value hedges Interest rate swap Interest rate risk n/a n/a n/a 19,907 — (187) Macro cash flow hedges Interest rate swap Interest rate risk n/a n/a n/a 174,611 1,521 (1,334) Total macro hedge relationships n/a n/a n/a 194,518 1,521 (1,521) Total of gross hedging derivatives n/a n/a n/a 366,569 7,427 (10,518) Impact of netting arrangements n/a n/a n/a n/a (5,566) 9,680 Total of net hedging derivatives n/a n/a n/a n/a 1,861 (838) Notional amounts Over Consolidated 2019 Within 1 year to Over Carrying value $m Hedging instrument Hedged risk 1 year 5 years 5 years Total Assets Liabilities One-to-one hedge relationships Fair value hedges Interest rate swap Interest rate risk 16,322 61,707 48,271 126,300 2,548 (5,672) Cross currency swap Interest rate risk 5,632 12,870 1,708 20,210 584 (69) Cash flow hedges Cross currency swap FX risk 5,632 15,386 1,708 22,726 1,588 — Net investment hedges Forward contracts FX risk 8,152 — — 8,152 181 (3) Total one-to-one hedge relationships 35,738 89,963 51,687 177,388 4,901 (5,744) Macro hedge relationships Portfolio fair value hedges Interest rate swap Interest rate risk n/a n/a n/a 18,813 — (194) Macro cash flow hedges Interest rate swap Interest rate risk n/a n/a n/a 176,828 1,525 (1,702) Total macro hedge relationships n/a n/a n/a 195,641 1,525 (1,896) Total of gross hedging derivatives n/a n/a n/a 373,029 6,426 (7,640) Impact of netting arrangements n/a n/a n/a n/a (3,637) 6,489 Total of net hedging derivatives n/a n/a n/a n/a 2,789 (1,151) Parent Entity 2020 Notional amounts Over 1 Within year to Over Carrying value $m Hedging instrument Hedged risk 1 year 5 years 5 years Total Assets Liabilities One-to-one hedge relationships Fair value hedges Interest rate swap Interest rate risk 16,125 58,628 56,979 131,732 4,390 (8,644) Cross currency swap Interest rate risk 2,981 4,284 1,286 8,551 252 — Cash flow hedges Cross currency swap FX risk 2,981 4,284 1,286 8,551 648 (9) Net investment hedges Forward contracts FX risk 1,240 — — 1,240 14 (19) Total one-to-one hedge relationships 23,327 67,196 59,551 150,074 5,304 (8,672) Macro hedge relationships Portfolio fair value hedges Interest rate swap Interest rate risk n/a n/a n/a — — — Macro cash flow hedges Interest rate swap Interest rate risk n/a n/a n/a 162,033 1,359 (1,163) Total macro hedge relationships n/a n/a n/a 162,033 1,359 (1,163) Total of gross hedging derivatives n/a n/a n/a 312,107 6,663 (9,835) Impact of netting arrangements n/a n/a n/a n/a (5,447) 9,324 Total of net hedging derivatives n/a n/a n/a n/a 1,216 (511) Notional amounts Over Parent Entity 2019 Within 1 year to Over Carrying value $m Hedging instrument Hedged risk 1 year 5 years 5 years Total Assets Liabilities One-to-one hedge relationships Fair value hedges Interest rate swap Interest rate risk 14,323 59,842 47,881 122,046 2,535 (5,475) Cross currency swap Interest rate risk 4,473 7,185 1,384 13,042 441 — Cash flow hedges Cross currency swap FX risk 4,473 7,185 1,384 13,042 1,172 (6) Net investment hedges Forward contracts FX risk 2,315 — — 2,315 46 (3) Total one-to-one hedge relationships 25,584 74,212 50,649 150,445 4,194 (5,484) Macro hedge relationships Portfolio fair value hedges Interest rate swap Interest rate risk n/a n/a n/a — — — Macro cash flow hedges Interest rate swap Interest rate risk n/a n/a n/a 166,978 1,420 (1,543) Total macro hedge relationships n/a n/a n/a 166,978 1,420 (1,543) Total of gross hedging derivatives n/a n/a n/a 317,423 5,614 (7,027) Impact of netting arrangements n/a n/a n/a n/a (3,637) 6,489 Total of net hedging derivatives n/a n/a n/a n/a 1,977 (538) The following tables show the weighted average FX rate related to significant hedging instruments in one-to-one hedge relationships. Consolidated Weighted average rate Hedging instrument Hedged risk Currency pair Cash flow hedges Cross currency swap FX risk EUR:AUD JPY:AUD EUR:NZD HKD:NZD Net investment hedges Forward contracts FX risk NZD:AUD Parent Entity Weighted average rate Hedging instrument Hedged risk Currency pair Cash flow hedges Cross currency swap FX risk EUR:AUD JPY:AUD CNH:AUD Net investment hedges Forward contracts FX risk NZD:AUD Impact of hedge accounting in the balance sheets and reserves The following tables show the carrying amount of hedged items in a fair value hedge relationship and the component of the carrying amount related to accumulated fair value hedge accounting adjustments (FVHA). 2020 2019 FVHA FVHA Consolidated Carrying amount of included in carrying Carrying amount of included in carrying $m hedged item amount hedged item amount Interest rate risk Investment securities 68,862 3,285 Loans 20,290 140 Debt issues and loan capital (96,605) (4,559) 2020 2019 FVHA FVHA Parent Entity Carrying amount of included in carrying Carrying amount of included in carrying $m hedged item amount hedged item amount Interest rate risk Investment securities 66,529 3,175 Loans 251 8 Debt issues and loan capital (90,287) (4,440) There were no (2019: nil) FVHA included in the above carrying amounts relating to hedged items that have ceased to be adjusted for hedging gains and losses. The pre-tax impact of cash flow and net investment hedges on reserves is detailed below: Consolidated 2020 2019 $m Interest rate risk FX risk Total Interest rate risk FX risk Total Cash flow hedge reserve Balance as at beginning of year (99) (83) (182) (87) Net gains/(losses) from changes in fair value (1) (94) (95) (158) Transferred to interest income 173 45 218 146 Balance as at end of year 73 (132) (59) (99) Parent Entity 2020 2019 $m Interest rate risk Foreign exchange risk Total Interest rate risk FX risk Total Cash flow hedge reserve Balance as at beginning of year (70) (22) (92) (42) Net gains/(losses) from changes in fair value 16 (44) (28) (130) Transferred to interest income 137 13 150 102 Balance as at end of year 83 (53) 30 (70) There were $43 million (2019: nil) balances remaining in the cash flow hedge reserve relating to hedge relationships for which hedge accounting is no longer applied. As disclosed in Note 28, the net gains from changes in the fair value of net investment hedges were $9 million (2019: net losses $129 million) for the Group and $17 million (2019: net losses $52 million) for the Parent Entity. Included in the foreign currency translation reserve is a loss of $210 million (2019: $210 million) for the Group and $214 million (2019: $214 million) for the Parent Entity relating to discontinued hedges of our net investment in USD operations. This would only be transferred to the income statement on disposal of the related USD operations. Hedge effectiveness Hedge effectiveness is tested prospectively at inception and during the lifetime of hedge relationships. For one-to-one hedge relationships this testing uses a qualitative assessment of matched terms where the critical terms of the derivatives used as the hedging instrument match the terms of the hedged item. In addition, a quantitative effectiveness test is performed for all hedges which could include regression analysis, dollar offset and/or sensitivity analysis. Retrospective testing is also performed to determine whether the hedge relationship remains highly effective so that hedge accounting can continue to be applied and also to determine any ineffectiveness. These tests are performed using regression analysis and the dollar offset method. The following tables provide information regarding the determination of hedge effectiveness: Change in fair value Change in of hedging value of the Hedge instrument hedged item Hedge ineffectiveness used for used for ineffectiveness recognised in Consolidated 2020 calculating calculating recognised in non-interest $m Hedging instrument Hedged risk ineffectiveness ineffectiveness interest income income Fair value hedges Interest rate swap Interest rate risk 1,403 (1,372) 31 n/a Cross currency swap Interest rate risk (110) 108 (2) n/a Cash flow hedges Interest rate swap Interest rate risk 230 (172) 58 n/a Cross currency swap FX risk (49) 49 — n/a Net Investment hedges Forward contracts FX risk 9 (9) n/a — Total 1,483 (1,396) 87 — Change in fair value Change in of hedging value of the Hedge instrument hedged item Hedge ineffectiveness used for used for ineffectiveness recognised in Consolidated 2019 calculating calculating recognised in non-interest $m Hedging instrument Hedged risk ineffectiveness ineffectiveness interest income income Fair value hedges Interest rate swap Interest rate risk 1,532 (1,512) 20 n/a Cross currency swap Interest rate risk 192 (190) 2 n/a Cash flow hedges Interest rate swap Interest rate risk (6) 12 6 n/a Cross currency swap FX risk 6 (6) — n/a Net investment hedges Forward contracts FX risk (129) 129 n/a — Total 1,595 (1,567) 28 — Change in fair value Change in of hedging value of the Hedge instrument hedged item Hedge ineffectiveness used for used for ineffectiveness recognised in Parent Entity 2020 calculating calculating recognised in non-interest $m Hedging instrument Hedged risk ineffectiveness ineffectiveness interest income income Fair value hedges Interest rate swap Interest rate risk 1,408 (1,377) 31 n/a Cross currency swap Interest rate risk (73) 72 (1) n/a Cash flow hedges Interest rate swap Interest rate risk 200 (153) 47 n/a Cross currency swap FX risk (31) 31 — n/a Net investment hedges Forward contracts FX risk 17 (17) n/a — Total 1,521 (1,444) 77 — Change in fair value Change in of hedging value of the Hedge instrument hedged item Hedge ineffectiveness used for used for ineffectiveness recognised in Parent Entity 2019 calculating calculating recognised in non-interest $m Hedging instrument Hedged risk ineffectiveness ineffectiveness interest income income Fair value hedges Interest rate swap Interest rate risk 1,684 (1,664) 20 n/a Cross currency swap Interest rate risk 56 (57) (1) n/a Cash flow hedges Interest rate swap Interest rate risk (21) 28 7 n/a Cross currency swap FX risk 35 (35) — n/a Net investment hedges Forward contracts FX risk (52) 52 n/a — Total 1,702 (1,676) 26 — |
Financial risk
Financial risk | 12 Months Ended |
Sep. 30, 2020 | |
Financial risk | |
Financial risk | Note 21. Financial risk Financial instruments are fundamental to the Group’s business of providing banking and financial services. The associated financial risks (including credit risk, funding and liquidity risk and market risk) are a significant proportion of the total risks faced by the Group. This note details the financial risk management policies, practices and quantitative information of the Group’s principal financial risk exposures. Note Principal financial risks Note name number Overview Risk management frameworks Credit risk Credit risk ratings system 21.2.1 The risk of financial loss where a customer or counterparty fails to meet their financial obligations. Credit risk mitigation, collateral and other credit enhancements 21.2.2 Credit risk concentrations 21.2.3 Credit quality of financial assets 21.2.4 Non-performing loans and credit commitments 21.2.5 Collateral held 21.2.6 Funding and liquidity risk Liquidity modelling 21.3.1 The risk that Westpac cannot meet its payment obligations or that it does not have the appropriate amount, tenor and composition of funding and liquidity to support its assets. Sources of funding 21.3.2 Assets pledged as collateral 21.3.3 Contractual maturity of financial liabilities 21.3.4 Expected maturity 21.3.5 Market risk Value-at-Risk (VaR) 21.4.1 The risk of an adverse impact on earnings resulting from changes in market factors, such as foreign exchange rates, interest rates, commodity prices Traded market risk 21.4.2 and equity price. Non-traded market risk 21.4.3 21.1 Risk management frameworks The Board is responsible for approving the Westpac Group Risk Management Framework, Westpac Group Risk Management Strategy and Westpac Group Risk Appetite Statement and for monitoring the effectiveness of risk management by the Westpac Group. The Board has delegated to the Board Risk Committee (BRiskC) responsibility to: · review and recommend the Westpac Group Risk Management Framework, Westpac Group Risk Management Strategy and Westpac Group Risk Appetite Statement to the Board for approval; · review and monitor the risk profile and controls of the Group consistent with Westpac Group's Risk Appetite Statement; · approve frameworks, policies and processes for managing risk (consistent with the Westpac Group Risk Management Strategy and Westpac Group Risk Appetite Statement); and · review and, where appropriate, approve risks beyond the approval discretion provided to management. For each of its primary financial risks, the Group maintains risk management frameworks and a number of supporting policies that define roles and responsibilities, acceptable practices, limits and key controls: Risk Risk management framework and controls Credit risk The Credit Risk Management Framework describes the principles, methodologies, systems, roles and responsibilities, reports and key controls for managing credit risk. The BRiskC, Westpac Group Executive Risk Committee (RISKCO) and Westpac Group Credit Risk Committee (CREDCO) monitor the risk profile, performance and management of the Group’s credit portfolio and the development and review of key credit risk policies. The Credit Risk Rating System Policy describes the credit risk rating system philosophy, design, key features and uses of rating outcomes. All models materially impacting the risk rating process are periodically reviewed in accordance with Westpac’s model risk policies. An annual review is performed of the Credit Risk Rating System by the BRiskC and CREDCO. Specific credit risk estimates (including PD, LGD and EAD levels) are overseen, reviewed annually and supported by the Credit Risk Estimates Committee (a subcommittee of CREDCO) prior to approval under delegated authority from the Chief Risk Officer. In determining the provision for ECL, the macroeconomic variables and the probability weightings of the forward-looking scenarios as well as any adjustments made to the modelled outcomes are subject to the approval of the Group Chief Financial Officer and the Chief Risk Officer with oversight from the Board of Directors (and its Committees). Policies for the delegation of credit approval authorities and formal limits for the extension of credit are established throughout the Group. Credit manuals are established throughout the Group including policies governing the origination, evaluation, approval, documentation, settlement and ongoing management of credit risks. Climate change related credit risks are considered in line with our Climate Change Position Statement (CCPS). The CCPS outlines enhanced lending standards for the thermal coal, mining and energy sectors. These lending parameters have been included in the Group's risk framework and, where appropriate, are applied at the portfolio, customer and transaction level. The Climate Change Risk Committee oversees work to identify and manage the potential impact on credit exposures from climate change-related transition and physical risks across the Group and reports to CREDCO. The Group's Environmental, Social and Governance (ESG) Credit Risk Policy details the Group's overall approach to managing ESG risks in the credit risk process for applicable transactions Sector policies guide credit extension where industry-specific guidelines are considered necessary (e.g. acceptable financial ratios or permitted collateral). The Related Entity Risk Management Framework and supporting policies govern credit exposures to related entities, to minimise the spread of credit risk between Group entities and to comply with prudential requirements prescribed by APRA. Funding and liquidity risk Funding and liquidity risk is measured and managed in accordance with the policies and processes defined in the Board-approved Liquidity Risk Management Framework which is part of the Westpac Board-approved Risk Management Strategy. Responsibility for managing Westpac's liquidity and funding positions in accordance with the Liquidity Risk Management Framework is delegated to Treasury, under the oversight of Group ALCO and Treasury Risk. Westpac's Liquidity Risk Management Framework sets out Westpac's funding and liquidity risk appetite, roles and responsibilities of key people managing funding and liquidity risk within Westpac, risk reporting and control processes and limits and targets used to manage Westpac's balance sheet. Treasury undertakes an annual funding review that outlines Westpac's balance sheet funding strategy over a three year period. This review encompasses trends in global markets, peer analysis, wholesale funding capacity, expected funding requirements and a funding risk analysis. This strategy is continuously reviewed to take account of changing market conditions, investor sentiment and estimations of asset and liability growth rates. Westpac monitors the composition and stability of its funding so that it remains within Westpac's funding risk appetite. This includes compliance with both the Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR). Westpac holds a portfolio of liquid assets for several purposes, including as a buffer against unforeseen funding requirements. The level of liquid assets held takes into account the liquidity requirements of Westpac's balance sheet under normal and stress conditions. Treasury maintains a contingent funding plan that outlines the steps that should be taken by Westpac in the event of an emerging 'funding crisis'. The plan is aligned with Westpac's broader Liquidity Crisis Management Policy which is approved annually by the Board. Daily liquidity risk reports are reviewed by the Group's Treasury and Treasury Risk teams. Liquidity reports are presented to Group ALCO monthly and to the Board quarterly . Market risk The Market Risk Framework describes the Group's approach to managing traded and non- traded market risk. Traded market risk includes interest rate, FX, commodity, equity price, credit spread and volatility risks. Non-traded market risk includes interest rate and credit spread risks. Market risk is managed using VaR limits, Net interest income at risk (NaR) and structural risk limits (including credit spread and interest rate basis point value limits) as well as scenario analysis and stress testing. The BRiskC approves the risk appetite for traded and non-traded risks through the use of VaR, NaR and specific structural risk limits. This includes separate VaR sub-limits for the trading activities of Financial Markets and Treasury and for non-traded ALM activities. Market risk limits are assigned to business management based upon the Bank's risk appetite and business strategies in addition to the consideration of market liquidity and concentration. Market risk positions are managed by the trading desks and ALM unit consistent with their delegated authorities and the nature and scale of the market risks involved. Daily monitoring of current exposure and limit utilisation is conducted independently by the Market Risk and Treasury Risk units, which monitor market risk exposures against VaR and structural risk limits. Daily VaR position reports are produced by risk type, by product lines and by geographic region. Quarterly reports are produced for the Westpac Group Market Risk Committee (MARCO), RISKCO and the BRiskC. Daily stress testing and backtesting of VaR results are performed to support model integrity and to analyse extreme or unexpected movements. A review of the potential profit and loss outcomes is also undertaken to monitor any skew created by the historical data. MARCO has ratified an approved escalation framework. The BRiskC has approved a framework for profit or loss escalation which considers both single day and 20 day cumulative results. Treasury's ALM unit is responsible for managing the non-traded interest rate risk including risk mitigation through hedging using derivatives. This is overseen by the Treasury Risk unit and reviewed by Banking Book Risk Committee (BBRC), MARCO, RISKCO and BRiskC. 21.2 Credit Risk 21.2.1 Credit risk ratings system The principal objective of the credit risk rating system is to reliably assess the credit risk to which the Group is exposed. The Group has two main approaches to this assessment. Transaction-managed customers Transaction managed customers are generally customers with business lending exposures. They are individually assigned a Customer Risk Grade (CRG), corresponding to their expected PD. Each facility is assigned an LGD. The Group’s risk rating system has a tiered scale of risk grades for both non-defaulted customers and defaulted customers. Non-defaulted CRGs are mapped to Moody’s and S&P Global Ratings (S&P) external senior ranking unsecured ratings. The table below shows Westpac’s high level CRGs for transaction-managed portfolios mapped to the Group’s credit quality disclosure categories and to their corresponding external rating. Transaction-managed Financial statement disclosure Westpac CRG Moody’s Rating S&P Rating Strong A Aaa – Aa3 AAA – AA– B A1 – A3 A+ – A– C Baa1 – Baa3 BBB+ – BBB– Good/satisfactory D Ba1 – B1 BB+ – B+ Westpac Rating Weak E Watchlist F Special Mention Weak/default/non-performing G Substandard/Default H Default Program-managed portfolio The program-managed portfolio generally includes retail products including mortgages, personal lending (including credit cards) as well as SME lending. These customers are grouped into pools of similar risk. Pools are created by analysing similar risk characteristics that have historically predicted that an account is likely to go into default. Customers grouped according to these predictive characteristics are assigned a PD and LGD relative to their pool. The credit quality of these pools is based on a combination of behavioural factors, delinquency trends, PD estimates and loan to valuation ratio (housing loans only). 21.2.2 Credit risk mitigation, collateral and other credit enhancements Westpac uses a variety of techniques to reduce the credit risk arising from its lending activities. This includes the Group establishing that it has direct, irrevocable and unconditional recourse to collateral and other credit enhancements through obtaining legally enforceable documentation. Collateral The table below describes the nature of collateral or security held for each relevant class of financial asset: Loans – housing and personal 1 Housing loans are secured by a mortgage over property and additional security may take the form of guarantees and deposits. Personal lending (including credit cards and overdrafts) is predominantly unsecured. Where security is taken, it is restricted to eligible motor vehicles, caravans, campers, motor homes and boats. Personal lending also includes margin lending which is secured primarily by shares or managed funds. Loans – business 1 Business loans may be secured, partially secured or unsecured. Security is typically taken by way of a mortgage over property and/or a general security agreement over business assets or other assets. Other security such as guarantees, standby letters of credit or derivative protection may also be taken as collateral, if appropriate. Trading securities, financial assets measured at FVIS and derivatives These exposures are carried at fair value which reflects the credit risk. For trading securities, no collateral is sought directly from the issuer or counterparty; however this may be implicit in the terms of the instrument (such as an asset-backed security). The terms of debt securities may include collateralisation. For derivatives, master netting agreements are typically used to enable the effects of derivative assets and liabilities with the same counterparty to be offset when measuring these exposures. Additionally, collateralisation agreements are also typically entered into with major institutional counterparties to avoid the potential build-up of excessive mark-to-market positions. Derivative transactions are increasingly being cleared through central clearers. 1. This includes collateral held in relation to associated credit commitments. Management of risk mitigation The Group mitigates credit risk through controls covering: Collateral and valuation management The estimated realisable value of collateral held in support of loans is based on a combination of: formal valuations currently held for such collateral; and management’s assessment of the estimated realisable value of all collateral held. This analysis also takes into consideration any other relevant knowledge available to management at the time. Updated valuations are obtained when appropriate. The Group revalues collateral related to financial markets positions on a daily basis and has formal processes in place to promptly call for collateral top-ups, if required. These processes include margining for non-centrally cleared customer derivatives as regulated by Australian Prudential Standard CPS226. The collateralisation arrangements are documented via the Credit Support Annex of the ISDA dealing agreements and Global Master Repurchase Agreements (GMRA) for repurchase transactions. In relation to financial markets positions, Westpac only recognises collateral which is: cash, primarily in Australian dollars (AUD), New Zealand dollars (NZD), US dollars (USD), Canadian dollars (CAD), British pounds (GBP) or European Union euro (EUR); bonds issued by Australian Commonwealth, State and Territory governments or their Public Sector Enterprises, provided these attract a zero risk-weighting under Australian Prudential Standard (APS) 112; securities issued by other sovereign governments and supranationals as approved by an authorised credit officer; or protection bought via credit-linked notes (provided the proceeds are invested in cash or other eligible collateral). Other credit enhancements The Group only recognises guarantees, standby letters of credit, or credit derivative protection from the following entities (provided they are not related to the entity with which Westpac has a credit exposure): Sovereign; Australia and New Zealand public sector; ADIs and overseas banks with a minimum risk grade equivalent of A3 / A–; and Others with a minimum risk grade equivalent of A3 / A–. Credit Portfolio Management (CPM) manages the Group’s corporate, sovereign and bank credit portfolios through monitoring the exposure and any offsetting hedge positions. CPM purchases credit protection from entities meeting the criteria above and sells credit protection to diversify the Group’s credit risk. Offsetting Creditworthy customers domiciled in Australia and New Zealand may enter into formal agreements with the Group, permitting the Group to set-off gross credit and debit balances in their nominated accounts. Cross-border set-offs are not permitted. Close-out netting is undertaken with counterparties with whom the Group has entered into a legally enforceable master netting agreement for their off-balance sheet financial market transactions in the event of default. Further details of offsetting are provided in Note 23. Central clearing The Group executes derivative transactions through central clearing counterparties. Central clearing counterparties mitigate risk through stringent membership requirements, the collection of margin against all trades placed, the default fund, and an explicitly defined order of priority of payments in the event of default. 21.2.3 Credit risk concentrations Credit risk is concentrated when a number of counterparties are engaged in similar activities, have similar economic characteristics and thus may be similarly affected by changes in economic or other conditions. The Group monitors its credit portfolio to manage risk concentrations and rebalance the portfolio. Individual customers or groups of related customers The Group has large exposure limits governing the aggregate size of credit exposure normally acceptable to individual customers and groups of related customers. These limits are tiered by customer risk grade. Specific industries Exposures to businesses, governments and other financial institutions are classified into a number of industry clusters based on related Australian and New Zealand Standard Industrial Classification (ANZSIC) codes and are monitored against the Group’s industry risk appetite limits. Individual countries The Group has limits governing risks related to individual countries, such as political situations, government policies and economic conditions that may adversely affect either a customer’s ability to meet its obligations to the Group, or the Group’s ability to realise its assets in a particular country. Maximum exposure to credit risk The maximum exposure to credit risk (excluding collateral received) is represented by the carrying amount of on-balance sheet financial assets (which comprise cash and balances with central banks, collateral paid, trading securities and financial assets measured at FVIS, derivative financial instruments, investment securities, loans, and other financial assets) and undrawn credit commitments. The following tables set out the credit risk concentrations to which the Group and the Parent Entity are exposed for on-balance sheet financial assets and for undrawn credit commitments. Life insurance assets are excluded as primarily the credit risk is passed on to the policyholder and backed by the policyholder liabilities. The balances for trading securities and financial assets measured at FVIS and investment securities exclude equity securities as the primary financial risk is not credit risk. The credit concentrations for each significant class of financial asset are: Trading securities and financial assets measured at FVIS (Note 10) 64% (2019: 45%) were issued by financial institutions for the Group; 67% (2019: 44%) for the Parent Entity. 33 % (2019: 51%) were issued by government or semi-government authorities for the Group; 31% (2019: 52%) for the Parent Entity. 79% (2019: 71%) were held in Australia by the Group; 84% (2019: 75%) by the Parent Entity. Investment securities (Note 11) 18% (2019: 24%) were issued by financial institutions for the Group; 18% (2019: 25%) for the Parent Entity. 82% (2019: 75%) were issued by government or semi-government authorities for the Group; 82% (2019: 75%) for the Parent Entity. 92% (2019: 90%) were held in Australia by the Group; 98% (2019: 97%) by the Parent Entity. Loans (Note 12) Note 12 provides a detailed breakdown of loans by industry and geographic classification. Derivative financial instruments (Note 20) 68% (2019: 72%) were issued by financial institutions for both the Group and Parent Entity. 76% (2019: 78%) were held in Australia by the Group; 78% (2019: 80%) by the Parent Entity. 2020 2019 Total on Undrawn Total on Undrawn Consolidated balance credit balance credit $m sheet commitments Total sheet commitments Total Australia Accommodation, cafes and restaurants 7,956 1,225 9,181 8,061 1,070 9,131 Agriculture, forestry and fishing 10,159 2,219 12,378 9,250 2,014 11,264 Construction 6,726 3,643 10,369 7,229 3,340 10,569 Finance and insurance 81,502 8,954 90,456 73,052 7,316 80,368 Government, administration and defence 80,182 1,588 81,770 63,582 1,766 65,348 Manufacturing 9,248 6,477 15,725 10,504 5,850 16,354 Mining 3,402 3,735 7,137 3,325 3,802 7,127 Property 45,139 10,869 56,008 45,467 10,119 55,586 Property services and business services 12,712 7,019 19,731 14,191 5,898 20,089 Services 11,922 7,595 19,517 12,340 6,523 18,863 Trade 13,633 10,171 23,804 16,593 7,677 24,270 Transport and storage 9,392 5,136 14,528 9,529 5,114 14,643 Utilities 6,368 4,918 11,286 5,567 4,487 10,054 Retail lending 454,986 84,454 539,440 467,206 84,057 551,263 Other 6,867 2,491 9,358 6,668 2,740 9,408 Total Australia 760,194 160,494 920,688 752,564 151,773 904,337 New Zealand Accommodation, cafes and restaurants 389 51 440 356 36 392 Agriculture, forestry and fishing 9,158 632 9,790 8,631 607 9,238 Construction 517 429 946 503 350 853 Finance and insurance 12,701 1,782 14,483 11,685 1,507 13,192 Government, administration and defence 7,833 865 8,698 6,667 856 7,523 Manufacturing 1,804 1,782 3,586 2,079 1,758 3,837 Mining 208 97 305 289 29 318 Property 7,433 977 8,410 6,977 1,120 8,097 Property services and business services 1,033 712 1,745 1,300 557 1,857 Services 2,168 853 3,021 2,023 577 2,600 Trade 2,025 1,510 3,535 2,441 1,259 3,700 Transport and storage 1,249 871 2,120 1,209 755 1,964 Utilities 1,809 1,681 3,490 1,938 1,447 3,385 Retail lending 52,645 12,596 65,241 49,542 12,056 61,598 Other 204 182 386 151 161 312 Total New Zealand 101,176 25,020 126,196 95,791 23,075 118,866 Other overseas Accommodation, cafes and restaurants 118 10 128 109 11 120 Agriculture, forestry and fishing 124 5 129 150 3 153 Construction 51 118 169 55 127 182 Finance and insurance 19,194 2,243 21,437 17,712 3,093 20,805 Government, administration and defence 4,787 18 4,805 5,646 23 5,669 Manufacturing 1,908 3,443 5,351 3,830 5,329 9,159 Mining 352 1,194 1,546 500 1,872 2,372 Property 416 27 443 493 29 522 Property services and business services 1,652 790 2,442 1,766 863 2,629 Services 218 698 916 244 637 881 Trade 1,555 1,931 3,486 2,318 2,859 5,177 Transport and storage 755 276 1,031 999 652 1,651 Utilities 952 615 1,567 1,088 931 2,019 Retail lending 459 32 491 864 37 901 Other 129 27 156 171 26 197 Total other overseas 32,670 11,427 44,097 35,945 16,492 52,437 Total gross credit risk 894,040 196,941 1,090,981 884,300 191,340 1,075,640 2020 2019 Total on Undrawn Total on Undrawn Parent Entity balance credit balance credit $m sheet commitments Total sheet commitments Total Australia Accommodation, cafes and restaurants 7,880 1,225 9,105 7,989 1,070 9,059 Agriculture, forestry and fishing 10,101 2,219 12,320 9,191 2,014 11,205 Construction 6,213 3,643 9,856 6,853 3,340 10,193 Finance and insurance 1 244,758 8,954 253,712 200,863 7,316 208,179 Government, administration and defence 80,166 1,588 81,754 63,599 1,766 65,365 Manufacturing 9,037 6,477 15,514 10,322 5,850 16,172 Mining 3,381 3,735 7,116 3,304 3,802 7,106 Property 45,139 10,868 56,007 45,405 10,119 55,524 Property services and business services 11,992 7,019 19,011 13,348 5,898 19,246 Services 11,581 7,595 19,176 12,094 6,523 18,617 Trade 13,425 10,171 23,596 16,408 7,677 24,085 Transport and storage 9,044 5,136 14,180 9,221 5,114 14,335 Utilities 6,342 4,918 11,260 5,542 4,487 10,029 Retail lending 454,808 84,437 539,245 466,188 84,057 550,245 Other 5,731 2,489 8,220 5,684 2,740 8,424 Total Australia 1 919,598 160,474 1,080,072 876,011 151,773 1,027,784 New Zealand Accommodation, cafes and restaurants — 1 1 — — — Agriculture, forestry and fishing 48 4 52 67 7 74 Construction 11 35 46 17 16 33 Finance and insurance 1 8,173 135 8,308 9,501 116 9,617 Government, administration and defence 1,743 8 1,751 2,196 8 2,204 Manufacturing 184 51 235 259 69 328 Mining 5 — 5 11 — 11 Property 102 — 102 117 3 120 Property services and business services 88 16 104 123 18 141 Services 46 — 46 46 1 47 Trade 337 157 494 392 170 562 Transport and storage 76 67 143 76 64 140 Utilities 492 83 575 507 73 580 Retail lending — 1 1 — 13 13 Other 2 — 2 37 1 38 Total New Zealand 1 11,307 558 11,865 13,349 559 13,908 Other overseas Accommodation, cafes and restaurants 81 10 91 67 10 77 Agriculture, forestry and fishing 114 1 115 130 1 131 Construction 46 114 160 47 125 172 Finance and insurance 1 20,585 2,217 22,802 19,380 3,067 22,447 Government, administration and defence 3,902 18 3,920 4,815 23 4,838 Manufacturing 1,905 3,384 5,289 3,822 5,269 9,091 Mining 330 1,134 1,464 497 1,869 2,366 Property 209 10 219 227 13 240 Property services and business services 1,585 786 2,371 1,683 862 2,545 Services 196 695 891 216 634 850 Trade 1,417 1,754 3,171 2,140 2,688 4,828 Transport and storage 665 268 933 888 643 1,531 Utilities 896 511 1,407 1,038 905 1,943 Retail lending 359 31 390 588 32 620 Other 118 14 132 133 14 147 Total other overseas 1 32,408 10,947 43,355 35,671 16,155 51,826 Total gross credit risk 963,313 171,979 1,135,292 925,031 168,487 1,093,518 1. The Parent Entity’s 2019 ‘Total on balance sheet’ and ‘Total’ amounts for Finance and Insurance have been restated for Australia, New Zealand and Other overseas locations to appropriately reflect intracompany eliminations. These restatements did not have any impact on total gross credit risk exposures. 21.2.4 Credit quality of financial assets Credit quality disclosures The following tables show the credit quality of gross credit risk exposures measured at amortised cost or at FVOCI to which the impairment requirements of AASB 9 apply. The credit quality is determined by reference to the credit risk ratings system (refer Note 21.2.1) and expectations of future economic conditions under multiple scenarios: Consolidated 2020 2019 $m Stage 1 Stage 2 Stage 3 Total 1 Stage 1 Stage 2 Stage 3 Total 1 Loans - housing Strong 382,892 6,629 — 389,521 382,119 743 — 382,862 Good/satisfactory 62,324 20,603 — 82,927 84,071 11,326 — 95,397 Weak 4,122 8,258 7,643 20,023 4,201 10,715 4,367 19,283 Total loans - housing 449,338 35,490 7,643 492,471 470,391 22,784 4,367 497,542 Loans - personal Strong 4,768 146 — 4,914 5,694 2 — 5,696 Good/satisfactory 10,607 1,515 — 12,122 14,538 955 — 15,493 Weak 404 631 381 1,416 573 831 380 1,784 Total loans - personal 15,779 2,292 381 18,452 20,805 1,788 380 22,973 Loans - business 2 Strong 65,091 2,063 — 67,154 75,758 232 — 75,990 Good/satisfactory 94,046 16,091 — 110,137 109,541 4,581 — 114,122 Weak 180 7,200 3,067 10,447 439 5,342 1,970 7,751 Total loans - business 159,317 25,354 3,067 187,738 185,738 10,155 1,970 197,863 Debt securities Strong 90,461 365 — 90,826 72,813 — — 72,813 Good/satisfactory — — — — 463 — — 463 Weak — 587 — 587 — — — — Total debt securities 3 90,461 952 — 91,413 73,276 — — 73,276 All other financial assets Strong 39,871 — — 39,871 30,623 — — 30,623 Good/satisfactory 470 — — 470 685 — — 685 Weak 40 — — 40 48 — — 48 Total all other financial assets 40,381 — — 40,381 31,356 — — 31,356 Undrawn credit commitments Strong 149,778 2,384 — 152,162 148,525 328 — 148,853 Good/satisfactory 38,121 4,713 — 42,834 39,782 1,294 — 41,076 Weak 117 1,608 220 1,945 142 1,135 134 1,411 Total undrawn credit commitments 188,016 8,705 220 196,941 188,449 2,757 134 191,340 Total strong 732,861 11,587 — 744,448 715,532 1,305 — 716,837 Total good/satisfactory 205,568 42,922 — 248,490 249,080 18,156 — 267,236 Total weak 4,863 18,284 11,311 34,458 5,403 18,023 6,851 30,277 Total on and off-balance sheet 943,292 72,793 11,311 1,027,396 970,015 37,484 6,851 1,014,350 Details of collateral held in support of these balances are provided in Note 21.2.6. 1. This credit quality disclosure differs to that of credit risk concentration as it relates only to financial assets measured at amortised cost or at FVOCI and therefore excludes trading securities and financial assets measured at FVIS, and derivative financial instruments. 2. Included in strong in 2019 was a $131 million exposure that is covered by a highly rated guarantee, which if it were not considered, the exposure would be classified as weak. 3. Debt securities include $1,011 million (2019: $829 million) at amortised cost. $424 million (2019: $366 million) of these are classified as strong, and the rest are classified as weak. Parent Entity 2020 2019 $m Stage 1 Stage 2 Stage 3 Total1 Stage 1 Stage 2 Stage 3 Total 1 Loans - housing Strong 345,662 5,805 — 351,467 361,727 536 — 362,263 Good/satisfactory 54,065 19,001 — 73,066 58,599 10,623 — 69,222 Weak 3,066 6,467 7,195 16,728 3,735 10,244 4,076 18,055 Total loans - housing 402,793 31,273 7,195 441,261 424,061 21,403 4,076 449,540 Loans - personal Strong 4,292 135 — 4,427 5,106 1 — 5,107 Good/satisfactory 10,071 1,376 — 11,447 13,381 931 — 14,312 Weak 294 449 329 1,072 427 680 1,441 Total loans - personal 14,657 1,960 329 16,946 18,914 1,612 20,860 Loans - business 2 Strong 53,321 1,761 — 55,082 64,041 123 — 64,164 Good/satisfactory 77,330 13,275 — 90,605 90,937 3,455 — 94,392 Weak 135 5,899 2,589 8,623 362 3,997 1,724 6,083 Total loans - business 130,786 20,935 2,589 154,310 155,340 7,575 1,724 164,639 Debt securities Strong 85,434 324 — 85,758 68,309 — — 68,309 Good/satisfactory — — — — 23 — — 23 Weak — — — — — — — — Total debt securities 3 85,434 324 — 85,758 68,332 — — 68,332 All other financial assets Strong 204,239 — — 204,239 162,339 — — 162,339 Good/satisfactory 354 — — 354 496 — — 496 Weak 31 — — 31 41 — — 41 Total all other financial assets 204,624 — — 204,624 162,876 — — 162,876 Undrawn credit commitments Strong 130,494 2,111 — 132,605 132,776 317 — 133,093 Good/satisfactory 33,552 4,117 — 37,669 33,097 1,122 — 34,219 Weak 99 1,426 180 1,705 123 937 1,175 Total undrawn credit commitments 164,145 7,654 180 171,979 165,996 2,376 168,487 Total strong 823,442 10,136 — 833,578 794,298 977 — 795,275 Total good/satisfactory 175,372 37,769 — 213,141 196,533 16,131 — 212,664 Total weak 3,625 14,241 10,293 28,159 4,688 15,858 6,249 26,795 Total on and off-balance sheet 1,002,439 62,146 10,293 1,074,878 995,519 32,966 6,249 1,034,734 Details of collateral held in support of these balances are provided in Note 21.2.6. 1. This credit quality disclosure differs to that of credit risk concentration as it relates only to financial assets measured at amortised cost or at FVOCI and therefore excludes trading securities and financial assets measured at FVIS, and derivative financial instruments. 2. Included in strong in 2019 was a $131 million that is covered by a highly rated guarantee, which if it were not considered, the exposure would be classified as weak. 3. Debt securities include $3 million (2019: $27 million) at amortised cost. In 2020, all of these are classified as strong (2019: $4 million), and the remainder of the 2019 balances are classified as good/satisfactory. 21.2.5 Non-performing loans and credit commitments The loans and credit commitments balance in stage 3 (non-performing) is represented by those loans and credit commitments which are in default. A default occurs when Westpac considered that the customer is unlikely to repay its credit obligations in full, irrespective of recourse by the Group to actions such as realising security, or the customer is more than 90 days past due on any material credit obligation. This definition of default is aligned to the APRA regulatory definition of default. These can be disaggregated into impaired loans and credit commitments (which is where the customer is unlikely to pay its credit obligations in full including restructured loans) and items 90 days past due, or otherwise in default but no |
Fair values of financial assets
Fair values of financial assets and financial liabilities | 12 Months Ended |
Sep. 30, 2020 | |
Fair values of financial assets and financial liabilities | |
Fair values of financial assets and financial liabilities | Note 22. Fair values of financial assets and financial liabilities Accounting policy The fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. On initial recognition, the transaction price generally represents the fair value of the financial instrument unless there is observable information from an active market to the contrary. Where unobservable information is used, the difference between the transaction price and the fair value (day one profit or loss) is recognised in the income statement over the life of the instrument when the inputs become observable. Critical accounting assumptions and estimates The majority of valuation models used by the Group employ only observable market data as inputs. However, for certain financial instruments data may be employed which is not readily observable in current markets. The availability of observable inputs is influenced by factors such as: product type; depth of market activity; maturity of market models; and complexity of the transaction. Where unobservable market data is used, more judgement is required to determine fair value. The significance of these judgements depends on the significance of the unobservable input to the overall valuation. Unobservable inputs are generally derived from other relevant market data and adjusted against: standard industry practice; economic models; and observed transaction prices. In order to determine a reliable fair value for a financial instrument, management may apply adjustments to the techniques previously described. These adjustments reflect the Group’s assessment of factors that market participants would consider in setting the fair value. These adjustments incorporate bid/offer spreads, credit valuation adjustments (CVA) and funding valuation adjustments (FVA). Fair Valuation Control Framework The Group uses a Fair Valuation Control Framework where the fair value is either determined or validated by a function independent of the transaction. This framework formalises the policies and procedures used to achieve compliance with relevant accounting, industry and regulatory standards. The framework includes specific controls relating to: · the revaluation of financial instruments; · independent price verification; · fair value adjustments; and · financial reporting. A key element of the framework is the Revaluation Committee, comprising senior valuation specialists from within the Group. The Revaluation Committee reviews the application of the agreed policies and procedures to assess that a fair value measurement basis has been applied. The method of determining fair value differs depending on the information available. Fair value hierarchy A financial instrument’s categorisation within the valuation hierarchy is based on the lowest level input that is significant to the fair value measurement. The Group categorises all fair value instruments according to the hierarchy described below. Valuation techniques The Group applies market accepted valuation techniques in determining the fair valuation of over the counter (OTC) derivatives. This includes CVA and FVA, which incorporate credit risk and funding costs and benefits that arise in relation to uncollateralised derivative positions, respectively. The specific valuation techniques, the observability of the inputs used in valuation models and the subsequent classification for each significant product category are outlined as follows: Level 1 instruments The fair value of financial instruments traded in active markets is based on recent unadjusted quoted prices. These prices are based on actual arm’s length basis transactions. The valuations of Level 1 instruments require little or no management judgement. Instrument Balance sheet category Includes Valuation Exchange traded products Derivatives Exchange traded interest rate futures and options and commodity, energy and carbon futures FX products Derivatives FX spot and futures contracts Equity products Derivatives Trading securities and financial assets measured at FVIS Other financial liabilities Listed equities and equity indices Non-asset backed debt instruments Trading securities and financial assets measured at FVIS Australian Commonwealth and New Zealand government bonds _ All these instruments are traded in liquid, active markets where prices are readily Investment securities observable. No modelling or assumptions are used in the Other financial liabilities valuation. Life insurance assets and liabilities Life insurance assets Life insurance liabilities Listed equities, exchange traded derivatives and short sale of listed equities within controlled managed investment schemes Level 2 instruments The fair value for financial instruments that are not actively traded is determined using valuation techniques which maximise the use of observable market prices. Valuation techniques include: · the use of market standard discounting methodologies; · option pricing models; and · other valuation techniques widely used and accepted by market participants. Instrument Balance sheet category Includes Valuation Interest rate products Derivatives Interest rate and inflation swaps, swaptions, caps, floors, collars and other non-vanilla interest rate derivatives Industry standard valuation models are used to calculate the expected future value of payments by product, which is discounted back to a present value. The model’s interest rate inputs are benchmark interest rates and active broker quoted interest rates in the swap, bond and future markets. Interest rate volatilities are sourced from brokers and consensus data providers. If consensus prices are not available, these are classified as Level 3 instruments. FX products Derivatives FX swap, FX forward contracts, FX options and other non-vanilla FX derivatives Derived from market observable inputs or consensus pricing providers using industry standard models. Other credit products Derivatives Single name and index credit default swaps (CDS) Valued using an industry standard model that incorporates the credit spread as its principal input. Credit spreads are obtained from consensus data providers. If consensus prices are not available, these are classified as Level 3 instruments. Commodity products Derivatives Commodity, energy and carbon derivatives Valued using industry standard models. The models calculate the expected future value of deliveries and payments and discount them back to a present value. The model inputs include forward curves, volatilities implied from market observable inputs, discount curves and underlying spot and futures prices. The significant inputs are market observable or available through a consensus data provider. If consensus prices are not available, these are classified as Level 3 instruments. Equity products Derivatives Exchange traded equity options, OTC equity options and equity warrants Due to low liquidity, exchange traded options are Level 2. Valued using industry standard models based on observable parameters such as stock prices, dividends, volatilities and interest rates. Asset backed debt instruments Trading securities and financial assets measured at FVIS Investment securities Australian residential mortgage backed securities (RMBS) denominated in Australian dollar and other asset backed securities (ABS) Valued using an industry approach to value floating rate debt with prepayment features. Australian RMBS are valued using prices sourced from a consensus data provider. If consensus prices are not available these are classified as Level 3 instruments. Non-asset backed debt instruments Trading securities and financial assets measured at FVIS Investment securities Other financial liabilities State and other government bonds, corporate bonds and commercial paper Repurchase agreements and reverse repurchase agreements over non-asset backed debt securities Valued using observable market prices which are sourced from independent pricing services, broker quotes or inter-dealer prices. Loans at fair value Loans Fixed rate bills and syndicated loans Discounted cash flow approach, using a discount rate which reflects the terms of the instrument and the timing of cash flows, adjusted for creditworthiness, or expected sale amount. Certificates of deposit Deposits and other borrowings Certificates of deposit Discounted cash flow using market rates offered for deposits of similar remaining maturities. Debt issues at fair value Debt issues Debt issues Discounted cash flows, using a discount rate which reflects the terms of the instrument and the timing of cash flows adjusted for market observable changes in Westpac’s implied credit worthiness. Life insurance assets and liabilities Life insurance assets Life insurance liabilities Corporate bonds, OTC derivatives, units in unlisted unit trusts, life insurance contract liabilities, life investment contract liabilities and external liabilities of managed investment schemes controlled by statutory life funds Valued using observable market prices or other widely used and accepted valuation techniques utilising observable market input. Level 3 instruments Financial instruments valued where at least one input that could have a significant effect on the instrument’s valuation is not based on observable market data due to illiquidity or complexity of the product. These inputs are generally derived and extrapolated from other relevant market data and calibrated against current market trends and historical transactions. These valuations are calculated using a high degree of management judgement. Instrument Balance sheet category Includes Valuation Debt instruments Trading securities and financial assets measured at FVIS Investment securities Certain ABS, offshore non-ABS and debt securities issued via private placement These securities are evaluated by an independent pricing service or based on third party revaluations. Due to their illiquidity and/or complexity these are classified as Level 3 assets. Equity instruments Trading securities and financial assets measured at FVIS Investment securities Strategic equity investments Valued using valuation techniques appropriate to the instrument, including the use of recent arm’s length transactions where available, discounted cash flow approach or reference to the net assets of the entity. Due to their illiquidity, complexity and/or use of unobservable inputs into valuation models, they are classified as Level 3 assets. The following tables summarise the attribution of financial instruments measured at fair value to the fair value hierarchy: 2020 2019 Valuation Valuation Valuation Valuation Quoted techniques techniques Quoted techniques techniques market (Market (Non-market market (Market (Non-market Consolidated prices observable) observable) prices observable) observable) $m (Level 1) (Level 2) (Level 3) Total (Level 1) (Level 2) (Level 3) Total Financial assets measured at fair value on a recurring basis Trading securities and financial assets measured at FVIS 8,059 32,387 221 40,667 10,440 21,121 220 31,781 Derivative financial instruments 10 23,353 4 23,367 7 29,828 24 29,859 Investment securities 18,032 72,370 153 90,555 11,163 61,284 134 72,581 Loans — 540 21 561 — 239 21 260 Life insurance assets 617 2,976 — 3,593 1,097 8,270 — 9,367 Total financial assets measured at fair value on a recurring basis 26,718 131,626 399 158,743 22,707 120,742 399 143,848 Financial liabilities measured at fair value on a recurring basis Deposits and other borrowings 1 — 35,764 — 35,764 — 38,413 — 38,413 Other financial liabilities 2 420 4,229 — 4,649 262 5,108 — 5,370 Derivative financial instruments 10 23,031 13 23,054 8 29,059 29 29,096 Debt issues 3 — 5,333 — 5,333 — 5,819 — 5,819 Life insurance liabilities — 1,396 — 1,396 — 7,377 — 7,377 Total financial liabilities measured at fair value on a recurring basis 430 69,753 13 70,196 270 85,776 29 86,075 2020 2019 Valuation Valuation Valuation Valuation Quoted techniques techniques Quoted techniques techniques market (Market (Non-market market (Market (Non-market Parent Entity prices observable) observable) prices observable) observable) $m (Level 1) (Level 2) (Level 3) Total (Level 1) (Level 2) (Level 3) Total Financial assets measured at fair value on a recurring basis Trading securities and financial assets measured at FVIS 7,074 30,763 193 38,030 10,213 19,159 193 29,565 Derivative financial instruments 10 22,781 3 22,794 7 29,253 23 29,283 Investment securities 15,714 70,040 69 85,823 10,191 58,114 66 68,371 Loans — 540 21 561 — 239 21 260 Due from subsidiaries — 663 — 663 — 897 — 897 Total financial assets measured at fair value on a recurring basis 22,798 124,787 286 147,871 20,411 107,662 303 128,376 Financial liabilities measured at fair value on a recurring basis Deposits and other borrowings 1 — 32,991 — 32,991 — 37,355 — 37,355 Other financial liabilities 2 420 4,229 — 4,649 262 5,108 — 5,370 Derivative financial instruments 10 22,756 13 22,779 8 28,831 28 28,867 Debt issues 3 — 2,986 — 2,986 — 3,624 — 3,624 Due to subsidiaries — 239 — 239 — 1,591 — 1,591 Total financial liabilities measured at fair value on a recurring basis 430 63,201 13 63,644 270 76,509 28 76,807 1. The contractual outstanding amount payable at maturity for the Group is $35,764 million (2019: $38,468 million) and $32,990 million for the Parent Entity (2019: $37,410 million). 2. The contractual outstanding amount payable at maturity for the Group and the Parent Entity is $4,649 million (2019: $5,369 million). 3. The contractual outstanding amount payable at maturity for the Group is $5,062 million (2019: $5,632 million) and $2,714 million for the Parent Entity (2019: $3,436 million). The cumulative change in the fair value of debt issues attributable to changes in Westpac’s own credit risk is $5 million decrease (2019: $34 million decrease) for the Group and Parent Entity. Reconciliation of non-market observables The following tables summarise the changes in financial instruments measured at fair value derived from non-market observable valuation techniques (Level 3): Trading securities and financial assets Total Total Consolidated 2020 measured Investment Level 3 Level 3 $m as FVIS securities Other 1 assets Derivatives liabilities Balance as at beginning of year 220 134 45 399 29 29 Gains/(losses) on assets/(gains)/ losses on liabilities recognised in: Income statements (2) — (2) (4) (4) (4) OCI — (15) — (15) — — Acquisitions and issues 26 40 12 78 7 7 Disposals and settlements (23) (6) (30) (59) (19) (19) Transfer into or out of non-market observables — — — — — — Foreign currency translation impacts — — — — — — Balance as at end of year 221 153 25 399 13 13 Unrealised gains/(losses) recognised in the income statements for financial instruments held as at end of year (4) — 3 (1) (3) (3) Trading securities and financial assets Available- Total Total Consolidated 2019 measured for-sale Investment Level 3 Level 3 $m as FVIS securities securities Other 1 assets Derivatives liabilities Balance as at beginning of year 330 619 — 15 964 6 6 Impact on adoption of AASB 9 4 (619) 109 14 (492) — — Restated opening balance 334 — 109 29 472 6 6 Gains/(losses) on assets/(gains)/losses on liabilities recognised in: Income statements 36 — — 12 48 7 7 OCI — — 11 — 11 — — Acquisitions and issues 63 — 36 16 115 4 4 Disposals and settlements (216) — (22) (12) (250) (6) (6) Transfer into or out of non-market observables — — — — — 18 18 Foreign currency translation impacts 3 — — — 3 — — Balance as at end of year 220 — 134 45 399 29 29 Unrealised gains/(losses) recognised in the income statements for financial instruments held as at end of year 26 — — 16 42 (11) (11) Trading securities and financial assets Total Total Parent Entity 2020 measured Investment Level 3 Level 3 $m as FVIS securities Other 1 assets Derivatives liabilities Balance as at beginning of year 193 66 44 303 28 28 Gains/(losses) on assets/(gains)/losses on liabilities recognised in: Income statements (2) — (2) (4) (4) (4) OCI — — — — — — Acquisitions and issues 26 3 12 41 7 7 Disposals and settlements (24) — (30) (54) (18) (18) Transfer into or out of non-market observables — — — — — — Foreign currency translation impacts — — — — — — Balance as at end of year 193 69 24 286 13 13 Unrealised gains/(losses) recognised in the income statements for financial instruments held as at end of year (4) — 3 (1) (3) (3) Trading securities and financial assets Available- Total Total Parent Entity 2019 measured for-sale Investment Level 3 Level 3 $m as FVIS securities securities Other 1 assets Derivatives liabilities Balance as at beginning of year 206 70 — 13 289 6 6 Impact on adoption of AASB 9 — (70) 67 14 11 — — Restated opening balance 206 — 67 27 300 6 6 Gains/(losses) on assets /(gains)/ losses on liabilities recognised in: Income statements 6 — — 13 19 6 6 OCI — — — — — — — Acquisitions and issues 17 — 2 16 35 4 4 Disposals and settlements (39) — (3) (12) (54) (6) (6) Transfer into or out of non-market observables — — — — — 18 18 Foreign currency translation impacts 3 — — — 3 — — Balance as at end of year 193 — 66 44 303 28 28 Unrealised gains/(losses) recognised in the income statements for financial instruments held as at end of year 3 — — 16 19 (10) (10) 1. Other is comprised of derivative financial assets and certain loans. Transfers into and out of Level 3 have occurred due to changes in observability in the significant inputs into the valuation models used to determine the fair value of the related financial instruments. Transfers in and transfers out are reported using the end of year fair values. Significant unobservable inputs Sensitivities to reasonably possible changes in non-market observable valuation assumptions would not have a material impact on the Group’s reported results. Day one profit or loss The closing balance of unrecognised day one profit for both the Group and the Parent Entity for the year was $4 million (2019: $3 million profit). Financial instruments not measured at fair value For financial instruments not measured at fair value on a recurring basis, fair value has been derived as follows: Instrument Valuation Loans Where available, the fair value of loans is based on observable market transactions, otherwise fair value is estimated using discounted cash flow models. For variable rate loans, the discount rate used is the current effective interest rate. The discount rate applied for fixed rate loans reflects the market rate for the maturity of the loan and the credit worthiness of the borrower. Investment securities The carrying value approximates the fair value. The balance principally relates to government securities from illiquid markets. Fair value is monitored by reference to recent issuances. Deposits and other borrowings Fair values of deposit liabilities payable on demand (interest free, interest bearing and savings deposits) approximate their carrying value. Fair values for term deposits are estimated using discounted cash flows, applying market rates offered for deposits of similar remaining maturities. Debt issues and loan capital Fair values are calculated using a discounted cash flow model. The discount rates applied reflect the terms of the instruments, the timing of the estimated cash flows and are adjusted for any changes in Westpac’s credit spreads. All other financial assets and liabilities For all other financial assets and liabilities, the carrying value approximates the fair value. These items are either short-term in nature, re-price frequently or are of a high credit rating. The following tables summarise the estimated fair value and fair value hierarchy of financial instruments not measured at fair value: 2020 Estimated fair value Valuation Valuation Quoted techniques techniques market (Market (Non-market Consolidated Carrying prices observable) observable) $m amount (Level 1) (Level 2) (Level 3) Total Financial assets not measured at fair value Cash and balances with central banks 30,129 30,129 — — 30,129 Collateral paid 4,778 4,778 — — 4,778 Investment securities 984 — 424 560 984 Loans 692,498 — — 694,264 694,264 Other financial assets 5,474 — 5,474 — 5,474 Total financial assets not measured at fair value 733,863 34,907 5,898 694,824 735,629 Financial liabilities not measured at fair value Collateral received 2,250 2,250 — — 2,250 Deposits and other borrowings 555,367 — 552,192 3,429 555,621 Other financial liabilities 36,276 — 36,276 — 36,276 Debt issues 1 144,992 — 144,660 1,742 146,402 Loan capital 23,949 — 23,934 — 23,934 Total financial liabilities not measured at fair value 762,834 2,250 757,062 5,171 764,483 2019 Estimated fair value Valuation Valuation Quoted techniques techniques market (Market (Non-market Consolidated Carrying prices observable) observable) $m amount (Level 1) (Level 2) (Level 3) Total Financial assets not measured at fair value Cash and balances with central banks 20,059 20,059 — — 20,059 Collateral paid 5,930 5,930 — — 5,930 Investment securities 820 — 366 454 820 Loans 714,510 — — 716,130 716,130 Other financial assets 5,367 — 5,367 — 5,367 Total financial assets not measured at fair value 746,686 25,989 5,733 716,584 748,306 Financial liabilities not measured at fair value Collateral received 3,287 3,287 — — 3,287 Deposits and other borrowings 524,834 — 522,726 2,790 525,516 Other financial liabilities 23,845 — 23,845 — 23,845 Debt issues 1 175,638 — 176,838 — 176,838 Loan capital 21,826 — 22,076 — 22,076 Total financial liabilities not measured at fair value 749,430 3,287 745,485 2,790 751,562 1. The estimated fair value of debt issues includes the impact of changes in Westpac’s credit spreads since origination. 2020 Estimated fair value Valuation Valuation Quoted techniques techniques market (Market (Non-market Parent Entity Carrying prices observable) observable) $m amount (Level 1) (Level 2) (Level 3) Total Financial assets not measured at fair value Cash and balances with central banks 25,436 25,436 — — 25,436 Collateral paid 4,641 4,641 — — 4,641 Investment securities 3 — 3 — 3 Loans 607,263 — — 608,602 608,602 Due from subsidiaries 1 169,139 — 126,623 43,669 170,292 Other financial assets 4,745 — 4,745 — 4,745 Total financial assets not measured at fair value 811,227 30,077 131,371 652,271 813,719 Financial liabilities not measured at fair value Collateral received 1,862 1,862 — — 1,862 Deposits and other borrowings 488,622 — 487,452 1,292 488,744 Other financial liabilities 35,507 — 35,507 — 35,507 Debt issues 2 124,680 — 125,896 — 125,896 Due to subsidiaries 186,024 — 6,805 179,219 186,024 Loan capital 23,949 — 23,934 — 23,934 Total financial liabilities not measured at fair value 860,644 1,862 679,594 180,511 861,967 2019 Estimated fair value Valuation Valuation Quoted techniques techniques market (Market (Non-market Parent Entity Carrying prices observable) observable) $m amount (Level 1) (Level 2) (Level 3) Total Financial assets not measured at fair value Cash and balances with central banks 17,692 17,692 — — 17,692 Collateral paid 5,773 5,773 — — 5,773 Investment securities 27 — 4 23 27 Loans 631,676 — — 633,003 633,003 Due from subsidiaries 1 133,899 — 89,680 45,175 134,855 Other financial assets 4,615 — 4,615 — 4,615 Total financial assets not measured at fair value 793,682 23,465 94,299 678,201 795,965 Financial liabilities not measured at fair value Collateral received 2,849 2,849 — — 2,849 Deposits and other borrowings 464,075 — 463,440 1,251 464,691 Other financial liabilities 23,146 — 23,146 — 23,146 Debt issues 2 153,050 — 154,111 — 154,111 Due to subsidiaries 147,016 — 6,553 140,463 147,016 Loan capital 21,826 — 22,076 — 22,076 Total financial liabilities not measured at fair value 811,962 2,849 669,326 141,714 813,889 1. Due from subsidiaries excludes $11,177 million (2019: $8,165 million) of long-term debt instruments with equity-like characteristics which are part of the total investment in subsidiaries. 2. The estimated fair value of debt issues includes the impact of changes in Westpac’s credit spreads since origination. |
Offsetting financial assets and
Offsetting financial assets and financial liabilities | 12 Months Ended |
Sep. 30, 2020 | |
Offsetting financial assets and financial liabilities | |
Offsetting financial assets and financial liabilities | Note 23. Offsetting financial assets and financial liabilities Accounting policy Financial assets and liabilities are presented net in the balance sheet when the Group has a legally enforceable right to offset them in all circumstances and there is an intention to settle the asset and liability on a net basis, or to realise the asset and settle the liability simultaneously. The gross assets and liabilities behind the net amounts reported in the balance sheet are disclosed in the following tables. Some of the Group’s offsetting arrangements are not enforceable in all circumstances. The amounts in the tables below may not tie back to the balance sheet if there are balances which are not subject to offsetting or enforceable netting arrangements. The amounts presented in this note do not represent the credit risk exposure of the Group or Parent Entity. Refer to Note 21.2 for information on credit risk management. The offsetting and collateral arrangements and other credit risk mitigation strategies used by the Group are further explained in the ‘Management of risk mitigation’ section of Note 21.2.2. Amounts subject to enforceable netting arrangements Effects of offsetting Amounts subject to enforceable on balance sheet netting arrangements but not offset Net amounts Other reported on recognised Financial Consolidated Gross Amounts the balance financial Cash instrument Net $m amounts offset sheet instruments collateral 1,2 collateral amount 2020 Assets Collateral paid 3 10,068 (10,032) 36 — — (16) 20 Derivative financial instruments 4 61,171 (39,968) 21,203 (14,719) (2,247) (16) 4,221 Reverse repurchase agreements 5 20,401 — 20,401 — (5) (20,396) — Loans 6 23,301 (23,266) 35 — — — 35 Total assets 114,941 (73,266) 41,675 (14,719) (2,252) (20,428) 4,276 Liabilities Collateral received 5,516 (5,501) 15 — — — 15 Derivative financial instruments 4 66,144 (44,499) 21,645 (14,719) (4,426) (1,693) 807 Repurchase agreements 7 27,763 — 27,763 — (98) (27,665) — Deposits and other borrowings 6 43,999 (23,266) 20,733 — — — 20,733 Total liabilities 143,422 (73,266) 70,156 (14,719) (4,524) (29,358) 21,555 2019 Assets Collateral paid 3 6,643 (6,559) 84 — — (17) 67 Derivative financial instruments 4 58,125 (31,605) 26,520 (18,609) (3,280) (102) 4,529 Reverse repurchase agreements 5 6,833 — 6,833 — (9) (6,824) — Loans 6 18,202 (18,130) 72 — — — 72 Total assets 89,803 (56,294) 33,509 (18,609) (3,289) (6,943) 4,668 Liabilities Collateral received 3,024 (2,972) 52 — — — 52 Derivative financial instruments 4 62,046 (35,192) 26,854 (18,609) (5,622) (1,932) 691 Repurchase agreements 7 10,604 — 10,604 — (3) (10,601) — Deposits and other borrowings 6 28,880 (18,130) 10,750 — — — 10,750 Total liabilities 104,554 (56,294) 48,260 (18,609) (5,625) (12,533) 11,493 1. $2,250 million (2019: $3,287 million) of cash collateral on derivative financial assets and reverse repurchase agreements forms part of collateral received as disclosed in the balance sheet. The remainder is included in term deposits recognised in deposits and other borrowings within Note 16. 2. $4,524 million (2019: $5,625 million) of cash collateral, subject to enforceable netting arrangements with derivative financial liabilities and repurchase agreements, forms part of collateral paid as disclosed in the balance sheet. The remainder of collateral paid, as disclosed in the balance sheet, consists of $16 million (2019: $18 million) in stock borrowing arrangements and $238 million (2019: $287 million) in futures margin that does not form part of this column. 3. Gross amounts consist of variation margin held directly with central clearing counterparties and stock borrowing arrangements. Where variation margin is receivable it is reported as part of collateral paid. Where variation margin is payable it is reported as part of collateral received. Amounts offset relate to variation margin. 4. $2,164 million (2019: $3,339 million) of derivative financial assets and $1,409 million (2019: $2,242 million) of derivative financial liabilities are not subject to enforceable netting arrangements. 2019 gross amounts, net amounts reported on the balance sheet and net amount were restated to exclude amounts not subject to enforceable netting arrangements. 5. Reverse repurchase agreements form part of trading securities and financial assets measured at FVIS in Note 10. 6. Gross amounts consist of debt and interest set-off accounts which meet the requirements for offsetting as described above. These accounts form part of business loans in Note 12 and part of deposits and other borrowings at amortised cost in Note 16. 7. Repurchase agreements form part of other financial liabilities in Note 17. Amounts subject to enforceable netting arrangements Effects of offsetting Amounts subject to enforceable on balance sheet netting arrangements but not offset Net amounts Other reported on recognised Financial Parent Entity Gross Amounts the balance financial Cash instrument Net $m amounts offset sheet instruments collateral 1,2 collateral amount 2020 Assets Collateral paid 3 10,068 (10,032) 36 — — (16) 20 Derivative financial instruments 4 60,616 (39,968) 20,648 (14,586) (1,859) (16) 4,187 Reverse repurchase agreements 5 20,401 — 20,401 — (5) (20,396) — Loans 6 23,301 (23,266) 35 — — — 35 Total assets 114,386 (73,266) 41,120 (14,586) (1,864) (20,428) 4,242 Liabilities Collateral received 5,516 (5,501) 15 — — — 15 Derivative financial instruments 4 65,874 (44,499) 21,375 (14,586) (4,289) (1,693) 807 Repurchase agreements 7 27,763 — 27,763 — (98) (27,665) — Deposits and other borrowings 6 43,999 (23,266) 20,733 — — — 20,733 Total liabilities 143,152 (73,266) 69,886 (14,586) (4,387) (29,358) 21,555 2019 Assets Collateral paid 3 6,643 (6,559) 84 — — (17) 67 Derivative financial instruments 4 57,550 (31,605) 25,945 (18,526) (2,842) (102) 4,475 Reverse repurchase agreements 5 6,731 — 6,731 — (9) (6,722) — Loans 6 18,202 (18,130) 72 — — — 72 Total assets 89,126 (56,294) 32,832 (18,526) (2,851) (6,841) 4,614 Liabilities Collateral received 3,024 (2,972) 52 — — — 52 Derivative financial instruments 4 61,807 (35,192) 26,615 (18,526) (5,466) (1,932) 691 Repurchase agreements 7 10,604 — 10,604 — (3) (10,601) — Deposits and other borrowings 6 28,880 (18,130) 10,750 — — — 10,750 Total liabilities 104,315 (56,294) 48,021 (18,526) (5,469) (12,533) 11,493 1. $1,862 million (2019: $2,849 million) of cash collateral on derivative financial assets and reverse repurchase agreements forms part of collateral received as disclosed in the balance sheet. The remainder is included in term deposits recognised in deposits and other borrowings within Note 16. 2. $4,387 million (2019: $5,469 million) of cash collateral, subject to enforceable netting arrangements with derivative financial liabilities and repurchase agreements, forms part of collateral paid as disclosed in the balance sheet. The remainder of collateral paid, as disclosed in the balance sheet, consists of $16 million (2019: $18 million) in stock borrowing arrangements and $238 million (2019: $286 million) on futures margin that does not form part of this column. 3. Gross amounts consist of variation margin held directly with central clearing counterparties and stock borrowing arrangements. Where variation margin is receivable it is reported as part of collateral paid. Where variation margin is payable it is reported as part of collateral received. Amounts offset relate to variation margin. 4. $2,146 million (2019: $3,338 million) of derivative financial assets and $1,404 million (2019: $2,252 million) of derivative financial liabilities are not subject to enforceable netting arrangements. 2019 gross amounts, net amounts reported on the balance sheet and net amount were restated to exclude amounts not subject to enforceable netting arrangements. 5. Reverse repurchase agreements form part of trading securities and financial assets measured at FVIS in Note 10. 6. Gross amounts consist of debt and interest set-off accounts which meet the requirements for offsetting as described above. These accounts form part of business loans in Note 12 and part of deposits and other borrowings at amortised cost in Note 16. 7. Repurchase agreements form part of other financial liabilities in Note 17. Other recognised financial instruments These financial assets and liabilities are subject to master netting agreements which are not enforceable in all circumstances, so they are recognised gross in the balance sheet. The offsetting rights of the master netting arrangements can only be enforced if a predetermined event occurs in the future, such as a counterparty defaulting. Cash collateral and financial instrument collateral These amounts are received or pledged under master netting arrangements against the gross amounts of assets and liabilities. Financial instrument collateral typically comprises securities which can be readily liquidated in the event of counterparty default. The offsetting rights of the master netting arrangement can only be enforced if a predetermined event occurs in the future, such as a counterparty defaulting. |
Securitisation, covered bonds a
Securitisation, covered bonds and other transferred assets | 12 Months Ended |
Sep. 30, 2020 | |
Securitisation, covered bonds and other transferred assets | |
Securitisation, covered bonds and other transferred assets | Note 24. Securitisation, covered bonds and other transferred assets The Group enters into transactions in the normal course of business by which financial assets are transferred to counterparties or structured entities. Depending on the circumstances, these transfers may result in derecognition of the assets in their entirety, partial derecognition or no derecognition of the assets subject to the transfer. For the Group’s accounting policy on derecognition of financial assets refer to the notes to the financial statements section before Note 10 titled ‘Financial assets and financial liabilities’. Securitisation Securitisation is the transferring of assets (or an interest in either the assets or the cash flows arising from the assets) to a structured entity which then issues the majority of interest bearing debt securities to third party investors for funding deals and to Westpac for liquidity deals. Securitisation of its own assets is used by Westpac as a funding and liquidity tool. For securitisation structured entities which Westpac controls, as defined in Note 31, the structured entities are classified as subsidiaries and consolidated. When assessing whether Westpac controls a structured entity, it considers its exposure to and ability to affect variable returns. Westpac may have variable returns from a structured entity through ongoing exposures to the risks and rewards associated with the assets, the provision of derivatives, liquidity facilities, trust management and operational services. Undrawn funding and liquidity facilities of $492 million (2019: $537 million) were provided by Westpac for the securitisation of its own assets. Covered bonds The Group has two covered bond programs relating to Australian residential mortgages (Australian Program) and New Zealand residential mortgages (New Zealand Program). Under these programs, selected pools of residential mortgages are assigned to bankruptcy remote structured entities which provide guarantees on the payments to bondholders. Through the guarantees and derivatives with the structured entities, Westpac has variable returns from these structured entities and consolidates them. Repurchase agreements Where securities are sold subject to an agreement to repurchase at a predetermined price, they remain recognised in the balance sheet in their original category (i.e. Trading securities or Investment securities). The cash consideration received is recognised as a liability (Repurchase agreements). Refer to Note 17 for further details. The following tables present Westpac's assets transferred and their associated liabilities: For those liabilities that only have recourse to the transferred assets: Carrying Carrying Fair Fair amount of amount of value of value of Net fair Consolidated transferred associated transferred associated value $m assets liabilities assets liabilities position 2020 Securitisation 1 8,029 8,000 8,072 7,994 78 Covered bonds 2 43,654 36,051 n/a n/a n/a Repurchase agreements 36,727 27,763 n/a n/a n/a Total 88,410 71,814 8,072 7,994 78 2019 Securitisation 1 8,221 8,190 8,268 8,177 91 Covered bonds 2 44,676 38,037 n/a n/a n/a Repurchase agreements 13,754 10,604 n/a n/a n/a Total 66,651 56,831 8,268 8,177 91 For those liabilities that only have recourse to the transferred assets: Carrying Carrying Fair Fair amount of amount of value of value of Net fair Parent Entity transferred associated transferred associated value $m assets liabilities assets liabilities position 2020 Securitisation 1 141,660 141,000 141,991 138,870 3,121 Covered bonds 2 36,689 31,926 n/a n/a n/a Repurchase agreements 36,727 27,763 n/a n/a n/a Total 215,076 200,689 141,991 138,870 3,121 2019 Securitisation 1 101,689 101,146 101,871 100,268 1,603 Covered bonds 2 37,697 33,160 n/a n/a n/a Repurchase agreements 13,754 10,604 n/a n/a n/a Total 153,140 144,910 101,871 100,268 1,603 1. The carrying amount of assets securitised exceeds the amount of notes issued primarily because the carrying amount includes both principal and income received from the transferred assets. 2. The difference between the carrying values of covered bonds and the assets pledged reflects the over-collateralisation required to maintain the ratings of the covered bonds and also additional assets to allow immediate issuance of additional covered bonds if required. These additional assets can be repurchased by Westpac at its discretion, subject to the conditions set out in the transaction documents. |
Intangible assets
Intangible assets | 12 Months Ended |
Sep. 30, 2020 | |
Intangible assets | |
Intangible assets | INTANGIBLE ASSETS, PROVISIONS, COMMITMENTS AND CONTINGENCIES Note 25. Intangible assets Accounting policy Indefinite life intangible assets Goodwill Goodwill acquired in a business combination is initially measured at cost, generally being the excess of: (i) the consideration paid; over (ii) the net fair value of the identifiable assets, liabilities and contingent liabilities acquired. Subsequently, goodwill is not amortised but rather tested for impairment. Impairment is tested at least annually or whenever there is an indication of impairment. An impairment charge is recognised when a cash generating unit’s (CGU) carrying value exceeds its recoverable amount. Recoverable amount means the higher of the CGU’s fair value less costs to sell and its value-in-use. The Group's CGUs represent the smallest identifiable group of assets that generate cash inflows that are largely independent of the cash inflows from other assets or group of assets. They reflect the level at which the Group monitors and manages its operations. Brand names Brand names acquired in a business combination including St.George, BT, BankSA and RAMS, are recognised at cost. Subsequently brand names are not amortised but tested for impairment at least annually or whenever there is an indication of impairment. Finite life intangible assets Finite life intangibles, including computer software and core deposits, are recognised initially at cost and subsequently at amortised cost less any impairment. Intangible Useful life Depreciation method Goodwill Indefinite Not applicable Brand names Indefinite Not applicable Computer software 3 to 10 years Straight-line or the diminishing balance method (using the Sum of the Years Digits) Critical accounting assumptions and estimates Judgement is required in determining the fair value of assets and liabilities acquired in a business combination. A different assessment of fair values would have resulted in a different goodwill balance and different post-acquisition performance of the acquired entity. When assessing impairment of intangible assets, significant judgement is needed to determine the appropriate cash flows and discount rates to be applied to the calculations. The significant assumptions applied to the value-in-use calculations are outlined below. Consolidated Parent Entity $m 2020 2019 2020 2019 Goodwill Balance as at beginning of year 8,895 8,890 6,844 6,844 Disposals — — — — Impairment (498) — (116) — Other adjustments — 5 — — Balance as at end of year 8,397 8,895 6,728 6,844 Computer software Balance as at beginning of year 2,365 2,177 2,207 2,014 Additions 1,035 906 955 846 Impairment (171) (25) (165) (25) Amortisation (799) (694) (731) (628) Other adjustments — 1 — — Balance as at end of year 2,430 2,365 2,266 2,207 Cost 7,370 6,395 6,372 5,464 Accumulated amortisation and impairment (4,940) (4,030) (4,106) (3,257) Carrying amount 2,430 2,365 2,266 2,207 Brand names Balance as at beginning of year 670 670 636 636 Balance as at end of year 670 670 636 636 Carrying amount 670 670 636 636 Other intangible assets Balance as at beginning of year 23 26 — — Impairment (20) — — — Amortisation (3) (3) — — Balance as at end of year — 23 — — Cost 141 144 — — Accumulated amortisation and impairment (141) (121) — — Carrying amount — 23 — — Total intangible assets 11,497 11,953 9,630 9,687 Goodwill has been allocated to the following CGUs 1 : Consolidated Parent Entity $m Consumer 3,359 4,060 3,144 3,144 Business 3,205 3,860 3,022 3,213 Westpac Institutional Bank 487 487 487 487 New Zealand 488 488 — — Specialist Businesses 858 — 75 — Total goodwill 8,895 6,844 1. On 4 May 2020, the Group announced the creation of a new operating segment, Specialist Businesses, which includes businesses that were previously part of Consumer and Business operating segments (refer to Note 2). As a result, the Group’s CGUs have been reassessed and goodwill reallocated accordingly. This Specialist Businesses segment includes a number of individual CGUs (Superannuation, Platforms, Investments, General Insurance, Life Insurance, Lenders Mortgage Insurance, and Auto and Vendor Finance) to which goodwill has been allocated. The carrying amount of goodwill allocated to these individual CGUs is not significant compared to total goodwill. In addition, brand names of $670 million for the Group have been allocated as $382 million to Consumer, $286 million to Business and $2 million to Specialist Businesses as at 30 September 2020 (2019: $382 million to Consumer and $288 million to Business). Brand names of $636 million for the Parent Entity have been allocated as $350 million to Consumer and $286 million to Business as at 30 September 2020 and 30 September 2019. Impairment testing and results Impairment testing is performed at least once a year, or whenever there is an indication of impairment, by comparing the recoverable amount of each CGU with the carrying amount. The primary test for the recoverable amount is determined based on value-in-use which refers to the present value of expected cash flows under its current use. Fair value less costs to sell was also considered for those CGUs where value-in-use was lower than carrying value. In these cases, there was no change to the result of the impairment test. In the current year the Group recognised goodwill impairment of $498 million for the Group and $116 million for the Parent Entity from Specialist Businesses CGUs. The goodwill impairment recognised for the Life Insurance CGU was $374 million for the Group (Parent Entity: nil) and for the Auto and Vendor Finance CGU was $124 million for the Group (Parent Entity: $116 million). No goodwill remains for these CGUs. The impairment of goodwill resulted from our macroeconomic outlook and lower forecast profitability as well as goodwill being allocated at a lower level to individual business levels within the specialised business division. This allocation reflects the discrete nature of these businesses and the level at which goodwill has been monitored by management. Significant assumptions used in recoverable amount calculations The assumptions made for goodwill impairment testing for each relevant significant CGU are provided in the following table and are based on past experience and management’s expectations for the future. In the current year and given the present economic environment, the Group has reassessed these assumptions and revised them where necessary in order to provide a reasonable estimate of the value-in-use of the CGUs and Group. Discount rate Cash flows Group’s equity rate/ Group’s adjusted pre-tax equity rate Forecast period/ terminal growth rate 2020 2019 2020 2019 Westpac Institutional Bank 11.0% / 14.4% 11.0% / 15.7% 5 years / 2% 2 years / 0% New Zealand 11.0% / 14.5% 11.0% / 15.3% 3 years / 2% 2 years / 0% All other significant CGUs 11.0% / 15 - 15.2% 11.0% / 15.7% 3 years / 2% 2 years / 0% The Group discounts the projected cash flows by its adjusted pre-tax equity rate. The cash flows used are based on management approved forecasts. These forecasts utilize information about current and future economic conditions, observable historical information and management expectations of future business performance. The terminal value growth rate represents the growth rate applied to extrapolate cash flows beyond the forecast period and reflects the lower end of the RBA’s target long-term inflation rate band. For all CGUs other than Westpac Institutional Bank, the recoverability of goodwill is not reliant on any one particular assumption. Refer to the sensitivity analysis below for details regarding Westpac Institutional Bank. Sensitivity analysis The table below shows a sensitivity analysis for Westpac Institutional Bank which has no impairment of goodwill but for which a reasonable possible change in assumptions would result in impairment. This sensitivity analysis assumes the specific assumption moves in isolation while all other assumptions are held constant and presents the change in key assumptions required to reduce any headroom to nil. Whilst remaining a good business with a strong franchise, Westpac Institutional Bank’s forecasts are responsive to a decrease in cash flows resulting from increased impairment from credit losses, higher than forecast expenses, higher capital retention requirements, or from lower than assumed interest margins. To address the uncertainty resulting from these assumptions, a range of probability weighted scenarios were used to calculate the recoverable amount. Change required to assumption to reduce headroom to nil Consolidated and Parent Entity Increase in discount rate Decrease in cash flows Decrease in terminal $m Headroom (bps) (%) growth rate (bps) Westpac Institutional Bank 578 56 6.2 76 |
Lessee disclosures
Lessee disclosures | 12 Months Ended |
Sep. 30, 2020 | |
Lessee disclosures | |
Lessee disclosures | Note 26. Lessee disclosures Accounting policy Accounting policy for 30 September 2020 under AASB 16 At the lease commencement date (or the inception date for certain leases), a right-of-use (ROU) asset and a lease liability are recognised in the balance sheet for all leases with the exception of short term leases (12 months or less) and low value leases (underlying asset is less than A$10,000). ROU asset The ROU asset is initially measured at cost being the amount of the initial measurement of the lease liability, plus any payments made at or before the commencement date, initial direct costs and estimated make-good costs, less any lease incentives received. It is subsequently measured at cost less accumulated depreciation and impairment losses. The asset is also adjusted for any subsequent remeasurement of the lease liability (refer below). Depreciation expense is recognised in operating expenses on a straight-line basis over the lease term. Lease liability The lease liability is initially measured at the present value of the future lease payments using a discount rate based on Westpac’s incremental borrowing rate. It is subsequently increased by interest, reduced by principal payments and remeasured for any reassessment or lease modification. The lease liability may be remeasured in certain circumstances. For Westpac’s leases, it is expected that the lease liability will only be required to be remeasured to reflect a change in the Group’s assessment of the exercise of an extension option (refer below) or for a change in future lease payments for a change in rate or index. Interest expense is recognised in net interest income on an effective yield basis. Lease term Extension options are included in a number of lease contracts. The extension options are only included in the lease term if the lease is reasonably certain to be extended, which is assessed by the Group at the lease commencement date. The assessment is reviewed if a significant event or significant change in circumstances occurs which affects this assessment and is within the control of the Group. A reassessment of the lease term (to determine whether it has become ‘reasonably certain’ that an extension option will be exercised) must be undertaken for each of the Group’s property and technology leases at a specific point prior to the lease expiry date. The reassessment point, which is generally based on the option exercise window, will vary in each jurisdiction. Scope exemptions For certain short-term and low value leases, lease payments are recognised in operating expenses on a straight-line basis over the lease term. Accounting policy for 30 September 2019 under AASB 117 An operating lease under AASB 117 is a lease where substantially all of the risks and rewards of the leased assets remain with the lessor. Where the Group is the lessee, lease rentals payable are recognised as an expense in the income statement on a straight-line basis over the lease term unless another systematic basis is more appropriate. Westpac leases various commercial and retail premises and related property and equipment. The ROU asset recognised as a result of these lease arrangements is included in property and equipment in the balance sheet and detailed in the following table: ROU assets $m Property Other Total Consolidated Balance at 30 September 2019 — — — Impact on adoption of AASB 16 2,686 492 3,178 Restated opening balance 2,686 492 3,178 Additions 354 16 370 Depreciation (506) (124) (630) Other — — — Balance at 30 September 2020 2,534 384 2,918 Parent Entity Balance at 30 September 2019 — — — Impact on adoption of AASB 16 2,432 456 2,888 Restated opening balance 2,432 456 2,888 Additions 319 16 335 Depreciation (455) (112) (567) Other (5) 1 (4) Balance at 30 September 2020 2,291 361 2,652 Lease liabilities Lease liabilities included in other liabilities in the balance sheet were: $m Consolidated Parent Entity Lease liabilities – property Lease liabilities – other Total lease liabilities as at 30 September 2020 The following table presents the future contractual undiscounted cash flows relating to lease liabilities by remaining contractual maturity based on the requirements AASB 16 applicable for the current period: $m Consolidated Parent Entity Up to one year Over 1 year to 5 years Over 5 years Total undiscounted lease liabilities as at 30 September 2020 As comparatives have not been restated on the adoption of AASB 16, the table below presents the operating lease commitments by remaining contractual maturity based on the requirements of AASB 117 applicable for the prior year: $m Consolidated Parent Entity Up to one year Over 1 year to 5 years Over 5 years Total undiscounted lease liabilities as at 30 September 2019 The total cash outflow for the year ended 30 September 2020 for leases was $607 million for Group and $555 million for Parent Entity. |
Provisions, contingent liabilit
Provisions, contingent liabilities, contingent assets and credit commitments | 12 Months Ended |
Sep. 30, 2020 | |
Provisions, contingent liabilities, contingent assets and credit commitments | |
Provisions, contingent liabilities, contingent assets and credit commitments | Note 27. Provisions, contingent liabilities, contingent assets and credit commitments Accounting policy Provisions Provisions are recognised for present obligations arising from past events where a payment (or other economic transfer) is likely to be necessary to settle the obligation and can be reliably estimated. Employee benefits – long service leave provision Long service leave is granted to certain employees in Australia and New Zealand. The provision is calculated based on the expected payments. When payments are expected to be more than one year in the future, the payments factor in expected employee service periods and average salary increases which are then discounted. Employee benefits – annual leave and other employee benefits provision The provision for annual leave and other employee benefits (including wages and salaries, inclusive of non-monetary benefits, and any associated on-costs (e.g. payroll tax)) is calculated based on expected payments. Provision for impairment on credit commitments The Group is committed to provide facilities and guarantees as explained below. If it is probable that a facility will be drawn and the resulting asset will be less than the drawn amount then a provision for impairment is recognised. The provision for impairment is calculated using the same methodology as the provision for ECL (refer to Note 13). Compliance, Regulation and Remediation provisions The compliance, regulation and remediation provisions relate to matters of potential misconduct in providing services to our customers identified both as a result of regulatory action and internal reviews. An assessment of the likely cost to the Group of these matters (including applicable customer refunds) is made on a case-by-case basis and specific provisions are made where appropriate. Contingent liabilities Contingent liabilities are possible obligations whose existence will be confirmed only by uncertain future events, and present obligations where the transfer of economic resources is not probable or cannot be reliably measured. Contingent liabilities are not recognised in the balance sheet but are disclosed unless the outflow of economic resources is remote. Undrawn credit commitments The Group enters into various arrangements with customers which are only recognised in the balance sheet when called upon. These arrangements include commitments to extend credit, bill endorsements, financial guarantees, standby letters of credit and underwriting facilities. Contingent assets Contingent assets are possible assets whose existence will be confirmed only by uncertain future events. Contingent assets are not recognised in the balance sheet but are disclosed if an inflow of economic benefits is probable. Critical accounting assumptions and estimates The financial reporting of provisions for litigation and non-lending losses and for compliance, regulation and remediation matters involves a significant degree of judgement in relation to identifying whether a present obligation exists and also in estimating the probability, timing, nature and quantum of the outflows that may arise from past events. These judgements are made based on the specific facts and circumstances relating to individual events. Specific judgements in respect of material items are included in the discussion below. Provisions carried for long service leave are supported by an independent actuarial report. Provisions Annual leave and Litigation Provision for Compliance, Long other and non- impairment Lease regulation and service employee lending on credit restoration Restructuring remediation $m leave benefits losses commitments obligations provisions provisions Total Consolidated Balance at 30 September 2019 456 614 38 305 24 160 1,572 3,169 Additions 95 795 1,391 225 197 126 1,107 3,936 Utilisation (40) (794) (46) — (12) (110) (567) (1,569) Reversal of unutilised provisions — (19) (9) — (1) — (217) (246) Other — — (3) — — — — (3) Balance at 30 September 2020 511 596 1,371 530 208 176 1,895 5,287 Parent Entity Balance at 30 September 2019 428 557 23 275 24 160 1,513 2,980 Additions 92 749 1,358 204 166 92 1,052 3,713 Utilisation (38) (747) (34) — (10) (110) (537) (1,476) Reversal of unutilised provisions — (19) (3) — (1) — (210) (233) Other — — (1) — — — — (1) Balance at 30 September 2020 482 540 1,343 479 179 142 1,818 4,983 Legislative liabilities The Group had the following assessed liabilities as at 30 September 2020: · $22 million (2019: $22 million) based on an actuarial assessment as a self-insurer under the Workers’ Compensation Act 1987 and the Workplace Injury Management and Workers’ Compensation Act 1998 (New South Wales); · $7 million (2019: $7 million) based on actuarial assessment as a self-insurer under the Accident Compensation Act 1985 (Victoria); · $6 million (2019: $6 million) based on actuarial assessment as a self-insurer under the Workers’ Rehabilitation and Compensation Act 1986 (South Australia); · $1 million (2019: $1 million) based on an actuarial assessment as a self-insurer under the Workers’ Compensation and Rehabilitation Act 2003 (Queensland); · $Nil (2019: $nil) based on an actuarial assessment as a self-insurer under the Workers’ Compensation Act 1951 (Australian Capital Territory); · $1 million (2019: $1 million) based on an actuarial assessment as a self-insurer under the Workers’ Compensation and Injury Management Act 1981 (Western Australia); and · $1 million (2019: $1 million) based on an actuarial assessment as a self-insurer under the Workers’ Rehabilitation and Compensation Act 1988 (Tasmania). Adequate provision has been made for these liabilities in the provision for annual leave and other employee benefits above. Provisions Litigation and non-lending loss provisions A provision for a penalty in relation to the AUSTRAC civil proceedings. On 24 September 2020, Westpac announced that it had reached an agreement with AUSTRAC to resolve the civil penalty proceedings commenced by AUSTRAC on 20 November 2019, subject to Court approval. Under the agreement, the parties agreed to file with the Court a Statement of Agreed Facts and Admissions, and to recommend to the Court that Westpac pay a civil penalty of $1.3 billion in relation to the admitted contraventions of the AML/CTF Act. Westpac also agreed to pay AUSTRAC's legal costs of $3.75 million. The settlement was approved by the Court on 21 October 2020 and the penalty and AUSTRAC’s legal costs are to be paid within 28 calendar days of this date. In light of the above developments, Westpac has increased the provision in respect of the penalty from $900 million provided for in the First Half 2020 results to $1.3 billion and has also provided for AUSTRAC’s legal costs. Westpac is defending a class action proceedings filed by Phi Finney McDonald in Australia relating to market disclosure issues connected to Westpac's monitoring of financial crime over the relevant period and matters which are the subject of the recent AUSTRAC proceedings. The claims are brought on behalf of certain shareholders who acquired an interest in Westpac securities between 16 December 2013 and 19 November 2019. It does not identify the amount of any damages sought, however given the time period in question and the nature of the claims it is likely that the damages which will be alleged will be significant. No provision has been recognised in relation to this potential exposure. Compliance, regulation and remediation provisions Provisions for the Full Year 2020 in respect of compliance, regulation and remediation include: · estimated customer refunds associated with certain ongoing advice service fees charged by the Group’s salaried financial planners; · estimated customer refunds associated with certain ongoing advice service fees charged by authorised representatives of the Group’s wholly owned subsidiaries Securitor Financial Group Limited (Securitor) and Magnitude Group Pty Ltd (Magnitude); · refunds for certain Consumer and Business customers that had interest only loans that did not automatically switch, when required, to principal and interest loans; and · refunds to certain customers who were provided with business loans where they should have been provided with loans covered by the National Consumer Credit Protection Act 2009 (Cth). Certain compliance, regulation and remediation provisions are described further as follows: Estimated customer refunds associated with certain ongoing advice service fees charged by the Group’s salaried financial planners At balance date, Westpac has a provision of $112 million for customer refunds associated with certain ongoing advice service fees charged by the Group’s salaried financial planners during the period 2008 to 2018. A number of estimates and judgements continue to be applied in measuring the provision at FY20. The provision includes estimated interest and estimated program costs. Ongoing advice service fees charged by authorised representatives of Securitor and Magnitude. At balance date, Westpac has a provision of $646 million relating to estimated customer remediation costs (including interest on refunded fees and additional costs to run the remediation program) where customers of authorised representatives of the Group’s wholly owned subsidiaries Securitor and Magnitude paid ongoing advice service fees to those representatives and where it is not clear that the services were provided. The ongoing advice service fees were charged during the period from 2008 to 2018. At balance date, A number of estimates and judgements continue to be applied in measuring the provision at 30 September 2020. It is possible that the final outcome could be below or above the provision, if the actual outcome differs from the assumptions used in estimating the provision. Remediation processes may change over time as further facts emerge and such changes could result in a change to the final exposure. Restructuring provisions The Group carries restructuring provisions in relation to changes in business restructures primarily for separation and redundancy costs. Lease restoration obligations The addition to the lease restoration provision reflects a reassessment of the cost of making good leasehold premises at the end of the Group’s property leases. The increase in the expected make-good cost has been treated as an addition to the right-of-use asset and is being depreciated over the remaining life of those assets. Contingent liabilities Contingent liabilities are possible obligations whose existence will be confirmed only by uncertain future events and present obligations where the transfer of economic resources is not probable or cannot be reliably measured. Contingent liabilities are not recognised on the balance sheet but are disclosed unless the outflow of economic resource is remote. Regulatory investigations, reviews and inquiries Regulators, statutory authorities and other bodies routinely conduct investigations, reviews and inquiries involving the financial services sector, both in Australia and overseas. These regulatory actions may consider a range of subject matter, and in Australia, a number of regulatory investigations and reviews are currently considering potential misconduct in credit and financial services. Domestic regulators such as ASIC, APRA, ACCC, AUSTRAC, the OAIC, the ATO and the Fair Work Ombudsman, as well as certain international regulators such as the Reserve Bank of New Zealand, Financial Markets Authority in New Zealand, Hong Kong Monetary Authority, Monetary Authority of Singapore and National Futures Association are also currently conducting investigations (some of which are industry-wide) involving the Group. Two specific areas of investigation undertaken by ASIC are: · Ongoing advice services – A current set of regulatory actions involve investigations by ASIC into alleged ‘fee for no service’ activity. The first relates to ongoing advice services provided by the Group’s former salaried financial planners and by authorised representatives of the Group’s wholly owned subsidiaries Securitor and Magnitude and whether the corresponding ongoing advice was provided in all circumstances. The second relates to advice service fees charged or deducted from some customer accounts (including platform and superannuation accounts) following the death of the relevant account holder. ASIC's investigations relate to the periods between 2010 and 2019. ASIC commenced both of these investigations in 2019 and is examining a range of matters, including whether Westpac had appropriate systems and processes in place to ensure that customers received the advice services that they had paid for, and the processes for ensuring ongoing fees were terminated quickly enough following the death of some members. The Group is continuing to cooperate fully with ASIC’s investigations and remediate affected accounts where appropriate. To date, ASIC has commenced a number of civil penalty proceedings against other financial entities in relation to fee for no service activity. · Consumer credit insurance - ASIC is also investigating Westpac’s past sales practices in relation to Consumer Credit Insurance (CCI). This investigation follows ASIC’s industry-wide review of CCI sales practices between the period 2011 and 2018. Westpac ceased selling CCI products in branch and contact centre channels in November 2018, and ceased online sales in June 2019. ASIC’s investigation is a separate matter to the Federal Court class action proceedings commenced against Westpac, Westpac General Insurance Limited and Westpac Life Insurance Services Limited. Further information about this class action is set out in the ‘Litigation’ section below. In addition, there are investigations covering a range of other matters (some of which are industry-wide) that involve or may involve the Group in the future, including: · the provision of financial advice, including whether personal advice obligations have been complied with and the conduct of financial planners; · financial markets conduct, including market activity prior to entering into interest rate swaps with certain customers; Westpac's practices relating to selling unsecured debt; and the adequacy of fee disclosure charged for our products and services; and · other areas such as responsible lending, residential mortgages, credit portfolio management, general insurance, the provision of superannuation (including insurance in superannuation), privacy and information governance, competition law conduct and anti-money laundering and counter-terrorism financing processes and procedures. The Group has not received any indication of what (if any) action regulators will take following the conclusion of the investigations set out above. No provisions have yet been made in relation to any financial penalty that might arise in the event that regulators were to pursue enforcement proceedings, as any potential future liability of that kind cannot be reliably estimated at this time. These investigations may result in litigation (including class action proceedings), fines and penalties, infringement notices, enforceable undertakings, imposition of capital requirements, licence revocation or variation, or other action being taken by regulators or other parties. Given the size of Westpac, these investigations have in some instances resulted, and could in the future result, in findings of a significant number of breaches of obligations. This in turn could lead to significant financial and other penalties. Litigation There are ongoing Court proceedings, claims and possible claims for and against the Group. Contingent liabilities exist in respect of actual and potential claims and proceedings, including those listed below. An assessment of the Group’s likely loss has been made on a case-by-case basis for the purpose of the financial statements but cannot always be reliably estimated, including in relation to those listed below. Except as otherwise stated, no provision has been recognised in relation to the matters below because liability is not certain and cannot be reliably estimated. Regulatory litigation · On 22 December 2016, ASIC commenced Federal Court proceedings against BT Funds Management Limited (BTFM) and Westpac Securities Administration Limited (WSAL) in relation to a number of superannuation account consolidation campaigns conducted between 2013 and 2016. The litigation has recently gone through an appeal process, with the most recent appeal being brought by Westpac in the High Court of Australia. The judgment will relate to whether BTFM and WSAL each provided personal advice on relevant telephone calls made to 14 of the 15 specific customers (who were the focus of the claim) and consequentially contravened the Corporations Act 2001 (Cth) (including section 912A(1)(a)). · On 20 August 2020, ASIC commenced proceedings in the Federal Court against BTFM and Asgard Capital Management Limited (ACML), in relation to an issue that was a case study in the Financial Services Royal Commission. The allegations concern the inadvertent charging of financial adviser fees to 404 customers totalling $130,006 after a request had been made to remove the financial adviser from the customers’ accounts. The issue was self-reported to ASIC in 2017 and customers have been remediated. BTFM and ACML accept the allegations made by ASIC and do not intend to defend the proceedings. Westpac is now working through the relevant Court procedural steps to try to bring the matter to a resolution. Class actions The Group is currently defending the following five class actions: · On 12 October 2017, a class action against Westpac and Westpac Life Insurance Services Limited (WLIS) was filed in the Federal Court of Australia. The class action was filed on behalf of customers who, since February 2011, obtained insurance issued by WLIS on the recommendation of financial advisers employed within the Westpac Group. The plaintiffs have alleged that aspects of the financial advice provided by those advisers breached fiduciary and statutory duties owed to the advisers’ clients, including the duty to act in the best interests of the client, and that WLIS was knowingly involved in those alleged breaches. The matter has been set down for an initial trial in May 2021. The damages sought are unspecified. · On 5 September 2019, a class action against BTFM and WLIS was commenced in the Federal Court of Australia in relation to aspects of BTFM’s BT Super for Life cash investment option. The claim follows other industry class actions. It is alleged that BTFM failed to adhere to a number of obligations under the general law, the relevant trust deed and the Superannuation Industry (Supervision) Act 1993 (Cth), and that WLIS was knowingly concerned with BTFM’s alleged contraventions. The damages sought are unspecified. · A class action proceeding was commenced in December 2019 in the Federal Court of Australia, on behalf of certain investors who acquired an interest in Westpac securities between 16 December 2013 and 19 November 2019. The proceeding involves allegations relating to market disclosure issues connected to Westpac’s monitoring of financial crime over the relevant period and matters which are the subject of the recent AUSTRAC proceedings. The damages sought are unspecified. However, given the time period in question and the nature of the claims it is likely that the damages which will be alleged will be significant. · On 28 February 2020, a class action was commenced against Westpac, Westpac General Insurance Limited and WLIS in the Federal Court of Australia in relation to Westpac’s sale of CCI. The claim follows other industry class actions. It is alleged that the three entities failed to adhere to a number of obligations in selling CCI in conjunction with credit cards, personal loans and flexi loans. The damages sought are unspecified. Westpac no longer sells CCI products. · On 16 July 2020, a class action was commenced against Westpac and St George Finance Limited (SGF) in the Supreme Court of Victoria in relation to flex commissions paid to auto dealers from 1 March 2013 to 31 October 2018. This proceeding is one of two class actions commenced against a number of lenders in the auto finance industry. It is alleged that Westpac and SGF are liable for the unfair conduct of dealers acting as credit representatives and engaged in misleading or deceptive conduct. The damages sought are unspecified. Another law firm publicly announced in July 2020 that it is preparing to commence a class action against Westpac entities for similar conduct. Westpac has not paid flex commissions since 1 November 2018 following an industry-wide ban issued by ASIC. Westpac is aware from media reports and other publicly available material that other class actions against Westpac entities are being investigated. In July 2020, one law firm publicly stated that it intends to commence a class action against BTFM alleging that since 2014, BTFM did not act in the best interests of members of certain superannuation funds when obtaining group insurance policies. In August 2020, another law firm announced that it is investigating claims on behalf of persons who in the past 6 years acquired, renewed or continued to hold a financial product (including life insurance) on the advice or recommendation of a financial adviser from Magnitude, Securitor or Westpac. Westpac does not have any further information about the proposed claims beyond the public statements issued by the law firms involved. Internal reviews and remediation As in prior periods, Westpac is continuing to undertake a number of reviews to identify and resolve prior issues that have the potential to impact our customers and reputation. These internal reviews continue to identify a number of issues in respect of which we are taking steps or will take steps to put things right so that our customers are not at a disadvantage from certain past practices, including making compensation/remediation payments to customers and providing refunds where identified. These issues include compliance with lending obligations (including responsible lending) which is an area of industry focus, the provision of credit in accordance with the National Consumer Credit Protection Act 2009 (Cth), the charging of certain Wealth fees, the processing of corporate actions, reviewing third party remuneration arrangements and the way some product terms and conditions are operationalised. By undertaking these reviews we can also improve our processes and controls. An assessment of the Group’s likely loss has been made on a case-by-case basis for the purpose of the financial statements but cannot always be reliably estimated. Contingent liabilities may exist in respect of actual or potential claims (which could be brought by customers or regulators), compensation/remediation payments and/or refunds identified as part of these reviews. Australian Financial Complaints Authority Contingent liabilities may also exist in relation to customer complaints brought before the Australian Financial Complaints Authority (AFCA). AFCA has the power to make determinations about complaints and can award compensation up to certain thresholds. AFCA has a broader jurisdiction than previous dispute resolution bodies which it has replaced and, up until 30 June 2020, could also consider customer complaints dating back to 1 January 2008. Financial Claims Scheme Under the Financial Claims Scheme (FCS), the Australian Government provides depositors a free guarantee of deposits in eligible ADIs up to and including $250,000. The FCS applies to an eligible ADI if APRA has applied for the winding up of the ADI and the responsible Australian Government minister has declared that the FCS applies to the ADI. The Financial Claims Scheme (ADIs) Levy Act 2008 provides for the imposition of a levy to fund the excess of certain APRA FCS costs connected to an ADI, including payments by APRA to deposit holders in a failed ADI. The levy would be imposed on liabilities of eligible ADIs to their depositors and cannot be more than 0.5% of the amount of those liabilities. A contingent liability may exist in respect of any levy imposed under the FCS. Contingent tax risk Tax and regulatory authorities in Australia and in other jurisdictions are reviewing the taxation treatment of certain transactions (both historical and present-day transactions) undertaken by the Group in the course of normal business activities and the claiming of tax incentives and indirect taxes such as GST. The Group also responds to various notices and requests for information it receives from tax and regulatory authorities. These reviews, notices and requests may result in additional tax liabilities (including interest and penalties). The Group has assessed these and other taxation claims arising in Australia and elsewhere, including seeking independent advice. Settlement risk The Group is subject to a credit risk exposure in the event that another counterparty fails to settle for its payments clearing activities (including FX). The Group seeks to minimise credit risk arising from settlement risk in the payments system by aligning our processing method with the legal certainty of settlement in the relevant clearing mechanism. Parent Entity guarantees and undertakings The Parent Entity makes the following guarantees and undertakings to subsidiaries: · letters of comfort for certain subsidiaries which recognise that Westpac has a responsibility that those subsidiaries continue to meet their obligations; and · guarantees to certain wholly owned subsidiaries which are Australian financial services or credit licensees to comply with legislative requirements. Each guarantee is capped at $40 million per year and can only be utilised if the entity concerned becomes legally obliged to pay for a claim under the relevant licence. The Parent Entity has a right to recover any funds payable under the guarantees from the relevant subsidiary. Undrawn credit commitments The Group enters into various arrangements with customers which are only recognised in the balance sheet when called upon. These arrangements include commitments to extend credit, bill endorsements, financial guarantees, standby letters of credit and underwriting facilities. They expose the Group to liquidity risk when called upon and also to credit risk if the customer fails to repay the amounts owed at the due date. The maximum exposure to credit loss is the contractual or notional amount of the instruments. Some of the arrangements can be cancelled by the Group at any time and a significant portion is expected to expire without being drawn. The actual liquidity and credit risk exposure varies in line with amounts drawn and may be less than the amounts disclosed. The Group uses the same credit policies when entering into these arrangements as it does for on-balance sheet instruments. Refer to Note 21 for further details of liquidity risk and credit risk management. Undrawn credit commitments excluding derivatives are as follows: Consolidated Parent Entity $m Undrawn credit commitments Letters of credit and guarantees 1 12,610 15,150 12,069 14,583 Commitments to extend credit 2 184,064 176,002 159,644 153,716 Other 267 188 266 188 Total undrawn credit commitments 196,941 191,340 171,979 168,487 1. Standby letters of credit are undertakings to pay, against presentation documents, an obligation in the event of a default by a customer. Guarantees are unconditional undertakings given to support the obligations of a customer to third parties. The Group may hold cash as collateral for certain guarantees issued. 2. Commitments to extend credit include all obligations on the part of the Group to provide credit facilities. As facilities may expire without being drawn upon, the notional amounts do not necessarily reflect future cash requirements. In addition to the commitments disclosed above, at 30 September 2020, the Group had offered $4.9 billion (2019: $5.0 billion) of facilities to customers, which had not yet been accepted. Consolidated 2020 Up to Over 1 year Over 3 years Over $m 1 year to 3 years to 5 years 5 years Total Letters of credit and guarantees 5,909 3,709 492 2,500 12,610 Commitments to extend credit 71,350 33,832 13,428 65,454 184,064 Other — — 67 200 267 Total undrawn credit commitments 77,259 37,541 13,987 68,154 196,941 Contingent assets The credit commitments shown in the table above also constitute contingent assets. These commitments would be classified as loans in the balance sheet on the contingent event occurring . |
Shareholders' equity
Shareholders' equity | 12 Months Ended |
Sep. 30, 2020 | |
Shareholders' equity | |
Shareholders' equity | CAPITAL AND DIVIDENDS Note 28. Shareholders’ equity Accounting policy Share capital Ordinary shares are recognised at the amount paid up per ordinary share, net of directly attributable issue costs. Treasury shares are shares in the Parent Entity, purchased by the Parent Entity or other entities within the Group. These shares are adjusted against share capital as the net of the consideration paid to purchase the shares and, where applicable, any consideration received from the subsequent sale or reissue of these shares. Non-controlling interests Non-controlling interests represent the share in the net assets of subsidiaries attributable to equity interests that are not owned directly or indirectly by the Parent Entity. Reserves Foreign currency translation reserve Exchange differences arising on translation of the Group’s foreign operations, and any offsetting gains or losses on hedging the net investment are reflected in the foreign currency translation reserve. A cumulative credit balance in this reserve would not normally be regarded as being available for payment of dividends until such gains are realised and recognised in the income statement on sale or disposal of the foreign operation. Debt securities at FVOCI reserve (30 September 2019 onwards - AASB 9) This reserve was established on adoption of AASB 9 and comprises the changes in fair value of debt securities measured at FVOCI (except for interest income, impairment charges and FX gains and losses which are recognised in the income statement), net of any related hedge accounting adjustments and tax. These changes are transferred to non-interest income in the income statement when the asset is disposed. Equity securities at FVOCI reserve (30 September 2019 onwards - AASB 9) This reserve was established on adoption of AASB 9 and comprises the changes in fair value of equity securities measured at FVOCI, net of tax. These changes are not transferred to the income statement when the asset is disposed. Available-for-sale securities reserve (30 September 2018 - AASB 139) This comprises the changes in the fair value of available-for-sale financial securities (including both debt and equity securities), net of any related hedge accounting adjustments and tax. These changes were transferred to non-interest income in the income statement when the asset is either disposed of or impaired. This reserve was closed on the adoption of AASB 9 and the closing balance was allocated to the debt securities at FVOCI reserve and equity securities at FVOCI reserve noted above for the relevant securities. Cash flow hedge reserve This comprises the fair value gains and losses associated with the effective portion of designated cash flow hedging instruments, net of tax. Share-based payment reserve This comprises the fair value of equity-settled share-based payments recognised as an expense. Other reserves Other reserves for the Parent Entity relates to certain historic internal group restructurings performed at fair value. The reserve is eliminated on consolidation. Other reserves for the Group consist of transactions relating to changes in the Parent Entity’s ownership of a subsidiary that do not result in a loss of control. The amount recorded in other reserves reflects the difference between the amount by which NCI are adjusted and the fair value of any consideration paid or received. Consolidated Parent Entity $m Share capital Ordinary share capital, fully paid 40,509 37,508 40,509 37,508 Treasury shares held for RSP 1 (618) (572) (618) (572) Other treasury shares held 2 55 19 (3) (3) Total treasury shares held (563) (553) (621) (575) Total share capital 39,946 36,955 39,888 36,933 NCI 51 53 — — Ordinary shares Westpac does not have authorised capital and the ordinary shares have no par value. Ordinary shares entitle the holder to participate in dividends and, in the event of Westpac winding up, to a share of the proceeds in proportion to the number of and amounts paid on the shares held. Each ordinary share entitles the holder to one vote, either in person or by proxy, at a shareholder meeting. Reconciliation of movement in number of ordinary shares Consolidated and Parent Entity (number) Opening balance 3,489,928,773 3,434,796,711 Share issuances 3 110,919,861 — Dividend reinvestment plan 4 10,836,236 55,132,062 Closing balance 3,611,684,870 3,489,928,773 Ordinary shares purchased and sold on market 2020 Consolidated and Parent Entity Number Average Price ($) For share-based payment arrangements: Employee share plan (ESP) 931,524 26.46 RSP 5 1,931,521 24.06 Westpac Performance Plan (WPP) - share rights exercised 175,957 26.00 As treasury shares: Treasury shares purchased 114,376 24.52 Treasury shares sold (1,835,908) 20.23 Net number of ordinary shares purchased/(sold) on market 1,317,470 For details of the share-based payment arrangements refer to Note 33. 1. 2020: 4,588,277 unvested shares held (2019: 4,784,213). 2. 2020: Nil shares held (2019: 1,721,532). 3. The average price per share for the share issuance was $24.81. 4. The price per share for the issuance of shares in relation to the dividend reinvestment plan for the 2019 final dividend was $25.17 (2019: 2019 interim dividend was $27.36 and 2018 final dividend was $25.82). 5. Ordinary shares allocated to employees under the RSP are classified as treasury shares until the shares vest. Reconciliation of movement in reserves Consolidated Parent Entity $m Available-for-sale securities reserve Balance as at beginning of year — 37 — 24 Impact on adoption of AASB 9 — (37) — (24) Balance as at end of year — — — — Debt securities at FVOCI reserve Balance as at beginning of year (22) — (25) — Impact on adoption of AASB 9 — 33 — 25 Net gains/(losses) from changes in fair value 360 (47) 292 (40) Income tax effect (96) 12 (77) 10 Transferred to income statements (79) (29) (79) (29) Income tax effect 15 8 15 8 Loss allowance on debt securities measured at FVOCI 2 — 2 — Exchange differences (3) 1 (3) 1 Balance as at end of year 177 (22) 125 (25) Equity securities at FVOCI reserve Balance as at beginning of year 17 — (1) — Impact on adoption of AASB 9 — 6 — 1 Net gains/(losses) from changes in fair value (21) 11 1 (2) Balance as at end of year (4) 17 — (1) Share-based payment reserve Balance as at beginning of year 1,642 1,534 1,533 1,425 Share-based payment expense 78 108 78 108 Balance as at end of year 1,720 1,642 1,611 1,533 Cash flow hedge reserve Balance as at beginning of year (129) (125) (65) (69) Net gains/(losses) from changes in fair value (95) (203) (28) (121) Income tax effect 28 60 9 36 Transferred to income statements 218 197 150 128 Income tax effect (64) (58) (46) (39) Balance as at end of year (42) (129) 20 (65) Foreign currency translation reserve Balance as at beginning of year (179) (351) (145) (307) Exchange differences on translation of foreign operations (177) 311 (148) 214 Gains/(losses) on net investment hedges 9 (129) 17 (52) Transferred to income statements 55 (10) 55 — Balance as at end of year (292) (179) (221) (145) Other reserves Balance as at beginning of year (18) (18) 41 41 Transactions with owners 3 — — — Balance as at end of year (15) (18) 41 41 Total reserves 1,544 1,311 1,576 1,338 |
Capital adequacy
Capital adequacy | 12 Months Ended |
Sep. 30, 2020 | |
Capital adequacy | |
Capital adequacy | Note 29. Capital adequacy APRA measures an ADI’s regulatory capital using three measures: Level of capital Definition Common Equity Tier 1 Capital (CET1) Comprises the highest quality components of capital that consists of paid-up share capital, retained profits and certain reserves, less certain intangible assets, capitalised expenses and software, and investments and retained profits in insurance and funds management subsidiaries that are not consolidated for capital adequacy purposes. Tier 1 Capital The sum of CET1 and AT1 Capital. AT1 Capital comprises high quality components of capital that consist of certain securities not included in CET1, but which include loss absorbing characteristics. Total Regulatory Capital The sum of Tier 1 Capital and Tier 2 Capital. Tier 2 Capital includes subordinated instruments and other components of capital that, to varying degrees, do not meet the criteria for Tier 1 Capital, but nonetheless contribute to the overall strength of an ADI and its capacity to absorb losses. Under APRA’s Prudential Standards, Australian ADIs, including Westpac, are required to maintain a minimum CET1 ratio of at least 4.5%, Tier 1 Capital ratio of at least 6.0% and Total Regulatory Capital ratio of at least 8.0%. APRA may also require ADIs, including Westpac, to meet Prudential Capital Requirements (PCRs) above the minimum capital ratios. APRA does not allow the PCRs for individual ADIs to be disclosed. APRA also requires ADIs to hold additional CET1 buffers comprising of: · a capital conservation buffer (CCB) of 3.5% for ADIs designated by APRA as domestic systemically important banks (D-SIBs) unless otherwise determined by APRA, which includes a 1.0% surcharge for D-SIBs. APRA has determined that Westpac is a D-SIB; and · a countercyclical capital buffer. The countercyclical buffer is set on a jurisdictional basis and APRA is responsible for setting the requirement in Australia. The countercyclical buffer requirement is currently set to zero for Australia and New Zealand. Collectively, the above buffers are referred to as the “Capital Buffer” (CB). Should the CET1 capital ratio fall within the capital buffer range restrictions on the distributions of earnings will apply. This includes restrictions on the amount of earnings that can be distributed through dividends, AT1 Capital distributions and discretionary staff bonuses. APRA announcements on capital On 29 July 2020, APRA released further capital management guidance for ADIs 1 . This guidance included APRA’s expectation that for 2020, ADIs will retain at least half of their earnings, actively use dividend reinvestment plans (DRPs) and/or other capital management initiatives to at least partially offset the diminution in capital from distributions and conduct regular stress testing to inform decision-making and demonstrate ongoing lending capacity. APRA also committed to ensuring that any rebuild of capital buffers, if required, will be conducted in a gradual manner. APRA noted that the implementation of the Basel III capital reforms, which will embed the ‘unquestionably strong’ level of capital in the framework, has been postponed to 1 January 2023. Further details of APRA’s regulatory changes are set out in the Significant Developments section of the 2020 Annual Report. 1. Letter to Authorised Deposit Taking Institutions – Capital Management, 29 July 2020. Capital management strategy Westpac’s approach to capital management seeks to ensure that it is adequately capitalised as an ADI. Westpac evaluates its approach to capital management through the Internal Capital Adequacy Assessment Process (ICAAP), the key features of which include: · the development of a capital management strategy, including consideration of regulatory minimums, capital buffers and contingency plans; · consideration of both regulatory and economic capital requirements; · a stress testing framework that challenges the capital measures, coverage and requirements including the impact of adverse economic scenarios; and · consideration of the perspective of external stakeholders including rating agencies as well as equity and debt investors. During the period of disruption caused by COVID-19, Westpac is operating with the following principles in relation to capital: · prioritise maintaining capital strength; · retain capital to absorb further downside on credit quality and acknowledge a high degree of uncertainty regarding the length and depth of this stress; · allow for capital flexibility to support lending to customers; and · in line with APRA guidance, Westpac will seek to maintain a buffer above the regulatory minimum (currently at least 8% for D-SIBs including Westpac) and may utilise some of the “unquestionably strong” buffer. At 30 September 2020, the CET1 buffer above the regulatory minimum of 8% is $13.7 billion. These principles take into consideration: · current regulatory capital minimums and the capital conservation buffer (CCB), which together are the Total CET1 Requirement. In line with the above, the Total CET1 Requirement for Westpac is at least 8.0%, based upon an industry minimum CET1 requirement of 4.5% plus a capital buffer of at least 3.5% applicable to D-SIBs 1,2 ; · stress testing to calibrate an appropriate buffer against a downturn; and · quarterly volatility of capital ratios due to the half yearly cycle of ordinary dividend payments. Westpac will revise its target capital levels once the medium to longer term impacts of COVID-19 are clearer and APRA’s review of the capital adequacy framework is finalised. 1. Noting that APRA may apply higher CET1 requirements for an individual ADI. 2. If an ADI’s CET1 ratio falls below the Total CET1 Requirement (at least 8%), they faces restrictions on the distribution of earnings, such as dividends, distribution payments on AT1 capital instruments and discretionary staff bonuses. |
Dividends
Dividends | 12 Months Ended |
Sep. 30, 2020 | |
Dividends | |
Dividends | Note 30. Dividends Consolidated Parent Entity $m Dividends not recognised at year end Since year end the Directors have proposed the following dividends: Final dividend 31 cents per share (2019: 80 cents, 2018: 94 cents) all fully franked at 30% 1,120 2,791 3,227 1,120 2,792 Total dividends not recognised at year end 1,120 2,791 3,227 1,120 2,792 Shareholders can choose to receive their dividends as cash or reinvest for an equivalent number of shares under the Dividend Reinvestment Plan (DRP). The Board has decided to issue new shares to satisfy the DRP for the 2020 final dividend and to apply a 1.5% discount to the market price used to determine the number of shares issued under the DRP. The market price used to determine the number of shares issued under the DRP will be set over the 15 trading days commencing 17 November 2020. Westpac has also entered into an agreement to underwrite the DRP to the full amount of the 2020 final dividend. Details of dividends recognised during the year are provided in the statement of changes in equity. Australian franking credits Australian franking credits available to the Parent Entity for subsequent years are $3,448 million (2019: $1,558 million, 2018: $1,357 million). This is calculated as the year end franking credit balance, adjusted for the Australian current tax liability and the proposed 2020 final dividend. New Zealand imputation credits New Zealand imputation credits of NZ$0.07 (2019: NZ$0.07, 2018: NZ$0.07) per share will be attached to the proposed 2020 final dividend. New Zealand imputation credits available to the Parent Entity for subsequent years are NZ$980 million (2019: NZ$860 million, 2018: NZ$530 million). This is calculated on the same basis as the Australian franking credits but using the New Zealand current tax liability. |
Investments in subsidiaries and
Investments in subsidiaries and associates | 12 Months Ended |
Sep. 30, 2020 | |
Investments in subsidiaries and associates | |
Investments in subsidiaries and associates | Note 31. Investments in subsidiaries and associates Accounting policy Subsidiaries Westpac’s subsidiaries are entities which it controls and consolidates as it is exposed to, or has rights to, variable returns from the entity, and can affect those returns through its power over the entity. When the Group ceases to control a subsidiary, any retained interest in the entity is remeasured to fair value, with any resulting gain or loss recognised in the income statement. Changes in the Group’s ownership interest in a subsidiary which do not result in a loss of control are accounted for as transactions with equity holders in their capacity as equity holders. In the Parent Entity’s financial statements, investments in subsidiaries are initially recorded at cost and are subsequently held at the lower of cost and recoverable amount. All transactions between Group entities are eliminated on consolidation. Associates Associates are entities in which the Group has significant influence, but not control, over the operating and financial policies. The Group accounts for associates using the equity method. The investments are initially recognised at cost (except where recognised at fair value due to a loss of control of a subsidiary), and increased (or decreased) each year by the Group’s share of the associate’s profit (or loss). Dividends received from the associate reduce the investment in associate. Overseas companies predominantly carry on business in the country of incorporation. For unincorporated entities, ‘Country of incorporation’ refers to the country where business is carried on. The financial years of all controlled entities are the same as that of Westpac unless otherwise stated. From time to time, the Group consolidates a number of unit trusts where the Group has variable returns from its involvement with the trusts, and has the ability to affect those returns through its power over the trusts. These unit trusts are excluded from the table. The following table includes the principal controlled entities of the Group as at 30 September 2020. Country of Country of Name incorporation Name incorporation Advance Asset Management Limited Australia Westpac Financial Services Group Limited Australia Asgard Capital Management Limited Australia Westpac General Insurance Services Limited Australia Asgard Wealth Solutions Limited Australia Westpac Securitisation Holdings Pty Limited Australia BT Financial Group Pty Limited Australia Westpac Life-NZ-Limited New Zealand BT Funds Management Limited Australia Westpac New Zealand Group Limited New Zealand BT Portfolio Services Limited Australia Westpac New Zealand Limited New Zealand Capital Finance Australia Limited Australia Westpac NZ Covered Bond Limited 1 New Zealand Crusade Trust No.2P of 2008 Australia Westpac NZ Securitisation Limited 1 New Zealand Series 2008-IM WST Trust Australia Westpac Securities NZ Limited New Zealand Westpac Covered Bond Trust Australia Westpac Term Pie Fund 2 New Zealand Westpac Equity Holdings Pty Limited Australia Westpac Bank-PNG-Limited Papua New Guinea 1. The Group indirectly owns 19% of Westpac NZ Covered Bond Limited (WNZCBL) and Westpac NZ Securitisation Limited (WNZSL), however, due to contractual and structural arrangements both WNZCBL and WNZSL are considered to be controlled entities within the Group. 2. The Group has funding agreements in place with this entity and is deemed to have exposure to the associated risks and rewards. The entity is consolidated as the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The following controlled entities have been granted relief from compliance with the balance date synchronisation provisions in the Corporations Act 2001: · Westpac Cash PIE Fund; · Westpac Notice Saver PIE Fund; and · Westpac Term PIE Fund. The following material controlled entities are not wholly owned: Percentage Owned Westpac Bank-PNG-Limited Westpac NZ Covered Bond Limited Westpac NZ Securitisation Limited Non-controlling interests Details of the balance of NCIs are set out in Note 28. There are no NCIs that are material to the Group. Significant restrictions There were no significant restrictions on the ability to transfer cash or other assets, pay dividends or other capital distributions, provide or repay loans and advances between the entities within the Group subject to local regulatory requirements. There were also no significant restrictions on Westpac’s ability to access or use the assets and settle the liabilities of the Group resulting from protective rights of NCIs. Associates There are no associates that are material to the Group. During the year ended 30 September 2020, Westpac ceased to exert significant influence over Zip Co Limited and this investment is now recognised at FVIS. As a result the Group recognised a gain on derecognition of associate in non-interest income of $316 million (Refer to Note 4). Changes in ownership of subsidiaries Businesses disposed during the year ending 30 September 2020 No businesses were sold in the year ended 30 September 2020 Businesses disposed during the year ending 30 September 2019 Westpac sold its interest in Ascalon Capital Managers (Asia) Limited and Ascalon Capital Managers Limited on 8 February 2019 for a combined profit of $3 million recognised in non-interest income. Businesses disposed during the year ending 30 September 2018 Westpac sold its interest in a number of Hastings offshore subsidiaries to Northill Capital. Completion of the sale of the US and UK entities occurred on 28 February 2018 and completion of the Singapore entity occurred on 23 March 2018, with a total loss of $9 million recognised in non-interest income. Details of the assets and liabilities which the Group ceased to control are provided in Note 37. |
Structured entities
Structured entities | 12 Months Ended |
Sep. 30, 2020 | |
Structured entities | |
Structured entities | Note 32. Structured entities Accounting policy Structured entities are generally created to achieve a specific, defined objective and their operations are restricted such as only purchasing specific assets. Structured entities are commonly financed by debt or equity securities that are collateralised by and/or indexed to their underlying assets. The debt and equity securities issued by structured entities may include tranches with varying levels of subordination. Structured entities are classified as subsidiaries and consolidated if they meet the definition in Note 31. If the Group does not control a structured entity then it will not be consolidated. The Group engages in various transactions with both consolidated and unconsolidated structured entities that are mainly involved in securitisations, asset backed and other financing structures and managed funds. Consolidated structured entities Securitisation and covered bonds The Group uses structured entities to securitise its financial assets, including two covered bond programs, to assign pools of residential mortgages to bankruptcy remote structured entities. Refer to Note 24 for further details. Group managed funds The Group acts as the responsible entity and/or fund manager for various investment management funds. As fund manager, if the Group is deemed to be acting as a principal rather than an agent then it consolidates the fund. The principal versus agent decision requires judgement of whether the Group has sufficient exposure to variable returns. Non-contractual financial support The Group does not provide non-contractual financial support to these consolidated structured entities. Unconsolidated structured entities The Group has interests in various unconsolidated structured entities including debt or equity instruments, guarantees, liquidity and other credit support arrangements, lending, loan commitments, certain derivatives and investment management agreements. Interests exclude non-complex derivatives (e.g. interest rate or currency swaps), instruments that create, rather than absorb, variability in the entity (e.g. credit protection under a credit default swap), and lending to a structured entity with recourse to a wider operating entity, not just the structured entity. The Group’s main interests in unconsolidated structured entities, which arise in the normal course of business, are: Trading securities The Group actively trades interests in structured entities and normally has no other involvement with the structured entity. The Group earns interest income on these securities and also recognises fair value changes through trading income in non-interest income. Investment securities The Group holds mortgage-backed securities for liquidity purposes and the Group normally has no other involvement with the structured entity. These assets are highly-rated, investment grade and eligible for repurchase agreements with the RBA or another central bank. The Group earns interest income and net gains or losses on selling these assets are recognised in the income statements. Loans and other credit commitments The Group lends to unconsolidated structured entities, subject to the Group’s collateral and credit approval processes, in order to earn interest and fee income. The structured entities are mainly property trusts, securitisation entities and those associated with project and property financing transactions. Investment management agreements The Group manages funds that provide customers with investment opportunities. The Group also manages superannuation funds for its employees. The Group earns management and performance fee income which is recognised in non-interest income. The Group may also retain units in these investment management funds, primarily through life insurance subsidiaries. The Group earns fund distribution income and recognises fair value movements through non-interest income. The following tables show the Group’s interests in unconsolidated structured entities and its maximum exposure to loss in relation to those interests. The maximum exposure does not take into account any collateral or hedges that will reduce the risk of loss. · For on-balance sheet instruments, including debt and equity instruments in and loans to unconsolidated structured entities, the maximum exposure to loss is the carrying value; and · For off-balance sheet instruments, including liquidity facilities, loan and other credit commitments and guarantees, the maximum exposure to loss is the notional amounts. Investment in third party mortgage and Interest other Financing to Group in other Consolidated 2020 asset-backed securitisation managed structured $m securities 1 vehicles funds entities Total Assets Trading securities and financial assets measured at FVIS 1,526 — — 34 1,560 Investment securities 6,105 — — — 6,105 Loans — 20,094 — 16,955 37,049 Life insurance assets — — 204 129 333 Other assets — — 52 — 52 Total on-balance sheet exposures 7,631 20,094 256 17,118 45,099 Total notional amounts of off-balance sheet exposures — 6,122 44 7,768 13,934 Maximum exposure to loss 7,631 26,216 300 24,886 59,033 Size of structured entities 2 59,324 26,216 67,423 40,209 193,172 Investment in third party mortgage and Interest other Financing to Group in other Consolidated 2019 asset-backed securitisation managed structured $m securities 1 vehicles funds entities Total Assets Trading securities and financial assets measured at FVIS 1,827 — — 282 2,109 Investment securities 6,940 — — — 6,940 Loans — 20,979 9 22,817 43,805 Life insurance assets — — 4,885 1,879 6,764 Other assets — — 54 — 54 Total on-balance sheet exposures 8,767 20,979 4,948 24,978 59,672 Total notional amounts of off-balance sheet exposures — 5,157 102 10,086 15,345 Maximum exposure to loss 8,767 26,136 5,050 35,064 75,017 Size of structured entities 2 66,015 26,136 71,538 98,983 262,672 1. The Group’s interests in third party mortgage and other asset-backed securities are senior tranches of notes and are investment grade rated. 2. Represented either by the total assets or market capitalisation of the entity, or if not available, the Group’s total committed exposure (for lending arrangements and external debt and equity holdings), funds under management (for Group managed funds) or the total value of notes on issue (for investments in third-party asset-backed securities). Non-contractual financial support The Group does not provide non-contractual financial support to these unconsolidated structured entities. |
Share-based payments
Share-based payments | 12 Months Ended |
Sep. 30, 2020 | |
Share-based payments | |
Share-based payments | OTHER Note 33. Share-based payments Accounting policy The Group enters into various share-based payment arrangements with its employees as a component of overall compensation for services provided. Share-based payment arrangements comprise rights to receive shares for free (share rights) and restricted shares (issued at no cost). Share-based payment arrangements typically require a specified period of continuing employment (the service period or vesting period) and may include performance targets (vesting conditions). Specific details of each arrangement are provided below. Share-based payments must be classified as either cash-settled or equity-settled arrangements. The Group’s significant arrangements are equity-settled, as the Group is not obliged to settle in cash. Share rights Share rights are equity-settled arrangements. The fair value is measured at grant date and is recognised as an expense over the service period, with a corresponding increase in the share-based payment reserve in equity. The fair value of share rights are estimated at grant date using a binomial/Monte Carlo simulation pricing model which incorporates the vesting and market-related performance targets of the grants. The fair value of share rights excludes non-market vesting conditions such as employees’ continuing employment by the Group. The non-market vesting conditions are instead incorporated in estimating the number of share rights that are expected to vest and are therefore recognised as an expense. At each reporting date the non-market vesting assumptions are revised and the expense recognised each year takes into account the most recent estimates. The market-related assumptions are not revised each year as the fair value is not re-estimated after the grant date. Restricted share plan (RSP) The RSP is accounted for as an equity-settled arrangement. The fair value of shares allocated to employees for nil consideration is recognised as an expense over the vesting period with a corresponding increase in the share-based payments reserve in equity. The fair value of ordinary shares issued to satisfy the obligation to employees is measured at grant date and is recognised as a separate component of equity. Employee share plan (ESP) The value of shares expected to be allocated to employees for nil consideration is recognised as an expense over the financial year and provided for as other employee benefits. The fair value of any ordinary shares issued to satisfy the obligation to employees is recognised in equity. Alternatively, shares may be purchased on market to satisfy the obligation to employees. Scheme name Westpac Long Term Variable Reward Plan (LTVR) Westpac Performance Plan (WPP) Restricted Share Employee Share Plan Type of share-based payment Share rights (allocated at no cost). Share rights (allocated at no cost). Westpac ordinary shares (allocated at no cost). Westpac ordinary shares (allocated at no cost) of up to $1,000 per employee per year. How it is used Aligns executive remuneration and accountability with shareholder interests over the long term. Primarily used for mandatory deferral of a portion of short-term incentives for New Zealand employees and key employees based outside Australia. Primarily used to reward key employees. To reward eligible Australian employees (unless they have already been provided instruments under another scheme for the previous year). Shares rights Nil Nil n/a n/a Performance hurdles Relative Total Shareholder return (TSR) over a four year performance period and average cash Return on Equity (cash ROE) over a three year performance period plus one year holding lock, each applying to half of the award (commencing with the 2016 LTVR award) 1 . None None None Service conditions Continued employment throughout the vesting period or as determined by the Board. Continued employment throughout the vesting period or as determined by the Board. Continued employment throughout the restriction period or as determined by the Board. Shares must normally remain within the ESP for three years from granting unless the employee leaves Westpac. Vesting period (period over which expenses are recognised) 4 years 1 Defined period set out at time of grant. Defined period set out at time of grant. 1 year Treatment at end of term Automatically exercised at the end of the term. Automatically exercised at the end of the term. Vested shares are released from the RSP at the end of the vesting period. Shares are released at the end of the restriction period or when the employee leaves Westpac. Does the employee receive dividends and voting rights during the vesting period? No No Yes Yes 1. For the 2015 LTVR awards, the relative TSR is subject to a four year performance period and cash EPS compound annual growth rate (CAGR) over a three year performance period plus one year holding lock. For awards granted for the periods 2011 to 2014 both the relative TSR and cash EPS CAGR hurdles are subject to a three year performance and vesting period. Each share-based payment scheme is quantified below: (i) Westpac Long Term Variable Reward Plan (LTVR) Outstanding at Granted Exercised Lapsed Outstanding 1 October during during during Outstanding at and exercisable at 2020 the year the year the year 30 September 2020 30 September 2020 Share rights 4,554,589 779,581 — 2,267,844 3,066,326 3,719 Weighted average remaining contractual life 12.3 years 12.4 years 2019 1 October 2018 30 September 2019 Share options 52,350 — 37,831 14,519 — — Weighted average exercise price $ 23.40 — $ 23.40 — — — Share rights 4,712,843 1,169,704 — 1,327,958 4,554,589 3,719 The weighted average fair value at grant date of LTVR share rights issued during the year was $28.44 (2019: $15.62). (ii) Westpac Performance Plan (WPP) Outstanding Outstanding at Granted during Exercised Lapsed during Outstanding at and exercisable at 2020 1 October 2019 the year during the year the year 30 September 2020 30 September 2020 Share rights One-year vesting period 197,888 120,562 75,417 36,792 206,241 90,451 Two-year vesting period 289,909 113,649 79,568 31,049 292,941 55,846 Three-year vesting period 95,249 18,357 20,972 15,786 76,848 17,922 Four-year vesting period 203,420 186,290 - 8,605 381,105 - Total share rights 786,466 438,858 175,957 92,232 957,135 164,219 Weighted average remaining contractual life 12.8 years 12.8 years 2019 1 October 2018 30 September 2019 Share rights 673,889 385,646 184,043 89,026 786,466 130,946 The weighted average fair value at grant date of WPP share rights issued during the year was $24.68 (2019: $23.08). (iii) Restricted Share Plan (RSP) Outstanding at Granted during Forfeited Outstanding at Allocation date 1 October 2019 the year Released during the year 30 September 2020 Total 2020 4,773,171 Total 2019 4,189,644 2,861,262 2,214,509 63,226 4,773,171 The weighted average fair value at grant date of RSP shares issued during the year was $23.88 (2019: $25.20). (iv) Average number of shares Total number Allocation Number of allocated per of shares Market Total date participants participant allocated price per share 1 fair value 2020 21 November 2019 25,725 38 977,550 $ 26.20 $ 25,611,810 2019 23 November 2018 27,245 39 1,062,555 $ 25.35 $ 26,935,769 1. The market price per share for the allocation is based on the five day volume-weighted average price up to the grant date. The 2019 ESP award was satisfied through the purchase of shares on market. The liability accrued for the ESP at 30 September 2020 is $28 million (2019: $26 million) and is provided for as other employee benefits. (v) Other plans Westpac also provides plans for small, specialised parts of the Group. The benefits under these plans are directly linked to growth and performance of the relevant part of the business. The plans, individually and in aggregate, are not material to the Group in terms of expenses and dilution of earnings. The names of all persons who hold share options and/or rights currently on issue are entered in Westpac’s register of option holders which may be inspected at Link Market Services, Level 12, 680 George Street, Sydney, New South Wales. (vi) Fair value assumptions The fair values of share rights have been independently calculated at their respective grant dates. The fair value of share rights with performance targets based on relative TSR takes into account the average TSR outcome determined using a Monte Carlo simulation pricing model. The fair values of share rights without TSR based performance targets (i.e. share rights with cash EPS CAGR, economic profit and cash ROE performance targets) have been determined with reference to the share price at grant date and a discount rate reflecting the expected dividend yield over their vesting periods. Other significant assumptions include: ▪ a risk free rate of return of 0.8%, applied to TSR-hurdled grants; ▪ a dividend yield on Westpac shares of 6.5%, applied to TSR and ROE-hurdled grants; ▪ volatility in Westpac’s TSR of 21%, applied to TSR-hurdled grants; and ▪ volatilities of, and correlation factors between, TSR of the comparator group and Westpac for TSR-hurdled grants. |
Superannuation commitments
Superannuation commitments | 12 Months Ended |
Sep. 30, 2020 | |
Superannuation commitments | |
Superannuation commitments | Note 34. Superannuation commitments Accounting policy The Group recognises an asset or a liability for its defined benefit schemes, being the net of the defined benefit obligations and the fair value of the schemes’ assets. The defined benefit obligation is calculated as the present value of the estimated future cash flows, discounted using high-quality long dated corporate bond rates. The superannuation expense is recognised in operating expenses and remeasurements are recognised through OCI. Critical accounting assumptions and estimates The actuarial valuation of plan obligations is dependent upon a series of assumptions, principally price inflation, salary growth, mortality, morbidity, discount rate and investment returns. Different assumptions could significantly alter the valuation of the plan assets and obligations and the resulting remeasurement recognised in OCI and the superannuation cost recognised in the income statement. Westpac had the following defined benefit plans at 30 September 2020: Date of last actuarial assessment of the Name of plan Type Form of benefit funding status Westpac Group Plan (WGP) Defined benefit and accumulation Indexed pension and lump sum 30 June 2018 Westpac New Zealand Superannuation Scheme (WNZS) 1 Defined benefit and accumulation Indexed pension and lump sum 30 June 2017 Westpac Banking Corporation UK Staff Superannuation Scheme (UKSS) Defined benefit Indexed pension and lump sum 5 April 2018 Westpac UK Medical Benefits Scheme Defined benefit Medical benefits n/a 1 The defined benefit sections of the schemes are closed to new members. The Group has no obligation beyond the annual contributions for the accumulation or defined contribution sections of the schemes. The WGP is the Group’s principal defined benefit plan and is managed and administered in accordance with the terms of its trust deed and relevant legislation in Australia. Its defined benefit liabilities are based on salary and length of membership for active members and inflation in the case of pensioners. The defined benefit schemes expose the Group to the following risks: ▪ discount rate – reductions in the discount rate would increase the present value of the future payments; ▪ inflation rate – increases in the inflation rate would increase the payments to pensioners; ▪ investment risk – lower investment returns would increase the contributions needed to offset the shortfall; ▪ mortality risk – members may live longer than expected extending the cash flows payable by the Group; ▪ behavioural risk - higher proportion of members taking some of their benefits as a pension rather than a lump sum would increase the cash flows payable by the Group; and ▪ legislative risk – legislative changes could be made which increase the cost of providing defined benefits. Investment risk is managed by setting benchmarks for the allocation of plan assets between asset classes. The long-term investment strategy will often adopt relatively high levels of equity investment in order to: ▪ secure attractive long term investment returns; and ▪ provide an opportunity for capital appreciation and dividend growth, which gives some protection against inflation. Funding recommendations for the WGP, WNZS and the UKSS are made based on triennial actuarial valuations. The funding valuation of the defined benefit plans are based on different assumptions to the calculation of the defined benefit surplus/deficit for accounting purposes. Based on the most recent valuations, the defined benefit plan assets are adequate to cover the present value of the accrued benefits of all members with a combined surplus of $154 million (2019: $158 million). Current contribution rates are as follows: ▪ WGP – contributions are made to the WGP at the rate of 12.1% of members’ salaries; ▪ WNZS – contributions are made to the WNZS at the rate of 17% of members’ salaries; and ▪ UKSS – not required to make contributions under the 2018 actuarial assessment. Contributions Consolidated Parent Entity $m Employer contributions 27 Member contributions 11 Expected employer contributions for the year ended 30 September 2021 are $25 million. Expense recognised Consolidated Parent Entity $m Current service cost 32 Net interest cost on net benefit liability (2) Total defined benefit expense 30 Defined benefit balances recognised Consolidated Parent Entity $m Benefit obligation at end of the year 2,799 2,710 Fair value of plan assets at end of the year 2,464 2,405 Net surplus/(deficit) (335) (305) Defined benefit surplus 1 73 73 Defined benefit deficit 2 (408) (378) Net surplus/(deficit) (335) (305) 1. The defined benefit surplus is recognised in other assets. 2. The defined benefit deficit is recognised in other liabilities. The average duration of the defined benefit obligation is 14 years (2019: 14 years). Significant assumptions 2020 2019 Australian Overseas Australian Overseas Consolidated and Parent Entity funds funds funds funds Discount rate 0.7% - 1.5% 1.1% - 1.8% Salary increases 3.0% - 4.6% 3.0% - 4.9% Inflation rate (pensioners received inflationary increase) 2.0% - 3.1% 2.0% - 3.4% Life expectancy of a 60-year-old male 31.3 28.1 - 28.2 31.1 27.9 - 28.1 Life expectancy of a 60-year-old female 34.2 29.5 - 29.6 34.0 29.3 - 29.5 Sensitivity to changes in significant assumptions The following table shows the impact of changes in assumptions on the defined benefit obligation for the WGP. No reasonably possible changes in the assumptions of the Group’s other defined benefit plans would have a material impact on the defined benefit obligation. Increase in obligation $m 0.5% decrease in discount rate 205 0.5% increase in annual salary increases 14 0.5% increase in inflation rate (pensioners receive inflationary increases) 188 1 year increase in life expectancy 45 Asset allocation 2020 2019 Australian Overseas Australian Overseas $m funds funds funds funds Cash Equity instruments Debt instruments Property Other assets Total Equity and debt instruments are mainly quoted assets while property and other assets are mainly unquoted. Other assets include infrastructure funds and private equity funds. |
Auditor's remuneration
Auditor's remuneration | 12 Months Ended |
Sep. 30, 2020 | |
Auditor's remuneration | |
Auditor's remuneration | OTHER Note 35. Auditor’s remuneration The fees payable to the auditor, PricewaterhouseCoopers (PwC), and overseas firms belonging to the PwC network of firms were: Consolidated Parent Entity $'000 Audit and audit-related fees Audit fees PwC Australia 27,667 28,153 27,667 28,025 Overseas PwC network firms 5,295 3,216 705 321 Total audit fees 32,962 31,369 28,372 28,346 Audit-related fees PwC Australia 4,404 3,569 4,404 3,418 Overseas PwC network firms 107 128 — 2 Total audit-related fees 4,511 3,697 4,404 3,420 Total audit and audit-related fees 37,473 35,066 32,776 31,766 Tax fees PwC Australia 57 53 57 53 Total tax fees 57 53 57 53 Other fees PwC Australia — 70 — 70 Overseas PwC network firms — 502 — 502 Total other fees — 572 — 572 Total audit and non-audit fees 37,530 35,691 32,833 32,391 Fees payable to the auditor have been categorised as follows: Audit The year end audit, half-year review and comfort letters associated with debt issues and capital raisings. Audit-related Consultations regarding accounting standards and reporting requirements, regulatory compliance reviews and assurance related to debt and capital offerings. Tax Tax compliance and tax advisory services. Other Various services including systems assurance, compliance advice and controls reviews. It is Westpac’s policy to engage PwC on assignments additional to their statutory audit duties only if their independence is not impaired or seen to be impaired and where their expertise and experience with Westpac is important. All services were approved by the Board Audit Committee in accordance with Westpac’s Pre-Approval of Engagement of PricewaterhouseCoopers for Audit or Non-Audit Services Policy. PwC also received fees of $6.1 million (2019: $7.5 million) for various entities which are related to Westpac but not consolidated. These non-consolidated entities include entities sponsored by the Group, trusts of which a Westpac Group entity is trustee, manager or responsible entity, superannuation funds and pension funds. |
Related party disclosures
Related party disclosures | 12 Months Ended |
Sep. 30, 2020 | |
Related party disclosures | |
Related party disclosures | Note 36. Related party disclosures Related parties Westpac’s related parties are those it controls or can exert significant influence over. Examples include subsidiaries, associates, joint ventures and superannuation plans as well as key management personnel and their related parties. Key management personnel (KMP) Key management personnel are those who, directly or indirectly, have authority and responsibility for planning, directing and controlling the activities of Westpac. This includes all Executives and Non-Executive Directors. Parent Entity Westpac Banking Corporation is the ultimate parent company of the Group. Subsidiaries - Note 31 The Parent Entity has the following related party transactions and balances with subsidiaries: Type of transaction/balance Details disclosed in Balances due to/from subsidiaries Balance Sheet Dividend income/Transactions with subsidiaries Note 4 Interest income and Interest expense Note 3 Tax consolidated group transactions and undertakings Note 7 Guarantees and undertakings Note 27 The balances due to/from subsidiaries include a wide range of banking and other financial facilities. The terms and conditions of related party transactions between the Parent Entity and subsidiaries are sometimes different to commercial terms and conditions. Related party transactions between the Parent Entity and subsidiaries eliminate on consolidation. Associates - Note 31 The Group provides a wide range of banking and other financial facilities and funds management activities to its associates on commercial terms and conditions. Superannuation plans The Group contributed $361 million (2019: $347 million) to defined contribution plans and $26 million (2019: $28 million) to defined benefit plans. Refer to Note 34. Remuneration of KMP Total remuneration of the KMP was: Short-term Post employment Other long-term Termination Share-based $ benefits benefits benefits benefits payments Total Consolidated 2020 22,759,397 967,898 657,375 1,176,487 3,748,106 29,309,263 2019 23,805,197 712,883 36,572 558,984 20,691,480 45,805,116 Parent Entity 2020 21,766,691 873,350 657,375 1,176,487 3,035,423 27,509,326 2019 22,515,477 625,173 36,572 558,984 19,783,900 43,520,106 Other transactions with KMP KMP receive personal banking and financial investment services from the Group in the ordinary course of business. The terms and conditions, for example interest rates and collateral, and the risks to Westpac are comparable to transactions with other employees and did not involve more than the normal risk of repayment or present other unfavourable features. Details of loans provided and the related interest charged to KMP and their related parties are as follows: Interest payable Closing loan Number of KMP $ for the year balance with loans 2020 549,257 15,779,157 8 2019 672,167 31,718,007 14 Options and share rights holdings For compliance with SEC disclosure requirements, the following table sets out certain details of the performance options, performance share rights and unhurdled share rights held at 30 September 2020 by the CEO and other key management personnel (including their related parties): Number of Latest Date of Exercise Share Rights Managing Director & Chief Executive Officer Peter King Ranges from 1 October 2031 to 1 October 2034 346,795 Group Executives Rebecca Lim 1 Ranges from 1 October 2031 to 1 October 2034 220,403 Guilherme Lima 1 October 2034 57,819 Carolyn McCann Ranges from 1 October 2032 to 2 April 2035 102,207 David McLean Ranges from 1 October 2022 to 1 October 2034 382,588 Christine Parker Ranges from 1 October 2031 to 1 October 2034 252,231 Michael Rowland n/a — David Stephen Ranges from 1 October 2032 to 1 October 2034 364,381 Gary Thursby Ranges from 1 October 2031 to 1 October 2034 250,336 Les Vance 2 April 2035 22,227 Jason Yetton 2 April 2035 54,213 Acting Group Executives Richard Burton n/a — Alastair Welsh n/a — Curt Zuber n/a — Former Group Executive Brian Hartzer n/a — Craig Bright n/a — Lyn Cobley Ranges from 1 October 2031 to 1 October 2034 319,631 David Lindberg n/a — 1. Rebecca Lim was the Group Executive, Legal & Secretariat until 16 December 2019 when she was appointed Enterprise Legal Counsel focusing on AUSTRAC matters. Rebecca Lim resumed her Group General Counsel role when she was appointed the Group General Counsel & Enterprise Executive on 18 May 2020. The Group has not issued any options during the year and there are no outstanding options as at 30 September 2020. |
Notes to the cash flow statemen
Notes to the cash flow statements | 12 Months Ended |
Sep. 30, 2020 | |
Notes to the cash flow statements | |
Notes to the cash flow statements | Note 37. Notes to the cash flow statements Accounting policy Cash and balances with central banks include cash held at branches and in ATMs, balances with overseas banks in their local currency and balances with central banks including accounts with the RBA and accounts with overseas central banks. Reconciliation of net cash provided by/(used in) operating activities to net profit for the year is set out below: Consolidated Parent Entity $m Net profit for the year 6,790 8,099 7,121 Adjustments: Depreciation, amortisation and impairment 1,079 1,144 1,082 Impairment charges 966 889 893 Net decrease/(increase) in current and deferred tax (541) (96) (804) (Increase)/decrease in accrued interest receivable 132 (83) 98 (Decrease)/increase in accrued interest payable (341) 241 (321) (Decrease)/increase in provisions 1,143 289 1,214 Other non-cash items (832) 332 (329) Cash flows from operating activities before changes in operating assets and liabilities 8,396 10,815 8,954 Net (increase)/decrease in derivative financial instruments 7,605 8,584 6,581 Net (increase)/decrease in life insurance assets and liabilities (134) (230) — — (Increase)/decrease in other operating assets: Collateral paid (847) 969 (755) Trading securities and other financial assets measured at FVIS (7,629) 3,492 (7,358) Loans (4,188) (24,740) (3,312) Other financial assets 336 859 324 Other assets (13) 10 (41) (Decrease)/increase in other operating liabilities: Collateral received 1,007 (295) 1,004 Deposits and other borrowings 1,113 23,928 963 Other financial liabilities 1,463 (3,632) 1,555 Other liabilities (5) 10 (24) Net cash provided by/(used in) operating activities 7,104 19,770 7,891 Details of the assets and liabilities over which control ceased Details of the entities over which control ceased are provided in Note 31. Consolidated Parent Entity $m Assets: Cash and balances with central banks — 3 10 — — Trading securities and other financial assets measured at FVIS — 3 — — — Property and equipment — — 2 — — Deferred tax assets — — 4 — — Intangible assets — — 15 — — Other financial assets — 3 5 — — Total assets — 9 36 — — Liabilities: Provisions — — 2 — — Other liabilities — — 3 — — Total liabilities — — 5 — — Total equity attributable to owners of WBC — 9 31 — — Cash proceeds received (net of transaction costs) — 2 19 — — Total consideration — 2 19 — — Reserves recycled to income statement — 10 3 — — Gain/(loss) on disposal — 3 (9) — — Reconciliation of cash proceeds from disposal: Cash proceeds received (net of transaction costs) — 2 19 — — Less: Cash deconsolidated — (3) (10) — — Cash consideration (paid)/received (net of transaction costs and cash held) — (1) 9 — — Non-cash financing activities Consolidated Parent Entity $m Shares issued under the dividend reinvestment plan 1,489 631 1,489 Shares issued from the conversation of Westpac CPS — — 566 — — Increase in lease liabilities — — — On 13 March 2018, $623 million of CPS were transferred to the Westpac CPS nominated party for $100 each pursuant to the Westpac Capital Notes 5 reinvestment offer. Those CPS were subsequently bought back and cancelled by Westpac. On 3 April 2018, the remaining $566 million of CPS were transferred to the Westpac CPS nominated party for $100 each. Following the transfer, those remaining CPS were converted into 19,189,765 ordinary shares. Restricted cash Certain of our foreign operations are required to maintain reserves or minimum balances with central banks in their respective countries of operation, totalling $457 million (2019: $330 million) for the Group and $380 million (2019: $224 million) for the Parent Entity which are included in cash and balances with central banks. |
Subsequent events
Subsequent events | 12 Months Ended |
Sep. 30, 2020 | |
Subsequent events | |
Subsequent events | Note 38. Subsequent events Since 30 September 2020, the Board has determined to pay a fully franked final dividend of 31 cents per fully paid ordinary share. The dividend is expected to be $1,120 million. The dividend is not recognised as a liability at 30 September 2020. The proposed payment date of the dividend is 18 December 2020. The Board has determined to issue shares to satisfy the Dividend Reinvestment Plan (DRP) for the 2020 final ordinary dividend. The DRP will include a 1.5% discount to the market price used to determine the number of shares issued under the DRP. The market price used to determine the number of shares issued under the DRP will be set over the 15 trading days commencing 17 November 2020. Subsequent to the end of the financial year the Group’s General Insurance business met the criteria to be classified as held for sale. The General Insurance business currently forms part of the Specialist Businesses segment. Completion of the expected sale would have no material impact on the Group. No other matters have arisen since the year ended 30 September 2020 which are not otherwise dealt with in this report, that have significantly affected or may significantly affect the operations of the Group, the results of its operations or the state of affairs of the Group in subsequent periods. |
Accounting polices relating to
Accounting polices relating to years prior to 2019 | 12 Months Ended |
Sep. 30, 2020 | |
Accounting polices relating to years prior to 2019 | |
Accounting polices relating to years prior to 2019 | Note 39. Accounting polices relating to years prior to 2019 Due to the Group’s adoption of AASB 9 in 2019, the accounting policies relating to some financial instruments and related balances have changed. The policies applicable to 2020 and 2019 are provided in the relevant note to the financial statements above. As comparative years prior to 2019 were not restated, the accounting policies detailed below reflect the policies applicable to financial years prior to 2019 based on AASB 139. Accounting policy relating to impairment (Note 6 and Note 13) Impairment charges (Note 6) At each balance sheet date, the Group assesses whether there is any objective evidence of impairment of its loan portfolio. An impairment charge is recognised if there is objective evidence that the principal or interest repayments may not be recoverable and when the financial impact of the non-recoverable loan can be reliably measured. Objective evidence of impairment could include a breach of contract with the Group such as a default on interest or principal payments, a borrower experiencing significant financial difficulties or observable economic conditions that correlate to defaults on a group of loans. The impairment charge is measured as the difference between the loan’s current carrying amount and the present value of its estimated future cash flows. The estimated future cash flows exclude any expected future credit losses which have not yet occurred and are discounted to their present value using the loan’s original effective interest rate. If a loan has a variable interest rate, the discount rate for measuring any impairment is the current effective interest rate. The impairment charge is recognised in the income statement with a corresponding reduction of the carrying value of the loan through an offsetting provision account (refer to Note 13). In subsequent periods, objective evidence may indicate that an impairment charge should be reversed. Objective evidence could include a borrower’s credit rating or financial circumstances improving. The impairment charge is reversed in the income statement of that future period and the related provision for impairment is reduced. Uncollectable loans The policy for uncollectable loans is consistent with that applicable to 2020 and 2019 based on AASB 9. Provision for impairment charges (Note 13) The Group recognises two types of impairment provisions for its loans, being provisions for loans which are: ▪ individually assessed for impairment; and ▪ collectively assessed for impairment. The Group assesses impairment as follows: ▪ individually for loans that exceed specified thresholds. Where there is objective evidence of impairment, individually assessed provisions will be recognised; and ▪ collectively for loans below the specified thresholds noted above or if there is no objective evidence of impairment. These loans are included in a group of loans with similar risk characteristics and collectively assessed for impairment. If there is objective evidence that the group of loans is collectively impaired, collectively assessed provisions will be recognised. Critical accounting assumptions and estimates The methodology and assumptions used for estimating future cash flows are reviewed regularly by the Group to reduce differences between impairment provisions and actual loss experience. Individual component Key judgements include the business prospects for the customer, the realisable value of collateral, the Group’s position relative to other claimants, the reliability of customer information and the likely cost and duration of recovering the loan. Judgements can change with time as new information becomes available or as loan recovery strategies evolve, which may result in revisions to the impairment provision. Collective component Collective provisions are established on a portfolio basis taking into account the level of arrears, collateral and security, past loss experience, current economic conditions, expected default and timing of recovery based on portfolio trends. Key judgements include estimated loss rates and their related emergence periods. The emergence period for each loan type is determined through studies of loss emergence patterns. Loan files are reviewed to identify the average time period between observable loss indicator events and the loss becoming identifiable. Actual credit losses may differ materially from reported loan impairment provisions due to uncertainties including interest rates and their effect on consumer spending, unemployment levels, payment behaviour and bankruptcy rates. Accounting policy relating to classification and measurement of financial instruments (Policy prior to Note 10, Note 11 and Note 12) Classification and measurement of financial assets and financial liabilities (Policy prior to Note 10) The Group classifies its financial assets in the following categories: cash and balances with central banks, receivables due from financial institutions, trading securities and financial assets designated at fair value, derivative financial instruments, available-for-sale securities, loans, life insurance assets and regulatory deposits with central banks overseas. The Group has not classified any of its financial assets as held-to-maturity investments. The Group classifies significant financial liabilities in the following categories: payables due to other financial institutions, deposits and other borrowings, other financial liabilities at fair value through income statement, derivative financial instruments, debt issues and loan capital. Financial assets and financial liabilities measured at fair value through income statement are recognised initially at fair value. All other financial assets and financial liabilities are recognised initially at fair value plus directly attributable transaction costs. Available-for-sale securities (Note 11) Available-for-sale debt securities (government and other) and equity securities are held at fair value with gains and losses recognised in OCI except for interest on debt securities, dividends on equity securities, and impairment charges which are recognised in the income statement. The cumulative gain or loss recognised in OCI is subsequently recognised in the income statement when the instrument is disposed. At each reporting date, the Group assesses whether any available-for-sale securities are impaired. Impairment exists if one or more events have occurred which have a negative impact on the security's estimated cash flows. For debt instruments, evidence of impairment includes significant financial difficulties or adverse changes in the payment status of an issuer. For equity securities, a significant or prolonged decline in the fair value of the security below its cost is considered evidence of impairment. If impairment exists, the cumulative loss is removed from OCI and recognised in the income statement. Any subsequent reversals of impairment on debt securities are also recognised in the income statement. Subsequent reversal of impairment charges on equity instruments is not recognised in the income statement until the instrument is disposed. Loans (Note 12) Loans are financial assets initially recognised at fair value plus directly attributable transaction costs and fees. Loans are subsequently measured at amortised cost using the effective interest rate method and are presented net of any provision for impairment charges except for a portfolio of loans which are subsequently measured at fair value to reduce an accounting mismatch. |
Financial statements preparat_2
Financial statements preparation (Policies) | 12 Months Ended |
Sep. 30, 2020 | |
Financial statements preparation | |
Basis of accounting | Basis of accounting This financial report is a general purpose financial report prepared in accordance with: · the requirements for an Authorised Deposit-taking Institution (ADI) under the Banking Act 1959 (as amended); · Australian Accounting Standards (AAS) and Interpretations as issued by the Australian Accounting Standards Board (AASB); and · the Corporations Act 2001. Westpac Banking Corporation is a for-profit entity for the purposes of preparing this financial report. The financial report also complies with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and Interpretations as issued by the IFRS Interpretations Committee (IFRIC). It also includes additional disclosures required for foreign registrants by the United States Securities and Exchange Commission (US SEC). All amounts have been rounded in accordance with ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191, to the nearest million dollars, unless otherwise stated. |
Historical cost convention | Historical cost convention The financial report has been prepared under the historical cost convention, as modified by applying fair value accounting to financial assets and financial liabilities (including derivative instruments) measured at fair value through income statement (FVIS) or in other comprehensive income (OCI). |
Standards adopted during the year ended 30 September 2020 | Standards adopted during the year ended 30 September 2020 AASB 16 Leases (AASB 16) AASB 16 was adopted by the Group on 1 October 2019. AASB 16 requires all operating leases of greater than 12 months duration be presented on balance sheet by the lessee as a right-of-use (ROU) asset and lease liability. There are no significant changes to lessor accounting. The Group adopted the standard using the simplified approach of transition with no restatement of comparative information and no effect on retained earnings. The lease liabilities are measured at the present value of the remaining lease payments, discounted at the lessee’s incremental borrowing rate at 1 October 2019. On transition to the new standard, the lease liability recognised in other liabilities was $3.3 billion for the Group and $3.0 billion for the Parent Entity. The associated ROU assets of $3.2 billion for the Group and $2.9 billion for the Parent Entity were measured at an amount equal to the lease liability, less previously recognised accrued lease payments of $0.1 billion for the Group and the Parent Entity. The ROU assets are recognised in property and equipment. All leases on balance sheet give rise to a combination of interest expense on the lease liability and depreciation of the ROU asset. Interest expense is recognised in net interest income on an effective yield basis. Depreciation expense is recognised in operating expenses on a straight-line basis over the lease term. Extension options are included in a number of lease contracts. The extension options are only included in the lease term if the lease is reasonably certain to be extended, which is assessed by the Group at the lease commencement date. The assessment is reviewed if a significant event or significant change in circumstances occurs which affects this assessment and is within the control of the Group. The Group considered the impact of COVID-19 on our assessment of extension options and concluded that they were unchanged. The Group also considered the impact of COVID-19 on the carrying value of the ROU asset and determined there was no impairment. The Group used the incremental borrowing rate based on the remaining maturity of leases at the date of transition as the discount rate when determining present value. The weighted average incremental borrowing rate applied was 2.1%. Operating lease commitments disclosed under AASB 117 Leases (AASB 117) as at 30 September 2019 were $3.7 billion for the Group and $3.4 billion for the Parent Entity compared to the lease liabilities of $3.3 billion for the Group and $3.0 billion for the Parent Entity recognised under AASB 16 as at 1 October 2019. The difference is principally due to the discounting of the contractual lease payments under AASB 16. AASB Interpretation 23 Uncertainty over Income Tax Treatments (Interpretation 23) Interpretation 23 was adopted by the Group on 1 October 2019 and clarifies the recognition and measurement criteria in AASB 112 Income Taxes (AASB 112) where there is uncertainty over income tax treatments, and requires an assessment of each uncertain tax position as to whether it is probable that a taxation authority will accept the position. Where it is not considered probable, the effect of the uncertainty will be reflected in determining the relevant taxable profit or loss, tax bases, unused tax losses and unused tax credits or tax rates. The amount will be determined as either the single most likely amount or the sum of the probability weighted amounts in a range of possible outcomes, whichever better predicts the resolution of the uncertainty. Judgements will be reassessed as and when new facts and circumstances are presented. Interpretation 23 did not have a material impact on the Group. AASB 2019-3 Amendments to Australian Accounting Standards – Interest rate benchmark reform (AASB 2019-3) AASB 2019-3 was early adopted, as permitted by the standard, by the Group on 1 October 2019. AASB 2019-3 makes amendments to AASB 9 Financial Instruments (December 2014) (AASB 9), AASB 139 Financial Instruments: Recognition and Measurement (AASB 139), and AASB 7 Financial Instruments: Disclosures (AASB 7) which allows the Group to apply certain exceptions to the standard hedging requirements in respect of hedge relationships that are impacted by a market-wide interest rate benchmark reform. Specifically the exceptions allow the Group to: · Assume that the interest rate benchmark on which the hedged cash flows are based is not altered as a result of the reform when determining whether a forecast transaction is highly probable; · Assume that interest rate benchmark of the hedged item / instrument is not altered for the life of the hedge when assessing whether a hedge is expected to continue to be highly effective; · A hedge relationship impacted by uncertainty arising from benchmark interest rate reform is not required to pass the 80%-125% effectiveness test, however any actual ineffectiveness must be recorded in the income statement; and · The determination of a designated component of an exposure in portfolio hedges is only required to be made the first time that component is designated, and not when the portfolio is de-designated and re-designated. The exceptions allowed by the amendments are being applied to the Group’s LIBOR linked hedge relationships that mature after the LIBOR discontinuance date of 31 December 2021. Last year the Group established an enterprise-wide Interbank Offered Rates (IBORs) Transition Program to manage the impacts of Interest Rate Benchmark Reform (IBOR reform). The scope of the program is to address the impact of transition from IBORs to alternative reference rates (ARRs) including business, compliance, customer and technology impacts. The Governance structure of the program is well established to include a Steering Committee with its key responsibility being the governance of the program. The Committee includes senior executives from Finance, Legal, Technology, Compliance, Risk and all impacted business units. The program is executing against transition timelines with regulatory guidance in relation to COVID-19 indicating LIBOR is still expected to cease by end of December 2021. Significant activities underway include development of ARR product variations, changes required for adopting the International Swaps and Derivatives Association (ISDA) Protocol, customer outreach including management of conduct risk in customer transition and technology. Changes required for both euro short-term rate (ESTR) and secured overnight funding rate (SOFR) LCH discounting have been implemented. A key assumption made when performing hedge accounting at the reporting date is that both the hedged item and instrument will be amended from existing LIBOR linked floating rates to new ARRs on the same date. Where actual differences between those dates arise hedge ineffectiveness will be recorded in the income statement. Note 20 provides further information regarding the hedging relationships affected by the IBOR reform. Refer to Note 1 (c) - Future developments in accounting standards for details of the accounting standard issues but not yet effective dealing with phase two of the IBOR reform. |
Business combinations | Business combinations Business combinations are accounted for using the acquisition method of accounting. Acquisition cost is measured as the aggregate of the fair value at the date of acquisition of the assets given, equity instruments issued or liabilities incurred or assumed. Acquisition-related costs are expensed as incurred (except for those costs arising on the issue of equity instruments which are recognised directly in equity). Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured at fair value on the acquisition date. Goodwill is measured as the excess of the acquisition cost, the amount of any non-controlling interest and the fair value of any previous Westpac equity interest in the acquiree, over the fair value of the identifiable net assets acquired. |
Foreign currency translation | Foreign currency translation Functional and presentational currency The consolidated financial statements are presented in Australian dollars which is the Parent Entity’s functional and presentation currency. The functional currency of offshore entities is usually the main currency of the economy it operates in. Transactions and balances Foreign currency transactions are translated into the functional currency of the relevant branch or subsidiary using the exchange rates prevailing at the dates of the transactions. Foreign exchange (FX) gains and losses resulting from the settlement of such transactions and from the translation at year end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement, except when deferred in OCI for qualifying cash flow hedges and qualifying net investment hedges. Foreign operations Assets and liabilities of foreign branches and subsidiaries that have a functional currency other than the Australian dollar are translated at exchange rates prevailing on the balance date. Income and expenses are translated at average exchange rates prevailing during the year. Equity balances are translated at historical exchange rates. The resulting exchange differences are recognised in the foreign currency translation reserve and in OCI. On consolidation, exchange differences arising from the translation of borrowings and other foreign currency instruments designated as hedges of the net investment in foreign operations are reflected in the foreign currency translation reserve and in OCI. When all or part of a foreign operation is disposed or borrowings that are part of the net investments are repaid, a proportionate share of such exchange differences is recognised in the income statement as part of the gain or loss on disposal or repayment of borrowing. |
Comparative revisions | Comparative revisions Comparative information has been revised where appropriate to conform to changes in presentation in the current year and to enhance comparability. |
Critical accounting assumptions and estimates | Critical accounting assumptions and estimates Applying the Group’s accounting policies requires the use of judgement, assumptions and estimates which impact the financial information. The significant assumptions and estimates used are discussed in the relevant notes below: · Note 7 Income tax · Note 13 Provisions for expected credit losses/impairment charges · Note 15 Life insurance assets and life insurance liabilities · Note 22 Fair values of financial assets and financial liabilities · Note 25 Intangible assets · Note 27 Provisions, contingent liabilities, contingent assets and credit commitments · Note 34 S uperannuation commitments Impact of COVID-19 The COVID-19 pandemic and the measures put in place domestically and globally to control the spread of the virus have had a significant impact on global economies and financial markets. As a result, this has increased the uncertainty and judgement required in relation to our critical accounting assumptions and estimates, primarily relating to: · expected credit losses; and · recoverable amount assessments of intangible assets. As there is a higher than usual degree of uncertainty associated with these assumptions and estimates, the actual economic conditions are likely to be different from those forecast which may significantly impact accounting estimates included in these financial statements. The impact of COVID-19 is discussed further in each of the related notes. |
Future developments in accounting standards | Future developments in accounting standards The following new standards and interpretations which may have a material impact on the Group have been issued but are not yet effective, and unless otherwise stated, have not been early adopted by the Group: AASB 17 Insurance Contracts (AASB 17) was issued on 19 July 2017 and will be effective for the 30 September 2022 year end unless early adopted. This will replace AASB 4 Insurance Contracts (AASB 4), AASB 1023 General Insurance Contracts and AASB 1038 Life Insurance Contracts . The main changes under the standard are: · the scope of the standard may result in some contracts that are currently "unbundled", i.e. accounted for separately as insurance and investment contracts being required to be "bundled" and accounted for as an insurance contract; · portfolios of contracts (with similar risks which are managed together) will be required to be disaggregated to a more granular level by both the age of a contract and the likelihood of the contract being onerous in order to determine the recognition of profit over the contract period (i.e. the contractual service margin). The contractual service margin uses a different basis to recognise profit to the current Margin on Services approach for life insurance and therefore the pattern of profit recognition is likely to differ; · risk adjustments, which reflect uncertainties in the amount and timing of future cash flows, are required for both general and life insurance contracts rather than just general insurance contracts under the current accounting standards; · the contract boundary, which is the period over which profit is recognised, differs and is determined based on the ability to compel the policyholder to pay premiums or the substantive obligation to provide coverage/services. For some general insurance contracts (e.g. some lender mortgage insurance and reinsurance contracts) this may result in the contract boundary being longer. For life insurance, in particular term renewable contracts, the contract boundary is expected to be shorter. Both will be impacted by different patterns of profit recognition compared to the current standards; · a narrower definition of what acquisition costs may be deferred; · an election to recognise changes in assumptions regarding discount rate in OCI rather than in income statement; · an election to recognise changes in the fair value of assets supporting policy liabilities in OCI rather than through the income statement; · reinsurance contracts and the associated liability are to be determined separately to the gross contract liability and may have different contract boundaries; and · additional disclosure requirements. The standard is expected to result in a reduction in the level of deferred acquisition costs, however the quantum of this and the income statement impacts to the Group are not yet practicable to determine. AASB 2020-5 Amendments to Australian Accounting Standards - Insurance Contracts was issued on 30 July 2020. This standard includes a number of amendments to AASB 17. These amendments include: · deferral of acquisition costs for anticipated renewals outside of the initial contract boundary; · further clarity on the contractual service margin; · additional scope exclusion for credit card contracts and similar contracts that provide insurance coverage as well as optional scope exclusion for loan contracts that transfer significant insurance risk; · ability to recognise a gain in the income statement for reinsurance contracts, to offset losses from onerous contracts on initial recognition; · simplified presentation requirements; and · additional transitional relief. In addition, the effective date of AASB 17 will be deferred by two years to be applicable to the Group for the 30 September 2024 financial year. On 22 September 2020, the AASB issued AASB 2020-8 Amendments to Australian Accounting Standards - Interest Rate Benchmark Reform - Phase 2 which makes further amendments to AASB 9, AASB 139, and AASB 7 resulting from IBOR reform. Amendments are also made to AASB 4 and AASB 16. The standard is effective for the 30 September 2022 year end unless early adopted. The amendments: · allow the Group to account for a change in contractual cash flows of a financial instrument or lease liability that result specifically from IBOR reform by updating the effective interest rate rather than recognising a modification gain or loss; · allow the Group to continue hedge accounting and not trigger a de-designation when the following occurs specific to IBOR reform: - changes to hedge documentation to update the hedged risk, item and instrument; - changes to the method of assessing hedge ineffectiveness; - once the hedge relationship has been converted from LIBOR to ARR the cumulative change in fair value for ineffectiveness testing could be reset to zero if this would improve the retrospective effectiveness test; - this amendment can apply to macro cash flow and fair value hedges where subgroups can be formed within the portfolio of hedges where some are under the existing LIBOR rate and others have already changed to the ARR; · require additional disclosures including: - quantitative information regarding all financial instruments linked to LIBOR which have not been yet converted to ARR; - changes to the entity's risk management strategy arising from IBOR reform; and - the management of the Group's transition to ARR. These amendments will impact the Group's financial instruments and lease liabilities that reference a LIBOR rate as they transition to an ARR. The Group is currently assessing the impact of the standard and considering whether to early adopt the amendments as permitted by the standard. A revised Conceptual Framework (Framework) was issued in May 2019. This will be effective for the Group for the 30 September 2021 financial year. The revised Framework includes new definitions and recognition criteria for assets, liabilities, income and expenses and other relevant financial reporting concepts. The changes are not expected to have a material impact to the Group. Other amendments to existing standards that are not yet effective are not expected to have a material impact to the Group. |
Segment reporting | Operating segments are presented on a basis consistent with information provided internally to Westpac’s key decision makers and reflect the management of the business, rather than the legal structure of the Group. Internally, Westpac uses ‘cash earnings’ in assessing the financial performance of its divisions. Management believes this allows the Group to: more effectively assess current year performance against prior years; compare performance across business divisions; and compare performance across peer companies. Cash earnings is viewed as a measure of the level of profit that is generated by ongoing operations and is therefore typically considered in assessing distributions, including dividends. Cash earnings is neither a measure of cash flow nor net profit determined on a cash accounting basis, as it includes both cash and non-cash adjustments to statutory net profit. To determine cash earnings, three categories of adjustments are made to statutory results: material items that key decision makers at the Westpac Group believe do not reflect ongoing operations; items that are not typically considered when dividends are recommended, such as the amortisation of intangibles, impact of Treasury shares and economic hedging impacts; and accounting reclassifications between individual line items that do not impact statutory results. Internal charges and transfer pricing adjustments have been reflected in the performance of each operating segment. Inter-segment pricing is determined on an arm’s length basis. |
Net interest income | Interest income and interest expense for all interest earning financial assets and interest bearing financial liabilities at amortised cost or FVOCI, detailed within the table below, are recognised using the effective interest rate method. Net income from treasury’s interest rate and liquidity management activities and the cost of the Bank levy are included in net interest income. The effective interest rate method calculates the amortised cost of a financial instrument by discounting the financial instrument’s estimated future cash receipts or payments to their present value and allocates the interest income or interest expense, including any fees, costs, premiums or discounts integral to the instrument, over its expected life. Interest income is calculated based on the gross carrying amount of financial assets in stages 1 and 2 of the Group’s expected credit losses (ECL) model and on the carrying amount net of the provision for ECL for financial assets in stage 3. For 2018 comparative year, interest income under AASB 139 is recognised net of provision for impairment on loans. Refer to Note 13 for further details of the Group’s ECL model. |
Non-interest income | Non-interest income includes net fee income, net wealth management and insurance income, trading income and other income. Net fee income When another party is involved in providing goods or services to a Group customer, the Group assesses whether the nature of the arrangement with its customer is as a principal provider or an agent of another party. Where the Group is acting as an agent for another party, the income earned by the Group is the net consideration received (i.e. the gross amount received from the customer less amounts paid to a third party provider). As an agent, the net consideration represents fee income for facilitating the transaction between the customer and the third party provider with primary responsibility for fulfilling the contract. Fee income Fee income is recognised when the performance obligation is satisfied by transferring the promised good or service to the customer. Fee income includes facility fees, transaction fees and other non-risk fee income. Facility fees include certain line fees, annual credit card fees and fees for providing customer bank accounts. They are recognised over the term of the facility/period of service on a straight line basis. Transaction fees are earned for facilitating banking transactions such as FX fees, telegraphic transfers and issuing bank cheques. Fees for these one-off transactions are recognised once the transaction has been completed. Transaction fees are also recognised for credit card transactions including interchange fees net of scheme charges. These are recognised once the transaction has been completed, however, a component of interchange fees received is deferred as unearned income as the Group has a future service obligation to customers under the Group’s credit card reward programs. Other non-risk fee income includes advisory and underwriting fees which are recognised when the related service is completed. Income which forms an integral part of the effective interest rate of a financial instrument is recognised using the effective interest method and recorded in interest income (for example, loan origination fees). Fee expenses Fee expenses include incremental external costs that vary directly with the provision of goods or services to customers. An incremental cost is one that would not have been incurred if a specific good or service had not been provided to a specific customer. Fee expenses which form an integral part of the effective interest rate of a financial instrument are recognised using the effective interest method and recorded in net interest income. Fee expenses include the costs associated with credit card loyalty programs which are recognised as an expense when the services are provided on the redemption of points as well as merchant transaction costs. Net wealth management and insurance income Wealth management income Wealth management fees earned for the ongoing management of customer funds and investments are recognised when the performance obligation is satisfied which is over the period of management. Insurance premium income Insurance premium income includes premiums earned for life insurance, life investment, loan mortgage insurance and general insurance products: life insurance premiums with a regular due date are recognised as revenue on an accrual basis; life investment premiums include a management fee component which is recognised as income over the period the service is provided. The deposit components of life insurance and investment contracts are not revenue and are treated as movements in life insurance liabilities; general insurance premium comprises amounts charged to policyholders, excluding taxes, and is recognised based on the likely pattern in which the insured risk is likely to emerge. The portion not yet earned based on the pattern assessment is recognised as unearned premium liability. Insurance claims expense life and general insurance contract claims are recognised as an expense when the liability is established; claims incurred in respect of life investment contracts represent withdrawals and are recognised as a reduction in life insurance liabilities. Trading income realised and unrealised gains or losses from changes in the fair value of trading assets, liabilities and derivatives are recognised in the period in which they arise (except day one profits or losses which are deferred, refer to Note 22); net income related to Treasury’s interest rate and liquidity management activities is included in net interest income. Other income - dividend income dividends on quoted shares are recognised on the ex-dividend date; dividends on unquoted shares are recognised when the company’s right to receive payment is established. |
Impairment charges | As 2018 comparatives were not restated for the Group's adoption of AASB 9 in 2019, the accounting policy applied in 2020 and 2019 differs to that applied prior to 2019. The accounting policy applied prior to 2019 is discussed in Note 39. The accounting policy applied in 2020 and 2019 is as follows. Impairment charges are based on an expected loss model which measures the difference between the current carrying amount and the present value of expected future cash flows taking into account past experience, current conditions and multiple probability-weighted macroeconomic scenarios for reasonably supportable future economic conditions. Further details of the calculation of ECL and the critical accounting assumptions and estimates relating to impairment charges are included in Note 13. Impairment charges are recognised in the income statement, with a corresponding amount recognised as follows: Loans, debt securities at amortised cost and due from subsidiaries balances: as a reduction of the carrying value of the financial asset through an offsetting provision account (refer to Note 13); Debt securities at FVOCI: in reserves in OCI with no reduction of the carrying value of the debt security (refer to Note 28); and Credit commitments: as a provision (refer to Note 27). Uncollectable loans A loan may become uncollectable in full or part if, after following the Group’s loan recovery procedures, the Group remains unable to collect that loan’s contractual repayments. Uncollectable amounts are written off against their related provision for ECL, after all possible repayments have been received. Where loans are secured, amounts are generally written off after receiving the proceeds from the security, or in certain circumstances, where the net realisable value of the security has been determined and this indicates that there is no reasonable expectation of full recovery, write-off may be earlier. Unsecured consumer loans are generally written off after 180 days past due. The Group may subsequently be able to recover cash flows from loans written off. In the period which these recoveries are made, they are recognised in the income statement. |
Income tax | The tax expense for the year comprises current and deferred tax. Tax is recognised in the income statement, except to the extent that it relates to items recognised directly in OCI, in which case it is recognised in the statement of comprehensive income. Current tax is the tax payable for the year using enacted or substantively enacted tax rates and laws for each jurisdiction. Current tax also includes adjustments to tax payable for previous years. Deferred tax accounts for temporary differences between the carrying amounts of assets and liabilities in the financial statements and their values for taxation purposes. Deferred tax is determined using the enacted or substantively enacted tax rates and laws for each jurisdiction which are expected to apply when the assets will be realised or the liabilities settled. Deferred tax assets and liabilities have been offset where they relate to the same taxation authority, the same taxable entity or group, and where there is a legal right and intention to settle on a net basis. Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available to utilise the assets. Deferred tax is not recognised for the following temporary differences: the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither the accounting nor taxable profit or loss; the initial recognition of goodwill in a business combination; and retained earnings in subsidiaries which the Parent Entity does not intend to distribute for the foreseeable future. The Parent Entity is the head entity of a tax consolidated group with its wholly owned, Australian subsidiaries. All entities in the tax consolidated group have entered into a tax sharing agreement which, in the opinion of the Directors, limits the joint and several liabilities in the case of a default by the Parent Entity. Current and deferred tax are recognised using a ‘group allocation basis’. As head entity, the Parent Entity recognises all current tax balances and deferred tax assets arising from unused tax losses and relevant tax credits for the tax-consolidated group. The Parent Entity fully compensates/is compensated by the other members for these balances. Critical accounting assumptions and estimates The Group operates in multiple tax jurisdictions and significant judgement is required in determining the worldwide current tax liability. There are many transactions with uncertain tax outcomes and provisions are determined based on the expected outcomes. |
Earnings per share | Basic earnings per share (EPS) is calculated by dividing the net profit attributable to shareholders by the weighted average number of ordinary shares on issue during the year, adjusted for treasury shares. Diluted EPS is calculated by adjusting the basic EPS by assuming all dilutive potential ordinary shares are converted. Refer to Notes 19 and 33 for further information on the potential dilutive instruments. |
Financial Assets and Financial Liabilities | Recognition Purchases and sales by regular way of financial assets, except for loans and receivables, are recognised on trade-date, the date on which the Group commits to purchase or sell the asset. Loans and receivables are recognised on settlement date, when cash is advanced to the borrowers. Financial liabilities are recognised when an obligation arises. Derecognition Financial assets are derecognised when the rights to receive cash flows from the asset have expired, or when the Group has either transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full under a ‘pass through’ arrangement and transferred substantially all the risks and rewards of ownership. There may be situations where the Group has partially transferred the risks and rewards of ownership but has neither transferred nor retained substantially all the risks and rewards of ownership. In such situations, where the Group retains control of the transferred asset, it will continue to be recognised in the balance sheet to the extent of the Group’s continuing involvement in the asset. Financial liabilities are derecognised when the obligation is discharged, cancelled or expires. Where an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, the exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, with the difference in the respective carrying amounts recognised in the income statement. The terms are deemed to be substantially different if the discounted present value of the cash flows under the new terms (discounted using the original effective interest rate) is at least 10% different from the discounted present value of the remaining cash flows of the original financial liability. Qualitative factors such as a change in the currency the instrument is denominated in, a change in the interest rate from fixed to floating and conversion features are also considered. Classification and measurement As comparatives prior to 2019 were not restated for the Group's adoption of AASB 9 in 2019, the accounting policy applied in 2020 and 2019 differs to that applied prior to 2019. The accounting policy applied prior to 2019 is discussed in Note 39. The accounting policy applied in 2020 and 2019 is as follows. Financial assets are grouped into the following classes: cash and balances with central banks; collateral paid, trading securities and financial assets measured at FVIS, derivative financial instruments, investment securities, loans, other financial assets and life insurance assets. Financial assets Financial assets are classified based on a) the business model within which the assets are managed, and b) whether the contractual cash flows of the instrument represent solely payment of principal and interest (SPPI). The Group determines the business model at the level that reflects how groups of financial assets are managed. When assessing the business model the Group considers factors including how performance and risks are managed, evaluated and reported and the frequency and volume of, and reason for, sales in previous periods and expectations of sales in future periods. When assessing whether contractual cash flows are SPPI, interest is defined as consideration primarily for the time value of money and the credit risk of the principal outstanding. The time value of money is defined as the element of interest that provides consideration only for the passage of time and not consideration for other risks or costs associated with holding the financial asset. Terms that could change the contractual cash flows so that they may not meet the SPPI criteria include contingent and leverage features, non-recourse arrangements, and features that could modify the time value of money. Debt instruments If the debt instruments have contractual cash flows which represent SPPI on the principal balance outstanding they are classified at: amortised cost if they are held within a business model whose objective is achieved through holding the financial asset to collect these cash flows; or FVOCI if they are held within a business model whose objective is achieved both through collecting these cash flows or selling the financial asset; or FVIS if they are held within a business model whose objective is achieved through selling the financial asset. Debt instruments are measured at FVIS where the contractual cash flows do not represent SPPI on the principal balance outstanding or where it is designated at FVIS to eliminate or reduce an accounting mismatch. Debt instruments at amortised cost are initially recognised at fair value and subsequently measured at amortised cost using the effective interest rate method. They are presented net of provision for ECL determined using the ECL model. Refer to Notes 6 and 13 for further details. Debt instruments at FVOCI are measured at fair value with unrealised gains and losses recognised in OCI except for interest income, impairment charges and FX gains and losses, which are recognised in the income statement. Impairment on debt instruments at FVOCI is determined using the ECL model and is recognised in the income statement with a corresponding amount in OCI. There is no reduction of the carrying value of the debt security which remains at fair value. The cumulative gain or loss recognised in OCI is subsequently recognised in the income statement when the instrument is derecognised. Debt instruments at FVIS are measured at fair value with subsequent changes in fair value recognised in the income statement. Equity securities Equity securities are measured at FVOCI where they: are not held for trading; and an irrevocable election is made by the Group. Otherwise, they are measured at FVIS. Equity securities at FVOCI are measured at fair value with unrealised gains and losses recognised in OCI, except for dividend income which is recognised in the income statement. The cumulative gain or loss recognised in OCI is not subsequently recognised in the income statement when the instrument is disposed. Equity securities at FVIS are measured at fair value with subsequent changes in fair value recognised in the income statement. Financial liabilities Financial liabilities are grouped into the following classes: collateral received, deposits and other borrowings, other financial liabilities, derivative financial instruments, debt issues and loan capital. Financial liabilities are measured at amortised cost if they are not held for trading or designated at FVIS, otherwise they are measured at FVIS. Financial assets and financial liabilities measured at FVIS are recognised initially at fair value. All other financial assets and financial liabilities are recognised initially at fair value plus or minus directly attributable transaction costs respectively. Further details of the accounting policy for each category of financial asset or financial liability mentioned above is set out in the note for the relevant item. The Group’s policies for determining the fair value of financial assets and financial liabilities are set out in Note 22. |
Trading securities and financial assets designated at fair value | Trading securities Trading securities include actively traded debt (government and other) and equity instruments and those acquired for sale in the near term. As part of its trading activities, the Group also lends and borrows securities on a collateralised basis. Securities lent remain on the Group’s balance sheet and securities borrowed are not reflected on the Group’s balance sheet, as the risks and rewards of ownership remain with the initial holder. Where cash is provided as collateral, the amount advanced to or received from third parties is recognised as a receivable in collateral paid or as a borrowing in collateral received respectively. Reverse repurchase agreements Securities purchased under these agreements are not recognised in the balance sheet, as Westpac has not obtained the risks and rewards of ownership. The cash consideration paid is recognised as a reverse repurchase agreement, which forms part of a trading portfolio that is measured at fair value. Other financial assets measured at FVIS Other financial assets measured at FVIS include: non-trading securities managed on a fair value basis; non-trading debt securities that do not have contractual cash flows that represent SPPI on the principal balance outstanding; or non-trading equity securities for which we have not made irrevocable designation to be measured at FVOCI. Gains and losses on these financial assets are recognised in the income statement. Interest earned from debt securities is recognised in interest income (Note 3) while dividends on equity securities are recognised in non-interest income (Note 4). |
Available-for-sale securities/Investment securities | As 2018 comparatives were not restated for the Group's adoption of AASB 9 in 2019, the accounting policy applied in 2020 and 2019 differs to that applied prior to 2019. The accounting policy applied prior to 2019 is discussed in Note 39. The accounting policy applied in 2020 and 2019 is as follows. Investment securities include debt securities (government and other) and equity securities. It includes debt and equity securities that are measured at FVOCI and debt securities measured at amortised cost. These instruments are classified based on the criteria disclosed under the heading “Financial assets and financial liabilities” prior to Note 10. Debt securities measured at FVOCI Include debt instruments that have contractual cash flows which represent SPPI on the principal balance outstanding and they are held within a business model whose objective is achieved both through collecting these cash flows or selling the financial asset. These securities are measured at fair value with gains and losses recognised in OCI except for interest income, impairment charges and FX gains and losses which are recognised in the income statement. Impairment is measured using the same ECL model applied to financial assets measured at amortised cost. Impairment is recognised in the income statement with a corresponding amount in OCI with no reduction of the carrying value of the debt security which remains at fair value. Refer to Note 13 for further details. The cumulative gain or loss recognised in OCI is subsequently recognised in the income statement when the instrument is disposed. Debt securities measured at amortised cost Include debt instruments that have contractual cash flows which represent SPPI on the principal balance outstanding and are held within a business model whose objective is achieved through holding the financial asset to collect these cash flows. These securities are initially recognised at fair value plus directly attributable transaction costs. They are subsequently measured at amortised cost using the effective interest rate method and are presented net of any provision for ECL. Equity securities Equity securities are measured at FVOCI where they are not held for trading, the Group does not have control or significant influence over the investee and where an irrevocable election is made to measure them at FVOCI. These securities are measured at fair value with unrealised gains and losses recognised in OCI except for dividend income which is recognised in the income statement. The cumulative gain or loss recognised in OCI is not subsequently recognised in the income statement when the instrument is disposed. |
Loans | As 2018, 2017 and 2016 comparatives were not restated for the Group's adoption of AASB 9 in 2019, the accounting policy applied in 2020 and 2019 differs to that applied prior to 2019. The accounting policy applied prior to 2019 is discussed in Note 39. The accounting policy applied in 2020 and 2019 is as follows. Loans are financial assets initially recognised at fair value plus directly attributable transaction costs and fees. Loans are subsequently measured at amortised cost using the effective interest rate method where they have contractual cash flows which represent SPPI on the principal balance outstanding and they are held within a business model whose objective is achieved through holding the loans to collect these cash flows. They are presented net of any provision for ECL. Loans are subsequently measured at FVIS where they do not have cash flows which represent SPPI, are held within a business model whose objective is achieved by selling the financial asset, or are designated at FVIS to eliminate or reduce an accounting mismatch. Refer to Note 22 for balances which are measured at fair value and amortised cost. Loan products that have both mortgage and deposit facilities are presented gross in the balance sheet, segregating the asset and liability component, because they do not meet the criteria to be offset. Interest earned on these products is presented on a net basis in the income statement as this reflects how the customer is charged. |
Provisions for expected credit losses/impairment charges | As 2018, 2017 and 2016 comparatives were not restated upon the Group's adoption of AASB 9 in 2019, the accounting policy applied in 2020 and 2019 differs to that applied prior to 2019. The accounting policy applied prior to 2019 is discussed in Note 39. The accounting policy applied in 2020 and 2019 is as follows. Note 6 provides details of impairment charges. Impairment under AASB 9 applies to all financial assets at amortised cost, lease receivables, debt securities measured at FVOCI, due from subsidiaries and credit commitments. The Expected Credit Loss (ECL) determined under AASB 9 is recognised as follows: Loans (including lease receivables), debt securities at amortised cost and due from subsidiaries: as a reduction of the carrying value of the financial asset through an offsetting provision account (refer to Notes 11 and 12); Debt securities at FVOCI: in reserves in OCI with no reduction of the carrying value of the debt security itself (refer to Notes 11 and 28); and Credit commitments: as a provision (refer to Note 27). Measurement The Group calculates the provision for ECL based on a three stage approach. ECL are a probability-weighted estimate of the cash shortfalls expected to result from defaults over the relevant timeframe. They are determined by evaluating a range of possible outcomes and taking into account the time value of money, past events, current conditions and forecasts of future economic conditions. The models use three main components to determine the ECL (as well as the time value of money) including: Probability of default (PD): the probability that a counterparty will default; Loss given default (LGD): the loss that is expected to arise in the event of a default; and Exposure at default (EAD): the estimated outstanding amount of credit exposure at the time of the default. Model stages The three stages are as follows: Stage 1: 12 months ECL – performing For financial assets where there has been no significant increase in credit risk since origination a provision for 12 months ECL is recognised. Stage 2: Lifetime ECL – performing For financial assets where there has been a significant increase in credit risk since origination but where the asset is still performing a provision for lifetime ECL is recognised. The indicators of a significant increase in credit risk are described on the following page. Stage 3: Lifetime ECL – non-performing For financial assets that are non-performing a provision for lifetime ECL is recognised. Indicators include a breach of contract with the Group such as a default on interest or principal payments, a borrower experiencing significant financial difficulties or observable economic conditions that correlate to defaults on an individual basis. Financial assets in Stage 3 are those that are in default. A default occurs when Westpac considers that the customer is unable to repay its credit obligations in full, irrespective of recourse by the Group to actions such as realising security, or the customer is more than 90 days past due on any material credit obligation. This definition is aligned to the Australian Prudential Regulation Authority (APRA) regulatory definition of default. Collective and individual assessment Financial assets that are in Stages 1 and 2 are assessed on a collective basis. This means that they are grouped in pools of similar assets with similar credit risk characteristics including the type of product and the customer risk grade. Financial assets in Stage 3 are assessed on an individual basis and calculated collectively for those below a specified threshold. Expected life In considering the lifetime timeframe for ECL in Stages 2 and 3, the standard generally requires use of the remaining contractual life adjusted, where appropriate, for prepayments, extension and other options. For certain revolving credit facilities which include both a drawn and undrawn component (e.g. credit cards and revolving lines of credit), the Group’s contractual ability to demand repayment and cancel the undrawn commitment does not limit the exposure to credit losses to the contractual notice period. For these facilities, lifetime is based on historical behaviour. Movement between stages Assets may move in both directions through the stages of the impairment model. Assets previously in Stage 2 may move back to Stage 1 if it is no longer considered that there has been a significant increase in credit risk. Similarly, assets in Stage 3 may move back to Stage 1 or Stage 2 if they are no longer assessed to be non-performing. Critical accounting assumptions and estimates Key judgements include when a significant increase in credit risk has occurred and estimation of forward -looking macroeconomic information. Other factors which can impact the provision include the borrower’s financial situation, the realisable value of collateral, the Group’s position relative to other claimants, the reliability of customer information and the likely cost and duration of recovering the loan. Significant increase in credit risk Determining when a financial asset has experienced a significant increase in credit risk since origination is a critical accounting judgement which is primarily based on changes in internal customer risk grades since origination of the facility. A change in an internal customer risk grade is based on both quantitative and qualitative factors. The change in the internal customer risk grade that the Group uses to represent a significant increase in credit risk is based on a sliding scale. This means that a higher credit quality exposure at origination would require a more significant downgrade compared to a lower credit quality exposure before it is considered to have experienced a significant increase in credit risk. The Group does not rebut the presumption that instruments that are 30 days past due have experienced a significant increase in risk but this is used as a backstop rather than the primary indicator. The deferral of payments by customers in hardship arrangements is generally treated as an indication of a significant increase in credit risk (SICR) but the deferral of payments under the current COVID-19 support packages for mortgages and business loans has not, in isolation, been treated as an indication of SICR. The Group has classified these deferral packages into different categories of risk which have been assessed for an increased likelihood of a risk of default to determine whether a SICR has occurred. The Group does not apply the low credit risk exemption which assumes investment grade facilities do not have a significant increase in credit risk. Forward-looking macroeconomic information The measurement of ECL for each stage and the assessment of significant increase in credit risk consider information about past events and current conditions as well as reasonable and supportable projections of future events and economic conditions. The estimation of forward-looking information is a critical accounting judgement. The Group considers three future macroeconomic scenarios including a base case scenario along with upside and downside scenarios. The macroeconomic variables used in these scenarios, based on current economic forecasts, include (but are not limited to) employment to population rates, real gross domestic product growth rates and residential and commercial property price indices. Base case scenario This scenario utilises the internal Westpac economics forecast used for strategic decision making and forecasting. Upside scenario This scenario represents a modest improvement on the base case scenario. Downside scenario The downside scenario is a more severe scenario with ECL higher than those under the current base case scenario. The more severe loss outcome for the downside is generated under a recession scenario in which the combination of negative GDP growth, declines in commercial and residential property prices and an increase in the unemployment rate simultaneously impact ECL across all portfolios from the reporting date. The macroeconomic scenarios are weighted based on the Group’s best estimate of the relative likelihood of each scenario. The weighting applied to each of the three macroeconomic scenarios takes into account historical frequency, current trends, and forward-looking conditions. The macroeconomic variables and probability weightings of the three macroeconomic scenarios are subject to the approval of the Group Chief Financial Officer and Chief Risk Officer with oversight from the Board of Directors (and its Committees). Where appropriate, adjustments will be made to modelled outcomes to reflect reasonable and supportable information not already incorporated in the models. Judgements can change with time as new information becomes available which could result in changes to the provision for ECL. |
Life insurance assets and life insurance liabilities | The Group conducts its life insurance business in Australia primarily through Westpac Life Insurance Services Limited and separate statutory funds registered under the Life Insurance Act 1995 (Life Act) and in New Zealand through Westpac Life-NZ-Limited which are separate statutory funds licensed under the Insurance (Prudential Supervision) Act 2010. Life insurance assets Life insurance assets, including investments in funds managed by the Group, are designated at FVIS. Changes in fair value are recognised in non-interest income. The determination of fair value of life insurance assets involves the same judgements as other financial assets, which are described in the critical accounting assumptions and estimates in Note 22. The Life Act places restrictions on life insurance assets, including that they can only be used: to meet the liabilities and expenses of that statutory fund; to acquire investments to further the business of the statutory fund; or as a distribution, when the statutory fund has met its solvency and capital adequacy requirements. Life insurance liabilities Life insurance liabilities primarily consist of life investment contract liabilities and life insurance contract liabilities. Claims incurred in respect of life investment contracts are withdrawals of customer deposits, and are recognised as a reduction in life insurance liabilities. Life investment contract liabilities Life investment contract liabilities are designated at FVIS. Fair value is the higher of the valuation of life insurance assets linked to the life investment contract, or the minimum current surrender value (the minimum amount the Group would pay to a policyholder if their policy is voluntarily terminated before it matures or the insured event occurs). Changes in fair value are recognised in non-interest income. Life insurance contract liabilities The value of life insurance contract liabilities is calculated using the margin on services methodology (MoS), specified in the Prudential Standard LPS 340 Valuation of Policy Liabilities. MoS accounts for the associated risks and uncertainties of each type of life insurance contract written. At each reporting date, planned profit margins and an estimate of future liabilities are calculated. Profit margins are released to non-interest income over the period that life insurance is provided to policyholders (Note 4). The cost incurred of acquiring specific insurance contracts is deferred provided that these amounts are recoverable out of planned profit margins. The deferred amounts are recognised as a reduction in life insurance policy liabilities and are amortised to non-interest income over the same period as the planned profit margins. Life insurance contract liability adequacy test Life insurance contract policy liabilities are tested for liability adequacy by comparing them to the best estimate of future cash flows. Liabilities are grouped into related product groups and each group is tested against the best estimate of future cash flows. If the liability of a related product group is less than best estimate the liability is increased with the expense being recognised in non-interest income. External unit holder liabilities of managed investment schemes The life insurance statutory funds include controlling interests in managed investment schemes which are consolidated. When the managed investment scheme is consolidated, the external unit holder liabilities are recognised as a liability and included in life insurance liabilities. They are designated at FVIS. Critical accounting assumptions and estimates The key factors that affect the estimation of life insurance liabilities and related assets are: the cost of providing benefits and administering contracts; mortality and morbidity experience, which includes policyholder benefits enhancements; discontinuance rates, which affects the Group’s ability to recover the cost of acquiring new business over the life of the contracts; and the discount rate of projected future cash flows. Regulation, competition, interest rates, taxes, securities market conditions and general economic conditions also affect the estimation of life insurance liabilities. |
Deposits and other borrowings | Deposits and other borrowings are initially recognised at fair value and subsequently either measured at amortised cost using the effective interest rate method or at fair value. Deposits and other borrowings are designated at fair value if they are managed on a fair value basis, reduce or eliminate an accounting mismatch or contain an embedded derivative. Where they are measured at fair value, any changes in fair value (except those due to changes in credit risk) are recognised as non-interest income. The change in the fair value that is due to changes in credit risk is recognised in OCI except where it would create an accounting mismatch, in which case it is also recognised in the income statement. Refer to Note 22 for balances measured at fair value and amortised cost. Interest expense incurred is recognised in net interest income using the effective interest rate method. |
Other financial liabilities | Other financial liabilities include liabilities measured at amortised cost as well as liabilities which are measured at FVIS. Financial liabilities measured at FVIS include: trading liabilities (i.e. securities sold short); and liabilities designated at FVIS (i.e. certain repurchase agreements). Refer to Note 22 for balances measured at fair value and amortised cost. Repurchase agreements Where securities are sold subject to an agreement to repurchase at a predetermined price, they remain recognised in the balance sheet in their original category (i.e. ‘Trading securities’ or ‘Investment securities’). The cash consideration received is recognised as a liability (‘Repurchase agreements’). Repurchase agreements are designated at fair value where they are managed as part of a trading portfolio, otherwise they are measured on an amortised cost basis. Where a repurchase agreement is designated at fair value, subsequent to initial recognition, these liabilities are measured at fair value with changes in fair value (except credit risk) recognised through the income statement as they arise. The change in fair value that is attributable to credit risk is recognised in OCI except where it would create an accounting mismatch, in which case it is also recognised through the income statement. |
Debt issues | Debt issues are bonds, notes, commercial paper and debentures that have been issued by entities in the Group. Debt issues are initially measured at fair value and subsequently either measured at amortised cost using the effective interest rate method or at fair value. Debt issues are designated at fair value if they reduce or eliminate an accounting mismatch or contain an embedded derivative. The change in the fair value that is due to credit risk is recognised in OCI except where it would create an accounting mismatch, in which case it is also recognised in non-interest income. Refer to Note 22 for balances measured at fair value and amortised cost. Interest expense incurred is recognised within net interest income using the effective interest rate method. |
Loan Capital | Loan capital are instruments issued by the Group which qualify for inclusion as regulatory capital under APRA Prudential Standards. Loan capital is initially measured at fair value and subsequently measured at amortised cost using the effective interest rate method. Interest expense incurred is recognised in net interest income. |
Derivative financial instruments | Derivative financial instruments are instruments whose values are derived from the value of an underlying asset, reference rate or index and include forwards, futures, swaps and options. The Group uses derivative financial instruments for meeting customers’ needs, our asset and liability risk management (ALM) activities, and undertaking market making and positioning activities. Trading derivatives Derivatives which are used in our ALM activities but are not designated into a hedge accounting relationship are considered economic hedges, and are adjusted for cash earnings purposes due to the accounting mismatch between the fair value of the derivatives and the accounting treatment of the underlying exposure (refer to Note 2 for further details). These derivatives, along with derivatives used for meeting customers’ needs and undertaking market making and positioning activities, are measured at FVIS and are disclosed as trading derivatives. Hedging derivatives Hedging derivatives are those which are used in our ALM activities and have also been designated into one of three hedge accounting relationships: fair value hedge; cash flow hedge; or hedge of a net investment in a foreign operation. These derivatives are measured at fair value. These hedge designations and the associated accounting treatment are detailed below. For more details regarding the Group’s ALM activities, refer to Note 21. Fair value hedges Fair value hedges are used to hedge the exposure to changes in the fair value of an asset or liability. Changes in the fair value of derivatives and the hedged asset or liability in fair value hedges are recognised in interest income. The carrying value of the hedged asset or liability is adjusted for the changes in fair value related to the hedged risk. If a hedge is discontinued, any fair value adjustments to the carrying value of the asset or liability are amortised to net interest income over the period to maturity. If the asset or liability is sold, any unamortised adjustment is immediately recognised in net interest income. Cash flow hedges Cash flow hedges are used to hedge the exposure to variability of cash flows attributable to an asset, liability or future forecast transaction. For effective hedges, changes in the fair value of derivatives are recognised in the cash flow hedge reserve through OCI and subsequently recognised in interest income when the cash flows attributable to the asset or liability that was hedged impact the income statement. For hedges with some ineffectiveness, the changes in the fair value of the derivatives relating to the ineffective portion are immediately recognised in interest income. If a hedge is discontinued, any cumulative gain or loss remains in OCI. It is amortised to net interest income over the period which the asset or liability that was hedged also impacts the income statement. If a hedge of a forecast transaction is no longer expected to occur, any cumulative gain or loss in OCI is immediately recognised in net interest income. Net investment hedges Net investment hedges are used to hedge FX risks arising from a net investment of a foreign operation. For effective hedges, changes in the fair value of derivatives are recognised in the foreign currency translation reserve through OCI. For hedges with some ineffectiveness, the changes in the fair value of the derivatives relating to the ineffective portion are immediately recognised in non-interest income. If a foreign operation is disposed of, any cumulative gain or loss in OCI is immediately recognised in non-interest income. |
Fair values of financial assets and financial liabilities | The fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. On initial recognition, the transaction price generally represents the fair value of the financial instrument unless there is observable information from an active market to the contrary. Where unobservable information is used, the difference between the transaction price and the fair value (day one profit or loss) is recognised in the income statement over the life of the instrument when the inputs become observable. Critical accounting assumptions and estimates The majority of valuation models used by the Group employ only observable market data as inputs. However, for certain financial instruments data may be employed which is not readily observable in current markets. The availability of observable inputs is influenced by factors such as: product type; depth of market activity; maturity of market models; and complexity of the transaction. Where unobservable market data is used, more judgement is required to determine fair value. The significance of these judgements depends on the significance of the unobservable input to the overall valuation. Unobservable inputs are generally derived from other relevant market data and adjusted against: standard industry practice; economic models; and observed transaction prices. In order to determine a reliable fair value for a financial instrument, management may apply adjustments to the techniques previously described. These adjustments reflect the Group’s assessment of factors that market participants would consider in setting the fair value. These adjustments incorporate bid/offer spreads, credit valuation adjustments (CVA) and funding valuation adjustments (FVA). |
Offsetting financial assets and financial liabilities | Financial assets and liabilities are presented net in the balance sheet when the Group has a legally enforceable right to offset them in all circumstances and there is an intention to settle the asset and liability on a net basis, or to realise the asset and settle the liability simultaneously. The gross assets and liabilities behind the net amounts reported in the balance sheet are disclosed in the following tables. |
Intangible assets | Indefinite life intangible assets Goodwill Goodwill acquired in a business combination is initially measured at cost, generally being the excess of: (i) the consideration paid; over (ii) the net fair value of the identifiable assets, liabilities and contingent liabilities acquired. Subsequently, goodwill is not amortised but rather tested for impairment. Impairment is tested at least annually or whenever there is an indication of impairment. An impairment charge is recognised when a cash generating unit’s (CGU) carrying value exceeds its recoverable amount. Recoverable amount means the higher of the CGU’s fair value less costs to sell and its value-in-use. The Group's CGUs represent the smallest identifiable group of assets that generate cash inflows that are largely independent of the cash inflows from other assets or group of assets. They reflect the level at which the Group monitors and manages its operations. Brand names Brand names acquired in a business combination including St.George, BT, BankSA and RAMS, are recognised at cost. Subsequently brand names are not amortised but tested for impairment at least annually or whenever there is an indication of impairment. Finite life intangible assets Finite life intangibles, including computer software and core deposits, are recognised initially at cost and subsequently at amortised cost less any impairment. Intangible Useful life Depreciation method Goodwill Indefinite Not applicable Brand names Indefinite Not applicable Computer software 3 to 10 years Straight-line or the diminishing balance method (using the Sum of the Years Digits) Critical accounting assumptions and estimates Judgement is required in determining the fair value of assets and liabilities acquired in a business combination. A different assessment of fair values would have resulted in a different goodwill balance and different post-acquisition performance of the acquired entity. When assessing impairment of intangible assets, significant judgement is needed to determine the appropriate cash flows and discount rates to be applied to the calculations. The significant assumptions applied to the value-in-use calculations are outlined below. |
Lessee disclosures | Accounting policy for 30 September 2020 under AASB 16 At the lease commencement date (or the inception date for certain leases), a right-of-use (ROU) asset and a lease liability are recognised in the balance sheet for all leases with the exception of short term leases (12 months or less) and low value leases (underlying asset is less than A$10,000). ROU asset The ROU asset is initially measured at cost being the amount of the initial measurement of the lease liability, plus any payments made at or before the commencement date, initial direct costs and estimated make-good costs, less any lease incentives received. It is subsequently measured at cost less accumulated depreciation and impairment losses. The asset is also adjusted for any subsequent remeasurement of the lease liability (refer below). Depreciation expense is recognised in operating expenses on a straight-line basis over the lease term. Lease liability The lease liability is initially measured at the present value of the future lease payments using a discount rate based on Westpac’s incremental borrowing rate. It is subsequently increased by interest, reduced by principal payments and remeasured for any reassessment or lease modification. The lease liability may be remeasured in certain circumstances. For Westpac’s leases, it is expected that the lease liability will only be required to be remeasured to reflect a change in the Group’s assessment of the exercise of an extension option (refer below) or for a change in future lease payments for a change in rate or index. Interest expense is recognised in net interest income on an effective yield basis. Lease term Extension options are included in a number of lease contracts. The extension options are only included in the lease term if the lease is reasonably certain to be extended, which is assessed by the Group at the lease commencement date. The assessment is reviewed if a significant event or significant change in circumstances occurs which affects this assessment and is within the control of the Group. A reassessment of the lease term (to determine whether it has become ‘reasonably certain’ that an extension option will be exercised) must be undertaken for each of the Group’s property and technology leases at a specific point prior to the lease expiry date. The reassessment point, which is generally based on the option exercise window, will vary in each jurisdiction. Scope exemptions For certain short-term and low value leases, lease payments are recognised in operating expenses on a straight-line basis over the lease term. Accounting policy for 30 September 2019 under AASB 117 An operating lease under AASB 117 is a lease where substantially all of the risks and rewards of the leased assets remain with the lessor. Where the Group is the lessee, lease rentals payable are recognised as an expense in the income statement on a straight-line basis over the lease term unless another systematic basis is more appropriate. |
Provisions, contingent liabilities, contingent assets and credit commitments | Provisions Provisions are recognised for present obligations arising from past events where a payment (or other economic transfer) is likely to be necessary to settle the obligation and can be reliably estimated. Employee benefits – long service leave provision Long service leave is granted to certain employees in Australia and New Zealand. The provision is calculated based on the expected payments. When payments are expected to be more than one year in the future, the payments factor in expected employee service periods and average salary increases which are then discounted. Employee benefits – annual leave and other employee benefits provision The provision for annual leave and other employee benefits (including wages and salaries, inclusive of non-monetary benefits, and any associated on-costs (e.g. payroll tax)) is calculated based on expected payments. Provision for impairment on credit commitments The Group is committed to provide facilities and guarantees as explained below. If it is probable that a facility will be drawn and the resulting asset will be less than the drawn amount then a provision for impairment is recognised. The provision for impairment is calculated using the same methodology as the provision for ECL (refer to Note 13). Compliance, Regulation and Remediation provisions The compliance, regulation and remediation provisions relate to matters of potential misconduct in providing services to our customers identified both as a result of regulatory action and internal reviews. An assessment of the likely cost to the Group of these matters (including applicable customer refunds) is made on a case-by-case basis and specific provisions are made where appropriate. Contingent liabilities Contingent liabilities are possible obligations whose existence will be confirmed only by uncertain future events, and present obligations where the transfer of economic resources is not probable or cannot be reliably measured. Contingent liabilities are not recognised in the balance sheet but are disclosed unless the outflow of economic resources is remote. Undrawn credit commitments The Group enters into various arrangements with customers which are only recognised in the balance sheet when called upon. These arrangements include commitments to extend credit, bill endorsements, financial guarantees, standby letters of credit and underwriting facilities. Contingent assets Contingent assets are possible assets whose existence will be confirmed only by uncertain future events. Contingent assets are not recognised in the balance sheet but are disclosed if an inflow of economic benefits is probable. Critical accounting assumptions and estimates The financial reporting of provisions for litigation and non-lending losses and for compliance, regulation and remediation matters involves a significant degree of judgement in relation to identifying whether a present obligation exists and also in estimating the probability, timing, nature and quantum of the outflows that may arise from past events. These judgements are made based on the specific facts and circumstances relating to individual events. Specific judgements in respect of material items are included in the discussion below. Provisions carried for long service leave are supported by an independent actuarial report. |
Shareholders' equity | Share capital Ordinary shares are recognised at the amount paid up per ordinary share, net of directly attributable issue costs. Treasury shares are shares in the Parent Entity, purchased by the Parent Entity or other entities within the Group. These shares are adjusted against share capital as the net of the consideration paid to purchase the shares and, where applicable, any consideration received from the subsequent sale or reissue of these shares. Non-controlling interests Non-controlling interests represent the share in the net assets of subsidiaries attributable to equity interests that are not owned directly or indirectly by the Parent Entity. Reserves Foreign currency translation reserve Exchange differences arising on translation of the Group’s foreign operations, and any offsetting gains or losses on hedging the net investment are reflected in the foreign currency translation reserve. A cumulative credit balance in this reserve would not normally be regarded as being available for payment of dividends until such gains are realised and recognised in the income statement on sale or disposal of the foreign operation. Debt securities at FVOCI reserve (30 September 2019 onwards - AASB 9) This reserve was established on adoption of AASB 9 and comprises the changes in fair value of debt securities measured at FVOCI (except for interest income, impairment charges and FX gains and losses which are recognised in the income statement), net of any related hedge accounting adjustments and tax. These changes are transferred to non-interest income in the income statement when the asset is disposed. Equity securities at FVOCI reserve (30 September 2019 onwards - AASB 9) This reserve was established on adoption of AASB 9 and comprises the changes in fair value of equity securities measured at FVOCI, net of tax. These changes are not transferred to the income statement when the asset is disposed. Available-for-sale securities reserve (30 September 2018 - AASB 139) This comprises the changes in the fair value of available-for-sale financial securities (including both debt and equity securities), net of any related hedge accounting adjustments and tax. These changes were transferred to non-interest income in the income statement when the asset is either disposed of or impaired. This reserve was closed on the adoption of AASB 9 and the closing balance was allocated to the debt securities at FVOCI reserve and equity securities at FVOCI reserve noted above for the relevant securities. Cash flow hedge reserve This comprises the fair value gains and losses associated with the effective portion of designated cash flow hedging instruments, net of tax. Share-based payment reserve This comprises the fair value of equity-settled share-based payments recognised as an expense. Other reserves Other reserves for the Parent Entity relates to certain historic internal group restructurings performed at fair value. The reserve is eliminated on consolidation. Other reserves for the Group consist of transactions relating to changes in the Parent Entity’s ownership of a subsidiary that do not result in a loss of control. The amount recorded in other reserves reflects the difference between the amount by which NCI are adjusted and the fair value of any consideration paid or received. |
Investments in subsidiaries and associates | Subsidiaries Westpac’s subsidiaries are entities which it controls and consolidates as it is exposed to, or has rights to, variable returns from the entity, and can affect those returns through its power over the entity. When the Group ceases to control a subsidiary, any retained interest in the entity is remeasured to fair value, with any resulting gain or loss recognised in the income statement. Changes in the Group’s ownership interest in a subsidiary which do not result in a loss of control are accounted for as transactions with equity holders in their capacity as equity holders. In the Parent Entity’s financial statements, investments in subsidiaries are initially recorded at cost and are subsequently held at the lower of cost and recoverable amount. All transactions between Group entities are eliminated on consolidation. Associates Associates are entities in which the Group has significant influence, but not control, over the operating and financial policies. The Group accounts for associates using the equity method. The investments are initially recognised at cost (except where recognised at fair value due to a loss of control of a subsidiary), and increased (or decreased) each year by the Group’s share of the associate’s profit (or loss). Dividends received from the associate reduce the investment in associate. |
Structured entities | Structured entities are generally created to achieve a specific, defined objective and their operations are restricted such as only purchasing specific assets. Structured entities are commonly financed by debt or equity securities that are collateralised by and/or indexed to their underlying assets. The debt and equity securities issued by structured entities may include tranches with varying levels of subordination. Structured entities are classified as subsidiaries and consolidated if they meet the definition in Note 31. If the Group does not control a structured entity then it will not be consolidated. |
Share-based payments | The Group enters into various share-based payment arrangements with its employees as a component of overall compensation for services provided. Share-based payment arrangements comprise rights to receive shares for free (share rights) and restricted shares (issued at no cost). Share-based payment arrangements typically require a specified period of continuing employment (the service period or vesting period) and may include performance targets (vesting conditions). Specific details of each arrangement are provided below. Share-based payments must be classified as either cash-settled or equity-settled arrangements. The Group’s significant arrangements are equity-settled, as the Group is not obliged to settle in cash. Share rights Share rights are equity-settled arrangements. The fair value is measured at grant date and is recognised as an expense over the service period, with a corresponding increase in the share-based payment reserve in equity. The fair value of share rights are estimated at grant date using a binomial/Monte Carlo simulation pricing model which incorporates the vesting and market-related performance targets of the grants. The fair value of share rights excludes non-market vesting conditions such as employees’ continuing employment by the Group. The non-market vesting conditions are instead incorporated in estimating the number of share rights that are expected to vest and are therefore recognised as an expense. At each reporting date the non-market vesting assumptions are revised and the expense recognised each year takes into account the most recent estimates. The market-related assumptions are not revised each year as the fair value is not re-estimated after the grant date. Restricted share plan (RSP) The RSP is accounted for as an equity-settled arrangement. The fair value of shares allocated to employees for nil consideration is recognised as an expense over the vesting period with a corresponding increase in the share-based payments reserve in equity. The fair value of ordinary shares issued to satisfy the obligation to employees is measured at grant date and is recognised as a separate component of equity. Employee share plan (ESP) The value of shares expected to be allocated to employees for nil consideration is recognised as an expense over the financial year and provided for as other employee benefits. The fair value of any ordinary shares issued to satisfy the obligation to employees is recognised in equity. Alternatively, shares may be purchased on market to satisfy the obligation to employees. |
Superannuation commitments | The Group recognises an asset or a liability for its defined benefit schemes, being the net of the defined benefit obligations and the fair value of the schemes’ assets. The defined benefit obligation is calculated as the present value of the estimated future cash flows, discounted using high-quality long dated corporate bond rates. The superannuation expense is recognised in operating expenses and remeasurements are recognised through OCI. Critical accounting assumptions and estimates The actuarial valuation of plan obligations is dependent upon a series of assumptions, principally price inflation, salary growth, mortality, morbidity, discount rate and investment returns. Different assumptions could significantly alter the valuation of the plan assets and obligations and the resulting remeasurement recognised in OCI and the superannuation cost recognised in the income statement. |
Notes to the cash flow statements | Cash and balances with central banks include cash held at branches and in ATMs, balances with overseas banks in their local currency and balances with central banks including accounts with the RBA and accounts with overseas central banks. |
Accounting policy relating to impairment (Note 6 and Note 13) | Impairment charges (Note 6) At each balance sheet date, the Group assesses whether there is any objective evidence of impairment of its loan portfolio. An impairment charge is recognised if there is objective evidence that the principal or interest repayments may not be recoverable and when the financial impact of the non-recoverable loan can be reliably measured. Objective evidence of impairment could include a breach of contract with the Group such as a default on interest or principal payments, a borrower experiencing significant financial difficulties or observable economic conditions that correlate to defaults on a group of loans. The impairment charge is measured as the difference between the loan’s current carrying amount and the present value of its estimated future cash flows. The estimated future cash flows exclude any expected future credit losses which have not yet occurred and are discounted to their present value using the loan’s original effective interest rate. If a loan has a variable interest rate, the discount rate for measuring any impairment is the current effective interest rate. The impairment charge is recognised in the income statement with a corresponding reduction of the carrying value of the loan through an offsetting provision account (refer to Note 13). In subsequent periods, objective evidence may indicate that an impairment charge should be reversed. Objective evidence could include a borrower’s credit rating or financial circumstances improving. The impairment charge is reversed in the income statement of that future period and the related provision for impairment is reduced. Uncollectable loans The policy for uncollectable loans is consistent with that applicable to 2020 and 2019 based on AASB 9. Provision for impairment charges (Note 13) The Group recognises two types of impairment provisions for its loans, being provisions for loans which are: ▪ individually assessed for impairment; and ▪ collectively assessed for impairment. The Group assesses impairment as follows: ▪ individually for loans that exceed specified thresholds. Where there is objective evidence of impairment, individually assessed provisions will be recognised; and ▪ collectively for loans below the specified thresholds noted above or if there is no objective evidence of impairment. These loans are included in a group of loans with similar risk characteristics and collectively assessed for impairment. If there is objective evidence that the group of loans is collectively impaired, collectively assessed provisions will be recognised. Critical accounting assumptions and estimates The methodology and assumptions used for estimating future cash flows are reviewed regularly by the Group to reduce differences between impairment provisions and actual loss experience. Individual component Key judgements include the business prospects for the customer, the realisable value of collateral, the Group’s position relative to other claimants, the reliability of customer information and the likely cost and duration of recovering the loan. Judgements can change with time as new information becomes available or as loan recovery strategies evolve, which may result in revisions to the impairment provision. Collective component Collective provisions are established on a portfolio basis taking into account the level of arrears, collateral and security, past loss experience, current economic conditions, expected default and timing of recovery based on portfolio trends. Key judgements include estimated loss rates and their related emergence periods. The emergence period for each loan type is determined through studies of loss emergence patterns. Loan files are reviewed to identify the average time period between observable loss indicator events and the loss becoming identifiable. Actual credit losses may differ materially from reported loan impairment provisions due to uncertainties including interest rates and their effect on consumer spending, unemployment levels, payment behaviour and bankruptcy rates. |
Accounting policy relating to classification and measurement of financial instruments (Note 10, Note 11 and Note 12) | Classification and measurement of financial assets and financial liabilities (Policy prior to Note 10) The Group classifies its financial assets in the following categories: cash and balances with central banks, receivables due from financial institutions, trading securities and financial assets designated at fair value, derivative financial instruments, available-for-sale securities, loans, life insurance assets and regulatory deposits with central banks overseas. The Group has not classified any of its financial assets as held-to-maturity investments. The Group classifies significant financial liabilities in the following categories: payables due to other financial institutions, deposits and other borrowings, other financial liabilities at fair value through income statement, derivative financial instruments, debt issues and loan capital. Financial assets and financial liabilities measured at fair value through income statement are recognised initially at fair value. All other financial assets and financial liabilities are recognised initially at fair value plus directly attributable transaction costs. Available-for-sale securities (Note 11) Available-for-sale debt securities (government and other) and equity securities are held at fair value with gains and losses recognised in OCI except for interest on debt securities, dividends on equity securities, and impairment charges which are recognised in the income statement. The cumulative gain or loss recognised in OCI is subsequently recognised in the income statement when the instrument is disposed. At each reporting date, the Group assesses whether any available-for-sale securities are impaired. Impairment exists if one or more events have occurred which have a negative impact on the security's estimated cash flows. For debt instruments, evidence of impairment includes significant financial difficulties or adverse changes in the payment status of an issuer. For equity securities, a significant or prolonged decline in the fair value of the security below its cost is considered evidence of impairment. If impairment exists, the cumulative loss is removed from OCI and recognised in the income statement. Any subsequent reversals of impairment on debt securities are also recognised in the income statement. Subsequent reversal of impairment charges on equity instruments is not recognised in the income statement until the instrument is disposed. Loans (Note 12) Loans are financial assets initially recognised at fair value plus directly attributable transaction costs and fees. Loans are subsequently measured at amortised cost using the effective interest rate method and are presented net of any provision for impairment charges except for a portfolio of loans which are subsequently measured at fair value to reduce an accounting mismatch. |
Segment reporting (Tables)
Segment reporting (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Segment reporting | |
Schedule of segment results on a cash earnings basis | Westpac Westpac Net cash 2020 Institutional New Specialist Group earnings Income $m Consumer Business Bank Zealand Businesses Businesses Total adjustment statement Net interest income 8,547 4,163 1,111 1,832 534 899 17,086 (390) 16,696 Net fee income 471 438 544 123 89 (73) 1,592 — 1,592 Net wealth management and insurance income — 22 — 158 624 (45) 759 (8) 751 Trading income 90 97 637 27 57 20 928 (33) 895 Other income 12 3 1 11 (8) 242 261 (12) 249 Net operating income before operating expenses and impairment charges 9,120 4,723 2,293 2,151 1,296 1,043 20,626 (443) 20,183 Operating expenses 1 (4,176) (2,298) (1,316) (998) (1,548) (2,364) (12,700) (39) (12,739) Impairment charges (1,015) (1,371) (404) (302) (255) 169 (3,178) — (3,178) Profit before income tax 3,929 1,054 573 851 (507) (1,152) 4,748 (482) 4,266 Income tax expense (1,183) (320) (241) (239) 3 (158) (2,138) 164 (1,974) Profit attributable to NCI — — — — (2) — (2) — (2) Cash earnings for the year 2,746 734 332 612 (506) (1,310) 2,608 (318) 2,290 Net cash earnings adjustments — — — 7 (31) (294) (318) Net profit attributable to equity holders of WBC 2,746 734 332 619 (537) (1,604) 2,290 Balance sheet Loans 389,793 140,698 66,192 81,434 14,942 693,059 Deposits and other borrowings 219,259 151,939 102,851 68,473 9,260 39,349 591,131 1. Included in the Specialist Businesses division in operating expenses is $571 million relating to impairment of goodwill and other intangible assets for 2020. For other divisions, there was no impairment of goodwill and impairment of other intangibles assets was not material. Westpac Westpac Net cash 2019 Institutional New Specialist Group earnings Income $m Consumer Business Bank Zealand Businesses Businesses Total adjustment statement Net interest income 8,130 4,456 1,337 1,860 555 615 16,953 (46) 16,907 Net fee income 594 463 570 163 44 (179) 1,655 — 1,655 Net wealth management and insurance income — 16 — 177 1,319 (489) 1,023 6 1,029 Trading income 94 109 636 37 54 (23) 907 22 929 Other income 7 6 (11) 46 (5) 74 117 12 129 Net operating income before operating expenses and impairment charges 8,825 5,050 2,532 2,283 1,967 (2) 20,655 (6) 20,649 Operating expenses (3,794) (2,094) (1,220) (939) (847) (1,137) (10,031) (75) (10,106) Impairment charges (582) (172) (31) 10 (111) 92 (794) — (794) Profit before income tax 4,449 2,784 1,281 1,354 1,009 (1,047) 9,830 (81) 9,749 Income tax expense (1,333) (838) (356) (369) (292) 213 (2,975) 16 (2,959) Profit attributable to NCI — — — — (5) (1) (6) — (6) Cash earnings for the year 3,116 1,946 925 985 712 (835) 6,849 (65) 6,784 Net cash earnings adjustments — — — (1) (45) (19) (65) Net profit attributable to equity holders of WBC 3,116 1,946 925 984 667 (854) 6,784 Balance sheet Loans 399,279 146,867 73,572 78,005 17,216 (169) 714,770 Deposits and other borrowings 207,578 142,558 99,005 60,801 9,277 44,028 563,247 Westpac Westpac Net cash 2018 Institutional New Specialist Group earnings Income $m Consumer Business Bank Zealand Businesses Businesses Total adjustment statement Net interest income 8,092 4,619 1,320 1,799 565 792 17,187 (682) 16,505 Net fee income 645 469 572 164 80 (20) 1,910 514 2,424 Net wealth management and insurance income — 14 212 149 1,533 109 2,017 44 2,061 Trading income 100 114 641 51 42 (22) 926 19 945 Other income 21 15 48 9 9 23 125 (53) 72 Net operating income before operating expenses and impairment charges 8,858 5,231 2,793 2,172 2,229 882 22,165 (158) 22,007 Operating expenses (3,779) (1,983) (1,399) (855) (746) (936) (9,698) 132 (9,566) Impairment charges (490) (236) 20 (22) (84) — (812) 102 (710) Profit before income tax 4,589 3,012 1,414 1,295 1,399 (54) 11,655 76 11,731 Income tax expense (1,397) (908) (429) (361) (420) (71) (3,586) (46) (3,632) Profit attributable to NCI — — — — (5) 1 (4) — (4) Cash earnings for the year 3,192 2,104 985 934 974 (124) 8,065 30 8,095 Net cash earnings adjustments (15) — — 13 (76) 108 30 Net profit attributable to equity holders of WBC 3,177 2,104 985 947 898 (16) 8,095 Balance sheet Loans 396,265 146,099 75,627 73,604 18,329 (234) 709,690 Deposits and other borrowings 203,872 141,031 102,703 57,784 7,180 46,715 559,285 |
Schedule of reconciliation of cash earnings to net profit | $m Cash earnings for the year 2,608 6,849 8,065 Cash earnings adjustments Amortisation of intangible assets — — (17) Fair value gain/(loss) on economic hedges (362) (35) 126 Ineffective hedges 61 20 (13) Adjustments related to Pendal (31) (45) (73) Treasury shares 14 (5) 7 Total cash earnings adjustments (318) (65) 30 Net profit attributable to owners of WBC 2,290 6,784 8,095 |
Schedule of geographic segments | 2020 2019 2018 $m % $m % $m % Revenue Australia 26,135 85.6 31,113 84.2 32,595 85.6 New Zealand 3,439 11.3 4,520 12.2 4,381 11.5 Other overseas 1 960 3.1 1,331 3.6 1,097 2.9 Total 30,534 100.0 36,964 100.0 38,073 100.0 Non-current assets 2 Australia 14,270 92.6 12,280 93.7 12,271 93.7 New Zealand 1,015 6.6 761 5.8 756 5.8 Other overseas 1 122 0.8 67 0.5 65 0.5 Total 15,407 100.0 13,108 100.0 13,092 100.0 1. Other overseas included Pacific Islands, Asia, the Americas and Europe. 2. Non-current assets represent property and equipment and intangible assets. |
Net interest income (Tables)
Net interest income (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Net interest income | |
Schedule of net interest income | Consolidated Parent Entity $m Interest income 1 Calculated using the effective interest rate method Cash and balances with central banks 135 334 326 122 311 Collateral paid 75 201 129 74 197 Available-for-sale securities — — 1,914 — — Investment securities 1,521 1,919 — 1,385 1,750 Loans 24,848 30,029 29,583 21,488 26,171 Other financial assets 17 35 35 16 33 Due from subsidiaries — — — 2,940 4,274 Total interest income calculated using the effective interest rate method 26,596 32,518 31,987 26,025 32,736 Other Net ineffectiveness on qualifying hedges 87 28 (18) 77 26 Trading securities and financial assets measured at FVIS 359 662 564 338 633 Loans 5 14 38 5 14 Due from subsidiaries — — — 178 103 Total other 451 704 584 598 776 Total interest income 27,047 33,222 32,571 26,623 33,512 Interest expense Calculated using the effective interest rate method Collateral received (26) (57) (45) (23) (51) Deposits and other borrowings (4,652) (7,967) (8,141) (3,782) (6,745) Debt Issues (2,907) (4,706) (4,325) (2,549) (4,218) Due to subsidiaries — — — (3,601) (4,905) Loan capital (800) (776) (774) (800) (776) Other financial liabilities (98) (274) (318) (98) (273) Total interest expense calculated using the effective interest rate method (8,483) (13,780) (13,603) (10,853) (16,968) Other Deposits and other borrowings (402) (978) (880) (385) (961) Trading liabilities 2 (787) (915) (959) (640) (828) Debt issues (107) (163) (155) (74) (140) Bank levy (408) (391) (378) (408) (391) Due to subsidiaries — — — (29) 78 Other interest expense 3 (164) (88) (91) (150) (85) Total other (1,868) (2,535) (2,463) (1,686) (2,327) Total interest expense (10,351) (16,315) (16,066) (12,539) (19,295) Total net interest income 16,696 16,907 16,505 14,084 14,217 1. Interest income includes items relating to estimated customer refunds, payments, associated costs and litigation recognised as a reduction in interest income of $170 million (2019: $372 million, 2018: $127 million) for the Group, and $164 million (2019: $353 million) for the Parent Entity. Refer to Note 27 for further details. 2. Includes net impact of Treasury balance sheet management activities. 3. Included in other interest expense for 2020 is $64 million for the Group and $56 million for the Parent Entity relating to interest expense on lease liabilities due to the adoption of AASB 16 from 1 October 2019. Comparatives have not been restated. Refer to Notes 1 and 26 for further details. |
Non-interest income (Tables)
Non-interest income (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Non-interest income | |
Schedule of non-interest income | Note 4. Non-interest income 1 (continued) Consolidated Parent Entity $m Net fee income Facility fees 731 730 1,365 672 680 Transaction fees 1,021 1,225 1,182 891 1,046 Other non-risk fee income 48 (76) 98 (52) (638) Fee income 1,800 1,879 2,645 1,511 1,088 Credit card loyalty programs (102) (121) (126) (71) (90) Transaction fee related expenses (106) (103) (95) (81) (76) Fee expenses (208) (224) (221) (152) (166) Net fee income 1,592 1,655 2,424 1,359 922 Net wealth management and insurance income Wealth management income 631 276 1,145 — — Life insurance premium income 1,297 1,443 1,410 — — General insurance and lenders mortgage insurance (LMI) net premium earned 499 482 472 — — Life insurance investment and other income 2 64 409 666 — — General insurance and LMI investment and other income 42 52 50 — — Total insurance premium, investment and other income 1,902 2,386 2,598 — — Life insurance claims and changes in life insurance liabilities 3 (1,284) (1,266) (1,396) — — General insurance and LMI claims and other expenses (498) (367) (286) — — Total insurance claims, changes in life insurance liabilities and other expenses (1,782) (1,633) (1,682) — — Net wealth management and insurance income 751 1,029 2,061 — — Trading income 895 929 945 876 956 Other income Dividends received from subsidiaries — — — 762 2,215 Transactions with subsidiaries — — — 579 457 Dividends received from other entities 1 6 3 1 3 Net gain/(loss) on derecognition/sale of associates 316 38 — 305 — Net gain/(loss) on disposal of assets 11 61 24 9 60 Net gain/(loss) on hedging of overseas operations — — — (8) (71) Net gain/(loss) on derivatives held for risk management purposes 4 4 (11) 8 4 (11) Net gain/(loss) on financial assets measured at fair value (78) (39) 38 (35) (25) Net gain/(loss) on disposal of controlled entities — 3 (9) — — Rental income on operating leases 54 72 107 33 50 Share of associates’ net profit/(loss) (23) (23) (10) — — Other (36) 22 (89) (53) 6 Total other income 249 129 72 1,597 2,684 Total non-interest income 3,487 3,742 5,502 3,832 4,562 1. Non-interest income includes items relating to estimated customer refunds, payments, associated costs and litigation recognised as a reduction in non-risk fee income, wealth management income and other income of $225 million (2019: $860 million, 2018: $171 million) for the Group, and $190 million (2019: $842 million) for the Parent Entity. Refer to Note 27 for further details. 2. Includes policyholder tax recoveries. 3. Life insurance claims and changes in life insurance liabilities include a $260 million loss for the Group (2019: nil, 2018: nil) recognised as a result of the liability adequacy test on life insurance contracts (refer to Note 15). It also includes a $97 million write-off of deferred acquisition costs for the Group (2019: nil, 2018: nil) as a result of Westpac Life Insurance Limited (WLIS) ceasing to provide group life insurance products to BT Super. 4. Income from derivatives held for risk management purposes reflects the impact of economic hedges of earnings. |
Operating expenses (Tables)
Operating expenses (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Operating expenses | |
Schedule of operating expenses | Note 5. Operating expenses 1 Consolidated Parent Entity $m Staff expenses Employee remuneration, entitlements and on-costs 4,428 4,320 4,292 3,744 3,611 Superannuation expense 2 413 378 386 351 313 Share-based payments 80 108 95 76 101 Restructuring costs 94 232 114 76 202 Total staff expenses 5,015 5,038 4,887 4,247 4,227 Occupancy expenses Operating lease rentals 148 658 632 123 597 Depreciation and impairment of property and equipment 3,4 708 222 245 614 176 Other 160 143 156 145 122 Total occupancy expenses 1,016 1,023 1,033 882 895 Technology expenses Amortisation and impairment of software assets 4 970 719 620 896 653 Depreciation and impairment of IT equipment 3,4 272 129 141 244 117 Technology services 698 810 721 569 670 Software maintenance and licences 398 371 342 343 321 Telecommunications 216 207 209 190 182 Data processing 89 83 77 88 81 Total technology expenses 2,643 2,319 2,110 2,330 2,024 Other expenses Professional and processing services 1,374 1,060 824 1,184 860 Amortisation and impairment of intangible assets and deferred expenditure 4 523 9 138 116 — Postage and stationery 164 179 182 130 143 Advertising 217 245 173 172 196 Non-lending losses 1,443 58 133 1,428 43 Impairment on investments in subsidiaries — — — 272 136 Other 344 175 86 11 107 Total other expenses 4,065 1,726 1,536 3,313 1,485 Total operating expenses 12,739 10,106 9,566 10,772 8,631 1. Operating expenses include estimated costs associated with AUSTRAC proceedings of $1,478 million which includes a provision for penalty of $1,300 million (2019: nil, 2018: nil) for the Group and the Parent Entity. They also include estimated customer refunds, payments, associated costs and litigation of $317 million (2019: $196 million, 2018: $111 million) for the Group and $488 million (2019: $180 million) for the Parent Entity. Refer to Note 27 for further details. 2. Superannuation expense includes both defined contribution and defined benefit expense. Further details of the Group’s defined benefit plans are in Note 34. 3. These balances include depreciation of ROU assets of $630 million for the Group and $567 million for the Parent Entity due to the adoption of AASB 16 from 1 October 2019. Comparatives have not been restated. Refer to Notes 1 and 26 for further details. 4. Impairment expenses include: · $5 million (2019: nil, 2018: nil) for property and equipment for the Group, and $4 million (2019: nil) for the Parent Entity; · $171 million (2019: $25 million, 2018: $2 million) for computer software for the Group, and $165 million (2019: $25 million) for the Parent Entity; · $23 million (2019: nil, 2018: $1 million) for IT equipment for the Group, and $23 million (2019: nil) for the Parent Entity; and · $518 million (2019: nil, 2018: $105 million) for goodwill and other intangible assets for the Group, and $116 million (2019: nil) for the Parent Entity. |
Impairment charges (Tables)
Impairment charges (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Impairment charges | |
Schedule of impairment charges | The following table details impairment charges based on the requirements of AASB 9. Consolidated Parent Entity $m Provisions raised/(released) Performing 1,437 (209) 1,147 (180) Non-performing 1,934 1,175 1,717 1,073 Recoveries (193) (172) (173) (143) Impairment charges 3,178 794 2,691 750 of which relates to: Loans and credit commitments 3,158 794 2,689 750 Debt securities at amortised cost 18 — — — Debt securities at FVOCI 2 — 2 — Impairment charges 3,178 794 2,691 750 As 2018 comparatives were not restated for the Group’s adoption of AASB 9 in 2019, the following table details impairment charges based on the requirements of AASB 139. Once AASB 9 has been effective for all comparative year ends, this table will no longer be presented. Consolidated $m Individually assessed provisions raised 371 Write-backs (150) Recoveries (179) Collectively assessed provisions raised 668 Impairment charges 710 |
Income tax (Tables)
Income tax (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Income tax | |
Schedule of income tax reconciled to profit before income tax | Consolidated Parent Entity $m Profit before income tax 4,266 9,749 11,731 4,453 9,398 Tax at the Australian company tax rate of 30% 1,280 2,925 3,519 1,336 2,819 The effect of amounts which are not deductible/(assessable) in calculating taxable income Hybrid capital distributions 56 72 69 56 72 Life insurance: Tax adjustment on policyholder earnings (17) 8 24 — — Adjustment for life business tax rates 1 (1) (1) — — Dividend adjustments — (1) (1) (228) (664) Other non-assessable items (3) (14) (5) (3) (2) Other non-deductible items 585 12 64 468 9 Adjustment for overseas tax rates 16 (32) (28) 32 (5) Income tax (over)/under provided in prior years 1 (10) 9 1 3 Other items 55 — (18) 133 45 Total income tax expense 1,974 2,959 3,632 1,795 2,277 Income tax analysis Income tax expense comprises: Current income tax 2,954 3,370 3,704 2,417 2,711 Movement in deferred tax (981) (401) (81) (623) (437) Income tax (over)/under provision in prior years 1 (10) 9 1 3 Total income tax expense 1,974 2,959 3,632 1,795 2,277 Total Australia 1,697 2,526 3,178 1,753 2,215 Total Overseas 277 433 454 42 62 Total income tax expense 1 1,974 2,959 3,632 1,795 2,277 1. As the Bank Levy is not a levy on income, it is not included in income tax. It is included in Note 3. |
Schedule of temporary differences attributable to deferred tax assets and deferred tax liabilities | Deferred tax assets The balance comprises temporary differences attributable to: Consolidated Parent Entity $m Amounts recognised in the income statements and opening retained profits due to adoption of new accounting standards Provisions for ECL on loans and credit commitments 1,2 1,788 1,158 1,507 1,003 Provision for long service leave, annual leave and other employee benefits 335 309 308 286 Financial instruments 1 — 5 — 2 Property and equipment 223 195 198 173 Other provisions 2 606 531 570 511 Lease liabilities 3 899 — 825 — All other liabilities 3 419 366 304 358 Total amounts recognised in the income statements and opening retained profits due to adoption of new accounting standards 4,270 2,564 3,712 2,333 Amounts recognised directly in OCI Investment securities — 10 — 11 Cash flow hedges 25 52 — 28 Defined benefit 155 105 149 101 Total amounts recognised directly in OCI 180 167 149 140 Gross deferred tax assets 4,450 2,731 3,861 2,473 Set-off of deferred tax assets and deferred tax liabilities (1,386) (683) (1,364) (548) Net deferred tax assets 3,064 2,048 2,497 1,925 Movements Balance as at beginning of year 2,048 1,180 1,925 1,102 Impact on adoption of new accounting standards 1,3 948 300 872 258 Restated opening balance 2,996 1,480 2,797 1,360 Recognised in the income statements 758 472 507 476 Recognised in OCI 13 117 9 109 Set-off of deferred tax assets and deferred tax liabilities (703) (21) (816) (20) Balance as at end of year 3,064 2,048 2,497 1,925 1. Included in 2019, is the impact on adoption of AASB 9, which increased deferred tax assets by $300 million for the Group and $258 million for the Parent Entity, recognised as an opening adjustment in retained profits. The details are as follows: · Provision for ECL - $297 million for the Group and $258 million for the Parent Entity; and · Financial instruments - $3 million for the Group and nil for the Parent Entity. 2. 2019 Other provisions were restated from $590 million to $531 million for the Group, and from $561 million to $511 million for the Parent Entity, to reclassify provision for ECL on credit commitments to provisions for ECL on loans and credit commitments. 3. The adoption of AASB 16 on 1 October 2019 resulted in an increase in deferred tax assets of $948 million for the Group and $872 million for the Parent Entity. A corresponding increase was also recognised in deferred tax liabilities (refer to the following table), which resulted in a net nil impact on retained profits. Deferred tax liabilities The balance comprises temporary differences attributable to: Consolidated Parent Entity $m Amounts recognised in the income statements and opening retained profits due to adoption of new accounting standards Finance lease transactions 253 230 232 206 Property and equipment 1 933 128 864 129 Life insurance assets 43 57 — — All other assets 223 312 208 213 Total amounts recognised in the income statements and opening retained profits due to adoption of new accounting standards 1,452 727 1,304 548 Amounts recognised directly in OCI Investment securities 51 — 51 — Cash flow hedges 9 — 9 — Total amounts recognised directly in OCI 60 — 60 — Gross deferred tax liabilities 1,512 727 1,364 548 Set-off of deferred tax assets and deferred tax liabilities (1,386) (683) (1,364) (548) Net deferred tax liabilities 126 44 — — Movements Balance as at beginning of year 44 18 — 3 Impact on adoption of new accounting standards 1 948 — 872 — Restated opening balance 992 18 872 3 Recognised in the income statements (223) 71 (116) 39 Recognised in OCI 60 (24) 60 (22) Set-off of deferred tax assets and deferred tax liabilities (703) (21) (816) (20) Balance as at end of year 126 44 — — 1. The adoption of AASB 16 on 1 October 2019 resulted in an increase in deferred tax liabilities of $948 million for the Group and $872 million for the Parent Entity, which was recognised as an opening adjustment in retained profits. A corresponding increase was also recognised in deferred tax assets (refer to the previous table), which resulted in a net nil impact on retained profits. |
Schedule of unrecognised deferred tax balances | Consolidated Parent Entity $m Unrecognised deferred tax asset Tax losses on revenue account 335 291 264 237 Unrecognised deferred tax liability Gross retained earnings of subsidiaries which the Parent Entity does not intend to distribute in the foreseeable future 55 51 — — |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Earnings per share | |
Schedule of earnings per share | 2020 2019 2018 $m Basic Diluted Basic Diluted Basic Diluted Net profit attributable to shareholders 2,290 2,290 6,784 6,784 8,095 8,095 Adjustment for RSP dividends 1 (2) (2) (6) (6) (5) — Adjustment for potential dilution: Distributions to convertible loan capital holders 2 — — — 290 — 283 Adjusted net profit attributable to shareholders 2,288 2,288 6,778 7,068 8,090 8,378 Weighted average number of ordinary shares (millions) Weighted average number of ordinary shares on issue 3,595 3,595 3,456 3,456 3,414 3,414 Treasury shares (including RSP share rights) 1 (5) (5) (6) (6) (8) (8) Adjustment for potential dilution: Share-based payments — 1 — 1 — 3 Convertible loan capital 2 — — — 278 — 232 Adjusted weighted average number of ordinary shares 3,590 3,591 3,450 3,729 3,406 3,641 Earnings per ordinary share (cents) 63.7 63.7 196.5 189.5 237.5 230.1 1. RSP is explained in Note 33. Some shares under the RSP have not vested and are not outstanding ordinary shares but do receive dividends. These RSP dividends are deducted to show the profit attributable to ordinary shareholders. Shares under the RSP were antidilutive in 2020 and 2019, but were dilutive in 2018. 2. The Group has issued convertible loan capital which may convert into ordinary shares in the future (refer to Note 19 for further details). These convertible loan capital instruments are potentially dilutive instruments, and diluted EPS is therefore calculated as if the instruments had been converted at the beginning of the year or, if later, the instruments’ issue date. In 2020, all convertible loan capital instruments were antidilutive, but were dilutive in 2019 and 2018. |
Average balance sheet and int_2
Average balance sheet and interest rates (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Average balance sheet and interest rates | |
Summary of the average daily balances of the Group's interest earning assets and interest bearing liabilities | 2020 2019 2018 Average Interest Average Average Interest Average Average Interest Average balance income rate balance income rate balance income rate Consolidated $m $m % $m $m % $m $m % Assets Interest earning assets Collateral paid: Australia 13,555 56 0.4 8,428 152 1.8 5,239 86 1.6 New Zealand 373 3 0.8 364 7 1.9 252 4 1.6 Other overseas 1,804 16 0.9 2,031 42 2.1 2,594 39 1.5 Trading securities and financial assets measured at FVIS: Australia 20,300 217 1.1 20,691 468 2.3 17,420 423 2.4 New Zealand 4,728 47 1.0 3,862 85 2.2 3,538 80 2.3 Other overseas 4,601 95 2.1 4,521 109 2.4 3,160 61 1.9 Available-for-sale securities: Australia — — — — — — 55,458 1,692 3.1 New Zealand — — — — — — 3,304 136 4.1 Other overseas — — — — — — 2,778 86 3.1 Investment securities: Australia 71,402 1,347 1.9 56,875 1,691 3.0 — — — New Zealand 3,921 96 2.4 3,850 130 3.4 — — — Other overseas 2,858 78 2.7 3,062 98 3.2 — — — Loans and other receivables 1: Australia 585,643 21,315 3.6 589,427 25,931 4.4 578,679 25,700 4.4 New Zealand 85,184 3,237 3.8 79,255 3,650 4.6 73,902 3,516 4.8 Other overseas 27,349 540 2.0 26,558 859 3.2 28,620 748 2.6 Total interest earning assets and interest income 821,718 27,047 3.3 798,924 33,222 4.2 774,944 32,571 4.2 Non-Interest earning assets Derivative financial instruments 31,334 25,959 26,443 Life insurance assets 4,614 9,610 10,664 All other assets 2 62,414 60,231 61,259 Total non-interest earning assets 98,362 95,800 98,366 Total assets 920,080 894,724 873,310 1. For 2020 and 2019, loans and other receivables are net of Stage 3 provision for ECL, where interest income is determined based on their carrying value. Stages 1 and 2 provisions for ECL are not included in the average interest earning assets balance, as interest income is determined based on the gross value of loans and other receivables. For 2018, loans and other receivables are net of provision for impairment charges on loans, as under AASB 139 interest income is determined based on their carrying value, net of provision for impairment charges on loans. 2. Includes property and equipment, intangible assets, deferred tax assets, non-interest earning loans relating to mortgage offset accounts and all other non-interest earning assets. 2020 2019 2018 Average Interest Average Average Interest Average Average Interest Average balance expense rate balance expense rate balance expense rate Consolidated $m $m % $m $m % $m $m % Liabilities Interest bearing liabilities Collateral received: Australia 2,586 11 0.4 2,039 41 2.0 2,383 37 1.6 New Zealand 596 3 0.5 390 8 2.1 342 6 1.8 Other overseas 4,399 12 0.3 1,188 8 0.7 184 2 1.1 Deposits and other borrowings: Australia 435,877 3,745 0.9 425,799 7,023 1.6 422,006 7,308 1.7 New Zealand 57,096 882 1.5 54,720 1,235 2.3 51,368 1,196 2.3 Other overseas 25,660 427 1.7 26,270 687 2.6 26,599 517 1.9 Loan capital: Australia 19,554 663 3.4 15,080 632 4.2 15,028 635 4.2 New Zealand 1,833 94 5.1 1,777 91 5.1 1,645 84 5.1 Other overseas 1,324 43 3.2 1,324 53 4.0 1,324 55 4.2 Other interest bearing liabilities 1 : Australia 176,950 3,849 2.2 188,736 5,937 3.1 177,746 5,594 3.1 New Zealand 18,510 558 3.0 15,665 575 3.7 15,011 591 3.9 Other overseas 1,256 64 5.1 1,294 25 1.9 1,873 41 2.2 Total interest bearing liabilities and interest expense 745,641 10,351 1.4 734,282 16,315 2.2 715,509 16,066 2.2 Non-interest bearing liabilities Deposits and other borrowings: Australia 45,231 42,455 41,156 New Zealand 8,760 5,996 5,204 Other overseas 901 819 817 Derivative financial instruments 33,249 26,568 26,218 Life insurance liabilities 2,999 7,653 8,874 All other liabilities 2 15,233 13,187 13,484 Total non-interest bearing liabilities 106,373 96,678 95,753 Total liabilities 852,014 830,960 811,262 Shareholders’ equity 68,014 63,714 62,017 NCI 52 50 31 Total equity 68,066 63,764 62,048 Total liabilities and equity 920,080 894,724 873,310 1. Includes net impact of Treasury balance sheet management activities and the Bank Levy. 2. Includes other financial liabilities, provisions, current and deferred tax liabilities and all other non-interest bearing liabilities. |
Summary of change in net interest income | 2020 2019 Consolidated Change due to Change due to $m Volume Rate Total Volume Rate Total Interest earning assets Collateral paid: Australia 93 (189) (96) 52 14 66 New Zealand — (4) (4) 2 1 3 Other overseas (5) (21) (26) (8) 11 3 Trading securities and financial assets measured at FVIS: Australia (9) (242) (251) 79 (34) 45 New Zealand 19 (57) (38) 7 (2) 5 Other overseas 2 (16) (14) 26 22 48 Investment securities: Australia 433 (777) (344) 43 (44) (1) New Zealand 2 (36) (34) 22 (28) (6) Other overseas (7) (13) (20) 9 3 12 Loans and other receivables: Australia (167) (4,449) (4,616) 477 (246) 231 New Zealand 274 (687) (413) 255 (121) 134 Other overseas 26 (345) (319) (54) 165 111 Total change in interest income 661 (6,836) (6,175) 910 (259) 651 Interest bearing liabilities Collateral received: Australia 11 (41) (30) (5) 9 4 New Zealand 4 (9) (5) 1 1 2 Other overseas 22 (18) 4 11 (5) 6 Deposits and other borrowings: Australia 167 (3,445) (3,278) 66 (351) (285) New Zealand 54 (407) (353) 78 (39) 39 Other overseas (16) (244) (260) (6) 176 170 Loan capital: Australia 188 (157) 31 2 (5) (3) New Zealand 3 — 3 7 — 7 Other overseas — (10) (10) — (2) (2) Other interest bearing liabilities: Australia (372) (1,716) (2,088) 346 (3) 343 New Zealand 105 (122) (17) 26 (42) (16) Other overseas (1) 40 39 (13) (3) (16) Total change in interest expense 165 (6,129) (5,964) 513 (264) 249 Change in net interest income: Australia 356 (298) 58 242 40 282 New Zealand 129 (246) (117) 174 (70) 104 Other overseas 11 (163) (152) (19) 35 16 Total change in net interest income 496 (707) (211) 397 5 402 |
Trading securities and financ_2
Trading securities and financial assets measured at FVIS (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Trading securities and financial assets measured at FVIS | |
Schedule of trading securities and financial assets measured at FVIS | Consolidated Parent Entity $m Trading securities 17,776 22,210 18,777 15,519 20,719 Reverse repurchase agreements 20,401 6,833 1,379 20,401 6,731 Other financial assets measured at FVIS 2,490 2,738 2,976 2,110 2,115 Total trading securities and financial assets measured at FVIS 40,667 31,781 23,132 38,030 29,565 Trading securities include the following: Consolidated Parent Entity $m Government and semi-government securities 16,625 13,328 15,585 Other debt securities 5,497 5,354 5,046 Equity securities 6 8 6 Other 82 87 82 Total trading securities 22,210 18,777 20,719 Other financial assets measured at FVIS include: Consolidated Parent Entity $m Other debt securities 2,045 2,394 2,715 1,703 2,057 Equity securities 445 344 261 407 58 Total other financial assets measured at FVIS 2,490 2,738 2,976 2,110 2,115 |
Available-for-sale securities_2
Available-for-sale securities/Investment securities (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Available-for-sale securities/Investment securities | |
Schedule of investment securities recognised under AASB 9 | Balances recognised under AASB 9 Consolidated Parent Entity $m Investment securities Investments securities measured at FVOCI Government and semi-government debt securities 53,389 50,980 Other debt securities 19,058 17,325 Equity securities 134 66 Total investment securities measured at FVOCI 72,581 68,371 Investment securities measured at amortised cost Government and semi-government debt securities 736 — 23 Other debt securities 93 4 Total investment securities measured at amortised cost 829 27 Provision for ECL on debt securities at amortised cost (9) — — Total net investment securities measured at amortised cost 820 27 Total investment securities 73,401 68,398 |
Schedule of maturities of the available-for-sale securities and their weighted-average yield | The following table shows the maturities of the Group’s investment securities as at 30 September 2020. It also shows the weighted average yield of the Group's investment securities. There are no tax-exempt securities. Over 1 Over 5 Up to year to 5 years to Over No specific Weighted 1 year years 10 years 10 years maturity Total average 2020 $m % $m % $m % $m % $m % $m % Carrying Amount Government and semi-government securities — — Other debt securities — — — — — — Equity securities — — — — — — — — — — Total by maturity |
Schedule of available-for-sale securities recognised under AASB 139 | Balances recognised under AASB 139 Consolidated $m Available-for-sale securities Government and semi-government securities 42,979 Other debt securities 17,756 Equity securities 384 Total available-for-sale securities 61,119 |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Loans | |
Schedule of loan portfolio disaggregated by location of booking office and product type | The loan portfolio is disaggregated by location of booking office and product type, as follows: Consolidated Parent Entity $m 2020 2019 2020 2019 Australia Housing 440,933 449,201 449,192 Personal 17,081 21,247 20,848 Business 147,584 152,360 148,850 Total Australia 605,598 622,808 618,890 New Zealand Housing 51,126 47,731 — — Personal 1,360 1,709 — — Business 29,864 29,285 411 Total New Zealand 82,350 78,725 411 Total other overseas 10,713 16,845 15,738 Total loans 698,661 718,378 635,039 Provision for ECL on loans (refer to Note 13) (5,602) (3,608) (3,103) Total net loans 1 693,059 714,770 631,936 1. Total net loans include securitised loans of $7,367 million (2019: $7,737 million) for the Group and $132,506 million (2019: $91,061 million) for the Parent Entity. |
Schedule of loans by industry classification | Consolidated $m Australia Accommodation, cafes and restaurants 7,933 8,039 8,297 8,177 7,536 Agriculture, forestry and fishing 10,116 9,210 8,642 8,182 7,953 Construction 6,711 7,186 6,751 6,043 5,797 Finance and insurance 13,348 14,069 14,059 12,923 14,298 Government, administration and defence 730 753 628 554 675 Manufacturing 8,493 9,337 9,298 9,054 9,140 Mining 2,975 2,869 3,311 3,025 3,641 Property 44,468 44,769 45,471 43,220 44,785 Property services and business services 12,562 14,035 13,477 12,050 11,674 Services 11,675 12,099 12,158 12,950 12,362 Trade 13,268 16,144 16,501 16,063 16,044 Transport and storage 8,218 8,268 8,853 8,624 9,015 Utilities 4,962 4,077 4,350 5,237 4,025 Retail lending 454,433 466,550 463,609 451,315 429,522 Other 5,706 5,403 6,680 4,229 2,777 Total Australia 605,598 622,808 622,085 601,646 579,244 New Zealand Accommodation, cafes and restaurants 388 355 323 290 256 Agriculture, forestry and fishing 9,101 8,553 8,138 7,772 7,788 Construction 509 493 502 447 396 Finance and insurance 3,427 3,009 2,903 2,478 2,682 Government, administration and defence 94 85 114 137 163 Manufacturing 1,689 1,913 2,199 2,090 2,324 Mining 203 278 206 141 280 Property 6,667 6,412 5,997 5,858 5,925 Property services and business services 951 1,182 1,073 1,113 1,084 Services 2,119 1,973 1,733 1,810 1,396 Trade 1,949 2,344 2,509 2,163 2,333 Transport and storage 1,176 1,131 1,029 1,080 1,257 Utilities 1,303 1,429 1,003 1,237 1,600 Retail lending 52,584 49,473 46,613 45,190 45,011 Other 190 95 — — — Total New Zealand 82,350 78,725 74,342 71,806 72,495 Other overseas Accommodation, cafes and restaurants 118 109 112 97 118 Agriculture, forestry and fishing 124 150 19 5 12 Construction 51 55 71 55 147 Finance and insurance 2,298 4,628 4,774 4,289 2,767 Government, administration and defence 20 2 25 4 4 Manufacturing 1,877 3,784 3,257 2,982 2,619 Mining 336 468 322 349 535 Property 416 492 467 491 479 Property services and business services 1,545 1,610 1,684 540 526 Services 218 243 205 205 99 Trade 1,553 2,293 2,312 2,680 3,463 Transport and storage 732 997 1,232 1,389 1,186 Utilities 950 1,086 736 514 442 Retail lending 457 863 683 657 1,120 Other 18 65 178 76 — Total other overseas 10,713 16,845 16,077 14,333 13,517 Total loans 698,661 718,378 712,504 687,785 665,256 Provision for ECL on loans (refer Note 13) (5,602) (3,608) — — — Provision for impairment charges on loans — — (2,814) (2,866) (3,330) Total net loans 693,059 714,770 709,690 684,919 661,926 Parent Entity $m Australia Accommodation, cafes and restaurants 7,857 7,967 Agriculture, forestry and fishing 10,058 9,151 Construction 6,199 6,810 Finance and insurance 13,290 14,005 Government, administration and defence 709 746 Manufacturing 8,282 9,155 Mining 2,955 2,849 Property 44,468 44,707 Property services and business services 11,843 13,192 Services 11,334 11,853 Trade 13,058 15,961 Transport and storage 7,870 7,961 Utilities 4,938 4,053 Retail lending 454,259 465,535 Other 5,098 4,945 Total Australia 602,218 618,890 New Zealand Accommodation, cafes and restaurants — — Agriculture, forestry and fishing 4 5 Construction 4 8 Finance and insurance — — Government, administration and defence — — Manufacturing 70 94 Mining — — Property 1 — Property services and business services 7 7 Services — — Trade 263 297 Transport and storage 5 — Utilities — — Retail lending — — Other — — Total New Zealand 354 411 Other overseas Accommodation, cafes and restaurants 81 67 Agriculture, forestry and fishing 114 130 Construction 46 47 Finance and insurance 2,295 4,624 Government, administration and defence 20 2 Manufacturing 1,875 3,780 Mining 314 465 Property 209 226 Property services and business services 1,478 1,528 Services 196 216 Trade 1,415 2,115 Transport and storage 642 886 Utilities 894 1,036 Retail lending 359 587 Other 7 29 Total other overseas 9,945 15,738 Total loans 612,517 635,039 Provision for ECL on loans (4,693) (3,103) Total net loans 607,824 631,936 |
Schedule of contractual maturity distribution of loans by industry | The following table shows the Group’s contractual maturity distribution of all loans by industry as at 30 September 2020: Consolidated 2020 Over 1 year $m Up to 1 year to 5 years Over 5 years Total Australia Accommodation, cafes and restaurants 3,253 4,303 377 7,933 Agriculture, forestry and fishing 3,115 6,417 584 10,116 Construction 1,604 4,241 866 6,711 Finance and insurance 6,066 4,761 2,521 13,348 Government, administration and defence 300 154 276 730 Manufacturing 3,465 4,589 439 8,493 Mining 458 1,903 614 2,975 Property 18,027 25,088 1,353 44,468 Property services and business services 2,991 8,055 1,516 12,562 Services 3,793 6,252 1,630 11,675 Trade 5,892 6,236 1,140 13,268 Transport and storage 1,593 5,977 648 8,218 Utilities 860 3,847 255 4,962 Retail lending 16,491 10,468 427,474 454,433 Other 748 3,886 1,072 5,706 Total Australia 68,656 96,177 440,765 605,598 Total New Zealand 20,555 11,481 50,314 82,350 Total other overseas 3,151 6,900 662 10,713 Total loans 92,362 114,558 491,741 698,661 |
Schedule of interest rate segmentation of loans maturing after one year | 2020 2019 Loans at Loans at Loans at Loans at variable fixed variable fixed Consolidated interest interest interest interest $m rates rates Total rates rates Total Interest rate segmentation of Group loans maturing after one year By offices in Australia 396,055 140,887 536,942 418,494 129,035 547,529 By offices in New Zealand 8,771 53,024 61,795 9,102 50,499 59,601 By offices in other overseas 7,216 346 7,562 9,881 943 10,824 Total loans maturing after one year 412,042 194,257 606,299 437,477 180,477 617,954 |
Provisions for expected credi_2
Provisions for expected credit losses/impairment charges (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Provisions for expected credit losses | |
Reconciliation of impairment charges | Consolidated Parent Entity $m 2020 2019 2020 2019 Loans and credit commitments: Business activitiy during the year 195 (170) 207 (183) Net remeasurement of provision for ECL 3,156 1,136 2,655 1,076 Impairment charges for debt securities at amortised cost 18 — — — Impairment charges for debt securities at FVOCI 2 — 2 — Recoveries (193) (172) (173) (143) Impairment charges (Note 6) 3,178 794 2,691 750 |
Schedule of impact of COVID-19 to the provision for ECL | Consolidated Parent Entity $m Modelled provision for ECL 5,480 3,801 4,659 3,266 Overlays 1 652 112 513 112 Total provision for ECL 6,132 3,913 5,172 3,378 1. Included in 2020 is $577 million related to COVID-19. |
Summary of key macroeconomic assumptions for base case scenario | Key macroeconomic assumptions for base case scenario 30 September 2020 30 September 2019 Forecast growth of 2.5% for calendar Annual GDP year 2021 Growth of 2.5% over the next 12 months Commercial property index Forecast price contraction of 19.3% for Reduction in the rate of growth of 1.1% calendar year 2021 over the next 12 months Residential property prices Forecast price contraction of 0.4% for Return to positive growth of 1% over the calendar year 2021 next 12 months Cash rate Forecast to remain at 10 bps over Reduction of 50 bps in the next calendar year 2021 12 months Unemployment rate: Australia Forecast to peak at 7.9% (February Increase to 5.6% over the next 2021) and fall to 7.5% at December 2021 12 months Forecast to peak at 7% (December New Zealand 2020) and then fall to 6.4% at Reduction of 50 bps in the next December 2021 12 months |
Summary of the the probability weighted scenarios | Consolidated Parent Entity $m Reported probability-weighted ECL 6,132 3,913 5,172 3,378 100% base case ECL 4,750 2,748 4,051 2,387 100% downside ECL 8,315 7,065 6,956 6,067 |
Summary of macroeconomic scenario weightings | The following table indicates the weightings applied by the Group and Parent Entity: Macroeconomic scenario weightings (%) Upside 5.0 10.0 Base 55.0 62.5 Downside 40.0 27.5 |
Schedule of loans and the related provision for ECL with COVID-19 support packages | Consolidated Parent Entity Provision for ECL Provision for ECL $m Gross loans on loans Gross loans on loans Housing loans Stage 1 18,053 (17) 14,970 (11) Stage 2 11,811 (371) 10,779 (339) Stage 3 93 (12) 46 (4) Total housing loans 29,957 (400) 25,795 (354) Personal loans Stage 1 275 (8) 243 (7) Stage 2 145 (60) 120 (51) Stage 3 6 (5) 3 (2) Total personal loans 426 (73) 366 (60) Business loans Stage 1 3,147 (17) 2,846 (17) Stage 2 1,993 (181) 1,839 (179) Stage 3 101 (19) 78 (12) Total business loans 5,241 (217) 4,763 (208) Total loans Stage 1 21,475 (42) 18,059 (35) Stage 2 13,949 (612) 12,738 (569) Stage 3 200 (36) 127 (18) Total loans 35,624 (690) 30,924 (622) |
Schedule of provisions for impairment charges on loans by industry classification | The following table presents provisions for ECL (as at 30 September 2020 and 2019) and provision for impairment charges (as at 30 September 2018, 2017 and 2016) on loans and credit commitments by industry classification: Consolidated 2020 2019 2018 2017 2016 $m % $m % $m % $m % $m % Australia Accommodation, cafes and restaurants 222 3.6 75 1.9 62 2.0 67 2.1 95 2.7 Agriculture, forestry and fishing 153 2.5 93 2.4 69 2.3 59 1.9 74 2.1 Construction 268 4.4 148 3.8 93 3.0 86 2.8 86 2.4 Finance and insurance 104 1.7 55 1.4 67 2.2 53 1.7 131 3.7 Manufacturing 193 3.1 111 2.8 196 6.4 164 5.3 278 7.7 Mining 67 1.1 36 0.9 91 3.0 131 4.2 246 6.8 Property 378 6.2 216 5.5 204 6.7 240 7.7 287 8.0 Property services and business services 394 6.4 230 5.9 128 4.2 155 5.0 216 6.0 Services 289 4.7 175 4.5 137 4.5 126 4.0 116 3.2 Trade 394 6.4 242 6.2 199 6.5 183 5.9 213 5.9 Transport and storage 188 3.1 109 2.8 79 2.6 92 2.9 73 2.0 Utilities 34 0.6 17 0.4 13 0.4 15 0.5 9 0.2 Retail lending 2,396 39.1 1,890 48.3 1,200 39.3 1,229 39.4 1,102 30.6 Other 191 3.1 109 2.8 106 3.5 92 2.9 138 3.8 Total Australia 5,271 86.0 3,506 89.6 2,644 86.6 2,692 86.3 3,064 85.1 New Zealand Accommodation, cafes and restaurants 4 0.1 2 0.1 3 0.1 2 0.1 2 0.1 Agriculture, forestry and fishing 110 1.8 67 1.7 77 2.5 93 3.0 120 3.3 Construction 12 0.2 9 0.2 16 0.5 9 0.3 9 0.2 Finance and insurance 2 — 2 0.1 3 0.1 3 0.1 4 0.1 Manufacturing 45 0.7 14 0.4 26 0.9 24 0.8 53 1.5 Mining — — — — 1 — 1 — 15 0.4 Property 34 0.6 20 0.5 27 0.9 38 1.2 52 1.4 Property services and business services 7 0.1 5 0.1 8 0.2 11 0.3 21 0.6 Services 13 0.2 9 0.2 9 0.3 14 0.4 13 0.4 Trade 16 0.3 15 0.4 21 0.7 17 0.5 18 0.5 Transport and storage 4 0.1 3 0.1 5 0.2 5 0.2 7 0.2 Utilities 2 - 1 — 2 0.1 3 0.1 4 0.1 Retail lending 352 5.7 173 4.4 130 4.3 130 4.2 125 3.5 Other 8 0.1 7 0.2 1 — — — 2 0.1 Total New Zealand 609 9.9 327 8.4 329 10.8 350 11.2 445 12.4 Total other overseas 252 4.1 80 2.0 80 2.6 77 2.5 93 2.5 Total provisions for ECL/ Impairment charges on loans and credit commitments 6,132 100.0 3,913 100.0 3,053 100.0 3,119 100.0 3,602 100.0 |
Schedule of net loan write-offs and recoveries, by industry classification | The following table shows details of loan write-offs by industry classifications for the past five years: Consolidated $m Australia Accommodation, cafes and restaurants (6) (12) (14) (38) (17) Agriculture, forestry and fishing (13) (4) (12) (10) (12) Construction (16) (13) (23) (30) (20) Finance and insurance (2) (4) (4) (6) (13) Manufacturing (14) (12) (12) (105) (21) Mining (4) (1) (14) (46) (18) Property (49) (31) (39) (76) (44) Property services and business services (16) (24) (44) (203) (43) Services (6) (7) (24) (97) (36) Trade (11) (62) (56) (59) (30) Transport and storage (18) (14) (17) (17) (48) Utilities (4) (1) (1) — (1) Retail lending (873) (903) (793) (898) (803) Other (4) (10) (5) (17) (13) Total Australia (1,036) (1,098) (1,058) (1,602) (1,119) New Zealand Accommodation, cafes and restaurants — — — — — Agriculture, forestry and fishing — (2) — — (1) Construction — — (1) (1) (1) Finance and insurance — — — — — Manufacturing — — — — — Mining — — — — — Property (4) — (13) (2) (10) Property services and business services — — — — (2) Services — — (1) — — Trade (1) (2) (1) (1) (1) Transport and storage — — — — — Utilities — — — — — Retail lending (31) (50) (53) (49) (51) Other — — — — (1) Total New Zealand (36) (54) (69) (53) (67) Total other overseas (98) (2) — (1) (3) Total write-offs (1,170) (1,154) (1,127) (1,656) (1,189) The following table shows details of recoveries of loans by industry classifications for the past five years: Consolidated $m Australia Accommodation, cafes and restaurants 1 — 1 3 — Agriculture, forestry and fishing 1 — — — — Construction 4 1 1 2 1 Finance and insurance 2 — 1 1 34 Manufacturing 1 1 — 2 1 Mining — — 1 1 — Property 3 8 7 10 3 Property services and business services 2 1 1 3 2 Services 1 — 1 — 2 Trade 5 2 2 3 1 Transport and storage 1 1 1 1 1 Utilities — — — — — Retail lending 157 135 139 118 84 Other — 5 — 5 2 Total Australia 178 154 155 149 131 Total New Zealand 15 18 24 19 6 Total other overseas — — — — — Total recoveries 193 172 179 168 137 Total write-offs (1,170) (1,154) (1,127) (1,656) (1,189) Net write-offs and recoveries (977) (982) (948) (1,488) (1,052) |
Loans and credit commitments | |
Provisions for expected credit losses | |
Summary and changes in the provision for ECL | 2020 2019 Non- Non- Consolidated Performing performing Performing performing $m Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Provision for ECL on loans Housing 185 742 977 1,904 158 352 591 1,101 Personal 180 362 232 774 232 424 248 904 Business 537 1,433 954 2,924 373 720 510 1,603 Total provision for ECL on loans (Note 12) 902 2,537 2,163 5,602 763 1,496 1,349 3,608 Provisions for ECL on credit commitments Housing 7 5 — 12 5 2 — 7 Personal 36 46 — 82 36 35 — 71 Business 139 287 10 436 80 141 6 227 Total provision for ECL on credit commitments (Note 27) 182 338 10 530 121 178 6 305 Total provisions for ECL on loans and credit commitments 1,084 2,875 2,173 6,132 884 1,674 1,355 3,913 Of which: Individually assessed provisions — — 611 611 — — 412 412 Collectively assessed provisions 1,084 2,875 1,562 5,521 884 1,674 943 3,501 Total provisions for ECL on loans and credit commitments 1,084 2,875 2,173 6,132 884 1,674 1,355 3,913 Gross loans and credit commitments 812,450 71,841 11,311 895,602 865,383 37,484 6,851 909,718 Coverage ratio (%) 0.13 4.00 19.21 0.68 0.10 4.47 19.78 0.43 2020 2019 Non- Non- Parent Entity Performing performing Performing performing $m Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Provision for ECL on loans Housing 145 630 904 1,679 137 334 557 1,028 Personal 162 297 193 652 200 369 213 782 Business 445 1,154 763 2,362 303 554 436 1,293 Total provision for ECL on loans (Note 12) 752 2,081 1,860 4,693 640 1,257 1,206 3,103 Provision for ECL on credit commitments Housing 4 5 — 9 4 1 — 5 Personal 28 35 — 63 29 32 — 61 Business 129 269 9 407 74 130 5 209 Total provision for ECL on credit commitments (Note 27) 161 309 9 479 107 163 5 275 Total provisions for ECL on loans and credit commitments 913 2,390 1,869 5,172 747 1,420 1,211 3,378 Of which: Individually assessed provisions — — 520 520 — — 364 364 Collectively assessed provisions 913 2,390 1,349 4,652 747 1,420 847 3,014 Total provisions for ECL on loans and credit commitments 913 2,390 1,869 5,172 747 1,420 1,211 3,378 Gross loans and credit commitments 712,381 61,822 10,293 784,496 764,311 32,966 6,249 803,526 Coverage ratio (%) 0.13 3.87 18.16 0.66 0.10 4.31 19.38 0.42 The following table reconciles the provisions for ECL on loans and credit commitments for the Group. Consolidated Collectively Individually Performing Non-performing assessed assessed $m Stage 1 Stage 2 Stage 3 provisions provisions Total Provision for impairment charges as at 30 September 2018 — — — 2,631 422 3,053 Restatement for adoption of AASB 9 877 1,884 1,272 (2,631) (422) 980 Restated provisions for ECL on loans and credit commitments as at 1 October 2018 877 1,884 1,272 — — 4,033 Transfers to Stage 1 1,458 (1,404) (54) — — — Transfers to Stage 2 (242) 956 (714) — — — Transfers to Stage 3 (5) (621) 626 — — — Business activity during the year 179 (19) (330) — — (170) Net remeasurement of provision for ECL (1,385) 874 1,647 — — 1,136 Write-offs — — (1,154) — — (1,154) Exchange rate and other adjustments 2 4 62 — — 68 Total provisions for ECL on loans and credit commitments as at 30 September 2019 884 1,674 1,355 — — 3,913 Transfers to Stage 1 1,578 (1,528) (50) — — — Transfers to Stage 2 (345) 1,161 (816) — — — Transfers to Stage 3 (7) (955) 962 — — — Business activity during the year 212 60 (77) — — 195 Net remeasurement of provision for ECL (1,233) 2,474 1,915 — — 3,156 Write-offs — — (1,170) — — (1,170) Exchange rate and other adjustments (5) (11) 54 — — 38 Total provisions for ECL on loans and credit commitments as at 30 September 2020 1,084 2,875 2,173 — — 6,132 The provisions for ECL on loans and credit commitments can be further disaggregated into the following classes: Consolidated Collectively Individually Housing Performing Non-performing assessed assessed $m Stage 1 Stage 2 Stage 3 provisions provisions Total Provision for impairment charges as at 30 September 2018 — — — 385 97 482 Restatement for adoption of AASB 9 130 351 501 (385) (97) 500 Restated provisions for ECL on loans and credit commitments as at 1 October 2018 130 351 501 — — 982 Transfers to Stage 1 343 (317) (26) — — — Transfers to Stage 2 (38) 396 (358) — — — Transfers to Stage 3 — (145) 145 — — — Business activity during the year 17 (35) (141) — — (159) Net remeasurement of provision for ECL (289) 104 567 — — 382 Write-offs — — (119) — — (119) Exchange rate and other adjustments — — 22 — — 22 Total provisions for ECL on loans and credit commitments as at 30 September 2019 163 354 591 — — 1,108 Transfers to Stage 1 566 (542) (24) — — — Transfers to Stage 2 (68) 472 (404) — — — Transfers to Stage 3 — (276) 276 — — — Business activity during the year 25 (53) (142) — — (170) Net remeasurement of provision for ECL (492) 798 772 — — 1,078 Write-offs — — (120) — — (120) Exchange rate and other adjustments (2) (6) 28 — — 20 Total provisions for ECL on loans and credit commitments as at 30 September 2020 192 747 977 — — 1,916 Consolidated Collectively Individually Personal Performing Non-performing assessed assessed $m Stage 1 Stage 2 Stage 3 provisions provisions Total Provision for impairment charges as at 30 September 2018 — — — 761 3 764 Restatement for adoption of AASB 9 263 589 240 (761) (3) 328 Restated provisions for ECL on loans and credit commitments as at 1 October 2018 263 589 240 — — 1,092 Transfers to Stage 1 849 (839) (10) — — — Transfers to Stage 2 (148) 368 (220) — — — Transfers to Stage 3 (2) (350) 352 — — — Business activity during the year 62 (18) (160) — — (116) Net remeasurement of provision for ECL (757) 708 838 — — 789 Write-offs — — (822) — — (822) Exchange rate and other adjustments 1 1 30 — — 32 Total provisions for ECL on loans and credit commitments as at 30 September 2019 268 459 248 — — 975 Transfers to Stage 1 744 (732) (12) — — — Transfers to Stage 2 (154) 368 (214) — — — Transfers to Stage 3 (1) (342) 343 — — — Business activity during the year 35 (37) (50) — — (52) Net remeasurement of provision for ECL (676) 694 617 — — 635 Write-offs — — (728) — — (728) Exchange rate and other adjustments — (2) 28 — — 26 Total provisions for ECL on loans and credit commitments as at 30 September 2020 216 408 232 — — 856 Consolidated Collectively Individually Business Performing Non-performing assessed assessed $m Stage 1 Stage 2 Stage 3 provisions provisions Total Provision for impairment charges as at 30 September 2018 — — — 1,485 322 1,807 Restatement for adoption of AASB 9 484 944 531 (1,485) (322) 152 Restated provisions for ECL on loans and credit commitments as at 1 October 2018 484 944 531 — — 1,959 Transfers to Stage 1 266 (248) (18) — — — Transfers to Stage 2 (56) 192 (136) — — — Transfers to Stage 3 (3) (126) 129 — — — Business activity during the year 100 34 (29) — — 105 Net remeasurement of provision for ECL (339) 62 242 — — (35) Write-offs — — (213) — — (213) Exchange rate and other adjustments 1 3 10 — — 14 Total provisions for ECL on loans and credit commitments as at 30 September 2019 453 861 516 — — 1,830 Transfers to Stage 1 268 (254) (14) — — — Transfers to Stage 2 (123) 321 (198) — — — Transfers to Stage 3 (6) (337) 343 — — — Business activity during the year 152 150 115 — — 417 Net remeasurement of provision for ECL (65) 982 526 — — 1,443 Write-offs — — (322) — — (322) Exchange rate and other adjustments (3) (3) (2) — — (8) Total provisions for ECL on loans and credit commitments as at 30 September 2020 676 1,720 964 — — 3,360 The following table reconciles the provision for ECL on loans and credit commitments for the Parent Entity. Parent Entity Collectively Individually Performing Non-performing assessed assessed $m Stage 1 Stage 2 Stage 3 provisions provisions Total Provision for impairment charges as at 30 September 2018 — — — 2,238 375 2,613 Restatement for adoption of AASB 9 741 1,605 1,113 (2,238) (375) 846 Restated provisions for ECL on loans and credit commitments as at 1 October 2018 741 1,605 1,113 — — 3,459 Transfers to Stage 1 1,191 (1,153) (38) — — — Transfers to Stage 2 (220) 860 (640) — — — Transfers to Stage 3 (3) (554) 557 — — — Business activity during the year 168 7 (358) — — (183) Net remeasurement of provision for ECL (1,130) 654 1,552 — — 1,076 Write-offs — — (1,023) — — (1,023) Exchange rate and other adjustments — 1 48 — — 49 Total provisions for ECL on loans and credit commitments as at 30 September 2019 747 1,420 1,211 — — 3,378 Transfers to Stage 1 1,150 (1,125) (25) — — — Transfers to Stage 2 (266) 930 (664) — — — Transfers to Stage 3 (6) (773) 779 — — — Business activity during the year 188 64 (45) — — 207 Net remeasurement of provision for ECL (897) 1,880 1,672 — — 2,655 Write-offs — — (1,105) — — (1,105) Exchange rate and other adjustments (3) (6) 46 — — 37 Total provisions for ECL on loans and credit commitments as at 30 September 2020 913 2,390 1,869 — — 5,172 The provisions for ECL on loans and credit commitments can be further disaggregated into the following classes: Parent Entity Collectively Individually Housing Performing Non-performing assessed assessed $m Stage 1 Stage 2 Stage 3 provisions provisions Total Provision for impairment charges as at 30 September 2018 — — — 516 82 598 Restatement for adoption of AASB 9 105 334 402 (516) (82) 243 Restated provisions for ECL on loans and credit commitments as at 1 October 2018 105 334 402 — — 841 Transfers to Stage 1 322 (302) (20) — — — Transfers to Stage 2 (36) 386 (350) — — — Transfers to Stage 3 — (141) 141 — — — Business activity during the year 15 (33) (127) — — (145) Net remeasurement of provision for ECL (265) 91 606 — — 432 Write-offs — — (115) — — (115) Exchange rate and other adjustments — — 20 — — 20 Total provisions for ECL on loans and credit commitments as at 30 September 2019 141 335 557 — — 1,033 Transfers to Stage 1 376 (365) (11) — — — Transfers to Stage 2 (44) 391 (347) — — — Transfers to Stage 3 — (233) 233 — — — Business activity during the year 19 (45) (128) — — (154) Net remeasurement of provision for ECL (343) 552 686 — — 895 Write-offs — — (111) — — (111) Exchange rate and other adjustments — — 25 — — 25 Total provisions for ECL on loans and credit commitments as at 30 September 2020 149 635 904 — — 1,688 Parent Entity Collectively Individually Personal Performing Non-performing assessed assessed $m Stage 1 Stage 2 Stage 3 provisions provisions Total Provision for impairment charges as at 30 September 2018 — — — 524 3 527 Restatement for adoption of AASB 9 215 540 200 (524) (3) 428 Restated provisions for ECL on loans and credit commitments as at 1 October 2018 215 540 200 — — 955 Transfers to Stage 1 635 (633) (2) — — — Transfers to Stage 2 (138) 319 (181) — — — Transfers to Stage 3 (1) (311) 312 — — — Business activity during the year 62 (11) (158) — — (107) Net remeasurement of provision for ECL (544) 497 753 — — 706 Write-offs — — (733) — — (733) Exchange rate and other adjustments — — 22 — — 22 Total provisions for ECL on loans and credit commitments as at 30 September 2019 229 401 213 — — 843 Transfers to Stage 1 549 (547) (2) — — — Transfers to Stage 2 (131) 313 (182) — — — Transfers to Stage 3 (1) (307) 308 — — — Business activity during the year 36 (31) (43) — — (38) Net remeasurement of provision for ECL (492) 503 573 — — 584 Write-offs — — (699) — — (699) Exchange rate and other adjustments — — 25 — — 25 Total provisions for ECL on loans and credit commitments as at 30 September 2020 190 332 193 — — 715 Parent Entity Collectively Individually Business Performing Non-performing assessed assessed $m Stage 1 Stage 2 Stage 3 provisions provisions Total Provision for impairment charges as at 30 September 2018 — — — 1,198 290 1,488 Restatement for adoption of AASB 9 421 731 511 (1,198) (290) 175 Restated provisions for ECL on loans and credit commitments as at 1 October 2018 421 731 511 — — 1,663 Transfers to Stage 1 234 (218) (16) — — — Transfers to Stage 2 (46) 155 (109) — — — Transfers to Stage 3 (2) (102) 104 — — — Business activity during the year 91 51 (73) — — 69 Net remeasurement of provision for ECL (321) 66 193 — — (62) Write-offs — — (175) — — (175) Exchange rate and other adjustments — 1 6 — — 7 Total provisions for ECL on loans and credit commitments as at 30 September 2019 377 684 441 — — 1,502 Transfers to Stage 1 225 (213) (12) — — — Transfers to Stage 2 (91) 226 (135) — — — Transfers to Stage 3 (5) (233) 238 — — — Business activity during the year 133 140 126 — — 399 Net remeasurement of provision for ECL (62) 825 413 — — 1,176 Write-offs — — (295) — — (295) Exchange rate and other adjustments (3) (6) (4) — — (13) Total provisions for ECL on loans and credit commitments as at 30 September 2020 574 1,423 772 — — 2,769 |
Schedule of provision for impairment charges on loans and credit commitments (AASB 139) | As 2018 comparatives were not restated for the Group’s adoption of AASB 9 in 2019, the following table reconciles the provisions for impairment charges on loans and credit commitments based on the requirements of AASB 139. Consolidated $m Individually assessed provisions Balance as at beginning of year 480 Provisions raised 371 Write-backs (150) Write-offs (269) Interest adjustment (11) Other adjustments 1 Balance as at end of year 422 Collectively assessed provisions Balance as at beginning of year 2,639 Provisions raised 668 Write-offs (858) Interest adjustment 179 Other adjustments 3 Balance as at end of year 2,631 Total provisions for impairment charges on loans and credit commitments 3,053 Less provision for credit commitments (refer to Note 27) (239) Total provision for impairment charges on loans 2,814 1. Impairment on debt securities at FVOCI is recognised in the income statement with a corresponding amount in OCI (refer to Note 28). There is no reduction of the carrying value of the debt securities which remain at fair value (refer to Note 11). |
Debt Securities | |
Provisions for expected credit losses | |
Summary and changes in the provision for ECL | The following table reconciles the provision for ECL on debt securities. Total Debt investment Debt securities at securities - securities at amortised debt $m FVOCI 1 cost securities Consolidated Provision for impairment charges as at 30 September 2018 — — — Restatement for adoption of AASB 9 2 9 11 Restated provision for ECL on investment securities - debt securities as at 1 October 2018 2 9 11 Stage 1 - change in the provision during the year — — — Total provision for ECL on investment securities - debt securities as at 30 September 2019 2 9 11 Stage 1 - change in the provision during the year 2 (9) (7) Stage 2 - change in the provision during the year — 27 27 Total provision for ECL on investment securities - debt securities as at 30 September 2020 4 27 31 Parent Entity Provision for impairment charges as at 30 September 2018 — — — Restatement for adoption of AASB 9 2 — 2 Restated provision for ECL on investment securities - debt securities as at 1 October 2018 2 — 2 Stage 1 - change in the provision during the year — — — Total provision for ECL on investment securities - debt securities as at 30 September 2019 2 — 2 Stage 1 - change in the provision during the year 2 — 2 Stage 2 - change in the provision during the year — — — Total provision for ECL on investment securities - debt securities as at 30 September 2020 4 — 4 |
Other financial assets (Tables)
Other financial assets (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Other financial assets | |
Schedule of other financial assets | Consolidated Parent Entity $m Accrued interest receivable 905 1,144 797 1,005 Securities sold not delivered 2,358 1,687 2,352 1,668 Trade debtors 992 998 502 517 Interbank lending 299 514 295 510 Clearing and settlement balances 630 750 558 706 Accrued fees and commissions 170 159 117 95 Other 120 115 124 114 Total other financial assets 5,474 5,367 4,745 4,615 |
Life insurance assets and lif_2
Life insurance assets and life insurance liabilities (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Life insurance assets and life insurance liabilities | |
Schedule of life insurance assets and life insurance liabilities | Life insurance assets Consolidated $m Investments held directly and in unit trusts Unit Trusts 333 6,764 Equities — 989 Debt Securities 2,818 1,589 Loans and other assets 442 25 Total life Insurance assets 3,593 9,367 Life insurance liabilities Consolidated Life investment Life insurance Reconciliation of movements in policy liabilities contracts contracts Total $m Balance as at beginning of year 8,206 8,438 (829) (841) 7,377 7,597 Movements in policy liabilities reflected in the income statement 504 12 516 Contract contributions recognised in policy liabilities 898 — — 898 Contract withdrawals recognised in policy liabilities (1,218) — — (1,218) Contract fees, expenses and tax recoveries (73) — — (73) Change in external unit holders of managed investment schemes (343) — — (343) Balance as at end of year 8,206 (829) 7,377 |
Deposits and other borrowings (
Deposits and other borrowings (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Deposits and other borrowings | |
Schedule of total deposits and other borrowings | Consolidated Parent Entity $m Australia Certificates of deposit 26,259 26,259 Non-interest bearing, repayable at call 43,341 43,341 Other interest bearing at call 247,161 247,161 Other interest bearing term 158,564 158,564 Total Australia 475,325 475,325 New Zealand Certificates of deposit 1,058 — — Non-interest bearing, repayable at call 6,368 — — Other interest bearing at call 22,291 — — Other interest bearing term 31,084 1 — Total New Zealand 60,801 1 — Other overseas Certificates of deposit 11,414 11,414 Non-interest bearing, repayable at call 824 385 Other interest bearing at call 1,610 1,233 Other interest bearing term 13,273 13,073 Total other overseas 27,121 26,105 Total deposits and other borrowings 563,247 501,430 |
Schedule of average balances and average rates for major categories of deposits | 2020 2019 2018 Average Average Average Average Average Average balance rate balance rate balance rate Consolidated $m % $m % $m % Australia Non-interest bearing, repayable at call 42,455 41,156 Certificates of deposit 0.8 30,367 2.0 31,424 2.0 Other interest bearing at call 0.5 237,420 1.1 228,328 1.2 Other interest bearing term 1.5 158,012 2.4 162,254 2.5 Total Australia 468,254 463,162 Overseas Non-interest bearing, repayable at call 6,815 6,021 Certificates of deposit 1.4 11,854 2.6 13,008 1.9 Other interest bearing at call 0.5 23,616 1.1 23,017 1.2 Other interest bearing term 2.3 45,520 3.0 41,942 2.8 Total overseas 87,805 83,988 |
Schedule of maturities of certificates of deposit and term deposits greater than $100,000 | Over Over 3 months 6 months Consolidated 2020 Up to to to $m 3 months 6 months 1 year Over 1 year Total Certificates of deposit greater than US$100,000 13,363 11,440 817 27 25,647 Term deposits greater than US$100,000 61,663 18,001 24,315 4,540 108,519 |
Other financial liabilities (Ta
Other financial liabilities (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Other financial liabilities | |
Schedule of other financial liabilities | Consolidated Parent Entity $m Repurchase agreements 27,763 10,604 27,763 10,604 Interbank placements 4,981 9,884 4,710 9,834 Accrued interest payable 1,367 2,627 1,169 2,312 Securities purchased not delivered 2,291 1,398 2,291 1,395 Trade creditors and other accrued expenses 1,250 1,154 1,045 927 Settlement and clearing balances 1,005 1,222 989 1,197 Securities sold short 846 766 846 766 Other 1,422 1,560 1,343 1,481 Total other financial liabilities 40,925 29,215 40,156 28,516 |
Debt issues (Tables)
Debt issues (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Debt issues | |
Schedule of debt issues and movement reconciliation | Consolidated Parent Entity $m Short-term debt Own issuances 16,477 25,838 14,160 23,695 Total short-term debt 16,477 25,838 14,160 23,695 Long-term debt Covered bonds 36,051 38,037 31,926 33,160 Senior 89,766 109,340 81,580 99,819 Securitisation 8,000 8,190 — — Structured notes 31 52 — — Total long-term debt 133,848 155,619 113,506 132,979 Total debt issues 150,325 181,457 127,666 156,674 Movement reconciliation ($m) Balance at beginning of year 181,457 172,596 156,674 152,288 Issuances 34,766 61,484 27,487 50,375 Maturities, repayments, buy backs and reductions (65,160) (63,313) (55,761) (56,347) Total cash movements (30,394) (1,829) (28,274) (5,972) FX translation impact (1,977) 6,713 (2,005) 6,514 Fair value adjustments 81 317 81 318 Fair value hedge accounting adjustments 1,038 3,512 1,076 3,376 Other (amortisation of bond issue costs, etc) 120 148 114 150 Total non-cash movements (738) 10,690 (734) 10,358 Balance as at end of year 150,325 181,457 127,666 156,674 |
Schedule of debt issues by type and currency | Consolidated $m Short-term debt Own issuances: US commercial paper 13,864 19,950 Senior debt: AUD — 100 GBP 2,437 5,366 Other 176 422 Total own issuances 16,477 25,838 Total short-term debt 16,477 25,838 Long-term debt (by currency): AUD 36,062 43,532 CHF 3,177 3,480 EUR 34,498 37,464 GBP 3,440 5,545 JPY 2,439 2,538 NZD 3,519 3,197 USD 45,917 54,490 Other 4,796 5,373 Total long-term debt 133,848 155,619 |
Summary of short-term borrowings | Consolidated $m Short-term borrowings US commercial paper Maximum amount outstanding at any month end 21,639 26,879 28,331 Approximate average amount outstanding 18,462 22,502 23,315 Approximate weighted average interest rate on: Average amount outstanding 1.4 2.8 2.0 Outstanding as at year end 0.4 3.2 2.5 |
Loan Capital (Tables)
Loan Capital (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Loan capital | |
Schedule of loan capital | Consolidated and Parent Entity $m Additional Tier 1 (AT1) loan capital Westpac capital notes 7,423 7,411 USD AT1 securities 1,941 1,913 Total AT1 loan capital 9,364 9,324 Tier 2 loan capital Subordinated notes 14,090 11,981 Subordinated perpetual notes 495 521 Total Tier 2 loan capital 14,585 12,502 Total loan capital 23,949 21,826 Movement reconciliation ($m) Balance as at beginning of year 21,826 17,265 Issuances 2,225 4,935 Maturities, repayments, buy backs and reductions (262) (1,662) Total cash movements 1,963 3,273 FX translation impact (564) 521 Fair value hedge accounting adjustments 703 748 Other (amortisation of bond issue costs, etc) 21 19 Total non-cash movements 160 1,288 Balance as at end of year 23,949 21,826 |
Additional Tier 1 (AT1) loan capital | |
Loan capital | |
Schedule of loan capital | A summary of the key terms and common features of AT1 instruments are provided below 1 . Consolidated and Parent Entity Potential scheduled Optional $m Distribution Interest rate conversion date 2 redemption date 3 Westpac capital notes (WCN) $1,311 million WCN2 (90 day bank bill rate + 3.05% p.a.) 23 September 2024 23 September 2022 1,307 1,308 x (1 - Australian corporate tax rate) $1,324 million WCN3 (90 day bank bill rate + 4.00% p.a.) 22 March 2023 22 March 2021 1,323 1,319 x (1 - Australian corporate tax rate) $1,702 million WCN4 (90 day bank bill rate + 4.90% p.a.) 20 December 2023 20 December 2021 1,698 1,694 x (1 - Australian corporate tax rate) $1,690 million WCN5 (90 day bank bill rate + 3.20% p.a.) 22 September 2027 22 September 2025 1,680 1,677 x (1 - Australian corporate tax rate) $1,423 million WCN6 (90 day bank bill rate + 3.70% p.a.) 31 July 2026 31 July 2024 1,415 1,413 x (1 - Australian corporate tax rate) Total Westpac capital notes 7,423 7,411 USD AT1 securities US$1,250 million securities 5.00% p.a. until but excluding 21 September 2027 n/a 21 September 2027 5 1,941 1,913 (first reset date). If not redeemed, converted or written-off earlier, from, and including, each reset date 4 to, but excluding, the next succeeding reset date 5 , at a fixed rate p.a. equal to the prevailing 5- year USD midmarket swap rate plus 2.89% p.a. Total USD AT1 securities 1,941 1,913 1. A$ unless otherwise noted. 2. Conversion is subject to the satisfaction of the scheduled conversion conditions. If the conversion conditions are not satisfied on the relevant scheduled conversion date, conversion will not occur until the next distribution payment date on which the scheduled conversion conditions are satisfied. 3. Westpac may elect to redeem the relevant AT1 instrument, subject to APRA’s prior written approval. 4. Every fifth anniversary thereafter is a reset date. 5. Westpac may elect to redeem on 21 September 2027 and every fifth anniversary after the first reset date is a reset date. |
Tier 2 loan capital | |
Loan capital | |
Schedule of loan capital | A summary of the key terms and common features of Westpac’s Tier 2 instruments are provided below 1 : Consolidated and Parent Entity Optional $m Interest rate 2 Maturity date redemption date 3 Subordinated notes CNY1,250 million subordinated notes 4.85% p.a. until but excluding 9 February 2020. Thereafter, if not redeemed, a fixed rate per annum equal to the one-year CNH HIBOR reference rate plus 0.8345% p.a. 9 February 2025 9 February 2020 4 — 260 A$350 million subordinated notes 4.50% p.a. until but excluding 11 March 2022. Thereafter, if not redeemed, a fixed rate per annum equal to the five-year AUD semi-quarterly mid-swap reference rate plus 1.95% p.a., the sum of which will be annualised. 11 March 2027 11 March 2022 361 362 S$325 million subordinated notes 4.00% p.a. until but excluding 12 August 2022. Thereafter, if not redeemed, a fixed rate per annum equal to the five-year SGD swap offer rate plus 1.54% p.a. 12 August 2027 12 August 2022 347 356 A$175 million subordinated notes 4.80% p.a. until but excluding 14 June 2023. Thereafter, if not redeemed, a fixed rate per annum equal to the five-year AUD semi-quarterly mid-swap reference rate plus 2.65% p.a., each of which will be annualised. 14 June 2028 14 June 2023 185 182 US$100 million subordinated notes Fixed 5.00% p.a. 23 February 2046 n/a 175 161 A$700 million subordinated notes Floating 90 day bank bill rate + 3.10% p.a. 10 March 2026 10 March 2021 700 697 JPY20,000 million subordinated notes Fixed 1.16% p.a. 19 May 2026 n/a 270 279 JPY10,200 million subordinated notes Fixed 1.16% p.a. 2 June 2026 n/a 137 142 JPY10,000 million subordinated notes Fixed 0.76% p.a. 9 June 2026 n/a 134 139 NZ$400 million subordinated notes 4.6950% p.a. until but excluding 1 September 2021. Thereafter, if not redeemed, a fixed rate per annum equal to the New Zealand 5-year swap rate on 1 September 2021 plus 2.60% p.a. 1 September 2026 1 September 2021 376 373 JPY8,000 million subordinated notes 0.9225% p.a. until but excluding 7 October 2021. Thereafter, if not redeemed, a fixed rate per annum equal to the five-year JPY mid-swap rate plus 1.0005% p.a. 7 October 2026 7 October 2021 107 110 US$1,500 million subordinated notes 4.322% p.a. until but excluding 23 November 2026. Thereafter, if not redeemed, a fixed rate per annum equal to the five-year USD mid-swap rate plus 2.236% p.a. 23 November 2031 23 November 2026 2,320 2,297 JPY12,000 million subordinated notes 0.87% p.a. until but excluding 6 July 2022. Thereafter, if not redeemed, a fixed rate per annum equal to the five-year JPY mid-swap rate plus 0.78% p.a. 6 July 2027 6 July 2022 161 166 JPY13,500 million subordinated notes 0.868% p.a. until but excluding 6 July 2022. Thereafter, if not redeemed, a fixed rate per annum equal to the five-year JPY mid-swap rate plus 0.778% p.a. 6 July 2027 6 July 2022 181 187 HKD600 million subordinated notes 3.15% p.a. until but excluding 14 July 2022. Thereafter, if not redeemed, a fixed rate per annum equal to the five-year HKD mid-swap rate plus 1.34% p.a. 14 July 2027 14 July 2022 111 114 A$350 million subordinated notes 4.334% p.a. until but excluding 16 August 2024. Thereafter, if not redeemed, a fixed rate per annum equal to the five-year AUD semi-quarterly mid-swap reference rate plus 1.83% p.a., each of which will be annualised. 16 August 2029 16 August 2024 349 349 A$185 million subordinated notes Fixed 5.00% p.a. 24 January 2048 n/a 185 185 A$250 million subordinated notes 90 day bank bill rate + 1.40% p.a. 16 February 2028 16 February 2023 250 250 A$130 million subordinated notes Fixed 5.00% p.a. 2 March 2048 n/a 130 130 A$725 million subordinated notes 90 day bank bill rate + 1.80% p.a. 22 June 2028 22 June 2023 714 724 US$1,000 million subordinated notes Fixed 4.421% p.a. 24 July 2039 n/a 1,707 1,606 US$1,250 million subordinated notes 4.110% p.a. until but excluding 24 July 2029. Thereafter, if not redeemed a fixed rate per annum equal to the five-year USD treasury rate plus 2% p.a. 24 July 2034 24 July 2029 1,970 1,921 A$1,000 million subordinated notes Floating 90 day bank bill rate + 1.98% p.a. 27 August 2029 27 August 2024 1,000 991 US$1,500 million subordinated notes 2.894% p.a. until but excluding 4 February 2025. Thereafter, if not redeemed, a fixed rate per annum equal to the five-year USD treasury rate plus 1.35% p.a. 4 February 2030 4 February 2025 2,220 — Total subordinated notes 14,090 11,981 1. Excludes subordinated perpetual notes. 2. Interest payments are made periodically as set out in the terms of the subordinated notes. 3. Westpac may elect to redeem the relevant Tier 2 instrument on the optional redemption date or dates, subject to APRA’s prior written approval. If not redeemed on the first optional redemption date, Westpac may elect to redeem the relevant Tier 2 instrument on any interest payment date after the first optional redemption date (except for US$1,500 million subordinated notes with an optional redemption date in November 2026, US$1,250 million subordinated notes with an optional redemption date in July 2029 and US$1,500 million subordinated notes with an optional redemption date in February 2025), subject to APRA’s prior written approval. 4. The subordinated notes were redeemed in full on the optional redemption date. |
Derivative financial instrume_2
Derivative financial instruments (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Derivative financial instruments | |
Summary of carrying values of derivative instruments | Consolidated 2020 Total derivatives Trading Hedging carrying value $m Assets Liabilities Assets Liabilities Assets Liabilities Interest rate contracts 1 Forward rate agreements 14 (14) — — 14 (14) Swap agreements 44,366 (42,724) 5,916 (10,331) 50,282 (53,055) Options 161 (165) — — 161 (165) Total interest rate contracts 44,541 (42,903) 5,916 (10,331) 50,457 (53,234) FX contracts Spot and forward contracts 5,595 (4,797) 61 (46) 5,656 (4,843) Cross currency swap agreements (principal and interest) 4,977 (8,872) 1,450 (141) 6,427 (9,013) Options 383 (200) — — 383 (200) Total FX contracts 10,955 (13,869) 1,511 (187) 12,466 (14,056) Credit default swaps Credit protection bought — (59) — — — (59) Credit protection sold 57 — — — 57 — Total credit default swaps 57 (59) — — 57 (59) Commodity contracts 352 (204) — — 352 (204) Equities 3 — — — 3 — Total of gross derivatives 55,908 (57,035) 7,427 (10,518) 63,335 (67,553) Impact of netting arrangements (34,402) 34,819 (5,566) 9,680 (39,968) 44,499 Total of net derivatives 21,506 (22,216) 1,861 (838) 23,367 (23,054) Consolidated 2019 Total derivatives Trading Hedging carrying value $m Assets Liabilities Assets Liabilities Assets Liabilities Interest rate contracts 1 Forward rate agreements 35 (36) — — 35 (36) Swap agreements 38,383 (37,051) 4,073 (7,568) 42,456 (44,619) Options 294 (303) — — 294 (303) Total interest rate contracts 38,712 (37,390) 4,073 (7,568) 42,785 (44,958) FX contracts Spot and forward contracts 6,857 (6,393) 181 (3) 7,038 (6,396) Cross currency swap agreements (principal and interest) 8,934 (12,478) 2,172 (69) 11,106 (12,547) Options 200 (111) — - 200 (111) Total FX contracts 15,991 (18,982) 2,353 (72) 18,344 (19,054) Credit default swaps Credit protection bought — (88) — — — (88) Credit protection sold 83 - — — 83 — Total credit default swaps 83 (88) — — 83 (88) Commodity contracts 251 (187) — — 251 (187) Equities 1 (1) — — 1 (1) Total of gross derivatives 55,038 (56,648) 6,426 (7,640) 61,464 (64,288) Impact of netting arrangements (27,968) 28,703 (3,637) 6,489 (31,605) 35,192 Total of net derivatives 27,070 (27,945) 2,789 (1,151) 29,859 (29,096) Parent Entity 2020 Total derivatives Trading Hedging carrying value $m Assets Liabilities Assets Liabilities Assets Liabilities Interest rate contracts 1 Forward rate agreements 14 (14) — — 14 (14) Swap agreements 44,511 (43,108) 5,749 (9,807) 50,260 (52,915) Options 161 (165) — — 161 (165) Total interest rate contracts 44,686 (43,287) 5,749 (9,807) 50,435 (53,094) FX contracts Spot and forward contracts 5,641 (4,821) 14 (19) 5,655 (4,840) Cross currency swap agreements (principal and interest) 4,977 (8,872) 900 (9) 5,877 (8,881) Options 383 (200) — — 383 (200) Total FX contracts 11,001 (13,893) 914 (28) 11,915 (13,921) Credit default swaps Credit protection bought — (59) — — — (59) Credit protection sold 57 - — — 57 — Total credit default swaps 57 (59) — — 57 (59) Commodity contracts 352 (204) — — 352 (204) Equities 3 - — — 3 — Total of gross derivatives 56,099 (57,443) 6,663 (9,835) 62,762 (67,278) Impact of netting arrangements (34,521) 35,175 (5,447) 9,324 (39,968) 44,499 Total of net derivatives 21,578 (22,268) 1,216 (511) 22,794 (22,779) Parent Entity 2019 Total derivatives Trading Hedging carrying value $m Assets Liabilities Assets Liabilities Assets Liabilities Interest rate contracts 1 Forward rate agreements 35 (36) — — 35 (36) Swap agreements 38,489 (37,438) 3,955 (7,018) 42,444 (44,456) Options 294 (303) — — 294 (303) Total interest rate contracts 38,818 (37,777) 3,955 (7,018) 42,773 (44,795) FX contracts Spot and forward contracts 6,987 (6,389) 46 (3) 7,033 (6,392) Cross currency swap agreements (principal and interest) 8,934 (12,479) 1,613 (6) 10,547 (12,485) Options 200 (111) — — 200 (111) Total FX contracts 16,121 (18,979) 1,659 (9) 17,780 (18,988) Credit default swaps Credit protection bought — (88) — — — (88) Credit protection sold 83 — — — 83 — Total credit default swaps 83 (88) — — 83 (88) Commodity contracts 251 (187) — — 251 (187) Equities 1 (1) — — 1 (1) Total of gross derivatives 55,274 (57,032) 5,614 (7,027) 60,888 (64,059) Impact of netting arrangements (27,968) 28,703 (3,637) 6,489 (31,605) 35,192 Total of net derivatives 27,306 (28,329) 1,977 (538) 29,283 (28,867) 1. The fair value of futures contracts is settled daily with the exchange, and therefore have been excluded from this table. |
Summary of Libor exposures in hedging relationships | The table below summarises the exposures Westpac currently has in hedging relationships maturing after 31 December 2021 which will be impacted by the IBOR reform and the quantum of those risks expressed in AUD equivalent values. The extent of the risk exposure also reflects the notional amounts of related hedging instruments. Benchmark Notional hedged exposure A$bn Consolidated Parent Entity US LIBOR GBP LIBOR CHF LIBOR JPY LIBOR |
Schedule of carrying values, and maturity analysis of notional amounts of hedging instruments | Consolidated 2020 Notional amounts Over Within 1 year to Over Carrying value $m Hedging instrument Hedged risk 1 year 5 years 5 years Total Assets Liabilities One-to-one hedge relationships Fair value hedges Interest rate swap Interest rate risk 16,748 60,258 56,979 133,985 4,395 (8,810) Cross currency swap Interest rate risk 4,668 8,381 1,615 14,664 355 — Cash flow hedges Cross currency swap FX risk 5,877 9,590 1,615 17,082 1,095 (141) Net investment hedges Forward contracts FX risk 6,320 — — 6,320 61 (46) Total one-to-one hedge relationships 33,613 78,229 60,209 172,051 5,906 (8,997) Macro hedge relationships Portfolio fair value hedges Interest rate swap Interest rate risk n/a n/a n/a 19,907 — (187) Macro cash flow hedges Interest rate swap Interest rate risk n/a n/a n/a 174,611 1,521 (1,334) Total macro hedge relationships n/a n/a n/a 194,518 1,521 (1,521) Total of gross hedging derivatives n/a n/a n/a 366,569 7,427 (10,518) Impact of netting arrangements n/a n/a n/a n/a (5,566) 9,680 Total of net hedging derivatives n/a n/a n/a n/a 1,861 (838) Notional amounts Over Consolidated 2019 Within 1 year to Over Carrying value $m Hedging instrument Hedged risk 1 year 5 years 5 years Total Assets Liabilities One-to-one hedge relationships Fair value hedges Interest rate swap Interest rate risk 16,322 61,707 48,271 126,300 2,548 (5,672) Cross currency swap Interest rate risk 5,632 12,870 1,708 20,210 584 (69) Cash flow hedges Cross currency swap FX risk 5,632 15,386 1,708 22,726 1,588 — Net investment hedges Forward contracts FX risk 8,152 — — 8,152 181 (3) Total one-to-one hedge relationships 35,738 89,963 51,687 177,388 4,901 (5,744) Macro hedge relationships Portfolio fair value hedges Interest rate swap Interest rate risk n/a n/a n/a 18,813 — (194) Macro cash flow hedges Interest rate swap Interest rate risk n/a n/a n/a 176,828 1,525 (1,702) Total macro hedge relationships n/a n/a n/a 195,641 1,525 (1,896) Total of gross hedging derivatives n/a n/a n/a 373,029 6,426 (7,640) Impact of netting arrangements n/a n/a n/a n/a (3,637) 6,489 Total of net hedging derivatives n/a n/a n/a n/a 2,789 (1,151) Parent Entity 2020 Notional amounts Over 1 Within year to Over Carrying value $m Hedging instrument Hedged risk 1 year 5 years 5 years Total Assets Liabilities One-to-one hedge relationships Fair value hedges Interest rate swap Interest rate risk 16,125 58,628 56,979 131,732 4,390 (8,644) Cross currency swap Interest rate risk 2,981 4,284 1,286 8,551 252 — Cash flow hedges Cross currency swap FX risk 2,981 4,284 1,286 8,551 648 (9) Net investment hedges Forward contracts FX risk 1,240 — — 1,240 14 (19) Total one-to-one hedge relationships 23,327 67,196 59,551 150,074 5,304 (8,672) Macro hedge relationships Portfolio fair value hedges Interest rate swap Interest rate risk n/a n/a n/a — — — Macro cash flow hedges Interest rate swap Interest rate risk n/a n/a n/a 162,033 1,359 (1,163) Total macro hedge relationships n/a n/a n/a 162,033 1,359 (1,163) Total of gross hedging derivatives n/a n/a n/a 312,107 6,663 (9,835) Impact of netting arrangements n/a n/a n/a n/a (5,447) 9,324 Total of net hedging derivatives n/a n/a n/a n/a 1,216 (511) Notional amounts Over Parent Entity 2019 Within 1 year to Over Carrying value $m Hedging instrument Hedged risk 1 year 5 years 5 years Total Assets Liabilities One-to-one hedge relationships Fair value hedges Interest rate swap Interest rate risk 14,323 59,842 47,881 122,046 2,535 (5,475) Cross currency swap Interest rate risk 4,473 7,185 1,384 13,042 441 — Cash flow hedges Cross currency swap FX risk 4,473 7,185 1,384 13,042 1,172 (6) Net investment hedges Forward contracts FX risk 2,315 — — 2,315 46 (3) Total one-to-one hedge relationships 25,584 74,212 50,649 150,445 4,194 (5,484) Macro hedge relationships Portfolio fair value hedges Interest rate swap Interest rate risk n/a n/a n/a — — — Macro cash flow hedges Interest rate swap Interest rate risk n/a n/a n/a 166,978 1,420 (1,543) Total macro hedge relationships n/a n/a n/a 166,978 1,420 (1,543) Total of gross hedging derivatives n/a n/a n/a 317,423 5,614 (7,027) Impact of netting arrangements n/a n/a n/a n/a (3,637) 6,489 Total of net hedging derivatives n/a n/a n/a n/a 1,977 (538) |
Schedule of weighted average FX rate related to significant hedging instruments in one-to-one hedge relationships | Consolidated Weighted average rate Hedging instrument Hedged risk Currency pair Cash flow hedges Cross currency swap FX risk EUR:AUD JPY:AUD EUR:NZD HKD:NZD Net investment hedges Forward contracts FX risk NZD:AUD Parent Entity Weighted average rate Hedging instrument Hedged risk Currency pair Cash flow hedges Cross currency swap FX risk EUR:AUD JPY:AUD CNH:AUD Net investment hedges Forward contracts FX risk NZD:AUD |
Schedule of impact of hedge accounting on the balance sheet and reserves | 2020 2019 FVHA FVHA Consolidated Carrying amount of included in carrying Carrying amount of included in carrying $m hedged item amount hedged item amount Interest rate risk Investment securities 68,862 3,285 Loans 20,290 140 Debt issues and loan capital (96,605) (4,559) 2020 2019 FVHA FVHA Parent Entity Carrying amount of included in carrying Carrying amount of included in carrying $m hedged item amount hedged item amount Interest rate risk Investment securities 66,529 3,175 Loans 251 8 Debt issues and loan capital (90,287) (4,440) |
Schedule of pre-tax impact of cash flow and net investment hedges on reserves | Consolidated 2020 2019 $m Interest rate risk FX risk Total Interest rate risk FX risk Total Cash flow hedge reserve Balance as at beginning of year (99) (83) (182) (87) Net gains/(losses) from changes in fair value (1) (94) (95) (158) Transferred to interest income 173 45 218 146 Balance as at end of year 73 (132) (59) (99) Parent Entity 2020 2019 $m Interest rate risk Foreign exchange risk Total Interest rate risk FX risk Total Cash flow hedge reserve Balance as at beginning of year (70) (22) (92) (42) Net gains/(losses) from changes in fair value 16 (44) (28) (130) Transferred to interest income 137 13 150 102 Balance as at end of year 83 (53) 30 (70) |
Schedule of information regarding determination of hedge effectiveness | Change in fair value Change in of hedging value of the Hedge instrument hedged item Hedge ineffectiveness used for used for ineffectiveness recognised in Consolidated 2020 calculating calculating recognised in non-interest $m Hedging instrument Hedged risk ineffectiveness ineffectiveness interest income income Fair value hedges Interest rate swap Interest rate risk 1,403 (1,372) 31 n/a Cross currency swap Interest rate risk (110) 108 (2) n/a Cash flow hedges Interest rate swap Interest rate risk 230 (172) 58 n/a Cross currency swap FX risk (49) 49 — n/a Net Investment hedges Forward contracts FX risk 9 (9) n/a — Total 1,483 (1,396) 87 — Change in fair value Change in of hedging value of the Hedge instrument hedged item Hedge ineffectiveness used for used for ineffectiveness recognised in Consolidated 2019 calculating calculating recognised in non-interest $m Hedging instrument Hedged risk ineffectiveness ineffectiveness interest income income Fair value hedges Interest rate swap Interest rate risk 1,532 (1,512) 20 n/a Cross currency swap Interest rate risk 192 (190) 2 n/a Cash flow hedges Interest rate swap Interest rate risk (6) 12 6 n/a Cross currency swap FX risk 6 (6) — n/a Net investment hedges Forward contracts FX risk (129) 129 n/a — Total 1,595 (1,567) 28 — Change in fair value Change in of hedging value of the Hedge instrument hedged item Hedge ineffectiveness used for used for ineffectiveness recognised in Parent Entity 2020 calculating calculating recognised in non-interest $m Hedging instrument Hedged risk ineffectiveness ineffectiveness interest income income Fair value hedges Interest rate swap Interest rate risk 1,408 (1,377) 31 n/a Cross currency swap Interest rate risk (73) 72 (1) n/a Cash flow hedges Interest rate swap Interest rate risk 200 (153) 47 n/a Cross currency swap FX risk (31) 31 — n/a Net investment hedges Forward contracts FX risk 17 (17) n/a — Total 1,521 (1,444) 77 — Change in fair value Change in of hedging value of the Hedge instrument hedged item Hedge ineffectiveness used for used for ineffectiveness recognised in Parent Entity 2019 calculating calculating recognised in non-interest $m Hedging instrument Hedged risk ineffectiveness ineffectiveness interest income income Fair value hedges Interest rate swap Interest rate risk 1,684 (1,664) 20 n/a Cross currency swap Interest rate risk 56 (57) (1) n/a Cash flow hedges Interest rate swap Interest rate risk (21) 28 7 n/a Cross currency swap FX risk 35 (35) — n/a Net investment hedges Forward contracts FX risk (52) 52 n/a — Total 1,702 (1,676) 26 — |
Financial risk (Tables)
Financial risk (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Financial risk | |
Schedule of high level CRGs and corresponding external rating | Transaction-managed Financial statement disclosure Westpac CRG Moody’s Rating S&P Rating Strong A Aaa – Aa3 AAA – AA– B A1 – A3 A+ – A– C Baa1 – Baa3 BBB+ – BBB– Good/satisfactory D Ba1 – B1 BB+ – B+ Westpac Rating Weak E Watchlist F Special Mention Weak/default/non-performing G Substandard/Default H Default |
Summary of credit concentrations for each significant class of financial asset | The credit concentrations for each significant class of financial asset are: Trading securities and financial assets measured at FVIS (Note 10) 64% (2019: 45%) were issued by financial institutions for the Group; 67% (2019: 44%) for the Parent Entity. 33 % (2019: 51%) were issued by government or semi-government authorities for the Group; 31% (2019: 52%) for the Parent Entity. 79% (2019: 71%) were held in Australia by the Group; 84% (2019: 75%) by the Parent Entity. Investment securities (Note 11) 18% (2019: 24%) were issued by financial institutions for the Group; 18% (2019: 25%) for the Parent Entity. 82% (2019: 75%) were issued by government or semi-government authorities for the Group; 82% (2019: 75%) for the Parent Entity. 92% (2019: 90%) were held in Australia by the Group; 98% (2019: 97%) by the Parent Entity. Loans (Note 12) Note 12 provides a detailed breakdown of loans by industry and geographic classification. Derivative financial instruments (Note 20) 68% (2019: 72%) were issued by financial institutions for both the Group and Parent Entity. 76% (2019: 78%) were held in Australia by the Group; 78% (2019: 80%) by the Parent Entity. |
Schedule of gross credit risk | 2020 2019 Total on Undrawn Total on Undrawn Consolidated balance credit balance credit $m sheet commitments Total sheet commitments Total Australia Accommodation, cafes and restaurants 7,956 1,225 9,181 8,061 1,070 9,131 Agriculture, forestry and fishing 10,159 2,219 12,378 9,250 2,014 11,264 Construction 6,726 3,643 10,369 7,229 3,340 10,569 Finance and insurance 81,502 8,954 90,456 73,052 7,316 80,368 Government, administration and defence 80,182 1,588 81,770 63,582 1,766 65,348 Manufacturing 9,248 6,477 15,725 10,504 5,850 16,354 Mining 3,402 3,735 7,137 3,325 3,802 7,127 Property 45,139 10,869 56,008 45,467 10,119 55,586 Property services and business services 12,712 7,019 19,731 14,191 5,898 20,089 Services 11,922 7,595 19,517 12,340 6,523 18,863 Trade 13,633 10,171 23,804 16,593 7,677 24,270 Transport and storage 9,392 5,136 14,528 9,529 5,114 14,643 Utilities 6,368 4,918 11,286 5,567 4,487 10,054 Retail lending 454,986 84,454 539,440 467,206 84,057 551,263 Other 6,867 2,491 9,358 6,668 2,740 9,408 Total Australia 760,194 160,494 920,688 752,564 151,773 904,337 New Zealand Accommodation, cafes and restaurants 389 51 440 356 36 392 Agriculture, forestry and fishing 9,158 632 9,790 8,631 607 9,238 Construction 517 429 946 503 350 853 Finance and insurance 12,701 1,782 14,483 11,685 1,507 13,192 Government, administration and defence 7,833 865 8,698 6,667 856 7,523 Manufacturing 1,804 1,782 3,586 2,079 1,758 3,837 Mining 208 97 305 289 29 318 Property 7,433 977 8,410 6,977 1,120 8,097 Property services and business services 1,033 712 1,745 1,300 557 1,857 Services 2,168 853 3,021 2,023 577 2,600 Trade 2,025 1,510 3,535 2,441 1,259 3,700 Transport and storage 1,249 871 2,120 1,209 755 1,964 Utilities 1,809 1,681 3,490 1,938 1,447 3,385 Retail lending 52,645 12,596 65,241 49,542 12,056 61,598 Other 204 182 386 151 161 312 Total New Zealand 101,176 25,020 126,196 95,791 23,075 118,866 Other overseas Accommodation, cafes and restaurants 118 10 128 109 11 120 Agriculture, forestry and fishing 124 5 129 150 3 153 Construction 51 118 169 55 127 182 Finance and insurance 19,194 2,243 21,437 17,712 3,093 20,805 Government, administration and defence 4,787 18 4,805 5,646 23 5,669 Manufacturing 1,908 3,443 5,351 3,830 5,329 9,159 Mining 352 1,194 1,546 500 1,872 2,372 Property 416 27 443 493 29 522 Property services and business services 1,652 790 2,442 1,766 863 2,629 Services 218 698 916 244 637 881 Trade 1,555 1,931 3,486 2,318 2,859 5,177 Transport and storage 755 276 1,031 999 652 1,651 Utilities 952 615 1,567 1,088 931 2,019 Retail lending 459 32 491 864 37 901 Other 129 27 156 171 26 197 Total other overseas 32,670 11,427 44,097 35,945 16,492 52,437 Total gross credit risk 894,040 196,941 1,090,981 884,300 191,340 1,075,640 2020 2019 Total on Undrawn Total on Undrawn Parent Entity balance credit balance credit $m sheet commitments Total sheet commitments Total Australia Accommodation, cafes and restaurants 7,880 1,225 9,105 7,989 1,070 9,059 Agriculture, forestry and fishing 10,101 2,219 12,320 9,191 2,014 11,205 Construction 6,213 3,643 9,856 6,853 3,340 10,193 Finance and insurance 1 244,758 8,954 253,712 200,863 7,316 208,179 Government, administration and defence 80,166 1,588 81,754 63,599 1,766 65,365 Manufacturing 9,037 6,477 15,514 10,322 5,850 16,172 Mining 3,381 3,735 7,116 3,304 3,802 7,106 Property 45,139 10,868 56,007 45,405 10,119 55,524 Property services and business services 11,992 7,019 19,011 13,348 5,898 19,246 Services 11,581 7,595 19,176 12,094 6,523 18,617 Trade 13,425 10,171 23,596 16,408 7,677 24,085 Transport and storage 9,044 5,136 14,180 9,221 5,114 14,335 Utilities 6,342 4,918 11,260 5,542 4,487 10,029 Retail lending 454,808 84,437 539,245 466,188 84,057 550,245 Other 5,731 2,489 8,220 5,684 2,740 8,424 Total Australia 1 919,598 160,474 1,080,072 876,011 151,773 1,027,784 New Zealand Accommodation, cafes and restaurants — 1 1 — — — Agriculture, forestry and fishing 48 4 52 67 7 74 Construction 11 35 46 17 16 33 Finance and insurance 1 8,173 135 8,308 9,501 116 9,617 Government, administration and defence 1,743 8 1,751 2,196 8 2,204 Manufacturing 184 51 235 259 69 328 Mining 5 — 5 11 — 11 Property 102 — 102 117 3 120 Property services and business services 88 16 104 123 18 141 Services 46 — 46 46 1 47 Trade 337 157 494 392 170 562 Transport and storage 76 67 143 76 64 140 Utilities 492 83 575 507 73 580 Retail lending — 1 1 — 13 13 Other 2 — 2 37 1 38 Total New Zealand 1 11,307 558 11,865 13,349 559 13,908 Other overseas Accommodation, cafes and restaurants 81 10 91 67 10 77 Agriculture, forestry and fishing 114 1 115 130 1 131 Construction 46 114 160 47 125 172 Finance and insurance 1 20,585 2,217 22,802 19,380 3,067 22,447 Government, administration and defence 3,902 18 3,920 4,815 23 4,838 Manufacturing 1,905 3,384 5,289 3,822 5,269 9,091 Mining 330 1,134 1,464 497 1,869 2,366 Property 209 10 219 227 13 240 Property services and business services 1,585 786 2,371 1,683 862 2,545 Services 196 695 891 216 634 850 Trade 1,417 1,754 3,171 2,140 2,688 4,828 Transport and storage 665 268 933 888 643 1,531 Utilities 896 511 1,407 1,038 905 1,943 Retail lending 359 31 390 588 32 620 Other 118 14 132 133 14 147 Total other overseas 1 32,408 10,947 43,355 35,671 16,155 51,826 Total gross credit risk 963,313 171,979 1,135,292 925,031 168,487 1,093,518 1. The Parent Entity’s 2019 ‘Total on balance sheet’ and ‘Total’ amounts for Finance and Insurance have been restated for Australia, New Zealand and Other overseas locations to appropriately reflect intracompany eliminations. These restatements did not have any impact on total gross credit risk exposures. |
Schedule of credit quality of gross credit risk exposures | Consolidated 2020 2019 $m Stage 1 Stage 2 Stage 3 Total 1 Stage 1 Stage 2 Stage 3 Total 1 Loans - housing Strong 382,892 6,629 — 389,521 382,119 743 — 382,862 Good/satisfactory 62,324 20,603 — 82,927 84,071 11,326 — 95,397 Weak 4,122 8,258 7,643 20,023 4,201 10,715 4,367 19,283 Total loans - housing 449,338 35,490 7,643 492,471 470,391 22,784 4,367 497,542 Loans - personal Strong 4,768 146 — 4,914 5,694 2 — 5,696 Good/satisfactory 10,607 1,515 — 12,122 14,538 955 — 15,493 Weak 404 631 381 1,416 573 831 380 1,784 Total loans - personal 15,779 2,292 381 18,452 20,805 1,788 380 22,973 Loans - business 2 Strong 65,091 2,063 — 67,154 75,758 232 — 75,990 Good/satisfactory 94,046 16,091 — 110,137 109,541 4,581 — 114,122 Weak 180 7,200 3,067 10,447 439 5,342 1,970 7,751 Total loans - business 159,317 25,354 3,067 187,738 185,738 10,155 1,970 197,863 Debt securities Strong 90,461 365 — 90,826 72,813 — — 72,813 Good/satisfactory — — — — 463 — — 463 Weak — 587 — 587 — — — — Total debt securities 3 90,461 952 — 91,413 73,276 — — 73,276 All other financial assets Strong 39,871 — — 39,871 30,623 — — 30,623 Good/satisfactory 470 — — 470 685 — — 685 Weak 40 — — 40 48 — — 48 Total all other financial assets 40,381 — — 40,381 31,356 — — 31,356 Undrawn credit commitments Strong 149,778 2,384 — 152,162 148,525 328 — 148,853 Good/satisfactory 38,121 4,713 — 42,834 39,782 1,294 — 41,076 Weak 117 1,608 220 1,945 142 1,135 134 1,411 Total undrawn credit commitments 188,016 8,705 220 196,941 188,449 2,757 134 191,340 Total strong 732,861 11,587 — 744,448 715,532 1,305 — 716,837 Total good/satisfactory 205,568 42,922 — 248,490 249,080 18,156 — 267,236 Total weak 4,863 18,284 11,311 34,458 5,403 18,023 6,851 30,277 Total on and off-balance sheet 943,292 72,793 11,311 1,027,396 970,015 37,484 6,851 1,014,350 Details of collateral held in support of these balances are provided in Note 21.2.6. 1. This credit quality disclosure differs to that of credit risk concentration as it relates only to financial assets measured at amortised cost or at FVOCI and therefore excludes trading securities and financial assets measured at FVIS, and derivative financial instruments. 2. Included in strong in 2019 was a $131 million exposure that is covered by a highly rated guarantee, which if it were not considered, the exposure would be classified as weak. 3. Debt securities include $1,011 million (2019: $829 million) at amortised cost. $424 million (2019: $366 million) of these are classified as strong, and the rest are classified as weak. Parent Entity 2020 2019 $m Stage 1 Stage 2 Stage 3 Total1 Stage 1 Stage 2 Stage 3 Total 1 Loans - housing Strong 345,662 5,805 — 351,467 361,727 536 — 362,263 Good/satisfactory 54,065 19,001 — 73,066 58,599 10,623 — 69,222 Weak 3,066 6,467 7,195 16,728 3,735 10,244 4,076 18,055 Total loans - housing 402,793 31,273 7,195 441,261 424,061 21,403 4,076 449,540 Loans - personal Strong 4,292 135 — 4,427 5,106 1 — 5,107 Good/satisfactory 10,071 1,376 — 11,447 13,381 931 — 14,312 Weak 294 449 329 1,072 427 680 1,441 Total loans - personal 14,657 1,960 329 16,946 18,914 1,612 20,860 Loans - business 2 Strong 53,321 1,761 — 55,082 64,041 123 — 64,164 Good/satisfactory 77,330 13,275 — 90,605 90,937 3,455 — 94,392 Weak 135 5,899 2,589 8,623 362 3,997 1,724 6,083 Total loans - business 130,786 20,935 2,589 154,310 155,340 7,575 1,724 164,639 Debt securities Strong 85,434 324 — 85,758 68,309 — — 68,309 Good/satisfactory — — — — 23 — — 23 Weak — — — — — — — — Total debt securities 3 85,434 324 — 85,758 68,332 — — 68,332 All other financial assets Strong 204,239 — — 204,239 162,339 — — 162,339 Good/satisfactory 354 — — 354 496 — — 496 Weak 31 — — 31 41 — — 41 Total all other financial assets 204,624 — — 204,624 162,876 — — 162,876 Undrawn credit commitments Strong 130,494 2,111 — 132,605 132,776 317 — 133,093 Good/satisfactory 33,552 4,117 — 37,669 33,097 1,122 — 34,219 Weak 99 1,426 180 1,705 123 937 1,175 Total undrawn credit commitments 164,145 7,654 180 171,979 165,996 2,376 168,487 Total strong 823,442 10,136 — 833,578 794,298 977 — 795,275 Total good/satisfactory 175,372 37,769 — 213,141 196,533 16,131 — 212,664 Total weak 3,625 14,241 10,293 28,159 4,688 15,858 6,249 26,795 Total on and off-balance sheet 1,002,439 62,146 10,293 1,074,878 995,519 32,966 6,249 1,034,734 Details of collateral held in support of these balances are provided in Note 21.2.6. 1. This credit quality disclosure differs to that of credit risk concentration as it relates only to financial assets measured at amortised cost or at FVOCI and therefore excludes trading securities and financial assets measured at FVIS, and derivative financial instruments. 2. Included in strong in 2019 was a $131 million that is covered by a highly rated guarantee, which if it were not considered, the exposure would be classified as weak. 3. Debt securities include $3 million (2019: $27 million) at amortised cost. In 2020, all of these are classified as strong (2019: $4 million), and the remainder of the 2019 balances are classified as good/satisfactory. |
Schedule of non-performing loans and credit commitments | The gross amount of non-performing loans and credit commitments, along with the provision for ECL/provision for impairment charges 1 , by type and geography of impaired loans, is summarised in the following table: Consolidated $m Impaired exposures Australia Housing and business loans Gross amount 1,845 1,215 882 975 1,589 Provision (690) (491) (422) (460) (769) Net 1,155 724 460 515 820 Personal loans greater than 90 days past due Gross amount 370 384 358 362 267 Provision (206) (233) (179) (187) (159) Net 164 151 179 175 108 Restructured loans Gross amount 16 16 9 12 13 Provision (4) (6) (1) (7) (11) Net 12 10 8 5 2 New Zealand Housing and business loans Gross amount 157 62 124 152 218 Provision (70) (26) (30) (41) (95) Net 87 36 94 111 123 Personal loans greater than 90 days past due Gross amount 36 20 12 11 10 Provision (26) (15) (9) (8) (7) Net 10 5 3 3 3 Restructured loans Gross amount — 12 14 15 16 Provision — (3) (4) (5) (4) Net — 9 10 10 12 Other overseas Housing and business loans Gross amount 355 50 13 15 44 Provision (156) (17) (6) (6) (21) Net 199 33 7 9 23 Personal loans greater than 90 days past due Gross amount — 1 1 — — Provision — — (1) — — Net — 1 — — — Restructured loans Gross amount — 3 3 — 2 Provision — (1) (1) — (1) Net — 2 2 — 1 Total impaired exposures Gross amount 2,779 1,763 1,416 1,542 2,159 Provision (1,152) (792) (653) (714) (1,067) Total net impaired exposures 1,627 971 763 828 1,092 Items 90 days past due, or otherwise in default but not impaired Australia Gross amount 7,976 4,684 3,861 3,322 3,075 Provision (941) (521) (193) (165) (137) Net 7,035 4,163 3,668 3,157 2,938 New Zealand Gross amount 503 340 127 117 89 Provision (72) (33) (10) (9) (7) Net 431 307 117 108 82 Overseas Gross amount 53 64 29 19 17 Provision (8) (9) (2) (2) (1) Net 45 55 27 17 16 Total items 90 days past due, or otherwise in default but not impaired Gross amount 8,532 5,088 4,017 3,458 3,181 Provision (1,021) (563) (205) (176) (145) Total net items 90 days past due, or otherwise in default but not impaired 7,511 4,525 3,812 3,282 3,036 Total non-performing loans and credit commitments Gross amount 11,311 6,851 5,433 5,000 5,340 Provision (2,173) (1,355) (858) (890) (1,212) Total net non-performing loans and credit commitments 9,138 5,496 4,575 4,110 4,128 1. 2020 and 2019 provisions for ECL were determined under AASB 9. 2018, 2017 and 2016 provisions for impairment charges were determined under AASB 139. |
Summary of interest received and forgone on impaired loans | Consolidated 2020 $m Australia Overseas Total Interest received 3 8 11 Interest foregone 30 — 30 |
Schedule of collateral coverage for loan portfolio | The Group analyses the coverage of the loan portfolio which is secured by the collateral that it holds. Coverage is measured as follows: Coverage Secured loan to collateral value ratio Fully secured Less than or equal to 100% Partially secured Greater than 100% but not more than 150% Unsecured Greater than 150%, or no security held (e.g. can include credit cards, personal loans, and exposure to highly rated corporate entities) The Group and the Parent Entity’s loan portfolio have the following coverage from collateral held: Performing loans Consolidated 2020 2019 Housing Personal Business Housing Personal Business % loans 1 loans loans Total loans 1 loans loans Total Fully secured 100.0 8.0 62.8 87.6 100.0 7.9 59.6 85.9 Partially secured — 32.5 18.9 5.9 — 29.9 19.3 6.3 Unsecured — 59.5 18.3 6.5 — 62.2 21.1 7.8 Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Parent Entity 2020 2019 Housing Personal Business Housing Personal Business % loans 1 loans loans Total loans 1 loans loans Total Fully secured 100.0 8.7 63.7 88.3 100.0 8.6 60.1 86.7 Partially secured — 34.6 17.7 5.4 — 31.1 18.2 5.7 Unsecured — 56.7 18.6 6.3 — 60.3 21.7 7.6 Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Non-performing loans Consolidated 2020 2019 Housing Personal Business Housing Personal Business % loans 1 loans loans Total loans 1 loans loans Total Fully secured 95.2 — 39.2 76.4 90.3 — 49.5 73.3 Partially secured 4.8 49.4 30.7 13.5 9.7 38.2 29.2 17.0 Unsecured — 50.6 30.1 10.1 — 61.8 21.3 9.7 Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Parent Entity 2020 2019 Housing Personal Business Housing Personal Business % loans 1 loans loans Total loans 1 loans loans Total Fully secured 95.2 — 44.1 79.0 90.1 — 54.0 75.1 Partially secured 4.8 50.7 26.4 11.8 9.9 34.1 27.4 16.1 Unsecured — 49.3 29.5 9.2 — 65.9 18.6 8.8 Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Details of the carrying value and associated provision for ECL are disclosed in Notes 12 and 13 respectively. The credit quality of loans is disclosed in Note 21.2.4. 1. For the purposes of collateral classification, housing loans are classified as fully secured, unless they are non-performing in which case may be classified as partially secured. |
Summary of collateral held against financial assets other than loans | Consolidated Parent Entity $m 2020 2019 2020 2019 Cash, primarily for derivatives 2,252 3,289 2,851 Securities under reverse repurchase agreements 1 20,501 6,836 6,733 Securities under derivatives and stock borrowing 1 32 119 119 Total other collateral held 22,785 10,244 9,703 1. Securities received as collateral are not recognised on the Group and Parent Entity’s balance sheet. |
Summary of the Group's liquid asset holdings | A summary of the Group’s liquid asset holdings is as follows: Consolidated 2020 2019 $m Actual Average Actual Average Cash 29,099 28,157 18,398 19,189 Trading securities and financial assets measured at FVIS 29,364 14,789 18,867 17,184 Investment securities 91,097 82,678 73,328 66,701 Loans 2 71,616 66,512 58,933 52,498 Other financial assets — 468 345 723 Total liquid assets 221,176 192,604 169,871 156,295 2. Loans are self-originated AAA rated mortgage backed securities which are eligible for repurchase with the RBA and Reserve Bank of New Zealand. |
Summary of Group's funding composition | % Customer deposits 65.0 62.5 Wholesale term funding with residual maturity greater than 12 months 15.7 16.6 Wholesale funding with a residual maturity less than 12 months 10.4 12.1 Securitisation 0.9 1.0 Equity 8.0 7.8 Group's total funding 100.0 100.0 |
Schedule of Parent Entity's credit ratings | As at 30 September 2020 the Parent Entity’s credit ratings were: 2020 Short-term Long-term Outlook S&P Global Ratings A-1+ AA- Negative Moody’s Investors Service P-1 Aa3 Stable Fitch Ratings F1 A+ Negative |
Summary of financial assets pledged as collateral | Consolidated Parent Entity $m Cash 4,762 5,912 4,625 5,755 Cash deposit on stock borrowed 16 18 16 18 Securities (including certificates of deposit) 1,693 1,932 1,693 1,932 Securities pledged under repurchase agreements 36,727 13,754 36,727 13,754 Total amount pledged to secure liabilities 43,198 21,616 43,061 21,459 |
Schedule of contractual maturities of financial liabilities | Consolidated 2020 Up to Over 1 month Over 3 months Over 1 year Over $m 1 month to 3 months to 1 year to 5 years 5 years Total Financial liabilities Collateral received 2,251 — — — — 2,251 Deposits and other borrowings 432,005 67,944 86,421 10,408 63 596,841 Other financial liabilities 20,275 1,129 94 18,065 — 39,563 Derivative financial instruments: Held for trading 22,216 — — — — 22,216 Held for hedging purposes (net settled) 29 43 179 379 22 652 Held for hedging purposes (gross settled): Cash outflow 204 5,645 1,785 1,704 — 9,338 Cash inflow (200) (5,595) (1,709) (1,651) — (9,155) Debt issues 6,920 11,264 32,715 79,797 25,623 156,319 Total financial liabilities excluding loan capital 483,700 80,430 119,485 108,702 25,708 818,025 Loan capital 1 68 387 6,665 21,410 28,531 Total undiscounted financial liabilities 483,701 80,498 119,872 115,367 47,118 846,556 Total contingent liabilities and commitments Letters of credit and guarantees 12,610 — — — — 12,610 Commitments to extend credit 184,064 — — — — 184,064 Other commitments 267 — — — — 267 Total undiscounted contingent liabilities and commitments 196,941 — — — — 196,941 Consolidated 2019 Up to Over 1 month Over 3 months Over 1 year Over $m 1 month to 3 months to 1 year to 5 years 5 years Total Financial liabilities Collateral received 3,291 — — — — 3,291 Deposits and other borrowings 374,126 83,365 97,081 11,968 73 566,613 Other financial liabilities 19,425 3,176 3,874 157 — 26,632 Derivative financial instruments: Held for trading 27,945 — — — — 27,945 Held for hedging purposes (net settled) 57 85 280 631 40 1,093 Held for hedging purposes (gross settled): Cash outflow 4 287 902 517 — 1,710 Cash inflow — (276) (875) (466) — (1,617) Debt issues 5,071 12,158 42,917 102,296 30,417 192,859 Total financial liabilities excluding loan capital 429,919 98,795 144,179 115,103 30,530 818,526 Loan capital 1 76 371 6,293 20,557 27,298 Total undiscounted financial liabilities 429,920 98,871 144,550 121,396 51,087 845,824 Total contingent liabilities and commitments Letters of credit and guarantees 15,150 — — — — 15,150 Commitments to extend credit 176,002 — — — — 176,002 Other commitments 188 — — — — 188 Total undiscounted contingent liabilities and commitments 191,340 — — — — 191,340 Parent Entity 2020 Up to Over 1 month Over 3 months Over 1 year Over $m 1 month to 3 months to 1 year to 5 years 5 years Total Financial liabilities Collateral received 1,863 — — — — 1,863 Deposits and other borrowings 389,498 57,543 71,368 8,466 63 526,938 Other financial liabilities 19,704 1,129 94 18,065 — 38,992 Derivative financial instruments: Held for trading 22,268 — — — — 22,268 Held for hedging purposes (net settled) 21 28 137 277 22 485 Held for hedging purposes (gross settled): Cash outflow 7 2,110 9 455 — 2,581 Cash inflow (7) (2,088) (21) (437) — (2,553) Debt issues 6,596 10,915 24,980 66,305 24,370 133,166 Due to subsidiaries 18,610 934 4,390 18,529 171,240 213,703 Total financial liabilities excluding loan capital 458,560 70,571 100,957 111,660 195,695 937,443 Loan capital 1 68 387 6,665 21,410 28,531 Total undiscounted financial liabilities 458,561 70,639 101,344 118,325 217,105 965,974 Total contingent liabilities and commitments Letters of credit and guarantees 12,069 — — — — 12,069 Commitments to extend credit 159,644 — — — — 159,644 Other commitments 266 — — — — 266 Total undiscounted contingent liabilities and commitments 171,979 — — — — 171,979 Parent Entity 2019 Up to Over 1 month Over 3 months Over 1 year Over $m 1 month to 3 months to 1 year to 5 years 5 years Total Financial liabilities Collateral received 2,853 — — — — 2,853 Deposits and other borrowings 339,448 70,761 83,602 10,311 73 504,195 Other financial liabilities 19,340 3,121 3,625 157 — 26,243 Derivative financial instruments: Held for trading 28,329 — — — — 28,329 Held for hedging purposes (net settled) 21 9 97 378 33 538 Held for hedging purposes (gross settled): Cash outflow — 221 57 — — 278 Cash inflow — (215) (51) — — (266) Debt issues 4,790 10,959 37,104 86,064 28,063 166,980 Due to subsidiaries 15,538 1,020 4,989 20,117 142,620 184,284 Total financial liabilities excluding loan capital 410,319 85,876 129,423 117,027 170,789 913,434 Loan capital 1 76 371 6,293 20,557 27,298 Total undiscounted financial liabilities 410,320 85,952 129,794 123,320 191,346 940,732 Total contingent liabilities and commitments Letters of credit and guarantees 14,583 — — — — 14,583 Commitments to extend credit 153,716 — — — — 153,716 Other commitments 188 — — — — 188 Total undiscounted contingent liabilities and commitments 168,487 — — — — 168,487 |
Schedule of expected maturities of financial assets and financial liabilities | 2020 2019 Consolidated Due within Greater than Due within Greater than $m 12 months 12 months Total 12 months 12 months Total Assets Cash and balances with central banks 30,129 — 30,129 20,059 — 20,059 Collateral paid 4,778 — 4,778 5,930 — 5,930 Trading securities and financial assets measured at FVIS 32,591 8,076 40,667 18,544 13,237 31,781 Derivative financial instruments 13,583 9,784 23,367 20,695 9,164 29,859 Investment securities 6,824 84,715 91,539 9,810 63,591 73,401 Loans (net of provisions) 90,856 602,203 693,059 99,197 615,573 714,770 Other financial assets 5,474 — 5,474 5,367 — 5,367 Life insurance assets 3,450 143 3,593 1,541 7,826 9,367 Investment in associates — 61 61 — 129 129 All other assets 1,400 17,879 19,279 1,222 14,741 15,963 Total assets 189,085 722,861 911,946 182,365 724,261 906,626 Liabilities Collateral received 2,250 — 2,250 3,287 — 3,287 Deposits and other borrowings 584,037 7,094 591,131 551,817 11,430 563,247 Other financial liabilities 22,861 18,064 40,925 29,059 156 29,215 Derivative financial instruments 13,157 9,897 23,054 19,203 9,893 29,096 Debt issues 49,070 101,255 150,325 56,933 124,524 181,457 Life insurance liabilities 1,809 (413) 1,396 1,703 5,674 7,377 All other liabilities 5,395 5,447 10,842 3,907 1,707 5,614 Total liabilities excluding loan capital 678,579 141,344 819,923 665,909 153,384 819,293 Loan capital 1,323 22,626 23,949 — 21,826 21,826 Total liabilities 679,902 163,970 843,872 665,909 175,210 841,119 Net assets/(net liabilities) (490,817) 558,891 68,074 (483,544) 549,051 65,507 2020 2019 Parent Entity Due within Greater than Due within Greater than $m 12 months 12 months Total 12 months 12 months Total Assets Cash and balances with central banks 25,436 — 25,436 17,692 — 17,692 Collateral paid 4,641 — 4,641 5,773 — 5,773 Trading securities and financial assets measured at FVIS 30,550 7,480 38,030 16,736 12,829 29,565 Derivative financial instruments 13,349 9,445 22,794 20,613 8,670 29,283 Investment securities 5,120 80,706 85,826 7,200 61,198 68,398 Loans (net of provisions) 70,453 537,371 607,824 79,956 551,980 631,936 Other financial assets 4,745 — 4,745 4,615 — 4,615 Due from subsidiaries 10,420 170,559 180,979 10,291 132,670 142,961 Investment in subsidiaries — 6,475 6,475 — 6,436 6,436 Investment in associates — 57 57 — 100 100 All other assets 796 15,199 15,995 756 12,224 12,980 Total assets 165,510 827,292 992,802 163,632 786,107 949,739 Liabilities Collateral received 1,862 — 1,862 2,849 — 2,849 Deposits and other borrowings 516,391 5,222 521,613 491,562 9,868 501,430 Other financial liabilities 22,092 18,064 40,156 28,360 156 28,516 Derivative financial instruments 12,805 9,974 22,779 19,167 9,700 28,867 Debt issues 40,886 86,780 127,666 50,028 106,646 156,674 Due to subsidiaries 20,551 165,712 186,263 17,563 131,044 148,607 All other liabilities 3,770 4,996 8,766 2,545 1,587 4,132 Total liabilities excluding loan capital 618,357 290,748 909,105 612,074 259,001 871,075 Loan capital 1,323 22,626 23,949 — 21,826 21,826 Total liabilities 619,680 313,374 933,054 612,074 280,827 892,901 Net assets/(net liabilities) (454,170) 513,918 59,748 (448,442) 505,280 56,838 |
Summary of key parameters of VaR | Holding period 1 day Confidence level 99% Period of historical data used 1 year |
Summary of aggregate VaR, by risk type as it relates to traded market risk | The following table depicts the aggregate VaR, by risk type: Consolidated and Parent Entity 2020 2019 2018 $m High Low Average High Low Average High Low Average Interest rate risk 14.9 6.6 10.9 15.6 5.1 8.6 FX risk 8.6 0.8 4.1 6.9 0.7 3.0 Equity risk 0.2 0.0 0.0 1.0 0.0 0.1 Commodity risk 1 42.0 1.7 8.2 24.3 1.7 6.5 Other market risks 2 5.5 2.0 3.5 5.8 1.4 3.8 Diversification effect n/a n/a n/a n/a (12.3) n/a n/a (8.6) Net market risk 45.3 7.9 14.4 28.1 6.7 13.4 1. Includes electricity risk. The lower VaR measures in 2020 were due to reduced risk, revised modelling and closure of electricity trading commenced in June 2020. 2. Includes prepayment risk and credit spread risk (exposure to movements in generic credit rating bands). |
Summary of net interest income-at-risk (NaR) as it relates to non-traded market risk | The following table depicts NaR assuming a 100 basis point shock (with a floor of zero for falling interest rates) over the next 12 months as a percentage of reported NII: 2020 2019 Maximum Minimum Average Maximum Minimum Average % (increase)/decrease in NII As at exposure exposure exposure As at exposure exposure exposure Consolidated 2.88 2.88 (0.46) 0.81 Parent Entity 2.14 2.14 (0.42) 0.43 |
Summary of VaR for IRRBB as it relates to non-traded market risk | 2020 2019 $m As at High Low Average As at High Low Average Consolidated 34.1 37.3 19.4 27.8 |
Fair values of financial asse_2
Fair values of financial assets and financial liabilities (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Fair values of financial assets and financial liabilities | |
Summary of the attribution of financial instruments measured at fair value to the fair value hierarchy | 2020 2019 Valuation Valuation Valuation Valuation Quoted techniques techniques Quoted techniques techniques market (Market (Non-market market (Market (Non-market Consolidated prices observable) observable) prices observable) observable) $m (Level 1) (Level 2) (Level 3) Total (Level 1) (Level 2) (Level 3) Total Financial assets measured at fair value on a recurring basis Trading securities and financial assets measured at FVIS 8,059 32,387 221 40,667 10,440 21,121 220 31,781 Derivative financial instruments 10 23,353 4 23,367 7 29,828 24 29,859 Investment securities 18,032 72,370 153 90,555 11,163 61,284 134 72,581 Loans — 540 21 561 — 239 21 260 Life insurance assets 617 2,976 — 3,593 1,097 8,270 — 9,367 Total financial assets measured at fair value on a recurring basis 26,718 131,626 399 158,743 22,707 120,742 399 143,848 Financial liabilities measured at fair value on a recurring basis Deposits and other borrowings 1 — 35,764 — 35,764 — 38,413 — 38,413 Other financial liabilities 2 420 4,229 — 4,649 262 5,108 — 5,370 Derivative financial instruments 10 23,031 13 23,054 8 29,059 29 29,096 Debt issues 3 — 5,333 — 5,333 — 5,819 — 5,819 Life insurance liabilities — 1,396 — 1,396 — 7,377 — 7,377 Total financial liabilities measured at fair value on a recurring basis 430 69,753 13 70,196 270 85,776 29 86,075 2020 2019 Valuation Valuation Valuation Valuation Quoted techniques techniques Quoted techniques techniques market (Market (Non-market market (Market (Non-market Parent Entity prices observable) observable) prices observable) observable) $m (Level 1) (Level 2) (Level 3) Total (Level 1) (Level 2) (Level 3) Total Financial assets measured at fair value on a recurring basis Trading securities and financial assets measured at FVIS 7,074 30,763 193 38,030 10,213 19,159 193 29,565 Derivative financial instruments 10 22,781 3 22,794 7 29,253 23 29,283 Investment securities 15,714 70,040 69 85,823 10,191 58,114 66 68,371 Loans — 540 21 561 — 239 21 260 Due from subsidiaries — 663 — 663 — 897 — 897 Total financial assets measured at fair value on a recurring basis 22,798 124,787 286 147,871 20,411 107,662 303 128,376 Financial liabilities measured at fair value on a recurring basis Deposits and other borrowings 1 — 32,991 — 32,991 — 37,355 — 37,355 Other financial liabilities 2 420 4,229 — 4,649 262 5,108 — 5,370 Derivative financial instruments 10 22,756 13 22,779 8 28,831 28 28,867 Debt issues 3 — 2,986 — 2,986 — 3,624 — 3,624 Due to subsidiaries — 239 — 239 — 1,591 — 1,591 Total financial liabilities measured at fair value on a recurring basis 430 63,201 13 63,644 270 76,509 28 76,807 1. The contractual outstanding amount payable at maturity for the Group is $35,764 million (2019: $38,468 million) and $32,990 million for the Parent Entity (2019: $37,410 million). 2. The contractual outstanding amount payable at maturity for the Group and the Parent Entity is $4,649 million (2019: $5,369 million). 3. The contractual outstanding amount payable at maturity for the Group is $5,062 million (2019: $5,632 million) and $2,714 million for the Parent Entity (2019: $3,436 million). The cumulative change in the fair value of debt issues attributable to changes in Westpac’s own credit risk is $5 million decrease (2019: $34 million decrease) for the Group and Parent Entity. |
Summary of the changes in financial instruments measured at fair value derived from non-market observable valuation techniques (Level 3) | The following tables summarise the changes in financial instruments measured at fair value derived from non-market observable valuation techniques (Level 3): Trading securities and financial assets Total Total Consolidated 2020 measured Investment Level 3 Level 3 $m as FVIS securities Other 1 assets Derivatives liabilities Balance as at beginning of year 220 134 45 399 29 29 Gains/(losses) on assets/(gains)/ losses on liabilities recognised in: Income statements (2) — (2) (4) (4) (4) OCI — (15) — (15) — — Acquisitions and issues 26 40 12 78 7 7 Disposals and settlements (23) (6) (30) (59) (19) (19) Transfer into or out of non-market observables — — — — — — Foreign currency translation impacts — — — — — — Balance as at end of year 221 153 25 399 13 13 Unrealised gains/(losses) recognised in the income statements for financial instruments held as at end of year (4) — 3 (1) (3) (3) Trading securities and financial assets Available- Total Total Consolidated 2019 measured for-sale Investment Level 3 Level 3 $m as FVIS securities securities Other 1 assets Derivatives liabilities Balance as at beginning of year 330 619 — 15 964 6 6 Impact on adoption of AASB 9 4 (619) 109 14 (492) — — Restated opening balance 334 — 109 29 472 6 6 Gains/(losses) on assets/(gains)/losses on liabilities recognised in: Income statements 36 — — 12 48 7 7 OCI — — 11 — 11 — — Acquisitions and issues 63 — 36 16 115 4 4 Disposals and settlements (216) — (22) (12) (250) (6) (6) Transfer into or out of non-market observables — — — — — 18 18 Foreign currency translation impacts 3 — — — 3 — — Balance as at end of year 220 — 134 45 399 29 29 Unrealised gains/(losses) recognised in the income statements for financial instruments held as at end of year 26 — — 16 42 (11) (11) Trading securities and financial assets Total Total Parent Entity 2020 measured Investment Level 3 Level 3 $m as FVIS securities Other 1 assets Derivatives liabilities Balance as at beginning of year 193 66 44 303 28 28 Gains/(losses) on assets/(gains)/losses on liabilities recognised in: Income statements (2) — (2) (4) (4) (4) OCI — — — — — — Acquisitions and issues 26 3 12 41 7 7 Disposals and settlements (24) — (30) (54) (18) (18) Transfer into or out of non-market observables — — — — — — Foreign currency translation impacts — — — — — — Balance as at end of year 193 69 24 286 13 13 Unrealised gains/(losses) recognised in the income statements for financial instruments held as at end of year (4) — 3 (1) (3) (3) Trading securities and financial assets Available- Total Total Parent Entity 2019 measured for-sale Investment Level 3 Level 3 $m as FVIS securities securities Other 1 assets Derivatives liabilities Balance as at beginning of year 206 70 — 13 289 6 6 Impact on adoption of AASB 9 — (70) 67 14 11 — — Restated opening balance 206 — 67 27 300 6 6 Gains/(losses) on assets /(gains)/ losses on liabilities recognised in: Income statements 6 — — 13 19 6 6 OCI — — — — — — — Acquisitions and issues 17 — 2 16 35 4 4 Disposals and settlements (39) — (3) (12) (54) (6) (6) Transfer into or out of non-market observables — — — — — 18 18 Foreign currency translation impacts 3 — — — 3 — — Balance as at end of year 193 — 66 44 303 28 28 Unrealised gains/(losses) recognised in the income statements for financial instruments held as at end of year 3 — — 16 19 (10) (10) 1. Other is comprised of derivative financial assets and certain loans. |
Schedule of estimated fair value and fair value hierarchy of financial instruments not measured at fair value | The following tables summarise the estimated fair value and fair value hierarchy of financial instruments not measured at fair value: 2020 Estimated fair value Valuation Valuation Quoted techniques techniques market (Market (Non-market Consolidated Carrying prices observable) observable) $m amount (Level 1) (Level 2) (Level 3) Total Financial assets not measured at fair value Cash and balances with central banks 30,129 30,129 — — 30,129 Collateral paid 4,778 4,778 — — 4,778 Investment securities 984 — 424 560 984 Loans 692,498 — — 694,264 694,264 Other financial assets 5,474 — 5,474 — 5,474 Total financial assets not measured at fair value 733,863 34,907 5,898 694,824 735,629 Financial liabilities not measured at fair value Collateral received 2,250 2,250 — — 2,250 Deposits and other borrowings 555,367 — 552,192 3,429 555,621 Other financial liabilities 36,276 — 36,276 — 36,276 Debt issues 1 144,992 — 144,660 1,742 146,402 Loan capital 23,949 — 23,934 — 23,934 Total financial liabilities not measured at fair value 762,834 2,250 757,062 5,171 764,483 2019 Estimated fair value Valuation Valuation Quoted techniques techniques market (Market (Non-market Consolidated Carrying prices observable) observable) $m amount (Level 1) (Level 2) (Level 3) Total Financial assets not measured at fair value Cash and balances with central banks 20,059 20,059 — — 20,059 Collateral paid 5,930 5,930 — — 5,930 Investment securities 820 — 366 454 820 Loans 714,510 — — 716,130 716,130 Other financial assets 5,367 — 5,367 — 5,367 Total financial assets not measured at fair value 746,686 25,989 5,733 716,584 748,306 Financial liabilities not measured at fair value Collateral received 3,287 3,287 — — 3,287 Deposits and other borrowings 524,834 — 522,726 2,790 525,516 Other financial liabilities 23,845 — 23,845 — 23,845 Debt issues 1 175,638 — 176,838 — 176,838 Loan capital 21,826 — 22,076 — 22,076 Total financial liabilities not measured at fair value 749,430 3,287 745,485 2,790 751,562 1. The estimated fair value of debt issues includes the impact of changes in Westpac’s credit spreads since origination. 2020 Estimated fair value Valuation Valuation Quoted techniques techniques market (Market (Non-market Parent Entity Carrying prices observable) observable) $m amount (Level 1) (Level 2) (Level 3) Total Financial assets not measured at fair value Cash and balances with central banks 25,436 25,436 — — 25,436 Collateral paid 4,641 4,641 — — 4,641 Investment securities 3 — 3 — 3 Loans 607,263 — — 608,602 608,602 Due from subsidiaries 1 169,139 — 126,623 43,669 170,292 Other financial assets 4,745 — 4,745 — 4,745 Total financial assets not measured at fair value 811,227 30,077 131,371 652,271 813,719 Financial liabilities not measured at fair value Collateral received 1,862 1,862 — — 1,862 Deposits and other borrowings 488,622 — 487,452 1,292 488,744 Other financial liabilities 35,507 — 35,507 — 35,507 Debt issues 2 124,680 — 125,896 — 125,896 Due to subsidiaries 186,024 — 6,805 179,219 186,024 Loan capital 23,949 — 23,934 — 23,934 Total financial liabilities not measured at fair value 860,644 1,862 679,594 180,511 861,967 2019 Estimated fair value Valuation Valuation Quoted techniques techniques market (Market (Non-market Parent Entity Carrying prices observable) observable) $m amount (Level 1) (Level 2) (Level 3) Total Financial assets not measured at fair value Cash and balances with central banks 17,692 17,692 — — 17,692 Collateral paid 5,773 5,773 — — 5,773 Investment securities 27 — 4 23 27 Loans 631,676 — — 633,003 633,003 Due from subsidiaries 1 133,899 — 89,680 45,175 134,855 Other financial assets 4,615 — 4,615 — 4,615 Total financial assets not measured at fair value 793,682 23,465 94,299 678,201 795,965 Financial liabilities not measured at fair value Collateral received 2,849 2,849 — — 2,849 Deposits and other borrowings 464,075 — 463,440 1,251 464,691 Other financial liabilities 23,146 — 23,146 — 23,146 Debt issues 2 153,050 — 154,111 — 154,111 Due to subsidiaries 147,016 — 6,553 140,463 147,016 Loan capital 21,826 — 22,076 — 22,076 Total financial liabilities not measured at fair value 811,962 2,849 669,326 141,714 813,889 1. Due from subsidiaries excludes $11,177 million (2019: $8,165 million) of long-term debt instruments with equity-like characteristics which are part of the total investment in subsidiaries. 2. The estimated fair value of debt issues includes the impact of changes in Westpac’s credit spreads since origination. |
Offsetting financial assets a_2
Offsetting financial assets and financial liabilities (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Offsetting financial assets and financial liabilities | |
Schedule of offsetting financial assets and financial liabilities | Amounts subject to enforceable netting arrangements Effects of offsetting Amounts subject to enforceable on balance sheet netting arrangements but not offset Net amounts Other reported on recognised Financial Consolidated Gross Amounts the balance financial Cash instrument Net $m amounts offset sheet instruments collateral 1,2 collateral amount 2020 Assets Collateral paid 3 10,068 (10,032) 36 — — (16) 20 Derivative financial instruments 4 61,171 (39,968) 21,203 (14,719) (2,247) (16) 4,221 Reverse repurchase agreements 5 20,401 — 20,401 — (5) (20,396) — Loans 6 23,301 (23,266) 35 — — — 35 Total assets 114,941 (73,266) 41,675 (14,719) (2,252) (20,428) 4,276 Liabilities Collateral received 5,516 (5,501) 15 — — — 15 Derivative financial instruments 4 66,144 (44,499) 21,645 (14,719) (4,426) (1,693) 807 Repurchase agreements 7 27,763 — 27,763 — (98) (27,665) — Deposits and other borrowings 6 43,999 (23,266) 20,733 — — — 20,733 Total liabilities 143,422 (73,266) 70,156 (14,719) (4,524) (29,358) 21,555 2019 Assets Collateral paid 3 6,643 (6,559) 84 — — (17) 67 Derivative financial instruments 4 58,125 (31,605) 26,520 (18,609) (3,280) (102) 4,529 Reverse repurchase agreements 5 6,833 — 6,833 — (9) (6,824) — Loans 6 18,202 (18,130) 72 — — — 72 Total assets 89,803 (56,294) 33,509 (18,609) (3,289) (6,943) 4,668 Liabilities Collateral received 3,024 (2,972) 52 — — — 52 Derivative financial instruments 4 62,046 (35,192) 26,854 (18,609) (5,622) (1,932) 691 Repurchase agreements 7 10,604 — 10,604 — (3) (10,601) — Deposits and other borrowings 6 28,880 (18,130) 10,750 — — — 10,750 Total liabilities 104,554 (56,294) 48,260 (18,609) (5,625) (12,533) 11,493 1. $2,250 million (2019: $3,287 million) of cash collateral on derivative financial assets and reverse repurchase agreements forms part of collateral received as disclosed in the balance sheet. The remainder is included in term deposits recognised in deposits and other borrowings within Note 16. 2. $4,524 million (2019: $5,625 million) of cash collateral, subject to enforceable netting arrangements with derivative financial liabilities and repurchase agreements, forms part of collateral paid as disclosed in the balance sheet. The remainder of collateral paid, as disclosed in the balance sheet, consists of $16 million (2019: $18 million) in stock borrowing arrangements and $238 million (2019: $287 million) in futures margin that does not form part of this column. 3. Gross amounts consist of variation margin held directly with central clearing counterparties and stock borrowing arrangements. Where variation margin is receivable it is reported as part of collateral paid. Where variation margin is payable it is reported as part of collateral received. Amounts offset relate to variation margin. 4. $2,164 million (2019: $3,339 million) of derivative financial assets and $1,409 million (2019: $2,242 million) of derivative financial liabilities are not subject to enforceable netting arrangements. 2019 gross amounts, net amounts reported on the balance sheet and net amount were restated to exclude amounts not subject to enforceable netting arrangements. 5. Reverse repurchase agreements form part of trading securities and financial assets measured at FVIS in Note 10. 6. Gross amounts consist of debt and interest set-off accounts which meet the requirements for offsetting as described above. These accounts form part of business loans in Note 12 and part of deposits and other borrowings at amortised cost in Note 16. 7. Repurchase agreements form part of other financial liabilities in Note 17. Amounts subject to enforceable netting arrangements Effects of offsetting Amounts subject to enforceable on balance sheet netting arrangements but not offset Net amounts Other reported on recognised Financial Parent Entity Gross Amounts the balance financial Cash instrument Net $m amounts offset sheet instruments collateral 1,2 collateral amount 2020 Assets Collateral paid 3 10,068 (10,032) 36 — — (16) 20 Derivative financial instruments 4 60,616 (39,968) 20,648 (14,586) (1,859) (16) 4,187 Reverse repurchase agreements 5 20,401 — 20,401 — (5) (20,396) — Loans 6 23,301 (23,266) 35 — — — 35 Total assets 114,386 (73,266) 41,120 (14,586) (1,864) (20,428) 4,242 Liabilities Collateral received 5,516 (5,501) 15 — — — 15 Derivative financial instruments 4 65,874 (44,499) 21,375 (14,586) (4,289) (1,693) 807 Repurchase agreements 7 27,763 — 27,763 — (98) (27,665) — Deposits and other borrowings 6 43,999 (23,266) 20,733 — — — 20,733 Total liabilities 143,152 (73,266) 69,886 (14,586) (4,387) (29,358) 21,555 2019 Assets Collateral paid 3 6,643 (6,559) 84 — — (17) 67 Derivative financial instruments 4 57,550 (31,605) 25,945 (18,526) (2,842) (102) 4,475 Reverse repurchase agreements 5 6,731 — 6,731 — (9) (6,722) — Loans 6 18,202 (18,130) 72 — — — 72 Total assets 89,126 (56,294) 32,832 (18,526) (2,851) (6,841) 4,614 Liabilities Collateral received 3,024 (2,972) 52 — — — 52 Derivative financial instruments 4 61,807 (35,192) 26,615 (18,526) (5,466) (1,932) 691 Repurchase agreements 7 10,604 — 10,604 — (3) (10,601) — Deposits and other borrowings 6 28,880 (18,130) 10,750 — — — 10,750 Total liabilities 104,315 (56,294) 48,021 (18,526) (5,469) (12,533) 11,493 1. $1,862 million (2019: $2,849 million) of cash collateral on derivative financial assets and reverse repurchase agreements forms part of collateral received as disclosed in the balance sheet. The remainder is included in term deposits recognised in deposits and other borrowings within Note 16. 2. $4,387 million (2019: $5,469 million) of cash collateral, subject to enforceable netting arrangements with derivative financial liabilities and repurchase agreements, forms part of collateral paid as disclosed in the balance sheet. The remainder of collateral paid, as disclosed in the balance sheet, consists of $16 million (2019: $18 million) in stock borrowing arrangements and $238 million (2019: $286 million) on futures margin that does not form part of this column. 3. Gross amounts consist of variation margin held directly with central clearing counterparties and stock borrowing arrangements. Where variation margin is receivable it is reported as part of collateral paid. Where variation margin is payable it is reported as part of collateral received. Amounts offset relate to variation margin. 4. $2,146 million (2019: $3,338 million) of derivative financial assets and $1,404 million (2019: $2,252 million) of derivative financial liabilities are not subject to enforceable netting arrangements. 2019 gross amounts, net amounts reported on the balance sheet and net amount were restated to exclude amounts not subject to enforceable netting arrangements. 5. Reverse repurchase agreements form part of trading securities and financial assets measured at FVIS in Note 10. 6. Gross amounts consist of debt and interest set-off accounts which meet the requirements for offsetting as described above. These accounts form part of business loans in Note 12 and part of deposits and other borrowings at amortised cost in Note 16. 7. Repurchase agreements form part of other financial liabilities in Note 17. |
Securitisation, covered bonds_2
Securitisation, covered bonds and other transferred assets (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Securitisation, covered bonds and other transferred assets | |
Schedule of assets transferred and their associated liabilities | For those liabilities that only have recourse to the transferred assets: Carrying Carrying Fair Fair amount of amount of value of value of Net fair Consolidated transferred associated transferred associated value $m assets liabilities assets liabilities position 2020 Securitisation 1 8,029 8,000 8,072 7,994 78 Covered bonds 2 43,654 36,051 n/a n/a n/a Repurchase agreements 36,727 27,763 n/a n/a n/a Total 88,410 71,814 8,072 7,994 78 2019 Securitisation 1 8,221 8,190 8,268 8,177 91 Covered bonds 2 44,676 38,037 n/a n/a n/a Repurchase agreements 13,754 10,604 n/a n/a n/a Total 66,651 56,831 8,268 8,177 91 For those liabilities that only have recourse to the transferred assets: Carrying Carrying Fair Fair amount of amount of value of value of Net fair Parent Entity transferred associated transferred associated value $m assets liabilities assets liabilities position 2020 Securitisation 1 141,660 141,000 141,991 138,870 3,121 Covered bonds 2 36,689 31,926 n/a n/a n/a Repurchase agreements 36,727 27,763 n/a n/a n/a Total 215,076 200,689 141,991 138,870 3,121 2019 Securitisation 1 101,689 101,146 101,871 100,268 1,603 Covered bonds 2 37,697 33,160 n/a n/a n/a Repurchase agreements 13,754 10,604 n/a n/a n/a Total 153,140 144,910 101,871 100,268 1,603 1. The carrying amount of assets securitised exceeds the amount of notes issued primarily because the carrying amount includes both principal and income received from the transferred assets. 2. The difference between the carrying values of covered bonds and the assets pledged reflects the over-collateralisation required to maintain the ratings of the covered bonds and also additional assets to allow immediate issuance of additional covered bonds if required. These additional assets can be repurchased by Westpac at its discretion, subject to the conditions set out in the transaction documents. |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Intangible assets | |
Schedule of changes in intangible assets, including goodwill | Consolidated Parent Entity $m 2020 2019 2020 2019 Goodwill Balance as at beginning of year 8,895 8,890 6,844 6,844 Disposals — — — — Impairment (498) — (116) — Other adjustments — 5 — — Balance as at end of year 8,397 8,895 6,728 6,844 Computer software Balance as at beginning of year 2,365 2,177 2,207 2,014 Additions 1,035 906 955 846 Impairment (171) (25) (165) (25) Amortisation (799) (694) (731) (628) Other adjustments — 1 — — Balance as at end of year 2,430 2,365 2,266 2,207 Cost 7,370 6,395 6,372 5,464 Accumulated amortisation and impairment (4,940) (4,030) (4,106) (3,257) Carrying amount 2,430 2,365 2,266 2,207 Brand names Balance as at beginning of year 670 670 636 636 Balance as at end of year 670 670 636 636 Carrying amount 670 670 636 636 Other intangible assets Balance as at beginning of year 23 26 — — Impairment (20) — — — Amortisation (3) (3) — — Balance as at end of year — 23 — — Cost 141 144 — — Accumulated amortisation and impairment (141) (121) — — Carrying amount — 23 — — Total intangible assets 11,497 11,953 9,630 9,687 |
Schedule of allocation of goodwill to CGUs | Goodwill has been allocated to the following CGUs 1 : Consolidated Parent Entity $m Consumer 3,359 4,060 3,144 3,144 Business 3,205 3,860 3,022 3,213 Westpac Institutional Bank 487 487 487 487 New Zealand 488 488 — — Specialist Businesses 858 — 75 — Total goodwill 8,895 6,844 1. On 4 May 2020, the Group announced the creation of a new operating segment, Specialist Businesses, which includes businesses that were previously part of Consumer and Business operating segments (refer to Note 2). As a result, the Group’s CGUs have been reassessed and goodwill reallocated accordingly. This Specialist Businesses segment includes a number of individual CGUs (Superannuation, Platforms, Investments, General Insurance, Life Insurance, Lenders Mortgage Insurance, and Auto and Vendor Finance) to which goodwill has been allocated. The carrying amount of goodwill allocated to these individual CGUs is not significant compared to total goodwill. |
Summary of significant assumptions used in goodwill impairment testing | Discount rate Cash flows Group’s equity rate/ Group’s adjusted pre-tax equity rate Forecast period/ terminal growth rate 2020 2019 2020 2019 Westpac Institutional Bank 11.0% / 14.4% 11.0% / 15.7% 5 years / 2% 2 years / 0% New Zealand 11.0% / 14.5% 11.0% / 15.3% 3 years / 2% 2 years / 0% All other significant CGUs 11.0% / 15 - 15.2% 11.0% / 15.7% 3 years / 2% 2 years / 0% |
Summary of sensitivity analysis used in goodwill impairment testing | Change required to assumption to reduce headroom to nil Consolidated and Parent Entity Increase in discount rate Decrease in cash flows Decrease in terminal $m Headroom (bps) (%) growth rate (bps) Westpac Institutional Bank 578 56 6.2 76 |
Lessee disclosures (Tables)
Lessee disclosures (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Lessee disclosures | |
Summary of ROU assets | $m Property Other Total Consolidated Balance at 30 September 2019 — — — Impact on adoption of AASB 16 2,686 492 3,178 Restated opening balance 2,686 492 3,178 Additions 354 16 370 Depreciation (506) (124) (630) Other — — — Balance at 30 September 2020 2,534 384 2,918 Parent Entity Balance at 30 September 2019 — — — Impact on adoption of AASB 16 2,432 456 2,888 Restated opening balance 2,432 456 2,888 Additions 319 16 335 Depreciation (455) (112) (567) Other (5) 1 (4) Balance at 30 September 2020 2,291 361 2,652 |
Summary of lease liabilities | $m Consolidated Parent Entity Lease liabilities – property Lease liabilities – other Total lease liabilities as at 30 September 2020 |
Schedule of future contractual undiscounted cash flows relating to lease liabilities | The following table presents the future contractual undiscounted cash flows relating to lease liabilities by remaining contractual maturity based on the requirements AASB 16 applicable for the current period: $m Consolidated Parent Entity Up to one year Over 1 year to 5 years Over 5 years Total undiscounted lease liabilities as at 30 September 2020 As comparatives have not been restated on the adoption of AASB 16, the table below presents the operating lease commitments by remaining contractual maturity based on the requirements of AASB 117 applicable for the prior year: $m Consolidated Parent Entity Up to one year Over 1 year to 5 years Over 5 years Total undiscounted lease liabilities as at 30 September 2019 |
Provisions, contingent liabil_2
Provisions, contingent liabilities, contingent assets and credit commitments (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Provisions, contingent liabilities, contingent assets and credit commitments | |
Schedule of changes in provisions | Provisions Annual leave and Litigation Provision for Compliance, Long other and non- impairment Lease regulation and service employee lending on credit restoration Restructuring remediation $m leave benefits losses commitments obligations provisions provisions Total Consolidated Balance at 30 September 2019 456 614 38 305 24 160 1,572 3,169 Additions 95 795 1,391 225 197 126 1,107 3,936 Utilisation (40) (794) (46) — (12) (110) (567) (1,569) Reversal of unutilised provisions — (19) (9) — (1) — (217) (246) Other — — (3) — — — — (3) Balance at 30 September 2020 511 596 1,371 530 208 176 1,895 5,287 Parent Entity Balance at 30 September 2019 428 557 23 275 24 160 1,513 2,980 Additions 92 749 1,358 204 166 92 1,052 3,713 Utilisation (38) (747) (34) — (10) (110) (537) (1,476) Reversal of unutilised provisions — (19) (3) — (1) — (210) (233) Other — — (1) — — — — (1) Balance at 30 September 2020 482 540 1,343 479 179 142 1,818 4,983 |
Summary of undrawn credit commitments and maturity analysis | Undrawn credit commitments excluding derivatives are as follows: Consolidated Parent Entity $m Undrawn credit commitments Letters of credit and guarantees 1 12,610 15,150 12,069 14,583 Commitments to extend credit 2 184,064 176,002 159,644 153,716 Other 267 188 266 188 Total undrawn credit commitments 196,941 191,340 171,979 168,487 1. Standby letters of credit are undertakings to pay, against presentation documents, an obligation in the event of a default by a customer. Guarantees are unconditional undertakings given to support the obligations of a customer to third parties. The Group may hold cash as collateral for certain guarantees issued. 2. Commitments to extend credit include all obligations on the part of the Group to provide credit facilities. As facilities may expire without being drawn upon, the notional amounts do not necessarily reflect future cash requirements. In addition to the commitments disclosed above, at 30 September 2020, the Group had offered $4.9 billion (2019: $5.0 billion) of facilities to customers, which had not yet been accepted. Consolidated 2020 Up to Over 1 year Over 3 years Over $m 1 year to 3 years to 5 years 5 years Total Letters of credit and guarantees 5,909 3,709 492 2,500 12,610 Commitments to extend credit 71,350 33,832 13,428 65,454 184,064 Other — — 67 200 267 Total undrawn credit commitments 77,259 37,541 13,987 68,154 196,941 |
Shareholders' equity (Tables)
Shareholders' equity (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Shareholders' equity | |
Summary of share capital by class | Consolidated Parent Entity $m Share capital Ordinary share capital, fully paid 40,509 37,508 40,509 37,508 Treasury shares held for RSP 1 (618) (572) (618) (572) Other treasury shares held 2 55 19 (3) (3) Total treasury shares held (563) (553) (621) (575) Total share capital 39,946 36,955 39,888 36,933 NCI 51 53 — — Reconciliation of movement in number of ordinary shares Consolidated and Parent Entity (number) Opening balance 3,489,928,773 3,434,796,711 Share issuances 3 110,919,861 — Dividend reinvestment plan 4 10,836,236 55,132,062 Closing balance 3,611,684,870 3,489,928,773 Ordinary shares purchased and sold on market 2020 Consolidated and Parent Entity Number Average Price ($) For share-based payment arrangements: Employee share plan (ESP) 931,524 26.46 RSP 5 1,931,521 24.06 Westpac Performance Plan (WPP) - share rights exercised 175,957 26.00 As treasury shares: Treasury shares purchased 114,376 24.52 Treasury shares sold (1,835,908) 20.23 Net number of ordinary shares purchased/(sold) on market 1,317,470 For details of the share-based payment arrangements refer to Note 33. 1. 2020: 4,588,277 unvested shares held (2019: 4,784,213). 2. 2020: Nil shares held (2019: 1,721,532). 3. The average price per share for the share issuance was $24.81. 4. The price per share for the issuance of shares in relation to the dividend reinvestment plan for the 2019 final dividend was $25.17 (2019: 2019 interim dividend was $27.36 and 2018 final dividend was $25.82). 5. Ordinary shares allocated to employees under the RSP are classified as treasury shares until the shares vest. |
Schedule of reconciliation of movement in reserves | Consolidated Parent Entity $m Available-for-sale securities reserve Balance as at beginning of year — 37 — 24 Impact on adoption of AASB 9 — (37) — (24) Balance as at end of year — — — — Debt securities at FVOCI reserve Balance as at beginning of year (22) — (25) — Impact on adoption of AASB 9 — 33 — 25 Net gains/(losses) from changes in fair value 360 (47) 292 (40) Income tax effect (96) 12 (77) 10 Transferred to income statements (79) (29) (79) (29) Income tax effect 15 8 15 8 Loss allowance on debt securities measured at FVOCI 2 — 2 — Exchange differences (3) 1 (3) 1 Balance as at end of year 177 (22) 125 (25) Equity securities at FVOCI reserve Balance as at beginning of year 17 — (1) — Impact on adoption of AASB 9 — 6 — 1 Net gains/(losses) from changes in fair value (21) 11 1 (2) Balance as at end of year (4) 17 — (1) Share-based payment reserve Balance as at beginning of year 1,642 1,534 1,533 1,425 Share-based payment expense 78 108 78 108 Balance as at end of year 1,720 1,642 1,611 1,533 Cash flow hedge reserve Balance as at beginning of year (129) (125) (65) (69) Net gains/(losses) from changes in fair value (95) (203) (28) (121) Income tax effect 28 60 9 36 Transferred to income statements 218 197 150 128 Income tax effect (64) (58) (46) (39) Balance as at end of year (42) (129) 20 (65) Foreign currency translation reserve Balance as at beginning of year (179) (351) (145) (307) Exchange differences on translation of foreign operations (177) 311 (148) 214 Gains/(losses) on net investment hedges 9 (129) 17 (52) Transferred to income statements 55 (10) 55 — Balance as at end of year (292) (179) (221) (145) Other reserves Balance as at beginning of year (18) (18) 41 41 Transactions with owners 3 — — — Balance as at end of year (15) (18) 41 41 Total reserves 1,544 1,311 1,576 1,338 |
Dividends (Tables)
Dividends (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Dividends | |
Schedule of dividends not recognised at year end | Consolidated Parent Entity $m Dividends not recognised at year end Since year end the Directors have proposed the following dividends: Final dividend 31 cents per share (2019: 80 cents, 2018: 94 cents) all fully franked at 30% 1,120 2,791 3,227 1,120 2,792 Total dividends not recognised at year end 1,120 2,791 3,227 1,120 2,792 |
Investments in subsidiaries a_2
Investments in subsidiaries and associates (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Investments in subsidiaries and associates | |
Summary of ownership percentage of controlled entities | The following table includes the principal controlled entities of the Group as at 30 September 2020. Country of Country of Name incorporation Name incorporation Advance Asset Management Limited Australia Westpac Financial Services Group Limited Australia Asgard Capital Management Limited Australia Westpac General Insurance Services Limited Australia Asgard Wealth Solutions Limited Australia Westpac Securitisation Holdings Pty Limited Australia BT Financial Group Pty Limited Australia Westpac Life-NZ-Limited New Zealand BT Funds Management Limited Australia Westpac New Zealand Group Limited New Zealand BT Portfolio Services Limited Australia Westpac New Zealand Limited New Zealand Capital Finance Australia Limited Australia Westpac NZ Covered Bond Limited 1 New Zealand Crusade Trust No.2P of 2008 Australia Westpac NZ Securitisation Limited 1 New Zealand Series 2008-IM WST Trust Australia Westpac Securities NZ Limited New Zealand Westpac Covered Bond Trust Australia Westpac Term Pie Fund 2 New Zealand Westpac Equity Holdings Pty Limited Australia Westpac Bank-PNG-Limited Papua New Guinea 1. The Group indirectly owns 19% of Westpac NZ Covered Bond Limited (WNZCBL) and Westpac NZ Securitisation Limited (WNZSL), however, due to contractual and structural arrangements both WNZCBL and WNZSL are considered to be controlled entities within the Group. 2. The Group has funding agreements in place with this entity and is deemed to have exposure to the associated risks and rewards. The entity is consolidated as the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The following controlled entities have been granted relief from compliance with the balance date synchronisation provisions in the Corporations Act 2001: · Westpac Cash PIE Fund; · Westpac Notice Saver PIE Fund; and · Westpac Term PIE Fund. The following material controlled entities are not wholly owned: Percentage Owned Westpac Bank-PNG-Limited Westpac NZ Covered Bond Limited Westpac NZ Securitisation Limited |
Structured entities (Tables)
Structured entities (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Structured entities | |
Schedule of the Group's interests in unconsolidated structured entities and its maximum exposure to loss in relation to those interests | Investment in third party mortgage and Interest other Financing to Group in other Consolidated 2020 asset-backed securitisation managed structured $m securities 1 vehicles funds entities Total Assets Trading securities and financial assets measured at FVIS 1,526 — — 34 1,560 Investment securities 6,105 — — — 6,105 Loans — 20,094 — 16,955 37,049 Life insurance assets — — 204 129 333 Other assets — — 52 — 52 Total on-balance sheet exposures 7,631 20,094 256 17,118 45,099 Total notional amounts of off-balance sheet exposures — 6,122 44 7,768 13,934 Maximum exposure to loss 7,631 26,216 300 24,886 59,033 Size of structured entities 2 59,324 26,216 67,423 40,209 193,172 Investment in third party mortgage and Interest other Financing to Group in other Consolidated 2019 asset-backed securitisation managed structured $m securities 1 vehicles funds entities Total Assets Trading securities and financial assets measured at FVIS 1,827 — — 282 2,109 Investment securities 6,940 — — — 6,940 Loans — 20,979 9 22,817 43,805 Life insurance assets — — 4,885 1,879 6,764 Other assets — — 54 — 54 Total on-balance sheet exposures 8,767 20,979 4,948 24,978 59,672 Total notional amounts of off-balance sheet exposures — 5,157 102 10,086 15,345 Maximum exposure to loss 8,767 26,136 5,050 35,064 75,017 Size of structured entities 2 66,015 26,136 71,538 98,983 262,672 1. The Group’s interests in third party mortgage and other asset-backed securities are senior tranches of notes and are investment grade rated. 2. Represented either by the total assets or market capitalisation of the entity, or if not available, the Group’s total committed exposure (for lending arrangements and external debt and equity holdings), funds under management (for Group managed funds) or the total value of notes on issue (for investments in third-party asset-backed securities). |
Share-based payments (Tables)
Share-based payments (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Share-based payments | |
Summary of terms and conditions of share-based payment arrangements | Scheme name Westpac Long Term Variable Reward Plan (LTVR) Westpac Performance Plan (WPP) Restricted Share Employee Share Plan Type of share-based payment Share rights (allocated at no cost). Share rights (allocated at no cost). Westpac ordinary shares (allocated at no cost). Westpac ordinary shares (allocated at no cost) of up to $1,000 per employee per year. How it is used Aligns executive remuneration and accountability with shareholder interests over the long term. Primarily used for mandatory deferral of a portion of short-term incentives for New Zealand employees and key employees based outside Australia. Primarily used to reward key employees. To reward eligible Australian employees (unless they have already been provided instruments under another scheme for the previous year). Shares rights Nil Nil n/a n/a Performance hurdles Relative Total Shareholder return (TSR) over a four year performance period and average cash Return on Equity (cash ROE) over a three year performance period plus one year holding lock, each applying to half of the award (commencing with the 2016 LTVR award) 1 . None None None Service conditions Continued employment throughout the vesting period or as determined by the Board. Continued employment throughout the vesting period or as determined by the Board. Continued employment throughout the restriction period or as determined by the Board. Shares must normally remain within the ESP for three years from granting unless the employee leaves Westpac. Vesting period (period over which expenses are recognised) 4 years 1 Defined period set out at time of grant. Defined period set out at time of grant. 1 year Treatment at end of term Automatically exercised at the end of the term. Automatically exercised at the end of the term. Vested shares are released from the RSP at the end of the vesting period. Shares are released at the end of the restriction period or when the employee leaves Westpac. Does the employee receive dividends and voting rights during the vesting period? No No Yes Yes 1. For the 2015 LTVR awards, the relative TSR is subject to a four year performance period and cash EPS compound annual growth rate (CAGR) over a three year performance period plus one year holding lock. For awards granted for the periods 2011 to 2014 both the relative TSR and cash EPS CAGR hurdles are subject to a three year performance and vesting period. |
Schedule of share-based payment schemes | Westpac Long Term Variable Reward Plan (LTVR) Outstanding at Granted Exercised Lapsed Outstanding 1 October during during during Outstanding at and exercisable at 2020 the year the year the year 30 September 2020 30 September 2020 Share rights 4,554,589 779,581 — 2,267,844 3,066,326 3,719 Weighted average remaining contractual life 12.3 years 12.4 years 2019 1 October 2018 30 September 2019 Share options 52,350 — 37,831 14,519 — — Weighted average exercise price $ 23.40 — $ 23.40 — — — Share rights 4,712,843 1,169,704 — 1,327,958 4,554,589 3,719 Westpac Performance Plan (WPP) Outstanding Outstanding at Granted during Exercised Lapsed during Outstanding at and exercisable at 2020 1 October 2019 the year during the year the year 30 September 2020 30 September 2020 Share rights One-year vesting period 197,888 120,562 75,417 36,792 206,241 90,451 Two-year vesting period 289,909 113,649 79,568 31,049 292,941 55,846 Three-year vesting period 95,249 18,357 20,972 15,786 76,848 17,922 Four-year vesting period 203,420 186,290 - 8,605 381,105 - Total share rights 786,466 438,858 175,957 92,232 957,135 164,219 Weighted average remaining contractual life 12.8 years 12.8 years 2019 1 October 2018 30 September 2019 Share rights 673,889 385,646 184,043 89,026 786,466 130,946 Restricted Share Plan (RSP) Outstanding at Granted during Forfeited Outstanding at Allocation date 1 October 2019 the year Released during the year 30 September 2020 Total 2020 4,773,171 Total 2019 4,189,644 2,861,262 2,214,509 63,226 4,773,171 Employee Share Plan (ESP) Average number of shares Total number Allocation Number of allocated per of shares Market Total date participants participant allocated price per share 1 fair value 2020 21 November 2019 25,725 38 977,550 $ 26.20 $ 25,611,810 2019 23 November 2018 27,245 39 1,062,555 $ 25.35 $ 26,935,769 1. The market price per share for the allocation is based on the five day volume-weighted average price up to the grant date. |
Superannuation commitments (Tab
Superannuation commitments (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Superannuation commitments | |
Schedule of contributions | Consolidated Parent Entity $m Employer contributions 27 Member contributions 11 |
Summary of expenses recognised | Consolidated Parent Entity $m Current service cost 32 Net interest cost on net benefit liability (2) Total defined benefit expense 30 |
Schedule of defined benefit balances recognised | Consolidated Parent Entity $m Benefit obligation at end of the year 2,799 2,710 Fair value of plan assets at end of the year 2,464 2,405 Net surplus/(deficit) (335) (305) Defined benefit surplus 1 73 73 Defined benefit deficit 2 (408) (378) Net surplus/(deficit) (335) (305) 1. The defined benefit surplus is recognised in other assets. 2. The defined benefit deficit is recognised in other liabilities. |
Schedule of defined benefit plan significant assumptions | 2020 2019 Australian Overseas Australian Overseas Consolidated and Parent Entity funds funds funds funds Discount rate 0.7% - 1.5% 1.1% - 1.8% Salary increases 3.0% - 4.6% 3.0% - 4.9% Inflation rate (pensioners received inflationary increase) 2.0% - 3.1% 2.0% - 3.4% Life expectancy of a 60-year-old male 31.3 28.1 - 28.2 31.1 27.9 - 28.1 Life expectancy of a 60-year-old female 34.2 29.5 - 29.6 34.0 29.3 - 29.5 |
Summary of sensitivity analysis of essential assumptions | Increase in obligation $m 0.5% decrease in discount rate 205 0.5% increase in annual salary increases 14 0.5% increase in inflation rate (pensioners receive inflationary increases) 188 1 year increase in life expectancy 45 |
Schedule of asset allocation | 2020 2019 Australian Overseas Australian Overseas $m funds funds funds funds Cash Equity instruments Debt instruments Property Other assets Total |
Auditor's remuneration (Tables)
Auditor's remuneration (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Auditor's remuneration | |
Schedule of fees payable to the auditor | Consolidated Parent Entity $'000 Audit and audit-related fees Audit fees PwC Australia 27,667 28,153 27,667 28,025 Overseas PwC network firms 5,295 3,216 705 321 Total audit fees 32,962 31,369 28,372 28,346 Audit-related fees PwC Australia 4,404 3,569 4,404 3,418 Overseas PwC network firms 107 128 — 2 Total audit-related fees 4,511 3,697 4,404 3,420 Total audit and audit-related fees 37,473 35,066 32,776 31,766 Tax fees PwC Australia 57 53 57 53 Total tax fees 57 53 57 53 Other fees PwC Australia — 70 — 70 Overseas PwC network firms — 502 — 502 Total other fees — 572 — 572 Total audit and non-audit fees 37,530 35,691 32,833 32,391 |
Related party disclosures (Tabl
Related party disclosures (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Related party disclosures | |
Schedule of remuneration of KMP | Short-term Post employment Other long-term Termination Share-based $ benefits benefits benefits benefits payments Total Consolidated 2020 22,759,397 967,898 657,375 1,176,487 3,748,106 29,309,263 2019 23,805,197 712,883 36,572 558,984 20,691,480 45,805,116 Parent Entity 2020 21,766,691 873,350 657,375 1,176,487 3,035,423 27,509,326 2019 22,515,477 625,173 36,572 558,984 19,783,900 43,520,106 |
Schedule of loans provided and interest charged to KMP and their related parties | Interest payable Closing loan Number of KMP $ for the year balance with loans 2020 549,257 15,779,157 8 2019 672,167 31,718,007 14 |
Schedule of options and share rights held by key management personnel, including their related parties | Number of Latest Date of Exercise Share Rights Managing Director & Chief Executive Officer Peter King Ranges from 1 October 2031 to 1 October 2034 346,795 Group Executives Rebecca Lim 1 Ranges from 1 October 2031 to 1 October 2034 220,403 Guilherme Lima 1 October 2034 57,819 Carolyn McCann Ranges from 1 October 2032 to 2 April 2035 102,207 David McLean Ranges from 1 October 2022 to 1 October 2034 382,588 Christine Parker Ranges from 1 October 2031 to 1 October 2034 252,231 Michael Rowland n/a — David Stephen Ranges from 1 October 2032 to 1 October 2034 364,381 Gary Thursby Ranges from 1 October 2031 to 1 October 2034 250,336 Les Vance 2 April 2035 22,227 Jason Yetton 2 April 2035 54,213 Acting Group Executives Richard Burton n/a — Alastair Welsh n/a — Curt Zuber n/a — Former Group Executive Brian Hartzer n/a — Craig Bright n/a — Lyn Cobley Ranges from 1 October 2031 to 1 October 2034 319,631 David Lindberg n/a — 1. Rebecca Lim was the Group Executive, Legal & Secretariat until 16 December 2019 when she was appointed Enterprise Legal Counsel focusing on AUSTRAC matters. Rebecca Lim resumed her Group General Counsel role when she was appointed the Group General Counsel & Enterprise Executive on 18 May 2020. |
Notes to the consolidated cash
Notes to the consolidated cash flow statement (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Notes to the cash flow statements | |
Summary of reconciliation of net cash provided by/(used in) operating activities to net profit for the year | Consolidated Parent Entity $m Net profit for the year 6,790 8,099 7,121 Adjustments: Depreciation, amortisation and impairment 1,079 1,144 1,082 Impairment charges 966 889 893 Net decrease/(increase) in current and deferred tax (541) (96) (804) (Increase)/decrease in accrued interest receivable 132 (83) 98 (Decrease)/increase in accrued interest payable (341) 241 (321) (Decrease)/increase in provisions 1,143 289 1,214 Other non-cash items (832) 332 (329) Cash flows from operating activities before changes in operating assets and liabilities 8,396 10,815 8,954 Net (increase)/decrease in derivative financial instruments 7,605 8,584 6,581 Net (increase)/decrease in life insurance assets and liabilities (134) (230) — — (Increase)/decrease in other operating assets: Collateral paid (847) 969 (755) Trading securities and other financial assets measured at FVIS (7,629) 3,492 (7,358) Loans (4,188) (24,740) (3,312) Other financial assets 336 859 324 Other assets (13) 10 (41) (Decrease)/increase in other operating liabilities: Collateral received 1,007 (295) 1,004 Deposits and other borrowings 1,113 23,928 963 Other financial liabilities 1,463 (3,632) 1,555 Other liabilities (5) 10 (24) Net cash provided by/(used in) operating activities 7,104 19,770 7,891 |
Summary of the assets and liabilities over which control ceased | Consolidated Parent Entity $m Assets: Cash and balances with central banks — 3 10 — — Trading securities and other financial assets measured at FVIS — 3 — — — Property and equipment — — 2 — — Deferred tax assets — — 4 — — Intangible assets — — 15 — — Other financial assets — 3 5 — — Total assets — 9 36 — — Liabilities: Provisions — — 2 — — Other liabilities — — 3 — — Total liabilities — — 5 — — Total equity attributable to owners of WBC — 9 31 — — Cash proceeds received (net of transaction costs) — 2 19 — — Total consideration — 2 19 — — Reserves recycled to income statement — 10 3 — — Gain/(loss) on disposal — 3 (9) — — Reconciliation of cash proceeds from disposal: Cash proceeds received (net of transaction costs) — 2 19 — — Less: Cash deconsolidated — (3) (10) — — Cash consideration (paid)/received (net of transaction costs and cash held) — (1) 9 — — |
Schedule of non-cash financing activities | Consolidated Parent Entity $m Shares issued under the dividend reinvestment plan 1,489 631 1,489 Shares issued from the conversation of Westpac CPS — — 566 — — Increase in lease liabilities — — — |
Financial statements preparat_3
Financial statements preparation (Details) - AUD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Oct. 01, 2019 | |
Financial statements preparation | |||
Impact on adoption of AASB 16 | $ 3,178 | ||
ROU assets included in property and equipment | $ 2,918 | $ 0 | |
Lease liabilities recognised in other liabilities | 2,925 | ||
Depreciation of right-of-use assets recognised in operating expenses | 630 | ||
AASB 16 Leases | |||
Financial statements preparation | |||
interest expense on the lease liability recognised in net interest expense | 64 | ||
AASB 16 Leases | Adjustment | |||
Financial statements preparation | |||
ROU assets included in property and equipment | 3,200 | ||
Lease liabilities recognised in other liabilities | 3,300 | ||
Previously recognised accrued lease payments | $ 100 | ||
Weighted average incremental borrowing rate | 2.10% | ||
AASB 16 Leases | Adjustment | Retained profits | |||
Financial statements preparation | |||
Impact on adoption of AASB 16 | $ 0 | ||
AASB 117 Leases | |||
Financial statements preparation | |||
Total lease commitments | 3,700 | ||
Parent Entity | |||
Financial statements preparation | |||
Impact on adoption of AASB 16 | 2,888 | ||
ROU assets included in property and equipment | 2,652 | 0 | |
Lease liabilities recognised in other liabilities | 2,672 | ||
Depreciation of right-of-use assets recognised in operating expenses | 567 | ||
Parent Entity | AASB 16 Leases | |||
Financial statements preparation | |||
interest expense on the lease liability recognised in net interest expense | $ 56 | ||
Parent Entity | AASB 16 Leases | Adjustment | |||
Financial statements preparation | |||
ROU assets included in property and equipment | 2,900 | ||
Lease liabilities recognised in other liabilities | 3,000 | ||
Previously recognised accrued lease payments | $ 100 | ||
Parent Entity | AASB 117 Leases | |||
Financial statements preparation | |||
Total lease commitments | $ 3,400 |
Segment reporting - Segment res
Segment reporting - Segment results (Details) - AUD ($) $ in Millions | 12 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Statement | |||||
Net interest income | $ 16,696 | $ 16,907 | $ 16,505 | ||
Net fee income | 1,592 | 1,655 | 2,424 | ||
Net wealth management and insurance income | 751 | 1,029 | 2,061 | ||
Trading income | 895 | 929 | 945 | ||
Other income | 249 | 129 | 72 | ||
Net operating income before operating expenses and impairment charges | 20,183 | 20,649 | 22,007 | ||
Operating expenses | (12,739) | (10,106) | (9,566) | ||
Impairment charges | (3,178) | (794) | (710) | ||
Profit before income tax | 4,266 | 9,749 | 11,731 | ||
Income tax expense | (1,974) | (2,959) | (3,632) | ||
Profit attributable to non-controlling interests | (2) | (6) | (4) | ||
Cash earnings for the year | 2,290 | 6,784 | 8,095 | ||
Net cash earnings adjustments | (318) | (65) | 30 | ||
Net profit attributable to owners of Westpac Banking Corporation (WBC) | 2,290 | 6,784 | 8,095 | ||
Balance Sheet | |||||
Loans | 693,059 | 714,770 | 709,690 | $ 684,919 | $ 661,926 |
Deposits and other borrowings. | 591,131 | 563,247 | 559,285 | ||
Consumer | |||||
Income Statement | |||||
Net cash earnings adjustments | (15) | ||||
Net profit attributable to owners of Westpac Banking Corporation (WBC) | 2,746 | 3,116 | 3,177 | ||
Balance Sheet | |||||
Loans | 389,793 | 399,279 | 396,265 | ||
Deposits and other borrowings. | 219,259 | 207,578 | 203,872 | ||
Business | |||||
Income Statement | |||||
Net profit attributable to owners of Westpac Banking Corporation (WBC) | 734 | 1,946 | 2,104 | ||
Balance Sheet | |||||
Loans | 140,698 | 146,867 | 146,099 | ||
Deposits and other borrowings. | 151,939 | 142,558 | 141,031 | ||
Westpac Institutional Bank | |||||
Income Statement | |||||
Net profit attributable to owners of Westpac Banking Corporation (WBC) | 332 | 925 | 985 | ||
Balance Sheet | |||||
Loans | 66,192 | 73,572 | 75,627 | ||
Deposits and other borrowings. | 102,851 | 99,005 | 102,703 | ||
Westpac New Zealand | |||||
Income Statement | |||||
Net cash earnings adjustments | 7 | (1) | 13 | ||
Net profit attributable to owners of Westpac Banking Corporation (WBC) | 619 | 984 | 947 | ||
Balance Sheet | |||||
Loans | 81,434 | 78,005 | 73,604 | ||
Deposits and other borrowings. | 68,473 | 60,801 | 57,784 | ||
Specialist Businesses | |||||
Income Statement | |||||
Net cash earnings adjustments | (31) | (45) | (76) | ||
Net profit attributable to owners of Westpac Banking Corporation (WBC) | (537) | 667 | 898 | ||
Balance Sheet | |||||
Loans | 14,942 | 17,216 | 18,329 | ||
Deposits and other borrowings. | 9,260 | 9,277 | 7,180 | ||
Group Businesses | |||||
Income Statement | |||||
Net cash earnings adjustments | (294) | (19) | 108 | ||
Net profit attributable to owners of Westpac Banking Corporation (WBC) | (1,604) | (854) | (16) | ||
Balance Sheet | |||||
Loans | (169) | (234) | |||
Deposits and other borrowings. | 39,349 | 44,028 | 46,715 | ||
Operating segments | |||||
Income Statement | |||||
Net interest income | 17,086 | 16,953 | 17,187 | ||
Net fee income | 1,592 | 1,655 | 1,910 | ||
Net wealth management and insurance income | 759 | 1,023 | 2,017 | ||
Trading income | 928 | 907 | 926 | ||
Other income | 261 | 117 | 125 | ||
Net operating income before operating expenses and impairment charges | 20,626 | 20,655 | 22,165 | ||
Operating expenses | (12,700) | (10,031) | (9,698) | ||
Impairment charges | (3,178) | (794) | (812) | ||
Profit before income tax | 4,748 | 9,830 | 11,655 | ||
Income tax expense | (2,138) | (2,975) | (3,586) | ||
Profit attributable to non-controlling interests | (2) | (6) | (4) | ||
Cash earnings for the year | 2,608 | 6,849 | 8,065 | ||
Operating segments | Consumer | |||||
Income Statement | |||||
Net interest income | 8,547 | 8,130 | 8,092 | ||
Net fee income | 471 | 594 | 645 | ||
Trading income | 90 | 94 | 100 | ||
Other income | 12 | 7 | 21 | ||
Net operating income before operating expenses and impairment charges | 9,120 | 8,825 | 8,858 | ||
Operating expenses | (4,176) | (3,794) | (3,779) | ||
Impairment charges | (1,015) | (582) | (490) | ||
Profit before income tax | 3,929 | 4,449 | 4,589 | ||
Income tax expense | (1,183) | (1,333) | (1,397) | ||
Cash earnings for the year | 2,746 | 3,116 | 3,192 | ||
Operating segments | Business | |||||
Income Statement | |||||
Net interest income | 4,163 | 4,456 | 4,619 | ||
Net fee income | 438 | 463 | 469 | ||
Net wealth management and insurance income | 22 | 16 | 14 | ||
Trading income | 97 | 109 | 114 | ||
Other income | 3 | 6 | 15 | ||
Net operating income before operating expenses and impairment charges | 4,723 | 5,050 | 5,231 | ||
Operating expenses | (2,298) | (2,094) | (1,983) | ||
Impairment charges | (1,371) | (172) | (236) | ||
Profit before income tax | 1,054 | 2,784 | 3,012 | ||
Income tax expense | (320) | (838) | (908) | ||
Cash earnings for the year | 734 | 1,946 | 2,104 | ||
Operating segments | Westpac Institutional Bank | |||||
Income Statement | |||||
Net interest income | 1,111 | 1,337 | 1,320 | ||
Net fee income | 544 | 570 | 572 | ||
Net wealth management and insurance income | 212 | ||||
Trading income | 637 | 636 | 641 | ||
Other income | 1 | (11) | 48 | ||
Net operating income before operating expenses and impairment charges | 2,293 | 2,532 | 2,793 | ||
Operating expenses | (1,316) | (1,220) | (1,399) | ||
Impairment charges | (404) | (31) | 20 | ||
Profit before income tax | 573 | 1,281 | 1,414 | ||
Income tax expense | (241) | (356) | (429) | ||
Cash earnings for the year | 332 | 925 | 985 | ||
Operating segments | Westpac New Zealand | |||||
Income Statement | |||||
Net interest income | 1,832 | 1,860 | 1,799 | ||
Net fee income | 123 | 163 | 164 | ||
Net wealth management and insurance income | 158 | 177 | 149 | ||
Trading income | 27 | 37 | 51 | ||
Other income | 11 | 46 | 9 | ||
Net operating income before operating expenses and impairment charges | 2,151 | 2,283 | 2,172 | ||
Operating expenses | (998) | (939) | (855) | ||
Impairment charges | (302) | 10 | (22) | ||
Profit before income tax | 851 | 1,354 | 1,295 | ||
Income tax expense | (239) | (369) | (361) | ||
Cash earnings for the year | 612 | 985 | 934 | ||
Operating segments | Specialist Businesses | |||||
Income Statement | |||||
Net interest income | 534 | 555 | 565 | ||
Net fee income | 89 | 44 | 80 | ||
Net wealth management and insurance income | 624 | 1,319 | 1,533 | ||
Trading income | 57 | 54 | 42 | ||
Other income | (8) | (5) | 9 | ||
Net operating income before operating expenses and impairment charges | 1,296 | 1,967 | 2,229 | ||
Operating expenses | (1,548) | (847) | (746) | ||
Impairment charges | (255) | (111) | (84) | ||
Profit before income tax | (507) | 1,009 | 1,399 | ||
Income tax expense | 3 | (292) | (420) | ||
Profit attributable to non-controlling interests | (2) | (5) | (5) | ||
Cash earnings for the year | (506) | 712 | 974 | ||
Impairment of goodwill and other intangible assets | 571 | ||||
Operating segments | Group Businesses | |||||
Income Statement | |||||
Net interest income | 899 | 615 | 792 | ||
Net fee income | (73) | (179) | (20) | ||
Net wealth management and insurance income | (45) | (489) | 109 | ||
Trading income | 20 | (23) | (22) | ||
Other income | 242 | 74 | 23 | ||
Net operating income before operating expenses and impairment charges | 1,043 | (2) | 882 | ||
Operating expenses | (2,364) | (1,137) | (936) | ||
Impairment charges | 169 | 92 | |||
Profit before income tax | (1,152) | (1,047) | (54) | ||
Income tax expense | (158) | 213 | (71) | ||
Profit attributable to non-controlling interests | (1) | 1 | |||
Cash earnings for the year | (1,310) | (835) | (124) | ||
Net cash earnings adjustment | |||||
Income Statement | |||||
Net interest income | (390) | (46) | (682) | ||
Net fee income | 514 | ||||
Net wealth management and insurance income | (8) | 6 | 44 | ||
Trading income | (33) | 22 | 19 | ||
Other income | (12) | 12 | (53) | ||
Net operating income before operating expenses and impairment charges | (443) | (6) | (158) | ||
Operating expenses | (39) | (75) | 132 | ||
Impairment charges | 102 | ||||
Profit before income tax | (482) | (81) | 76 | ||
Income tax expense | 164 | 16 | (46) | ||
Cash earnings for the year | (318) | (65) | 30 | ||
Net cash earnings adjustments | $ (318) | $ (65) | $ 30 |
Segment reporting - Reconciliat
Segment reporting - Reconciliation of cash earnings to net profit (Details) - AUD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment reporting | |||
Cash earnings for the year | $ 2,290 | $ 6,784 | $ 8,095 |
Cash earnings adjustments | (318) | (65) | 30 |
Net profit attributable to owners of Westpac Banking Corporation (WBC) | 2,290 | 6,784 | 8,095 |
Operating segments | |||
Segment reporting | |||
Cash earnings for the year | 2,608 | 6,849 | 8,065 |
Net cash earnings adjustment | |||
Segment reporting | |||
Cash earnings for the year | (318) | (65) | 30 |
Cash earnings adjustments | (318) | (65) | 30 |
Amortisation of intangible assets | |||
Segment reporting | |||
Cash earnings adjustments | (17) | ||
Fair value gain/(loss) on economic hedges | |||
Segment reporting | |||
Cash earnings adjustments | (362) | (35) | 126 |
Ineffective hedges | |||
Segment reporting | |||
Cash earnings adjustments | 61 | 20 | (13) |
Adjustments relating to Pendal | |||
Segment reporting | |||
Cash earnings adjustments | (31) | (45) | (73) |
Treasury shares | |||
Segment reporting | |||
Cash earnings adjustments | $ 14 | $ (5) | $ 7 |
Segment reporting - Geographic
Segment reporting - Geographic segments (Details) - AUD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Geographic segments | |||
Revenue | $ 30,534 | $ 36,964 | $ 38,073 |
Revenues (as a percent) | 100.00% | 100.00% | 100.00% |
Non-current assets | $ 15,407 | $ 13,108 | $ 13,092 |
Non-current assets (as a percent) | 100.00% | 100.00% | 100.00% |
Australia | |||
Geographic segments | |||
Revenue | $ 26,135 | $ 31,113 | $ 32,595 |
Revenues (as a percent) | 85.60% | 84.20% | 85.60% |
Non-current assets | $ 14,270 | $ 12,280 | $ 12,271 |
Non-current assets (as a percent) | 92.60% | 93.70% | 93.70% |
New Zealand | |||
Geographic segments | |||
Revenue | $ 3,439 | $ 4,520 | $ 4,381 |
Revenues (as a percent) | 11.30% | 12.20% | 11.50% |
Non-current assets | $ 1,015 | $ 761 | $ 756 |
Non-current assets (as a percent) | 6.60% | 5.80% | 5.80% |
Other overseas | |||
Geographic segments | |||
Revenue | $ 960 | $ 1,331 | $ 1,097 |
Revenues (as a percent) | 3.10% | 3.60% | 2.90% |
Non-current assets | $ 122 | $ 67 | $ 65 |
Non-current assets (as a percent) | 0.80% | 0.50% | 0.50% |
Net interest income (Details)
Net interest income (Details) - AUD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Interest income | |||
Total interest income calculated using the effective interest rate method | $ 26,596 | $ 32,518 | $ 31,987 |
Total other interest income | 451 | 704 | 584 |
Total interest income | 27,047 | 33,222 | 32,571 |
Interest expense | |||
Total interest expense | (10,351) | (16,315) | (16,066) |
Net interest income | 16,696 | 16,907 | 16,505 |
Estimated customer refunds, payments, associated costs and litigation recognised as a reduction in Interest income | 170 | 372 | 127 |
AASB 16 Leases | |||
Interest expense | |||
Interest expense on lease liabilities | 64 | ||
Calculated using the effective interest rate method | |||
Interest income | |||
Cash and balances with central banks | 135 | 334 | 326 |
Collateral paid | 75 | 201 | 129 |
Available-for-sale securities | 1,914 | ||
Investment securities | 1,521 | 1,919 | |
Loans | 24,848 | 30,029 | 29,583 |
Other financial assets | 17 | 35 | 35 |
Total interest income calculated using the effective interest rate method | 26,596 | 32,518 | 31,987 |
Interest expense | |||
Collateral received | (26) | (57) | (45) |
Deposits and other borrowings | (4,652) | (7,967) | (8,141) |
Debt issues | (2,907) | (4,706) | (4,325) |
Loan capital | (800) | (776) | (774) |
Other financial liabilities | (98) | (274) | (318) |
Total interest expense | (8,483) | (13,780) | (13,603) |
Other | |||
Interest income | |||
Net ineffectiveness on qualifying hedges | 87 | 28 | (18) |
Trading securities and financial assets measured at FVIS | 359 | 662 | 564 |
Loans | 5 | 14 | 38 |
Total other interest income | 451 | 704 | 584 |
Interest expense | |||
Deposits and other borrowings | (402) | (978) | (880) |
Trading liabilities | (787) | (915) | (959) |
Debt issues | (107) | (163) | (155) |
Bank levy | (408) | (391) | (378) |
Other interest expense | (164) | (88) | (91) |
Total interest expense | (1,868) | (2,535) | $ (2,463) |
Parent Entity | |||
Interest income | |||
Total interest income calculated using the effective interest rate method | 26,025 | 32,736 | |
Total other interest income | 598 | 776 | |
Total interest income | 26,623 | 33,512 | |
Interest expense | |||
Total interest expense | (12,539) | (19,295) | |
Net interest income | 14,084 | 14,217 | |
Estimated customer refunds, payments, associated costs and litigation recognised as a reduction in Interest income | 164 | 353 | |
Parent Entity | AASB 16 Leases | |||
Interest expense | |||
Interest expense on lease liabilities | 56 | ||
Parent Entity | Calculated using the effective interest rate method | |||
Interest income | |||
Cash and balances with central banks | 122 | 311 | |
Collateral paid | 74 | 197 | |
Investment securities | 1,385 | 1,750 | |
Loans | 21,488 | 26,171 | |
Other financial assets | 16 | 33 | |
Due from subsidiaries | 2,940 | 4,274 | |
Total interest income calculated using the effective interest rate method | 26,025 | 32,736 | |
Interest expense | |||
Collateral received | (23) | (51) | |
Deposits and other borrowings | (3,782) | (6,745) | |
Debt issues | (2,549) | (4,218) | |
Due to subsidiaries | (3,601) | (4,905) | |
Loan capital | (800) | (776) | |
Other financial liabilities | (98) | (273) | |
Total interest expense | (10,853) | (16,968) | |
Parent Entity | Other | |||
Interest income | |||
Net ineffectiveness on qualifying hedges | 77 | 26 | |
Trading securities and financial assets measured at FVIS | 338 | 633 | |
Loans | 5 | 14 | |
Due from subsidiaries | 178 | 103 | |
Total other interest income | 598 | 776 | |
Interest expense | |||
Deposits and other borrowings | (385) | (961) | |
Trading liabilities | (640) | (828) | |
Debt issues | (74) | (140) | |
Bank levy | (408) | (391) | |
Due to subsidiaries | (29) | 78 | |
Other interest expense | (150) | (85) | |
Total interest expense | $ (1,686) | $ (2,327) |
Non-interest income (Details)
Non-interest income (Details) - AUD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net fee income | |||
Facility fees | $ 731 | $ 730 | $ 1,365 |
Transactions fees | 1,021 | 1,225 | 1,182 |
Other non-risk fee income | 48 | (76) | 98 |
Fee income | 1,800 | 1,879 | 2,645 |
Credit card loyalty programs | (102) | (121) | (126) |
Transaction fee related expenses | (106) | (103) | (95) |
Fee expenses | (208) | (224) | (221) |
Net fee income | 1,592 | 1,655 | 2,424 |
Net wealth management and insurance income | |||
Wealth management income | 631 | 276 | 1,145 |
Life insurance premium income | 1,297 | 1,443 | 1,410 |
General insurance and lenders mortgage insurance (LMI) net premium earned | 499 | 482 | 472 |
Life insurance investment and other income | 64 | 409 | 666 |
General insurance and LMI investment and other income | 42 | 52 | 50 |
Total insurance premium, investment and other income | 1,902 | 2,386 | 2,598 |
Life insurance claims and changes in life insurance liabilities | (1,284) | (1,266) | (1,396) |
General insurance and LMI claims and other expenses | (498) | (367) | (286) |
Total insurance claims, changes in insurance liabilities and other expenses | (1,782) | (1,633) | (1,682) |
Net wealth management and insurance income | 751 | 1,029 | 2,061 |
Trading income | 895 | 929 | 945 |
Other income | |||
Dividends received from other entities | 1 | 6 | 3 |
Net gain/(loss) on derecognition/sale of associates | 316 | 38 | |
Net gain/(loss) on disposal of assets | 11 | 61 | 24 |
Net gain/(loss) on derivatives held for risk management purposes | 4 | (11) | 8 |
Net gain/(loss) on financial assets measured at fair value | (78) | (39) | 38 |
Net gain/(loss) on disposal of controlled entities | 3 | (9) | |
Rental income on operating leases | 54 | 72 | 107 |
Share of associates' net profit/(loss) | (23) | (23) | (10) |
Other | (36) | 22 | (89) |
Total other income | 249 | 129 | 72 |
Total non-interest income | 3,487 | 3,742 | 5,502 |
Estimated customer refunds, payments, associated costs and litigation recognised as a reduction in non-risk fee income, wealth management income and other income | 225 | 860 | 171 |
Loss recognised as a result of the liability adequacy test on life insurance contracts | (260) | 0 | 0 |
Write-off of deferred acquisition costs | (97) | 0 | 0 |
Credit card loyalty programs | |||
Other income | |||
Deferred income | 361 | 322 | $ 318 |
Parent Entity | |||
Net fee income | |||
Facility fees | 672 | 680 | |
Transactions fees | 891 | 1,046 | |
Other non-risk fee income | (52) | (638) | |
Fee income | 1,511 | 1,088 | |
Credit card loyalty programs | (71) | (90) | |
Transaction fee related expenses | (81) | (76) | |
Fee expenses | (152) | (166) | |
Net fee income | 1,359 | 922 | |
Net wealth management and insurance income | |||
Trading income | 876 | 956 | |
Other income | |||
Dividends received from subsidiaries | 762 | 2,215 | |
Transactions with subsidiaries | 579 | 457 | |
Dividends received from other entities | 1 | 3 | |
Net gain/(loss) on derecognition/sale of associates | 305 | ||
Net gain/(loss) on disposal of assets | 9 | 60 | |
Net gain/(loss) on hedging overseas operations | (8) | (71) | |
Net gain/(loss) on derivatives held for risk management purposes | 4 | (11) | |
Net gain/(loss) on financial assets measured at fair value | (35) | (25) | |
Rental income on operating leases | 33 | 50 | |
Other | (53) | 6 | |
Total other income | 1,597 | 2,684 | |
Total non-interest income | 3,832 | 4,562 | |
Estimated customer refunds, payments, associated costs and litigation recognised as a reduction in non-risk fee income, wealth management income and other income | 190 | 842 | |
Parent Entity | Credit card loyalty programs | |||
Other income | |||
Deferred income | $ 30 | $ 47 |
Operating expenses (Details)
Operating expenses (Details) - AUD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Staff expenses | |||
Employee remuneration, entitlements and on-costs | $ 4,428 | $ 4,320 | $ 4,292 |
Superannuation expense | 413 | 378 | 386 |
Share-based payments | 80 | 108 | 95 |
Restructuring costs | 94 | 232 | 114 |
Total staff expenses | 5,015 | 5,038 | 4,887 |
Occupancy expenses | |||
Operating lease rentals | 148 | 658 | 632 |
Depreciation and impairment of property and equipment | 708 | 222 | 245 |
Other | 160 | 143 | 156 |
Total occupancy expenses | 1,016 | 1,023 | 1,033 |
Technology expenses | |||
Amortisation and impairment of software assets | 970 | 719 | 620 |
Depreciation and impairment of IT equipment | 272 | 129 | 141 |
Technology services | 698 | 810 | 721 |
Software maintenance and licences | 398 | 371 | 342 |
Telecommunications | 216 | 207 | 209 |
Data processing | 89 | 83 | 77 |
Total technology expenses | 2,643 | 2,319 | 2,110 |
Other expenses | |||
Professional and processing services | 1,374 | 1,060 | 824 |
Amortisation and impairment of intangible assets and deferred expenditure | 523 | 9 | 138 |
Postage and stationery | 164 | 179 | 182 |
Advertising | 217 | 245 | 173 |
Non-lending losses | 1,443 | 58 | 133 |
Other | 344 | 175 | 86 |
Total other expenses | 4,065 | 1,726 | 1,536 |
Total operating expenses | 12,739 | 10,106 | 9,566 |
Provision for customer refunds, payments, associated costs and litigation | 317 | 196 | 111 |
Depreciation of right-of-use assets recognised in operating expenses | 630 | ||
Computer software | |||
Other expenses | |||
Impairment | 171 | 25 | 2 |
Goodwill and other intangibles | |||
Other expenses | |||
Impairment | 518 | 0 | 105 |
Property and equipment | |||
Other expenses | |||
Impairment | 5 | 0 | 0 |
IT equipment | |||
Other expenses | |||
Impairment | 23 | 0 | 1 |
AUSTRAC proceedings | |||
Other expenses | |||
Estimated costs associated with AUSTRAC proceedings | 1,478 | ||
Provision for a potential penalty | 1,300 | 0 | 0 |
Parent Entity | |||
Staff expenses | |||
Employee remuneration, entitlements and on-costs | 3,744 | 3,611 | |
Superannuation expense | 351 | 313 | |
Share-based payments | 76 | 101 | |
Restructuring costs | 76 | 202 | |
Total staff expenses | 4,247 | 4,227 | |
Occupancy expenses | |||
Operating lease rentals | 123 | 597 | |
Depreciation and impairment of property and equipment | 614 | 176 | |
Other | 145 | 122 | |
Total occupancy expenses | 882 | 895 | |
Technology expenses | |||
Amortisation and impairment of software assets | 896 | 653 | |
Depreciation and impairment of IT equipment | 244 | 117 | |
Technology services | 569 | 670 | |
Software maintenance and licences | 343 | 321 | |
Telecommunications | 190 | 182 | |
Data processing | 88 | 81 | |
Total technology expenses | 2,330 | 2,024 | |
Other expenses | |||
Professional and processing services | 1,184 | 860 | |
Amortisation and impairment of intangible assets and deferred expenditure | 116 | ||
Postage and stationery | 130 | 143 | |
Advertising | 172 | 196 | |
Non-lending losses | 1,428 | 43 | |
Impairment on investments in subsidiaries | 272 | 136 | |
Other | 11 | 107 | |
Total other expenses | 3,313 | 1,485 | |
Total operating expenses | 10,772 | 8,631 | |
Provision for customer refunds, payments, associated costs and litigation | 488 | 180 | |
Depreciation of right-of-use assets recognised in operating expenses | 567 | ||
Parent Entity | Computer software | |||
Other expenses | |||
Impairment | 165 | 25 | |
Parent Entity | Goodwill and other intangibles | |||
Other expenses | |||
Impairment | 116 | 0 | |
Parent Entity | Property and equipment | |||
Other expenses | |||
Impairment | 4 | 0 | |
Parent Entity | IT equipment | |||
Other expenses | |||
Impairment | 23 | 0 | |
Parent Entity | AUSTRAC proceedings | |||
Other expenses | |||
Estimated costs associated with AUSTRAC proceedings | 1,478 | ||
Provision for a potential penalty | $ 1,300 | $ 0 | $ 0 |
Impairment charges (Details)
Impairment charges (Details) - AUD ($) $ in Millions | 12 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Impairment charges | |||||
Recoveries | $ (193) | $ (172) | $ (179) | $ (168) | $ (137) |
Impairment charges | 3,178 | 794 | 710 | ||
AASB 9 Financial Instruments | |||||
Impairment charges | |||||
Recoveries | (193) | (172) | |||
Impairment charges | 3,178 | 794 | |||
AASB 9 Financial Instruments | Performing | |||||
Impairment charges | |||||
Provisions raised/(released) | 1,437 | (209) | |||
AASB 9 Financial Instruments | Non-performing | |||||
Impairment charges | |||||
Provisions raised/(released) | 1,934 | 1,175 | |||
AASB 9 Financial Instruments | Loans and credit commitments | |||||
Impairment charges | |||||
Impairment charges | 3,158 | 794 | |||
AASB 9 Financial Instruments | Debt securities at amortised cost | |||||
Impairment charges | |||||
Impairment charges | 18 | ||||
AASB 9 Financial Instruments | Debt securities at FVOCI | |||||
Impairment charges | |||||
Impairment charges | 2 | ||||
AASB 139 Financial Instruments | |||||
Impairment charges | |||||
Write-backs | (150) | ||||
Recoveries | (179) | ||||
Impairment charges | 710 | ||||
AASB 139 Financial Instruments | Individually assessed | |||||
Impairment charges | |||||
Provisions raised/(released) | 371 | ||||
AASB 139 Financial Instruments | Collectively assessed | |||||
Impairment charges | |||||
Provisions raised/(released) | $ 668 | ||||
Parent Entity | |||||
Impairment charges | |||||
Recoveries | (173) | (143) | |||
Impairment charges | 2,691 | 750 | |||
Parent Entity | AASB 9 Financial Instruments | |||||
Impairment charges | |||||
Recoveries | (173) | (143) | |||
Impairment charges | 2,691 | 750 | |||
Parent Entity | AASB 9 Financial Instruments | Performing | |||||
Impairment charges | |||||
Provisions raised/(released) | 1,147 | (180) | |||
Parent Entity | AASB 9 Financial Instruments | Non-performing | |||||
Impairment charges | |||||
Provisions raised/(released) | 1,717 | 1,073 | |||
Parent Entity | AASB 9 Financial Instruments | Loans and credit commitments | |||||
Impairment charges | |||||
Impairment charges | 2,689 | $ 750 | |||
Parent Entity | AASB 9 Financial Instruments | Debt securities at FVOCI | |||||
Impairment charges | |||||
Impairment charges | $ 2 |
Income tax - Expense (Details)
Income tax - Expense (Details) - AUD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income tax expense reconciled to profit before income tax | |||
Profit before income tax | $ 4,266 | $ 9,749 | $ 11,731 |
Tax at the Australian company tax rate of 30% | $ 1,280 | $ 2,925 | $ 3,519 |
Australian company tax rate (as a percent) | 30.00% | 30.00% | 30.00% |
The effect of amounts which are not deductible/(assessable) in calculating taxable income | |||
Hybrid capital distributions | $ 56 | $ 72 | $ 69 |
Life insurance: Tax adjustment on policyholder earnings | (17) | 8 | 24 |
Life insurance: Adjustment for life business tax rates | 1 | (1) | (1) |
Dividend adjustments | (1) | (1) | |
Other non-assessable items | (3) | (14) | (5) |
Other non-deductible items | 585 | 12 | 64 |
Adjustment for overseas tax rates | 16 | (32) | (28) |
Income tax (over)/under provided in prior years | 1 | (10) | 9 |
Other items | 55 | (18) | |
Total income tax expense | 1,974 | 2,959 | $ 3,632 |
Parent Entity | |||
Income tax expense reconciled to profit before income tax | |||
Profit before income tax | 4,453 | 9,398 | |
Tax at the Australian company tax rate of 30% | 1,336 | 2,819 | |
The effect of amounts which are not deductible/(assessable) in calculating taxable income | |||
Hybrid capital distributions | 56 | 72 | |
Dividend adjustments | (228) | (664) | |
Other non-assessable items | (3) | (2) | |
Other non-deductible items | 468 | 9 | |
Adjustment for overseas tax rates | 32 | (5) | |
Income tax (over)/under provided in prior years | 1 | 3 | |
Other items | 133 | 45 | |
Total income tax expense | $ 1,795 | $ 2,277 |
Income tax - Analysis (Details)
Income tax - Analysis (Details) - AUD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income tax expense comprises: | |||
Current income tax | $ 2,954 | $ 3,370 | $ 3,704 |
Movement in deferred tax | (981) | (401) | (81) |
Income tax (over)/under provided in prior years | 1 | (10) | 9 |
Total income tax expense | $ 1,974 | $ 2,959 | $ 3,632 |
Effective income tax rate (as a percent) | 46.27% | 30.35% | 30.96% |
Australia | |||
Income tax expense comprises: | |||
Total income tax expense | $ 1,697 | $ 2,526 | $ 3,178 |
Overseas | |||
Income tax expense comprises: | |||
Total income tax expense | 277 | 433 | $ 454 |
Parent Entity | |||
Income tax expense comprises: | |||
Current income tax | 2,417 | 2,711 | |
Movement in deferred tax | (623) | (437) | |
Income tax (over)/under provided in prior years | 1 | 3 | |
Total income tax expense | 1,795 | 2,277 | |
Parent Entity | Australia | |||
Income tax expense comprises: | |||
Total income tax expense | 1,753 | 2,215 | |
Parent Entity | Overseas | |||
Income tax expense comprises: | |||
Total income tax expense | $ 42 | $ 62 |
Income tax - Deferred tax asset
Income tax - Deferred tax assets (Details) - AUD ($) $ in Millions | Oct. 01, 2019 | Oct. 01, 2018 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 |
Deferred tax assets | |||||
Amounts recognised in the income statements and opening retained profits due to adoption of new accounting standards | $ 4,270 | $ 2,564 | |||
Amounts recognised directly in OCI | 180 | 167 | |||
Gross deferred tax assets | 4,450 | 2,731 | |||
Set-off of deferred tax assets and deferred tax liabilities | (1,386) | (683) | |||
Net deferred tax assets | 3,064 | 2,048 | $ 1,180 | ||
Provisions for ECL on loans and credit commitments | |||||
Deferred tax assets | |||||
Amounts recognised in the income statements and opening retained profits due to adoption of new accounting standards | 1,788 | 1,158 | |||
Provision for long service leave, annual leave and other employee benefits | |||||
Deferred tax assets | |||||
Amounts recognised in the income statements and opening retained profits due to adoption of new accounting standards | 335 | 309 | |||
Financial instruments | |||||
Deferred tax assets | |||||
Amounts recognised in the income statements and opening retained profits due to adoption of new accounting standards | 5 | ||||
Property and equipment | |||||
Deferred tax assets | |||||
Amounts recognised in the income statements and opening retained profits due to adoption of new accounting standards | 223 | 195 | |||
Other provisions | |||||
Deferred tax assets | |||||
Amounts recognised in the income statements and opening retained profits due to adoption of new accounting standards | 606 | 531 | |||
Other provisions | Previously reported | |||||
Deferred tax assets | |||||
Amounts recognised in the income statements and opening retained profits due to adoption of new accounting standards | 590 | ||||
Lease liabilities | |||||
Deferred tax assets | |||||
Amounts recognised in the income statements and opening retained profits due to adoption of new accounting standards | 899 | ||||
All other liabilities | |||||
Deferred tax assets | |||||
Amounts recognised in the income statements and opening retained profits due to adoption of new accounting standards | 419 | 366 | |||
Investment securities | |||||
Deferred tax assets | |||||
Amounts recognised directly in OCI | 10 | ||||
Cashflow hedges | |||||
Deferred tax assets | |||||
Amounts recognised directly in OCI | 25 | 52 | |||
Defined benefit | |||||
Deferred tax assets | |||||
Amounts recognised directly in OCI | 155 | 105 | |||
AASB 9 Financial Instruments | |||||
Deferred tax assets | |||||
Increase in deferred tax assets | $ 300 | ||||
AASB 9 Financial Instruments | Provisions for ECL on loans and credit commitments | |||||
Deferred tax assets | |||||
Increase in deferred tax assets | 297 | ||||
AASB 9 Financial Instruments | Financial instruments | |||||
Deferred tax assets | |||||
Increase in deferred tax assets | 3 | ||||
AASB 16 Leases | Lease liabilities | |||||
Deferred tax assets | |||||
Increase in deferred tax assets | $ 948 | ||||
Parent Entity | |||||
Deferred tax assets | |||||
Amounts recognised in the income statements and opening retained profits due to adoption of new accounting standards | 3,712 | 2,333 | |||
Amounts recognised directly in OCI | 149 | 140 | |||
Gross deferred tax assets | 3,861 | 2,473 | |||
Set-off of deferred tax assets and deferred tax liabilities | (1,364) | (548) | |||
Net deferred tax assets | 2,497 | 1,925 | $ 1,102 | ||
Parent Entity | Provisions for ECL on loans and credit commitments | |||||
Deferred tax assets | |||||
Amounts recognised in the income statements and opening retained profits due to adoption of new accounting standards | 1,507 | 1,003 | |||
Parent Entity | Provision for long service leave, annual leave and other employee benefits | |||||
Deferred tax assets | |||||
Amounts recognised in the income statements and opening retained profits due to adoption of new accounting standards | 308 | 286 | |||
Parent Entity | Financial instruments | |||||
Deferred tax assets | |||||
Amounts recognised in the income statements and opening retained profits due to adoption of new accounting standards | 2 | ||||
Parent Entity | Property and equipment | |||||
Deferred tax assets | |||||
Amounts recognised in the income statements and opening retained profits due to adoption of new accounting standards | 198 | 173 | |||
Parent Entity | Other provisions | |||||
Deferred tax assets | |||||
Amounts recognised in the income statements and opening retained profits due to adoption of new accounting standards | 570 | 511 | |||
Parent Entity | Other provisions | Previously reported | |||||
Deferred tax assets | |||||
Amounts recognised in the income statements and opening retained profits due to adoption of new accounting standards | 561 | ||||
Parent Entity | Lease liabilities | |||||
Deferred tax assets | |||||
Amounts recognised in the income statements and opening retained profits due to adoption of new accounting standards | 825 | ||||
Parent Entity | All other liabilities | |||||
Deferred tax assets | |||||
Amounts recognised in the income statements and opening retained profits due to adoption of new accounting standards | 304 | 358 | |||
Parent Entity | Investment securities | |||||
Deferred tax assets | |||||
Amounts recognised directly in OCI | 11 | ||||
Parent Entity | Cashflow hedges | |||||
Deferred tax assets | |||||
Amounts recognised directly in OCI | 28 | ||||
Parent Entity | Defined benefit | |||||
Deferred tax assets | |||||
Amounts recognised directly in OCI | $ 149 | $ 101 | |||
Parent Entity | AASB 9 Financial Instruments | |||||
Deferred tax assets | |||||
Increase in deferred tax assets | 258 | ||||
Parent Entity | AASB 9 Financial Instruments | Provisions for ECL on loans and credit commitments | |||||
Deferred tax assets | |||||
Increase in deferred tax assets | 258 | ||||
Parent Entity | AASB 9 Financial Instruments | Financial instruments | |||||
Deferred tax assets | |||||
Increase in deferred tax assets | $ 0 | ||||
Parent Entity | AASB 16 Leases | Lease liabilities | |||||
Deferred tax assets | |||||
Increase in deferred tax assets | $ 872 |
Income tax - Movements in defer
Income tax - Movements in deferred tax assets (Details) - AUD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Movements | ||
Balance as at beginning of year | $ 2,048 | $ 1,180 |
Impact on adoption of new accounting standards | 948 | 300 |
Restated opening balance | 2,996 | 1,480 |
Recognised in the income statements | 758 | 472 |
Recognised in other comprehensive income | 13 | 117 |
Set-off of deferred tax assets and deferred tax liabilities | (703) | (21) |
Balance as at beginning of year | 3,064 | 2,048 |
Parent Entity | ||
Movements | ||
Balance as at beginning of year | 1,925 | 1,102 |
Impact on adoption of new accounting standards | 872 | 258 |
Restated opening balance | 2,797 | 1,360 |
Recognised in the income statements | 507 | 476 |
Recognised in other comprehensive income | 9 | 109 |
Set-off of deferred tax assets and deferred tax liabilities | (816) | (20) |
Balance as at beginning of year | $ 2,497 | $ 1,925 |
Income tax - Deferred tax liabi
Income tax - Deferred tax liabilities (Details) - AUD ($) $ in Millions | Oct. 01, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 |
Deferred tax liabilities | ||||
Amounts recognised in the income statements and opening retained profits due to adoption of new accounting standards | $ 1,452 | $ 727 | ||
Amounts recognised directly in OCI | 60 | |||
Gross deferred tax liabilities | 1,512 | 727 | ||
Set-off of deferred tax assets and deferred tax liabilities | (1,386) | (683) | ||
Net deferred tax liabilities | 126 | 44 | $ 18 | |
Finance lease transactions | ||||
Deferred tax liabilities | ||||
Amounts recognised in the income statements and opening retained profits due to adoption of new accounting standards | 253 | 230 | ||
Property and equipment | ||||
Deferred tax liabilities | ||||
Amounts recognised in the income statements and opening retained profits due to adoption of new accounting standards | 933 | 128 | ||
Life insurance assets | ||||
Deferred tax liabilities | ||||
Amounts recognised in the income statements and opening retained profits due to adoption of new accounting standards | 43 | 57 | ||
All other assets | ||||
Deferred tax liabilities | ||||
Amounts recognised in the income statements and opening retained profits due to adoption of new accounting standards | 223 | 312 | ||
Investment securities | ||||
Deferred tax liabilities | ||||
Amounts recognised directly in OCI | 51 | |||
Cash-flow hedges | ||||
Deferred tax liabilities | ||||
Amounts recognised directly in OCI | 9 | |||
AASB 16 Leases | ||||
Deferred tax liabilities | ||||
Increase in deferred tax liabilities | $ 948 | |||
Parent Entity | ||||
Deferred tax liabilities | ||||
Amounts recognised in the income statements and opening retained profits due to adoption of new accounting standards | 1,304 | 548 | ||
Amounts recognised directly in OCI | 60 | |||
Gross deferred tax liabilities | 1,364 | 548 | ||
Set-off of deferred tax assets and deferred tax liabilities | (1,364) | (548) | ||
Net deferred tax liabilities | $ 3 | |||
Parent Entity | Finance lease transactions | ||||
Deferred tax liabilities | ||||
Amounts recognised in the income statements and opening retained profits due to adoption of new accounting standards | 232 | 206 | ||
Parent Entity | Property and equipment | ||||
Deferred tax liabilities | ||||
Amounts recognised in the income statements and opening retained profits due to adoption of new accounting standards | 864 | 129 | ||
Parent Entity | All other assets | ||||
Deferred tax liabilities | ||||
Amounts recognised in the income statements and opening retained profits due to adoption of new accounting standards | 208 | $ 213 | ||
Parent Entity | Investment securities | ||||
Deferred tax liabilities | ||||
Amounts recognised directly in OCI | 51 | |||
Parent Entity | Cash-flow hedges | ||||
Deferred tax liabilities | ||||
Amounts recognised directly in OCI | $ 9 | |||
Parent Entity | AASB 16 Leases | ||||
Deferred tax liabilities | ||||
Increase in deferred tax liabilities | $ 872 |
Income tax - Movements in def_2
Income tax - Movements in deferred tax liabilities (Details) - AUD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Movements | ||
Balance as at beginning of year | $ 44 | $ 18 |
Impact on adoption of new accounting standards | 948 | |
Restated opening balance | 992 | 18 |
Recognised in the income statements | (223) | 71 |
Recognised in OCI | 60 | (24) |
Set-off of deferred tax assets and deferred tax liabilities | (703) | (21) |
Balance as at end of year | 126 | 44 |
Parent Entity | ||
Movements | ||
Balance as at beginning of year | 3 | |
Impact on adoption of new accounting standards | 872 | |
Restated opening balance | 872 | 3 |
Recognised in the income statements | (116) | 39 |
Recognised in OCI | 60 | (22) |
Set-off of deferred tax assets and deferred tax liabilities | (816) | (20) |
Balance as at end of year |
Income tax - Unrecognised defer
Income tax - Unrecognised deferred tax balances (Details) - AUD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income tax | |||
Australian company tax rate (as a percent) | 30.00% | 30.00% | 30.00% |
Unrecognised deferred tax balances | |||
Unrecognised deferred tax asset: Tax losses on revenue account | $ 335 | $ 291 | |
Unrecognised deferred tax liability: Gross retained earnings of subsidiaries which the Parent Entity does not intend to distribute in the foreseeable future | 55 | 51 | |
Parent Entity | |||
Unrecognised deferred tax balances | |||
Unrecognised deferred tax asset: Tax losses on revenue account | $ 264 | $ 237 |
Earnings per share (Details)
Earnings per share (Details) - AUD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings per share | |||
Net profit attributable to shareholders | $ 2,290 | $ 6,784 | $ 8,095 |
Adjustment for RSP dividends - Basic | (2) | (6) | (5) |
Adjustment for RSP dividends - Diluted | (2) | (6) | |
Adjustment for potential dilution: Distributions to convertible loan capital holders | 290 | 283 | |
Adjusted net profit attributable to shareholders - Basic | 2,288 | 6,778 | 8,090 |
Adjusted net profit attributable to shareholders - Diluted | $ 2,288 | $ 7,068 | $ 8,378 |
Weighted average number of ordinary shares on issue | 3,595 | 3,456 | 3,414 |
Treasury shares (including RSP share rights) | (5) | (6) | (8) |
Adjustment for potential dilution: Share-based payments | 1 | 1 | 3 |
Adjustment for potential dilution: Convertible loan capital | 278 | 232 | |
Adjusted weighted average number of ordinary shares - Basic | 3,590 | 3,450 | 3,406 |
Adjusted weighted average number of ordinary shares - Diluted | 3,591 | 3,729 | 3,641 |
Earnings per ordinary share (cents) - Basic | $ 0.637 | $ 1.965 | $ 2.375 |
Earnings per ordinary share (cents) - Diluted | $ 0.637 | $ 1.895 | $ 2.301 |
Average balance sheet and int_3
Average balance sheet and interest rates - Assets (Details) - AUD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Average balance sheet and interest rates | |||
Average balance - Interest earning assets | $ 821,718 | $ 798,924 | $ 774,944 |
Interest income | $ 27,047 | $ 33,222 | $ 32,571 |
Average rate - Interest earning assets (as a percent) | 3.30% | 4.20% | 4.20% |
Average balance - Non-Interest earning assets | $ 98,362 | $ 95,800 | $ 98,366 |
Average balance - Total assets | 920,080 | 894,724 | 873,310 |
Collateral paid | Australia | |||
Average balance sheet and interest rates | |||
Average balance - Interest earning assets | 13,555 | 8,428 | 5,239 |
Interest income | $ 56 | $ 152 | $ 86 |
Average rate - Interest earning assets (as a percent) | 0.40% | 1.80% | 1.60% |
Collateral paid | New Zealand | |||
Average balance sheet and interest rates | |||
Average balance - Interest earning assets | $ 373 | $ 364 | $ 252 |
Interest income | $ 3 | $ 7 | $ 4 |
Average rate - Interest earning assets (as a percent) | 0.80% | 1.90% | 1.60% |
Collateral paid | Other overseas | |||
Average balance sheet and interest rates | |||
Average balance - Interest earning assets | $ 1,804 | $ 2,031 | $ 2,594 |
Interest income | $ 16 | $ 42 | $ 39 |
Average rate - Interest earning assets (as a percent) | 0.90% | 2.10% | 1.50% |
Trading securities and financial assets measured at FVIS | Australia | |||
Average balance sheet and interest rates | |||
Average balance - Interest earning assets | $ 20,300 | $ 20,691 | $ 17,420 |
Interest income | $ 217 | $ 468 | $ 423 |
Average rate - Interest earning assets (as a percent) | 1.10% | 2.30% | 2.40% |
Trading securities and financial assets measured at FVIS | New Zealand | |||
Average balance sheet and interest rates | |||
Average balance - Interest earning assets | $ 4,728 | $ 3,862 | $ 3,538 |
Interest income | $ 47 | $ 85 | $ 80 |
Average rate - Interest earning assets (as a percent) | 1.00% | 2.20% | 2.30% |
Trading securities and financial assets measured at FVIS | Other overseas | |||
Average balance sheet and interest rates | |||
Average balance - Interest earning assets | $ 4,601 | $ 4,521 | $ 3,160 |
Interest income | $ 95 | $ 109 | $ 61 |
Average rate - Interest earning assets (as a percent) | 2.10% | 2.40% | 1.90% |
Available-for-sale securities | Australia | |||
Average balance sheet and interest rates | |||
Average balance - Interest earning assets | $ 55,458 | ||
Interest income | $ 1,692 | ||
Average rate - Interest earning assets (as a percent) | 3.10% | ||
Available-for-sale securities | New Zealand | |||
Average balance sheet and interest rates | |||
Average balance - Interest earning assets | $ 3,304 | ||
Interest income | $ 136 | ||
Average rate - Interest earning assets (as a percent) | 4.10% | ||
Available-for-sale securities | Other overseas | |||
Average balance sheet and interest rates | |||
Average balance - Interest earning assets | $ 2,778 | ||
Interest income | $ 86 | ||
Average rate - Interest earning assets (as a percent) | 3.10% | ||
Investment securities | Australia | |||
Average balance sheet and interest rates | |||
Average balance - Interest earning assets | $ 71,402 | $ 56,875 | |
Interest income | $ 1,347 | $ 1,691 | |
Average rate - Interest earning assets (as a percent) | 1.90% | 3.00% | |
Investment securities | New Zealand | |||
Average balance sheet and interest rates | |||
Average balance - Interest earning assets | $ 3,921 | $ 3,850 | |
Interest income | $ 96 | $ 130 | |
Average rate - Interest earning assets (as a percent) | 2.40% | 3.40% | |
Investment securities | Other overseas | |||
Average balance sheet and interest rates | |||
Average balance - Interest earning assets | $ 2,858 | $ 3,062 | |
Interest income | $ 78 | $ 98 | |
Average rate - Interest earning assets (as a percent) | 2.70% | 3.20% | |
Loans and other receivables | Australia | |||
Average balance sheet and interest rates | |||
Average balance - Interest earning assets | $ 585,643 | $ 589,427 | $ 578,679 |
Interest income | $ 21,315 | $ 25,931 | $ 25,700 |
Average rate - Interest earning assets (as a percent) | 3.60% | 4.40% | 4.40% |
Loans and other receivables | New Zealand | |||
Average balance sheet and interest rates | |||
Average balance - Interest earning assets | $ 85,184 | $ 79,255 | $ 73,902 |
Interest income | $ 3,237 | $ 3,650 | $ 3,516 |
Average rate - Interest earning assets (as a percent) | 3.80% | 4.60% | 4.80% |
Loans and other receivables | Other overseas | |||
Average balance sheet and interest rates | |||
Average balance - Interest earning assets | $ 27,349 | $ 26,558 | $ 28,620 |
Interest income | $ 540 | $ 859 | $ 748 |
Average rate - Interest earning assets (as a percent) | 2.00% | 3.20% | 2.60% |
Derivative financial instruments | |||
Average balance sheet and interest rates | |||
Average balance - Non-Interest earning assets | $ 31,334 | $ 25,959 | $ 26,443 |
Life insurance assets | |||
Average balance sheet and interest rates | |||
Average balance - Non-Interest earning assets | 4,614 | 9,610 | 10,664 |
All other assets | |||
Average balance sheet and interest rates | |||
Average balance - Non-Interest earning assets | $ 62,414 | $ 60,231 | $ 61,259 |
Average balance sheet and int_4
Average balance sheet and interest rates - Liabilities and Equity (Details) - AUD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Average balance sheet and interest rates | |||
Average balance - Interest bearing liabilities | $ 745,641 | $ 734,282 | $ 715,509 |
Interest Expense | $ 10,351 | $ 16,315 | $ 16,066 |
Average rate - Interest bearing liabilities (as a percent) | 1.40% | 2.20% | 2.20% |
Average balance - Non-interest bearing liabilities | $ 106,373 | $ 96,678 | $ 95,753 |
Average balance - Total liabilities | 852,014 | 830,960 | 811,262 |
Average balance - Shareholders' equity | 68,014 | 63,714 | 62,017 |
Average balance - NCI | 52 | 50 | 31 |
Average balance - Total equity | 68,066 | 63,764 | 62,048 |
Average balance - Total liabilities and equity | 920,080 | 894,724 | 873,310 |
Collateral received | Australia | |||
Average balance sheet and interest rates | |||
Average balance - Interest bearing liabilities | 2,586 | 2,039 | 2,383 |
Interest Expense | $ 11 | $ 41 | $ 37 |
Average rate - Interest bearing liabilities (as a percent) | 0.40% | 2.00% | 1.60% |
Collateral received | New Zealand | |||
Average balance sheet and interest rates | |||
Average balance - Interest bearing liabilities | $ 596 | $ 390 | $ 342 |
Interest Expense | $ 3 | $ 8 | $ 6 |
Average rate - Interest bearing liabilities (as a percent) | 0.50% | 2.10% | 1.80% |
Collateral received | Other overseas | |||
Average balance sheet and interest rates | |||
Average balance - Interest bearing liabilities | $ 4,399 | $ 1,188 | $ 184 |
Interest Expense | $ 12 | $ 8 | $ 2 |
Average rate - Interest bearing liabilities (as a percent) | 0.30% | 0.70% | 1.10% |
Deposits and other borrowings | Australia | |||
Average balance sheet and interest rates | |||
Average balance - Interest bearing liabilities | $ 435,877 | $ 425,799 | $ 422,006 |
Interest Expense | $ 3,745 | $ 7,023 | $ 7,308 |
Average rate - Interest bearing liabilities (as a percent) | 0.90% | 1.60% | 1.70% |
Average balance - Non-interest bearing liabilities | $ 45,231 | $ 42,455 | $ 41,156 |
Deposits and other borrowings | New Zealand | |||
Average balance sheet and interest rates | |||
Average balance - Interest bearing liabilities | 57,096 | 54,720 | 51,368 |
Interest Expense | $ 882 | $ 1,235 | $ 1,196 |
Average rate - Interest bearing liabilities (as a percent) | 1.50% | 2.30% | 2.30% |
Average balance - Non-interest bearing liabilities | $ 8,760 | $ 5,996 | $ 5,204 |
Deposits and other borrowings | Other overseas | |||
Average balance sheet and interest rates | |||
Average balance - Interest bearing liabilities | 25,660 | 26,270 | 26,599 |
Interest Expense | $ 427 | $ 687 | $ 517 |
Average rate - Interest bearing liabilities (as a percent) | 1.70% | 2.60% | 1.90% |
Average balance - Non-interest bearing liabilities | $ 901 | $ 819 | $ 817 |
Loan capital | Australia | |||
Average balance sheet and interest rates | |||
Average balance - Interest bearing liabilities | 19,554 | 15,080 | 15,028 |
Interest Expense | $ 663 | $ 632 | $ 635 |
Average rate - Interest bearing liabilities (as a percent) | 3.40% | 4.20% | 4.20% |
Loan capital | New Zealand | |||
Average balance sheet and interest rates | |||
Average balance - Interest bearing liabilities | $ 1,833 | $ 1,777 | $ 1,645 |
Interest Expense | $ 94 | $ 91 | $ 84 |
Average rate - Interest bearing liabilities (as a percent) | 5.10% | 5.10% | 5.10% |
Loan capital | Other overseas | |||
Average balance sheet and interest rates | |||
Average balance - Interest bearing liabilities | $ 1,324 | $ 1,324 | $ 1,324 |
Interest Expense | $ 43 | $ 53 | $ 55 |
Average rate - Interest bearing liabilities (as a percent) | 3.20% | 4.00% | 4.20% |
Other interest bearing liabilities | Australia | |||
Average balance sheet and interest rates | |||
Average balance - Interest bearing liabilities | $ 176,950 | $ 188,736 | $ 177,746 |
Interest Expense | $ 3,849 | $ 5,937 | $ 5,594 |
Average rate - Interest bearing liabilities (as a percent) | 2.20% | 3.10% | 3.10% |
Other interest bearing liabilities | New Zealand | |||
Average balance sheet and interest rates | |||
Average balance - Interest bearing liabilities | $ 18,510 | $ 15,665 | $ 15,011 |
Interest Expense | $ 558 | $ 575 | $ 591 |
Average rate - Interest bearing liabilities (as a percent) | 3.00% | 3.70% | 3.90% |
Other interest bearing liabilities | Other overseas | |||
Average balance sheet and interest rates | |||
Average balance - Interest bearing liabilities | $ 1,256 | $ 1,294 | $ 1,873 |
Interest Expense | $ 64 | $ 25 | $ 41 |
Average rate - Interest bearing liabilities (as a percent) | 5.10% | 1.90% | 2.20% |
Derivative financial instruments | |||
Average balance sheet and interest rates | |||
Average balance - Non-interest bearing liabilities | $ 33,249 | $ 26,568 | $ 26,218 |
Life insurance liabilities | |||
Average balance sheet and interest rates | |||
Average balance - Non-interest bearing liabilities | 2,999 | 7,653 | 8,874 |
All other liabilities | |||
Average balance sheet and interest rates | |||
Average balance - Non-interest bearing liabilities | $ 15,233 | $ 13,187 | $ 13,484 |
Average balance sheet and int_5
Average balance sheet and interest rates - Variances (Details) - AUD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Average balance sheet and interest rates | ||
Interest income - Change Due to Volume | $ 661 | $ 910 |
Interest income - Change Due to Rate | (6,836) | (259) |
Total change in interest income | (6,175) | 651 |
Interest expense - Change Due to Volume | 165 | 513 |
Interest expense - Change Due to Rate | (6,129) | (264) |
Total change in interest expense | (5,964) | 249 |
Net interest income - Change Due to Volume | 496 | 397 |
Net interest income - Change Due to Rate | (707) | 5 |
Total change in net interest income | (211) | 402 |
Australia | ||
Average balance sheet and interest rates | ||
Net interest income - Change Due to Volume | 356 | 242 |
Net interest income - Change Due to Rate | (298) | 40 |
Total change in net interest income | 58 | 282 |
New Zealand | ||
Average balance sheet and interest rates | ||
Net interest income - Change Due to Volume | 129 | 174 |
Net interest income - Change Due to Rate | (246) | (70) |
Total change in net interest income | (117) | 104 |
Other overseas | ||
Average balance sheet and interest rates | ||
Net interest income - Change Due to Volume | 11 | (19) |
Net interest income - Change Due to Rate | (163) | 35 |
Total change in net interest income | (152) | 16 |
Collateral received | Australia | ||
Average balance sheet and interest rates | ||
Interest expense - Change Due to Volume | 11 | (5) |
Interest expense - Change Due to Rate | (41) | 9 |
Total change in interest expense | (30) | 4 |
Collateral received | New Zealand | ||
Average balance sheet and interest rates | ||
Interest expense - Change Due to Volume | 4 | 1 |
Interest expense - Change Due to Rate | (9) | 1 |
Total change in interest expense | (5) | 2 |
Collateral received | Other overseas | ||
Average balance sheet and interest rates | ||
Interest expense - Change Due to Volume | 22 | 11 |
Interest expense - Change Due to Rate | (18) | (5) |
Total change in interest expense | 4 | 6 |
Deposits and other borrowings | Australia | ||
Average balance sheet and interest rates | ||
Interest expense - Change Due to Volume | 167 | 66 |
Interest expense - Change Due to Rate | (3,445) | (351) |
Total change in interest expense | (3,278) | (285) |
Deposits and other borrowings | New Zealand | ||
Average balance sheet and interest rates | ||
Interest expense - Change Due to Volume | 54 | 78 |
Interest expense - Change Due to Rate | (407) | (39) |
Total change in interest expense | (353) | 39 |
Deposits and other borrowings | Other overseas | ||
Average balance sheet and interest rates | ||
Interest expense - Change Due to Volume | (16) | (6) |
Interest expense - Change Due to Rate | (244) | 176 |
Total change in interest expense | (260) | 170 |
Loan capital | Australia | ||
Average balance sheet and interest rates | ||
Interest expense - Change Due to Volume | 188 | 2 |
Interest expense - Change Due to Rate | (157) | (5) |
Total change in interest expense | 31 | (3) |
Loan capital | New Zealand | ||
Average balance sheet and interest rates | ||
Interest expense - Change Due to Volume | 3 | 7 |
Total change in interest expense | 3 | 7 |
Loan capital | Other overseas | ||
Average balance sheet and interest rates | ||
Interest expense - Change Due to Rate | (10) | (2) |
Total change in interest expense | (10) | (2) |
Other interest bearing liabilities | Australia | ||
Average balance sheet and interest rates | ||
Interest expense - Change Due to Volume | (372) | 346 |
Interest expense - Change Due to Rate | (1,716) | (3) |
Total change in interest expense | (2,088) | 343 |
Other interest bearing liabilities | New Zealand | ||
Average balance sheet and interest rates | ||
Interest expense - Change Due to Volume | 105 | 26 |
Interest expense - Change Due to Rate | (122) | (42) |
Total change in interest expense | (17) | (16) |
Other interest bearing liabilities | Other overseas | ||
Average balance sheet and interest rates | ||
Interest expense - Change Due to Volume | (1) | (13) |
Interest expense - Change Due to Rate | 40 | (3) |
Total change in interest expense | 39 | (16) |
Collateral paid | Australia | ||
Average balance sheet and interest rates | ||
Interest income - Change Due to Volume | 93 | 52 |
Interest income - Change Due to Rate | (189) | 14 |
Total change in interest income | (96) | 66 |
Collateral paid | New Zealand | ||
Average balance sheet and interest rates | ||
Interest income - Change Due to Volume | 2 | |
Interest income - Change Due to Rate | (4) | 1 |
Total change in interest income | (4) | 3 |
Collateral paid | Other overseas | ||
Average balance sheet and interest rates | ||
Interest income - Change Due to Volume | (5) | (8) |
Interest income - Change Due to Rate | (21) | 11 |
Total change in interest income | (26) | 3 |
Trading securities and financial assets measured at FVIS | Australia | ||
Average balance sheet and interest rates | ||
Interest income - Change Due to Volume | (9) | 79 |
Interest income - Change Due to Rate | (242) | (34) |
Total change in interest income | (251) | 45 |
Trading securities and financial assets measured at FVIS | New Zealand | ||
Average balance sheet and interest rates | ||
Interest income - Change Due to Volume | 19 | 7 |
Interest income - Change Due to Rate | (57) | (2) |
Total change in interest income | (38) | 5 |
Trading securities and financial assets measured at FVIS | Other overseas | ||
Average balance sheet and interest rates | ||
Interest income - Change Due to Volume | 2 | 26 |
Interest income - Change Due to Rate | (16) | 22 |
Total change in interest income | (14) | 48 |
Investment securities | Australia | ||
Average balance sheet and interest rates | ||
Interest income - Change Due to Volume | 433 | 43 |
Interest income - Change Due to Rate | (777) | (44) |
Total change in interest income | (344) | (1) |
Investment securities | New Zealand | ||
Average balance sheet and interest rates | ||
Interest income - Change Due to Volume | 2 | 22 |
Interest income - Change Due to Rate | (36) | (28) |
Total change in interest income | (34) | (6) |
Investment securities | Other overseas | ||
Average balance sheet and interest rates | ||
Interest income - Change Due to Volume | (7) | 9 |
Interest income - Change Due to Rate | (13) | 3 |
Total change in interest income | (20) | 12 |
Loans and other receivables | Australia | ||
Average balance sheet and interest rates | ||
Interest income - Change Due to Volume | (167) | 477 |
Interest income - Change Due to Rate | (4,449) | (246) |
Total change in interest income | (4,616) | 231 |
Loans and other receivables | New Zealand | ||
Average balance sheet and interest rates | ||
Interest income - Change Due to Volume | 274 | 255 |
Interest income - Change Due to Rate | (687) | (121) |
Total change in interest income | (413) | 134 |
Loans and other receivables | Other overseas | ||
Average balance sheet and interest rates | ||
Interest income - Change Due to Volume | 26 | (54) |
Interest income - Change Due to Rate | (345) | 165 |
Total change in interest income | $ (319) | $ 111 |
Trading securities and financ_3
Trading securities and financial assets measured at FVIS (Details) - AUD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 |
Trading securities and financial assets measured at FVIS | |||
Trading securities | $ 17,776 | $ 22,210 | $ 18,777 |
Reverse repurchase agreements | 20,401 | 6,833 | 1,379 |
Other financial assets measured at FVIS | 2,490 | 2,738 | 2,976 |
Total trading securities and financial assets measured at FVIS | 40,667 | 31,781 | 23,132 |
Government and semi-government debt securities | |||
Trading securities and financial assets measured at FVIS | |||
Trading securities | 14,667 | 16,625 | 13,328 |
Other debt securities | |||
Trading securities and financial assets measured at FVIS | |||
Trading securities | 3,044 | 5,497 | 5,354 |
Other financial assets measured at FVIS | 2,045 | 2,394 | 2,715 |
Equity securities | |||
Trading securities and financial assets measured at FVIS | |||
Trading securities | 4 | 6 | 8 |
Other financial assets measured at FVIS | 445 | 344 | 261 |
Other | |||
Trading securities and financial assets measured at FVIS | |||
Trading securities | 61 | 82 | $ 87 |
Parent Entity | |||
Trading securities and financial assets measured at FVIS | |||
Trading securities | 15,519 | 20,719 | |
Reverse repurchase agreements | 20,401 | 6,731 | |
Other financial assets measured at FVIS | 2,110 | 2,115 | |
Total trading securities and financial assets measured at FVIS | 38,030 | 29,565 | |
Parent Entity | Government and semi-government debt securities | |||
Trading securities and financial assets measured at FVIS | |||
Trading securities | 12,542 | 15,585 | |
Parent Entity | Other debt securities | |||
Trading securities and financial assets measured at FVIS | |||
Trading securities | 2,913 | 5,046 | |
Other financial assets measured at FVIS | 1,703 | 2,057 | |
Parent Entity | Equity securities | |||
Trading securities and financial assets measured at FVIS | |||
Trading securities | 3 | 6 | |
Other financial assets measured at FVIS | 407 | 58 | |
Parent Entity | Other | |||
Trading securities and financial assets measured at FVIS | |||
Trading securities | $ 61 | $ 82 |
Available-for-sale securities_3
Available-for-sale securities/Investment securities - Balances recognised under AASB 9 (Details) - AUD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 |
Available-for-sale securities/Investment securities | ||
Investment securities | $ 91,539 | $ 73,401 |
AASB 9 Financial Instruments | ||
Available-for-sale securities/Investment securities | ||
Investment securities | 91,539 | 73,401 |
AASB 9 Financial Instruments | FVOCI | ||
Available-for-sale securities/Investment securities | ||
Investment securities | 90,555 | 72,581 |
AASB 9 Financial Instruments | Amortised cost | ||
Available-for-sale securities/Investment securities | ||
Investment securities | 984 | 820 |
AASB 9 Financial Instruments | Amortised cost | Gross amount | ||
Available-for-sale securities/Investment securities | ||
Investment securities | 1,011 | 829 |
AASB 9 Financial Instruments | Amortised cost | Provision | Provision for ECL on debt securities at amortised cost | ||
Available-for-sale securities/Investment securities | ||
Investment securities | (27) | (9) |
AASB 9 Financial Instruments | Government and semi-government debt securities | ||
Available-for-sale securities/Investment securities | ||
Investment securities | 74,340 | |
AASB 9 Financial Instruments | Government and semi-government debt securities | FVOCI | ||
Available-for-sale securities/Investment securities | ||
Investment securities | 73,486 | 53,389 |
AASB 9 Financial Instruments | Government and semi-government debt securities | Amortised cost | Gross amount | ||
Available-for-sale securities/Investment securities | ||
Investment securities | 881 | 736 |
AASB 9 Financial Instruments | Other debt securities | ||
Available-for-sale securities/Investment securities | ||
Investment securities | 17,046 | |
AASB 9 Financial Instruments | Other debt securities | FVOCI | ||
Available-for-sale securities/Investment securities | ||
Investment securities | 16,916 | 19,058 |
AASB 9 Financial Instruments | Other debt securities | Amortised cost | Gross amount | ||
Available-for-sale securities/Investment securities | ||
Investment securities | 130 | 93 |
AASB 9 Financial Instruments | Equity securities | ||
Available-for-sale securities/Investment securities | ||
Investment securities | 153 | |
AASB 9 Financial Instruments | Equity securities | FVOCI | ||
Available-for-sale securities/Investment securities | ||
Investment securities | 153 | 134 |
Parent Entity | ||
Available-for-sale securities/Investment securities | ||
Investment securities | 85,826 | 68,398 |
Parent Entity | AASB 9 Financial Instruments | ||
Available-for-sale securities/Investment securities | ||
Investment securities | 85,826 | 68,398 |
Parent Entity | AASB 9 Financial Instruments | FVOCI | ||
Available-for-sale securities/Investment securities | ||
Investment securities | 85,823 | 68,371 |
Parent Entity | AASB 9 Financial Instruments | Amortised cost | ||
Available-for-sale securities/Investment securities | ||
Investment securities | 3 | 27 |
Parent Entity | AASB 9 Financial Instruments | Amortised cost | Gross amount | ||
Available-for-sale securities/Investment securities | ||
Investment securities | 3 | 27 |
Parent Entity | AASB 9 Financial Instruments | Government and semi-government debt securities | FVOCI | ||
Available-for-sale securities/Investment securities | ||
Investment securities | 69,929 | 50,980 |
Parent Entity | AASB 9 Financial Instruments | Government and semi-government debt securities | Amortised cost | Gross amount | ||
Available-for-sale securities/Investment securities | ||
Investment securities | 23 | |
Parent Entity | AASB 9 Financial Instruments | Other debt securities | FVOCI | ||
Available-for-sale securities/Investment securities | ||
Investment securities | 15,826 | 17,325 |
Parent Entity | AASB 9 Financial Instruments | Other debt securities | Amortised cost | Gross amount | ||
Available-for-sale securities/Investment securities | ||
Investment securities | 3 | 4 |
Parent Entity | AASB 9 Financial Instruments | Equity securities | FVOCI | ||
Available-for-sale securities/Investment securities | ||
Investment securities | $ 68 | $ 66 |
Available-for-sale securities_4
Available-for-sale securities/Investment securities - Maturities (Details) - AUD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 |
Available-for-sale securities/Investment securities | |||
Investment securities | $ 91,539 | $ 73,401 | |
Tax-exempt securities | 0 | ||
US Government treasury notes | |||
Available-for-sale securities/Investment securities | |||
Investment securities | 7,271 | 10,398 | $ 5,229 |
Queensland Treasury Corporation | |||
Available-for-sale securities/Investment securities | |||
Debt securities with aggregate book value exceeding 10% of equity attributable to Westpac's owners | 14,033 | ||
Australian Commonwealth Government | |||
Available-for-sale securities/Investment securities | |||
Debt securities with aggregate book value exceeding 10% of equity attributable to Westpac's owners | 15,714 | ||
New South Wales Treasury Corporation | |||
Available-for-sale securities/Investment securities | |||
Debt securities with aggregate book value exceeding 10% of equity attributable to Westpac's owners | 13,385 | ||
Treasury Corporation of Victoria | |||
Available-for-sale securities/Investment securities | |||
Debt securities with aggregate book value exceeding 10% of equity attributable to Westpac's owners | 10,593 | ||
AASB 9 Financial Instruments | |||
Available-for-sale securities/Investment securities | |||
Investment securities | 91,539 | 73,401 | |
AASB 9 Financial Instruments | Within 1 Year | |||
Available-for-sale securities/Investment securities | |||
Investment securities | 6,727 | ||
AASB 9 Financial Instruments | Over 1 Year to 5 Years | |||
Available-for-sale securities/Investment securities | |||
Investment securities | 45,837 | ||
AASB 9 Financial Instruments | Over 5 Years to 10 Years | |||
Available-for-sale securities/Investment securities | |||
Investment securities | 38,565 | ||
AASB 9 Financial Instruments | Over 10 Years | |||
Available-for-sale securities/Investment securities | |||
Investment securities | 257 | ||
AASB 9 Financial Instruments | No Specific Maturity | |||
Available-for-sale securities/Investment securities | |||
Investment securities | 153 | ||
AASB 9 Financial Instruments | Government and semi-government debt securities | |||
Available-for-sale securities/Investment securities | |||
Investment securities | $ 74,340 | ||
Weighted average yield | 2.00% | ||
AASB 9 Financial Instruments | Government and semi-government debt securities | Within 1 Year | |||
Available-for-sale securities/Investment securities | |||
Investment securities | $ 2,670 | ||
Weighted average yield | 2.70% | ||
AASB 9 Financial Instruments | Government and semi-government debt securities | Over 1 Year to 5 Years | |||
Available-for-sale securities/Investment securities | |||
Investment securities | $ 32,848 | ||
Weighted average yield | 2.10% | ||
AASB 9 Financial Instruments | Government and semi-government debt securities | Over 5 Years to 10 Years | |||
Available-for-sale securities/Investment securities | |||
Investment securities | $ 38,565 | ||
Weighted average yield | 1.80% | ||
AASB 9 Financial Instruments | Government and semi-government debt securities | Over 10 Years | |||
Available-for-sale securities/Investment securities | |||
Investment securities | $ 257 | ||
Weighted average yield | 1.40% | ||
AASB 9 Financial Instruments | Other debt securities | |||
Available-for-sale securities/Investment securities | |||
Investment securities | $ 17,046 | ||
Weighted average yield | 1.60% | ||
AASB 9 Financial Instruments | Other debt securities | Within 1 Year | |||
Available-for-sale securities/Investment securities | |||
Investment securities | $ 4,057 | ||
Weighted average yield | 1.70% | ||
AASB 9 Financial Instruments | Other debt securities | Over 1 Year to 5 Years | |||
Available-for-sale securities/Investment securities | |||
Investment securities | $ 12,989 | ||
Weighted average yield | 1.60% | ||
AASB 9 Financial Instruments | Equity securities | |||
Available-for-sale securities/Investment securities | |||
Investment securities | $ 153 | ||
AASB 9 Financial Instruments | Equity securities | No Specific Maturity | |||
Available-for-sale securities/Investment securities | |||
Investment securities | 153 | ||
Parent Entity | |||
Available-for-sale securities/Investment securities | |||
Investment securities | 85,826 | 68,398 | |
Parent Entity | AASB 9 Financial Instruments | |||
Available-for-sale securities/Investment securities | |||
Investment securities | $ 85,826 | $ 68,398 |
Available-for-sale securities_5
Available-for-sale securities/Investment securities - Balances recognised under AASB 139 (Details) - AASB 139 Financial Instruments $ in Millions | Sep. 30, 2018AUD ($) |
Available-for-sale securities/Investment securities | |
Available-for-sale securities | $ 61,119 |
Government and semi-government debt securities | |
Available-for-sale securities/Investment securities | |
Available-for-sale securities | 42,979 |
Other debt securities | |
Available-for-sale securities/Investment securities | |
Available-for-sale securities | 17,756 |
Equity securities | |
Available-for-sale securities/Investment securities | |
Available-for-sale securities | $ 384 |
Loans - Loan portfolio (Details
Loans - Loan portfolio (Details) - AUD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 |
Loan portfolio, disaggregated by location of booking office and product type | |||||
Loans | $ 693,059 | $ 714,770 | $ 709,690 | $ 684,919 | $ 661,926 |
Securitised loans | 7,367 | 7,737 | |||
Gross amount | |||||
Loan portfolio, disaggregated by location of booking office and product type | |||||
Loans | 698,661 | 718,378 | 712,504 | 687,785 | 665,256 |
Provision | Provision for ECL on loans | |||||
Loan portfolio, disaggregated by location of booking office and product type | |||||
Loans | (5,602) | (3,608) | |||
Australia | Gross amount | |||||
Loan portfolio, disaggregated by location of booking office and product type | |||||
Loans | 605,598 | 622,808 | 622,085 | 601,646 | 579,244 |
Australia | Housing | Gross amount | |||||
Loan portfolio, disaggregated by location of booking office and product type | |||||
Loans | 440,933 | 449,201 | |||
Australia | Personal | Gross amount | |||||
Loan portfolio, disaggregated by location of booking office and product type | |||||
Loans | 17,081 | 21,247 | |||
Australia | Business | Gross amount | |||||
Loan portfolio, disaggregated by location of booking office and product type | |||||
Loans | 147,584 | 152,360 | |||
New Zealand | Gross amount | |||||
Loan portfolio, disaggregated by location of booking office and product type | |||||
Loans | 82,350 | 78,725 | 74,342 | 71,806 | 72,495 |
New Zealand | Housing | Gross amount | |||||
Loan portfolio, disaggregated by location of booking office and product type | |||||
Loans | 51,126 | 47,731 | |||
New Zealand | Personal | Gross amount | |||||
Loan portfolio, disaggregated by location of booking office and product type | |||||
Loans | 1,360 | 1,709 | |||
New Zealand | Business | Gross amount | |||||
Loan portfolio, disaggregated by location of booking office and product type | |||||
Loans | 29,864 | 29,285 | |||
Other overseas | Gross amount | |||||
Loan portfolio, disaggregated by location of booking office and product type | |||||
Loans | 10,713 | 16,845 | $ 16,077 | $ 14,333 | $ 13,517 |
Parent Entity | |||||
Loan portfolio, disaggregated by location of booking office and product type | |||||
Loans | 607,824 | 631,936 | |||
Securitised loans | 132,506 | 91,061 | |||
Parent Entity | Gross amount | |||||
Loan portfolio, disaggregated by location of booking office and product type | |||||
Loans | 612,517 | 635,039 | |||
Parent Entity | Provision | Provision for ECL on loans | |||||
Loan portfolio, disaggregated by location of booking office and product type | |||||
Loans | (4,693) | (3,103) | |||
Parent Entity | Australia | Gross amount | |||||
Loan portfolio, disaggregated by location of booking office and product type | |||||
Loans | 602,218 | 618,890 | |||
Parent Entity | Australia | Housing | Gross amount | |||||
Loan portfolio, disaggregated by location of booking office and product type | |||||
Loans | 440,926 | 449,192 | |||
Parent Entity | Australia | Personal | Gross amount | |||||
Loan portfolio, disaggregated by location of booking office and product type | |||||
Loans | 16,938 | 20,848 | |||
Parent Entity | Australia | Business | Gross amount | |||||
Loan portfolio, disaggregated by location of booking office and product type | |||||
Loans | 144,354 | 148,850 | |||
Parent Entity | New Zealand | Gross amount | |||||
Loan portfolio, disaggregated by location of booking office and product type | |||||
Loans | 354 | 411 | |||
Parent Entity | New Zealand | Business | Gross amount | |||||
Loan portfolio, disaggregated by location of booking office and product type | |||||
Loans | 354 | 411 | |||
Parent Entity | Other overseas | Gross amount | |||||
Loan portfolio, disaggregated by location of booking office and product type | |||||
Loans | $ 9,945 | $ 15,738 |
Loans - Industry classification
Loans - Industry classification (Details) - AUD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 |
Loans presented based on their industry classification | |||||
Loans | $ 693,059 | $ 714,770 | $ 709,690 | $ 684,919 | $ 661,926 |
Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 698,661 | 718,378 | 712,504 | 687,785 | 665,256 |
Provision | Provision for ECL on loans | |||||
Loans presented based on their industry classification | |||||
Loans | (5,602) | (3,608) | |||
Provision | Provision for impairment charges on loans | |||||
Loans presented based on their industry classification | |||||
Loans | (2,814) | (2,866) | (3,330) | ||
Australia | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 605,598 | 622,808 | 622,085 | 601,646 | 579,244 |
Australia | Accommodation, cafes and restaurants | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 7,933 | 8,039 | 8,297 | 8,177 | 7,536 |
Australia | Agriculture, forestry and fishing | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 10,116 | 9,210 | 8,642 | 8,182 | 7,953 |
Australia | Construction | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 6,711 | 7,186 | 6,751 | 6,043 | 5,797 |
Australia | Finance and insurance | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 13,348 | 14,069 | 14,059 | 12,923 | 14,298 |
Australia | Government, administration and defence | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 730 | 753 | 628 | 554 | 675 |
Australia | Manufacturing | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 8,493 | 9,337 | 9,298 | 9,054 | 9,140 |
Australia | Mining | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 2,975 | 2,869 | 3,311 | 3,025 | 3,641 |
Australia | Property | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 44,468 | 44,769 | 45,471 | 43,220 | 44,785 |
Australia | Property services and business services | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 12,562 | 14,035 | 13,477 | 12,050 | 11,674 |
Australia | Services | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 11,675 | 12,099 | 12,158 | 12,950 | 12,362 |
Australia | Trade | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 13,268 | 16,144 | 16,501 | 16,063 | 16,044 |
Australia | Transport and storage | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 8,218 | 8,268 | 8,853 | 8,624 | 9,015 |
Australia | Utilities | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 4,962 | 4,077 | 4,350 | 5,237 | 4,025 |
Australia | Retail lending | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 454,433 | 466,550 | 463,609 | 451,315 | 429,522 |
Australia | Other | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 5,706 | 5,403 | 6,680 | 4,229 | 2,777 |
New Zealand | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 82,350 | 78,725 | 74,342 | 71,806 | 72,495 |
New Zealand | Accommodation, cafes and restaurants | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 388 | 355 | 323 | 290 | 256 |
New Zealand | Agriculture, forestry and fishing | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 9,101 | 8,553 | 8,138 | 7,772 | 7,788 |
New Zealand | Construction | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 509 | 493 | 502 | 447 | 396 |
New Zealand | Finance and insurance | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 3,427 | 3,009 | 2,903 | 2,478 | 2,682 |
New Zealand | Government, administration and defence | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 94 | 85 | 114 | 137 | 163 |
New Zealand | Manufacturing | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 1,689 | 1,913 | 2,199 | 2,090 | 2,324 |
New Zealand | Mining | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 203 | 278 | 206 | 141 | 280 |
New Zealand | Property | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 6,667 | 6,412 | 5,997 | 5,858 | 5,925 |
New Zealand | Property services and business services | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 951 | 1,182 | 1,073 | 1,113 | 1,084 |
New Zealand | Services | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 2,119 | 1,973 | 1,733 | 1,810 | 1,396 |
New Zealand | Trade | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 1,949 | 2,344 | 2,509 | 2,163 | 2,333 |
New Zealand | Transport and storage | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 1,176 | 1,131 | 1,029 | 1,080 | 1,257 |
New Zealand | Utilities | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 1,303 | 1,429 | 1,003 | 1,237 | 1,600 |
New Zealand | Retail lending | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 52,584 | 49,473 | 46,613 | 45,190 | 45,011 |
New Zealand | Other | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 190 | 95 | |||
Other overseas | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 10,713 | 16,845 | 16,077 | 14,333 | 13,517 |
Other overseas | Accommodation, cafes and restaurants | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 118 | 109 | 112 | 97 | 118 |
Other overseas | Agriculture, forestry and fishing | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 124 | 150 | 19 | 5 | 12 |
Other overseas | Construction | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 51 | 55 | 71 | 55 | 147 |
Other overseas | Finance and insurance | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 2,298 | 4,628 | 4,774 | 4,289 | 2,767 |
Other overseas | Government, administration and defence | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 20 | 2 | 25 | 4 | 4 |
Other overseas | Manufacturing | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 1,877 | 3,784 | 3,257 | 2,982 | 2,619 |
Other overseas | Mining | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 336 | 468 | 322 | 349 | 535 |
Other overseas | Property | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 416 | 492 | 467 | 491 | 479 |
Other overseas | Property services and business services | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 1,545 | 1,610 | 1,684 | 540 | 526 |
Other overseas | Services | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 218 | 243 | 205 | 205 | 99 |
Other overseas | Trade | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 1,553 | 2,293 | 2,312 | 2,680 | 3,463 |
Other overseas | Transport and storage | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 732 | 997 | 1,232 | 1,389 | 1,186 |
Other overseas | Utilities | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 950 | 1,086 | 736 | 514 | 442 |
Other overseas | Retail lending | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 457 | 863 | 683 | 657 | $ 1,120 |
Other overseas | Other | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 18 | 65 | $ 178 | $ 76 | |
Parent Entity | |||||
Loans presented based on their industry classification | |||||
Loans | 607,824 | 631,936 | |||
Parent Entity | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 612,517 | 635,039 | |||
Parent Entity | Provision | Provision for ECL on loans | |||||
Loans presented based on their industry classification | |||||
Loans | (4,693) | (3,103) | |||
Parent Entity | Australia | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 602,218 | 618,890 | |||
Parent Entity | Australia | Accommodation, cafes and restaurants | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 7,857 | 7,967 | |||
Parent Entity | Australia | Agriculture, forestry and fishing | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 10,058 | 9,151 | |||
Parent Entity | Australia | Construction | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 6,199 | 6,810 | |||
Parent Entity | Australia | Finance and insurance | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 13,290 | 14,005 | |||
Parent Entity | Australia | Government, administration and defence | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 709 | 746 | |||
Parent Entity | Australia | Manufacturing | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 8,282 | 9,155 | |||
Parent Entity | Australia | Mining | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 2,955 | 2,849 | |||
Parent Entity | Australia | Property | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 44,468 | 44,707 | |||
Parent Entity | Australia | Property services and business services | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 11,843 | 13,192 | |||
Parent Entity | Australia | Services | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 11,334 | 11,853 | |||
Parent Entity | Australia | Trade | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 13,058 | 15,961 | |||
Parent Entity | Australia | Transport and storage | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 7,870 | 7,961 | |||
Parent Entity | Australia | Utilities | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 4,938 | 4,053 | |||
Parent Entity | Australia | Retail lending | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 454,259 | 465,535 | |||
Parent Entity | Australia | Other | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 5,098 | 4,945 | |||
Parent Entity | New Zealand | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 354 | 411 | |||
Parent Entity | New Zealand | Agriculture, forestry and fishing | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 4 | 5 | |||
Parent Entity | New Zealand | Construction | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 4 | 8 | |||
Parent Entity | New Zealand | Manufacturing | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 70 | 94 | |||
Parent Entity | New Zealand | Property | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 1 | ||||
Parent Entity | New Zealand | Property services and business services | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 7 | 7 | |||
Parent Entity | New Zealand | Trade | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 263 | 297 | |||
Parent Entity | New Zealand | Transport and storage | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 5 | ||||
Parent Entity | Other overseas | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 9,945 | 15,738 | |||
Parent Entity | Other overseas | Accommodation, cafes and restaurants | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 81 | 67 | |||
Parent Entity | Other overseas | Agriculture, forestry and fishing | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 114 | 130 | |||
Parent Entity | Other overseas | Construction | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 46 | 47 | |||
Parent Entity | Other overseas | Finance and insurance | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 2,295 | 4,624 | |||
Parent Entity | Other overseas | Government, administration and defence | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 20 | 2 | |||
Parent Entity | Other overseas | Manufacturing | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 1,875 | 3,780 | |||
Parent Entity | Other overseas | Mining | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 314 | 465 | |||
Parent Entity | Other overseas | Property | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 209 | 226 | |||
Parent Entity | Other overseas | Property services and business services | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 1,478 | 1,528 | |||
Parent Entity | Other overseas | Services | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 196 | 216 | |||
Parent Entity | Other overseas | Trade | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 1,415 | 2,115 | |||
Parent Entity | Other overseas | Transport and storage | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 642 | 886 | |||
Parent Entity | Other overseas | Utilities | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 894 | 1,036 | |||
Parent Entity | Other overseas | Retail lending | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | 359 | 587 | |||
Parent Entity | Other overseas | Other | Gross amount | |||||
Loans presented based on their industry classification | |||||
Loans | $ 7 | $ 29 |
Loans - Contractual maturity di
Loans - Contractual maturity distribution (Details) - AUD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 |
Financial assets | |||||
Loans | $ 693,059 | $ 714,770 | $ 709,690 | $ 684,919 | $ 661,926 |
Gross amount | |||||
Financial assets | |||||
Loans | 698,661 | 718,378 | 712,504 | 687,785 | 665,256 |
Gross amount | Australia | |||||
Financial assets | |||||
Loans | 605,598 | ||||
Gross amount | New Zealand | |||||
Financial assets | |||||
Loans | 82,350 | 78,725 | 74,342 | 71,806 | 72,495 |
Gross amount | Other overseas | |||||
Financial assets | |||||
Loans | 10,713 | 16,845 | 16,077 | 14,333 | 13,517 |
Gross amount | Within 1 Year | |||||
Financial assets | |||||
Loans | 92,362 | ||||
Gross amount | Within 1 Year | Australia | |||||
Financial assets | |||||
Loans | 68,656 | ||||
Gross amount | Within 1 Year | New Zealand | |||||
Financial assets | |||||
Loans | 20,555 | ||||
Gross amount | Within 1 Year | Other overseas | |||||
Financial assets | |||||
Loans | 3,151 | ||||
Gross amount | Over 1 Year to 5 Years | |||||
Financial assets | |||||
Loans | 114,558 | ||||
Gross amount | Over 1 Year to 5 Years | Australia | |||||
Financial assets | |||||
Loans | 96,177 | ||||
Gross amount | Over 1 Year to 5 Years | New Zealand | |||||
Financial assets | |||||
Loans | 11,481 | ||||
Gross amount | Over 1 Year to 5 Years | Other overseas | |||||
Financial assets | |||||
Loans | 6,900 | ||||
Gross amount | Over 5 Years | |||||
Financial assets | |||||
Loans | 491,741 | ||||
Gross amount | Over 5 Years | Australia | |||||
Financial assets | |||||
Loans | 440,765 | ||||
Gross amount | Over 5 Years | New Zealand | |||||
Financial assets | |||||
Loans | 50,314 | ||||
Gross amount | Over 5 Years | Other overseas | |||||
Financial assets | |||||
Loans | 662 | ||||
Gross amount | Accommodation, cafes and restaurants | Australia | |||||
Financial assets | |||||
Loans | 7,933 | ||||
Gross amount | Accommodation, cafes and restaurants | New Zealand | |||||
Financial assets | |||||
Loans | 388 | 355 | 323 | 290 | 256 |
Gross amount | Accommodation, cafes and restaurants | Other overseas | |||||
Financial assets | |||||
Loans | 118 | 109 | 112 | 97 | 118 |
Gross amount | Accommodation, cafes and restaurants | Within 1 Year | Australia | |||||
Financial assets | |||||
Loans | 3,253 | ||||
Gross amount | Accommodation, cafes and restaurants | Over 1 Year to 5 Years | Australia | |||||
Financial assets | |||||
Loans | 4,303 | ||||
Gross amount | Accommodation, cafes and restaurants | Over 5 Years | Australia | |||||
Financial assets | |||||
Loans | 377 | ||||
Gross amount | Agriculture, forestry and fishing | Australia | |||||
Financial assets | |||||
Loans | 10,116 | ||||
Gross amount | Agriculture, forestry and fishing | New Zealand | |||||
Financial assets | |||||
Loans | 9,101 | 8,553 | 8,138 | 7,772 | 7,788 |
Gross amount | Agriculture, forestry and fishing | Other overseas | |||||
Financial assets | |||||
Loans | 124 | 150 | 19 | 5 | 12 |
Gross amount | Agriculture, forestry and fishing | Within 1 Year | Australia | |||||
Financial assets | |||||
Loans | 3,115 | ||||
Gross amount | Agriculture, forestry and fishing | Over 1 Year to 5 Years | Australia | |||||
Financial assets | |||||
Loans | 6,417 | ||||
Gross amount | Agriculture, forestry and fishing | Over 5 Years | Australia | |||||
Financial assets | |||||
Loans | 584 | ||||
Gross amount | Construction | Australia | |||||
Financial assets | |||||
Loans | 6,711 | ||||
Gross amount | Construction | New Zealand | |||||
Financial assets | |||||
Loans | 509 | 493 | 502 | 447 | 396 |
Gross amount | Construction | Other overseas | |||||
Financial assets | |||||
Loans | 51 | 55 | 71 | 55 | 147 |
Gross amount | Construction | Within 1 Year | Australia | |||||
Financial assets | |||||
Loans | 1,604 | ||||
Gross amount | Construction | Over 1 Year to 5 Years | Australia | |||||
Financial assets | |||||
Loans | 4,241 | ||||
Gross amount | Construction | Over 5 Years | Australia | |||||
Financial assets | |||||
Loans | 866 | ||||
Gross amount | Finance and insurance | Australia | |||||
Financial assets | |||||
Loans | 13,348 | ||||
Gross amount | Finance and insurance | New Zealand | |||||
Financial assets | |||||
Loans | 3,427 | 3,009 | 2,903 | 2,478 | 2,682 |
Gross amount | Finance and insurance | Other overseas | |||||
Financial assets | |||||
Loans | 2,298 | 4,628 | 4,774 | 4,289 | 2,767 |
Gross amount | Finance and insurance | Within 1 Year | Australia | |||||
Financial assets | |||||
Loans | 6,066 | ||||
Gross amount | Finance and insurance | Over 1 Year to 5 Years | Australia | |||||
Financial assets | |||||
Loans | 4,761 | ||||
Gross amount | Finance and insurance | Over 5 Years | Australia | |||||
Financial assets | |||||
Loans | 2,521 | ||||
Gross amount | Government, administration and defence | Australia | |||||
Financial assets | |||||
Loans | 730 | ||||
Gross amount | Government, administration and defence | New Zealand | |||||
Financial assets | |||||
Loans | 94 | 85 | 114 | 137 | 163 |
Gross amount | Government, administration and defence | Other overseas | |||||
Financial assets | |||||
Loans | 20 | 2 | 25 | 4 | 4 |
Gross amount | Government, administration and defence | Within 1 Year | Australia | |||||
Financial assets | |||||
Loans | 300 | ||||
Gross amount | Government, administration and defence | Over 1 Year to 5 Years | Australia | |||||
Financial assets | |||||
Loans | 154 | ||||
Gross amount | Government, administration and defence | Over 5 Years | Australia | |||||
Financial assets | |||||
Loans | 276 | ||||
Gross amount | Manufacturing | Australia | |||||
Financial assets | |||||
Loans | 8,493 | ||||
Gross amount | Manufacturing | New Zealand | |||||
Financial assets | |||||
Loans | 1,689 | 1,913 | 2,199 | 2,090 | 2,324 |
Gross amount | Manufacturing | Other overseas | |||||
Financial assets | |||||
Loans | 1,877 | 3,784 | 3,257 | 2,982 | 2,619 |
Gross amount | Manufacturing | Within 1 Year | Australia | |||||
Financial assets | |||||
Loans | 3,465 | ||||
Gross amount | Manufacturing | Over 1 Year to 5 Years | Australia | |||||
Financial assets | |||||
Loans | 4,589 | ||||
Gross amount | Manufacturing | Over 5 Years | Australia | |||||
Financial assets | |||||
Loans | 439 | ||||
Gross amount | Mining | Australia | |||||
Financial assets | |||||
Loans | 2,975 | ||||
Gross amount | Mining | New Zealand | |||||
Financial assets | |||||
Loans | 203 | 278 | 206 | 141 | 280 |
Gross amount | Mining | Other overseas | |||||
Financial assets | |||||
Loans | 336 | 468 | 322 | 349 | 535 |
Gross amount | Mining | Within 1 Year | Australia | |||||
Financial assets | |||||
Loans | 458 | ||||
Gross amount | Mining | Over 1 Year to 5 Years | Australia | |||||
Financial assets | |||||
Loans | 1,903 | ||||
Gross amount | Mining | Over 5 Years | Australia | |||||
Financial assets | |||||
Loans | 614 | ||||
Gross amount | Property | Australia | |||||
Financial assets | |||||
Loans | 44,468 | ||||
Gross amount | Property | New Zealand | |||||
Financial assets | |||||
Loans | 6,667 | 6,412 | 5,997 | 5,858 | 5,925 |
Gross amount | Property | Other overseas | |||||
Financial assets | |||||
Loans | 416 | 492 | 467 | 491 | 479 |
Gross amount | Property | Within 1 Year | Australia | |||||
Financial assets | |||||
Loans | 18,027 | ||||
Gross amount | Property | Over 1 Year to 5 Years | Australia | |||||
Financial assets | |||||
Loans | 25,088 | ||||
Gross amount | Property | Over 5 Years | Australia | |||||
Financial assets | |||||
Loans | 1,353 | ||||
Gross amount | Property services and business services | Australia | |||||
Financial assets | |||||
Loans | 12,562 | ||||
Gross amount | Property services and business services | New Zealand | |||||
Financial assets | |||||
Loans | 951 | 1,182 | 1,073 | 1,113 | 1,084 |
Gross amount | Property services and business services | Other overseas | |||||
Financial assets | |||||
Loans | 1,545 | 1,610 | 1,684 | 540 | 526 |
Gross amount | Property services and business services | Within 1 Year | Australia | |||||
Financial assets | |||||
Loans | 2,991 | ||||
Gross amount | Property services and business services | Over 1 Year to 5 Years | Australia | |||||
Financial assets | |||||
Loans | 8,055 | ||||
Gross amount | Property services and business services | Over 5 Years | Australia | |||||
Financial assets | |||||
Loans | 1,516 | ||||
Gross amount | Services | Australia | |||||
Financial assets | |||||
Loans | 11,675 | ||||
Gross amount | Services | New Zealand | |||||
Financial assets | |||||
Loans | 2,119 | 1,973 | 1,733 | 1,810 | 1,396 |
Gross amount | Services | Other overseas | |||||
Financial assets | |||||
Loans | 218 | 243 | 205 | 205 | 99 |
Gross amount | Services | Within 1 Year | Australia | |||||
Financial assets | |||||
Loans | 3,793 | ||||
Gross amount | Services | Over 1 Year to 5 Years | Australia | |||||
Financial assets | |||||
Loans | 6,252 | ||||
Gross amount | Services | Over 5 Years | Australia | |||||
Financial assets | |||||
Loans | 1,630 | ||||
Gross amount | Trade | Australia | |||||
Financial assets | |||||
Loans | 13,268 | ||||
Gross amount | Trade | New Zealand | |||||
Financial assets | |||||
Loans | 1,949 | 2,344 | 2,509 | 2,163 | 2,333 |
Gross amount | Trade | Other overseas | |||||
Financial assets | |||||
Loans | 1,553 | 2,293 | 2,312 | 2,680 | 3,463 |
Gross amount | Trade | Within 1 Year | Australia | |||||
Financial assets | |||||
Loans | 5,892 | ||||
Gross amount | Trade | Over 1 Year to 5 Years | Australia | |||||
Financial assets | |||||
Loans | 6,236 | ||||
Gross amount | Trade | Over 5 Years | Australia | |||||
Financial assets | |||||
Loans | 1,140 | ||||
Gross amount | Transport and storage | Australia | |||||
Financial assets | |||||
Loans | 8,218 | ||||
Gross amount | Transport and storage | New Zealand | |||||
Financial assets | |||||
Loans | 1,176 | 1,131 | 1,029 | 1,080 | 1,257 |
Gross amount | Transport and storage | Other overseas | |||||
Financial assets | |||||
Loans | 732 | 997 | 1,232 | 1,389 | 1,186 |
Gross amount | Transport and storage | Within 1 Year | Australia | |||||
Financial assets | |||||
Loans | 1,593 | ||||
Gross amount | Transport and storage | Over 1 Year to 5 Years | Australia | |||||
Financial assets | |||||
Loans | 5,977 | ||||
Gross amount | Transport and storage | Over 5 Years | Australia | |||||
Financial assets | |||||
Loans | 648 | ||||
Gross amount | Utilities | Australia | |||||
Financial assets | |||||
Loans | 4,962 | ||||
Gross amount | Utilities | New Zealand | |||||
Financial assets | |||||
Loans | 1,303 | 1,429 | 1,003 | 1,237 | 1,600 |
Gross amount | Utilities | Other overseas | |||||
Financial assets | |||||
Loans | 950 | 1,086 | 736 | 514 | 442 |
Gross amount | Utilities | Within 1 Year | Australia | |||||
Financial assets | |||||
Loans | 860 | ||||
Gross amount | Utilities | Over 1 Year to 5 Years | Australia | |||||
Financial assets | |||||
Loans | 3,847 | ||||
Gross amount | Utilities | Over 5 Years | Australia | |||||
Financial assets | |||||
Loans | 255 | ||||
Gross amount | Retail lending | Australia | |||||
Financial assets | |||||
Loans | 454,433 | ||||
Gross amount | Retail lending | New Zealand | |||||
Financial assets | |||||
Loans | 52,584 | 49,473 | 46,613 | 45,190 | 45,011 |
Gross amount | Retail lending | Other overseas | |||||
Financial assets | |||||
Loans | 457 | 863 | 683 | 657 | $ 1,120 |
Gross amount | Retail lending | Within 1 Year | Australia | |||||
Financial assets | |||||
Loans | 16,491 | ||||
Gross amount | Retail lending | Over 1 Year to 5 Years | Australia | |||||
Financial assets | |||||
Loans | 10,468 | ||||
Gross amount | Retail lending | Over 5 Years | Australia | |||||
Financial assets | |||||
Loans | 427,474 | ||||
Gross amount | Other | Australia | |||||
Financial assets | |||||
Loans | 5,706 | ||||
Gross amount | Other | New Zealand | |||||
Financial assets | |||||
Loans | 190 | 95 | |||
Gross amount | Other | Other overseas | |||||
Financial assets | |||||
Loans | 18 | $ 65 | $ 178 | $ 76 | |
Gross amount | Other | Within 1 Year | Australia | |||||
Financial assets | |||||
Loans | 748 | ||||
Gross amount | Other | Over 1 Year to 5 Years | Australia | |||||
Financial assets | |||||
Loans | 3,886 | ||||
Gross amount | Other | Over 5 Years | Australia | |||||
Financial assets | |||||
Loans | $ 1,072 |
Loans - Interest rate segmentat
Loans - Interest rate segmentation (Details) - AUD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 |
Financial assets | |||||
Loans | $ 693,059 | $ 714,770 | $ 709,690 | $ 684,919 | $ 661,926 |
Gross amount | |||||
Financial assets | |||||
Loans | 698,661 | 718,378 | 712,504 | 687,785 | 665,256 |
Gross amount | Australia | |||||
Financial assets | |||||
Loans | 605,598 | ||||
Gross amount | New Zealand | |||||
Financial assets | |||||
Loans | 82,350 | 78,725 | 74,342 | 71,806 | 72,495 |
Gross amount | Other overseas | |||||
Financial assets | |||||
Loans | 10,713 | 16,845 | $ 16,077 | $ 14,333 | $ 13,517 |
Gross amount | Over 1 Year | |||||
Financial assets | |||||
Loans | 606,299 | 617,954 | |||
Gross amount | Over 1 Year | Variable Interest Rates | |||||
Financial assets | |||||
Loans | 412,042 | 437,477 | |||
Gross amount | Over 1 Year | Fixed interest rate | |||||
Financial assets | |||||
Loans | 194,257 | 180,477 | |||
Gross amount | Over 1 Year | Australia | |||||
Financial assets | |||||
Loans | 536,942 | 547,529 | |||
Gross amount | Over 1 Year | Australia | Variable Interest Rates | |||||
Financial assets | |||||
Loans | 396,055 | 418,494 | |||
Gross amount | Over 1 Year | Australia | Fixed interest rate | |||||
Financial assets | |||||
Loans | 140,887 | 129,035 | |||
Gross amount | Over 1 Year | New Zealand | |||||
Financial assets | |||||
Loans | 61,795 | 59,601 | |||
Gross amount | Over 1 Year | New Zealand | Variable Interest Rates | |||||
Financial assets | |||||
Loans | 8,771 | 9,102 | |||
Gross amount | Over 1 Year | New Zealand | Fixed interest rate | |||||
Financial assets | |||||
Loans | 53,024 | 50,499 | |||
Gross amount | Over 1 Year | Other overseas | |||||
Financial assets | |||||
Loans | 7,562 | 10,824 | |||
Gross amount | Over 1 Year | Other overseas | Variable Interest Rates | |||||
Financial assets | |||||
Loans | 7,216 | 9,881 | |||
Gross amount | Over 1 Year | Other overseas | Fixed interest rate | |||||
Financial assets | |||||
Loans | $ 346 | $ 943 |
Provisions for expected credi_3
Provisions for expected credit losses/impairment charges - Loans and Credit Commitments (Details) - AUD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 |
Loans and credit commitments | |||
Gross loans and credit commitments | $ 895,602 | $ 909,718 | |
Coverage ratio (as a percentage) | 0.68% | 0.43% | |
Performing - Stage 1 | |||
Loans and credit commitments | |||
Gross loans and credit commitments | $ 812,450 | $ 865,383 | |
Coverage ratio (as a percentage) | 0.13% | 0.10% | |
Performing - Stage 2 | |||
Loans and credit commitments | |||
Gross loans and credit commitments | $ 71,841 | $ 37,484 | |
Coverage ratio (as a percentage) | 4.00% | 4.47% | |
Non-performing - Stage 3 | |||
Loans and credit commitments | |||
Gross loans and credit commitments | $ 11,311 | $ 6,851 | |
Coverage ratio (as a percentage) | 19.21% | 19.78% | |
Loans and credit commitments | |||
Loans and credit commitments | |||
Provisions for expected credit losses | $ 5,602 | $ 3,608 | |
Loans and credit commitments | Provisions for ECL on loans and credit commitments | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 6,132 | 3,913 | $ 3,053 |
Loans and credit commitments | Provisions for ECL on loans and credit commitments | Individually assessed | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 611 | 412 | 422 |
Loans and credit commitments | Provisions for ECL on loans and credit commitments | Collectively assessed | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 5,521 | 3,501 | 2,631 |
Loans and credit commitments | Provisions for ECL on loans and credit commitments | Housing | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 1,916 | 1,108 | 482 |
Loans and credit commitments | Provisions for ECL on loans and credit commitments | Housing | Individually assessed | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 97 | ||
Loans and credit commitments | Provisions for ECL on loans and credit commitments | Housing | Collectively assessed | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 385 | ||
Loans and credit commitments | Provisions for ECL on loans and credit commitments | Personal | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 856 | 975 | 764 |
Loans and credit commitments | Provisions for ECL on loans and credit commitments | Personal | Individually assessed | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 3 | ||
Loans and credit commitments | Provisions for ECL on loans and credit commitments | Personal | Collectively assessed | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 761 | ||
Loans and credit commitments | Provisions for ECL on loans and credit commitments | Business | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 3,360 | 1,830 | 1,807 |
Loans and credit commitments | Provisions for ECL on loans and credit commitments | Business | Individually assessed | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 322 | ||
Loans and credit commitments | Provisions for ECL on loans and credit commitments | Business | Collectively assessed | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 1,485 | ||
Loans and credit commitments | Provision for ECL on loans | Housing | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 1,904 | 1,101 | |
Loans and credit commitments | Provision for ECL on loans | Personal | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 774 | 904 | |
Loans and credit commitments | Provision for ECL on loans | Business | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 2,924 | 1,603 | |
Loans and credit commitments | Provision for ECL on credit commitments | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 530 | 305 | |
Loans and credit commitments | Provision for ECL on credit commitments | Housing | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 12 | 7 | |
Loans and credit commitments | Provision for ECL on credit commitments | Personal | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 82 | 71 | |
Loans and credit commitments | Provision for ECL on credit commitments | Business | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 436 | 227 | |
Loans and credit commitments | Performing - Stage 1 | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 902 | 763 | |
Loans and credit commitments | Performing - Stage 1 | Provisions for ECL on loans and credit commitments | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 1,084 | 884 | |
Loans and credit commitments | Performing - Stage 1 | Provisions for ECL on loans and credit commitments | Collectively assessed | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 1,084 | 884 | |
Loans and credit commitments | Performing - Stage 1 | Provisions for ECL on loans and credit commitments | Housing | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 192 | 163 | |
Loans and credit commitments | Performing - Stage 1 | Provisions for ECL on loans and credit commitments | Personal | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 216 | 268 | |
Loans and credit commitments | Performing - Stage 1 | Provisions for ECL on loans and credit commitments | Business | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 676 | 453 | |
Loans and credit commitments | Performing - Stage 1 | Provision for ECL on loans | Housing | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 185 | 158 | |
Loans and credit commitments | Performing - Stage 1 | Provision for ECL on loans | Personal | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 180 | 232 | |
Loans and credit commitments | Performing - Stage 1 | Provision for ECL on loans | Business | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 537 | 373 | |
Loans and credit commitments | Performing - Stage 1 | Provision for ECL on credit commitments | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 182 | 121 | |
Loans and credit commitments | Performing - Stage 1 | Provision for ECL on credit commitments | Housing | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 7 | 5 | |
Loans and credit commitments | Performing - Stage 1 | Provision for ECL on credit commitments | Personal | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 36 | 36 | |
Loans and credit commitments | Performing - Stage 1 | Provision for ECL on credit commitments | Business | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 139 | 80 | |
Loans and credit commitments | Performing - Stage 2 | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 2,537 | 1,496 | |
Loans and credit commitments | Performing - Stage 2 | Provisions for ECL on loans and credit commitments | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 2,875 | 1,674 | |
Loans and credit commitments | Performing - Stage 2 | Provisions for ECL on loans and credit commitments | Collectively assessed | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 2,875 | 1,674 | |
Loans and credit commitments | Performing - Stage 2 | Provisions for ECL on loans and credit commitments | Housing | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 747 | 354 | |
Loans and credit commitments | Performing - Stage 2 | Provisions for ECL on loans and credit commitments | Personal | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 408 | 459 | |
Loans and credit commitments | Performing - Stage 2 | Provisions for ECL on loans and credit commitments | Business | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 1,720 | 861 | |
Loans and credit commitments | Performing - Stage 2 | Provision for ECL on loans | Housing | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 742 | 352 | |
Loans and credit commitments | Performing - Stage 2 | Provision for ECL on loans | Personal | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 362 | 424 | |
Loans and credit commitments | Performing - Stage 2 | Provision for ECL on loans | Business | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 1,433 | 720 | |
Loans and credit commitments | Performing - Stage 2 | Provision for ECL on credit commitments | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 338 | 178 | |
Loans and credit commitments | Performing - Stage 2 | Provision for ECL on credit commitments | Housing | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 5 | 2 | |
Loans and credit commitments | Performing - Stage 2 | Provision for ECL on credit commitments | Personal | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 46 | 35 | |
Loans and credit commitments | Performing - Stage 2 | Provision for ECL on credit commitments | Business | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 287 | 141 | |
Loans and credit commitments | Non-performing - Stage 3 | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 2,163 | 1,349 | |
Loans and credit commitments | Non-performing - Stage 3 | Provisions for ECL on loans and credit commitments | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 2,173 | 1,355 | |
Loans and credit commitments | Non-performing - Stage 3 | Provisions for ECL on loans and credit commitments | Individually assessed | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 611 | 412 | |
Loans and credit commitments | Non-performing - Stage 3 | Provisions for ECL on loans and credit commitments | Collectively assessed | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 1,562 | 943 | |
Loans and credit commitments | Non-performing - Stage 3 | Provisions for ECL on loans and credit commitments | Housing | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 977 | 591 | |
Loans and credit commitments | Non-performing - Stage 3 | Provisions for ECL on loans and credit commitments | Personal | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 232 | 248 | |
Loans and credit commitments | Non-performing - Stage 3 | Provisions for ECL on loans and credit commitments | Business | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 964 | 516 | |
Loans and credit commitments | Non-performing - Stage 3 | Provision for ECL on loans | Housing | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 977 | 591 | |
Loans and credit commitments | Non-performing - Stage 3 | Provision for ECL on loans | Personal | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 232 | 248 | |
Loans and credit commitments | Non-performing - Stage 3 | Provision for ECL on loans | Business | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 954 | 510 | |
Loans and credit commitments | Non-performing - Stage 3 | Provision for ECL on credit commitments | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 10 | 6 | |
Loans and credit commitments | Non-performing - Stage 3 | Provision for ECL on credit commitments | Business | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 10 | 6 | |
Parent Entity | |||
Loans and credit commitments | |||
Gross loans and credit commitments | $ 784,496 | $ 803,526 | |
Coverage ratio (as a percentage) | 0.66% | 0.42% | |
Parent Entity | Performing - Stage 1 | |||
Loans and credit commitments | |||
Gross loans and credit commitments | $ 712,381 | $ 764,311 | |
Coverage ratio (as a percentage) | 0.13% | 0.10% | |
Parent Entity | Performing - Stage 2 | |||
Loans and credit commitments | |||
Gross loans and credit commitments | $ 61,822 | $ 32,966 | |
Coverage ratio (as a percentage) | 3.87% | 4.31% | |
Parent Entity | Non-performing - Stage 3 | |||
Loans and credit commitments | |||
Gross loans and credit commitments | $ 10,293 | $ 6,249 | |
Coverage ratio (as a percentage) | 18.16% | 19.38% | |
Parent Entity | Loans and credit commitments | Provisions for ECL on loans and credit commitments | |||
Loans and credit commitments | |||
Provisions for expected credit losses | $ 5,172 | $ 3,378 | 2,613 |
Parent Entity | Loans and credit commitments | Provisions for ECL on loans and credit commitments | Individually assessed | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 520 | 364 | 375 |
Parent Entity | Loans and credit commitments | Provisions for ECL on loans and credit commitments | Collectively assessed | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 4,652 | 3,014 | 2,238 |
Parent Entity | Loans and credit commitments | Provisions for ECL on loans and credit commitments | Housing | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 1,688 | 1,033 | 598 |
Parent Entity | Loans and credit commitments | Provisions for ECL on loans and credit commitments | Housing | Individually assessed | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 82 | ||
Parent Entity | Loans and credit commitments | Provisions for ECL on loans and credit commitments | Housing | Collectively assessed | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 516 | ||
Parent Entity | Loans and credit commitments | Provisions for ECL on loans and credit commitments | Personal | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 715 | 843 | 527 |
Parent Entity | Loans and credit commitments | Provisions for ECL on loans and credit commitments | Personal | Individually assessed | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 3 | ||
Parent Entity | Loans and credit commitments | Provisions for ECL on loans and credit commitments | Personal | Collectively assessed | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 524 | ||
Parent Entity | Loans and credit commitments | Provisions for ECL on loans and credit commitments | Business | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 2,769 | 1,502 | 1,488 |
Parent Entity | Loans and credit commitments | Provisions for ECL on loans and credit commitments | Business | Individually assessed | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 290 | ||
Parent Entity | Loans and credit commitments | Provisions for ECL on loans and credit commitments | Business | Collectively assessed | |||
Loans and credit commitments | |||
Provisions for expected credit losses | $ 1,198 | ||
Parent Entity | Loans and credit commitments | Provision for ECL on loans | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 4,693 | 3,103 | |
Parent Entity | Loans and credit commitments | Provision for ECL on loans | Housing | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 1,679 | 1,028 | |
Parent Entity | Loans and credit commitments | Provision for ECL on loans | Personal | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 652 | 782 | |
Parent Entity | Loans and credit commitments | Provision for ECL on loans | Business | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 2,362 | 1,293 | |
Parent Entity | Loans and credit commitments | Provision for ECL on credit commitments | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 479 | 275 | |
Parent Entity | Loans and credit commitments | Provision for ECL on credit commitments | Housing | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 9 | 5 | |
Parent Entity | Loans and credit commitments | Provision for ECL on credit commitments | Personal | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 63 | 61 | |
Parent Entity | Loans and credit commitments | Provision for ECL on credit commitments | Business | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 407 | 209 | |
Parent Entity | Loans and credit commitments | Performing - Stage 1 | Provisions for ECL on loans and credit commitments | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 913 | 747 | |
Parent Entity | Loans and credit commitments | Performing - Stage 1 | Provisions for ECL on loans and credit commitments | Collectively assessed | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 913 | 747 | |
Parent Entity | Loans and credit commitments | Performing - Stage 1 | Provisions for ECL on loans and credit commitments | Housing | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 149 | 141 | |
Parent Entity | Loans and credit commitments | Performing - Stage 1 | Provisions for ECL on loans and credit commitments | Personal | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 190 | 229 | |
Parent Entity | Loans and credit commitments | Performing - Stage 1 | Provisions for ECL on loans and credit commitments | Business | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 574 | 377 | |
Parent Entity | Loans and credit commitments | Performing - Stage 1 | Provision for ECL on loans | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 752 | 640 | |
Parent Entity | Loans and credit commitments | Performing - Stage 1 | Provision for ECL on loans | Housing | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 145 | 137 | |
Parent Entity | Loans and credit commitments | Performing - Stage 1 | Provision for ECL on loans | Personal | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 162 | 200 | |
Parent Entity | Loans and credit commitments | Performing - Stage 1 | Provision for ECL on loans | Business | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 445 | 303 | |
Parent Entity | Loans and credit commitments | Performing - Stage 1 | Provision for ECL on credit commitments | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 161 | 107 | |
Parent Entity | Loans and credit commitments | Performing - Stage 1 | Provision for ECL on credit commitments | Housing | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 4 | 4 | |
Parent Entity | Loans and credit commitments | Performing - Stage 1 | Provision for ECL on credit commitments | Personal | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 28 | 29 | |
Parent Entity | Loans and credit commitments | Performing - Stage 1 | Provision for ECL on credit commitments | Business | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 129 | 74 | |
Parent Entity | Loans and credit commitments | Performing - Stage 2 | Provisions for ECL on loans and credit commitments | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 2,390 | 1,420 | |
Parent Entity | Loans and credit commitments | Performing - Stage 2 | Provisions for ECL on loans and credit commitments | Collectively assessed | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 2,390 | 1,420 | |
Parent Entity | Loans and credit commitments | Performing - Stage 2 | Provisions for ECL on loans and credit commitments | Housing | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 635 | 335 | |
Parent Entity | Loans and credit commitments | Performing - Stage 2 | Provisions for ECL on loans and credit commitments | Personal | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 332 | 401 | |
Parent Entity | Loans and credit commitments | Performing - Stage 2 | Provisions for ECL on loans and credit commitments | Business | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 1,423 | 684 | |
Parent Entity | Loans and credit commitments | Performing - Stage 2 | Provision for ECL on loans | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 2,081 | 1,257 | |
Parent Entity | Loans and credit commitments | Performing - Stage 2 | Provision for ECL on loans | Housing | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 630 | 334 | |
Parent Entity | Loans and credit commitments | Performing - Stage 2 | Provision for ECL on loans | Personal | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 297 | 369 | |
Parent Entity | Loans and credit commitments | Performing - Stage 2 | Provision for ECL on loans | Business | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 1,154 | 554 | |
Parent Entity | Loans and credit commitments | Performing - Stage 2 | Provision for ECL on credit commitments | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 309 | 163 | |
Parent Entity | Loans and credit commitments | Performing - Stage 2 | Provision for ECL on credit commitments | Housing | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 5 | 1 | |
Parent Entity | Loans and credit commitments | Performing - Stage 2 | Provision for ECL on credit commitments | Personal | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 35 | 32 | |
Parent Entity | Loans and credit commitments | Performing - Stage 2 | Provision for ECL on credit commitments | Business | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 269 | 130 | |
Parent Entity | Loans and credit commitments | Non-performing - Stage 3 | Provisions for ECL on loans and credit commitments | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 1,869 | 1,211 | |
Parent Entity | Loans and credit commitments | Non-performing - Stage 3 | Provisions for ECL on loans and credit commitments | Individually assessed | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 520 | 364 | |
Parent Entity | Loans and credit commitments | Non-performing - Stage 3 | Provisions for ECL on loans and credit commitments | Collectively assessed | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 1,349 | 847 | |
Parent Entity | Loans and credit commitments | Non-performing - Stage 3 | Provisions for ECL on loans and credit commitments | Housing | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 904 | 557 | |
Parent Entity | Loans and credit commitments | Non-performing - Stage 3 | Provisions for ECL on loans and credit commitments | Personal | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 193 | 213 | |
Parent Entity | Loans and credit commitments | Non-performing - Stage 3 | Provisions for ECL on loans and credit commitments | Business | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 772 | 441 | |
Parent Entity | Loans and credit commitments | Non-performing - Stage 3 | Provision for ECL on loans | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 1,860 | 1,206 | |
Parent Entity | Loans and credit commitments | Non-performing - Stage 3 | Provision for ECL on loans | Housing | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 904 | 557 | |
Parent Entity | Loans and credit commitments | Non-performing - Stage 3 | Provision for ECL on loans | Personal | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 193 | 213 | |
Parent Entity | Loans and credit commitments | Non-performing - Stage 3 | Provision for ECL on loans | Business | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 763 | 436 | |
Parent Entity | Loans and credit commitments | Non-performing - Stage 3 | Provision for ECL on credit commitments | |||
Loans and credit commitments | |||
Provisions for expected credit losses | 9 | 5 | |
Parent Entity | Loans and credit commitments | Non-performing - Stage 3 | Provision for ECL on credit commitments | Business | |||
Loans and credit commitments | |||
Provisions for expected credit losses | $ 9 | $ 5 |
Provisions for expected credi_4
Provisions for expected credit losses/impairment charges - Provisions for ECL on loans and credit commitments (Details) - Loans and credit commitments - AUD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Oct. 01, 2018 | |
Reconciliation of provisions for Expected Credit Losses on loans and credit commitments | |||
Balance at the beginning of the year | $ 3,608 | ||
Business activity during the year | 195 | $ (170) | |
Net remeasurement of provision for ECL | 3,156 | 1,136 | |
Balance at the end of the year | 5,602 | 3,608 | |
Provisions for ECL on loans and credit commitments | |||
Reconciliation of provisions for Expected Credit Losses on loans and credit commitments | |||
Balance at the beginning of the year | 3,913 | 3,053 | |
Restatement for adoption of AASB 9 | $ 980 | ||
Restated at the beginning of the year | 4,033 | ||
Business activity during the year | 195 | (170) | |
Net remeasurement of provision for ECL | 3,156 | 1,136 | |
Write-offs | (1,170) | (1,154) | |
Exchange rate and other adjustments | 38 | 68 | |
Balance at the end of the year | 6,132 | 3,913 | |
Provisions for ECL on loans and credit commitments | Collectively assessed | |||
Reconciliation of provisions for Expected Credit Losses on loans and credit commitments | |||
Balance at the beginning of the year | 3,501 | 2,631 | |
Restatement for adoption of AASB 9 | (2,631) | ||
Balance at the end of the year | 5,521 | 3,501 | |
Provisions for ECL on loans and credit commitments | Individually assessed | |||
Reconciliation of provisions for Expected Credit Losses on loans and credit commitments | |||
Balance at the beginning of the year | 412 | 422 | |
Restatement for adoption of AASB 9 | (422) | ||
Balance at the end of the year | 611 | 412 | |
Provisions for ECL on loans and credit commitments | Housing | |||
Reconciliation of provisions for Expected Credit Losses on loans and credit commitments | |||
Balance at the beginning of the year | 1,108 | 482 | |
Restatement for adoption of AASB 9 | 500 | ||
Restated at the beginning of the year | 982 | ||
Business activity during the year | (170) | (159) | |
Net remeasurement of provision for ECL | 1,078 | 382 | |
Write-offs | (120) | (119) | |
Exchange rate and other adjustments | 20 | 22 | |
Balance at the end of the year | 1,916 | 1,108 | |
Provisions for ECL on loans and credit commitments | Housing | Collectively assessed | |||
Reconciliation of provisions for Expected Credit Losses on loans and credit commitments | |||
Balance at the beginning of the year | 385 | ||
Restatement for adoption of AASB 9 | (385) | ||
Provisions for ECL on loans and credit commitments | Housing | Individually assessed | |||
Reconciliation of provisions for Expected Credit Losses on loans and credit commitments | |||
Balance at the beginning of the year | 97 | ||
Restatement for adoption of AASB 9 | (97) | ||
Provisions for ECL on loans and credit commitments | Personal | |||
Reconciliation of provisions for Expected Credit Losses on loans and credit commitments | |||
Balance at the beginning of the year | 975 | 764 | |
Restatement for adoption of AASB 9 | 328 | ||
Restated at the beginning of the year | 1,092 | ||
Business activity during the year | (52) | (116) | |
Net remeasurement of provision for ECL | 635 | 789 | |
Write-offs | (728) | (822) | |
Exchange rate and other adjustments | 26 | 32 | |
Balance at the end of the year | 856 | 975 | |
Provisions for ECL on loans and credit commitments | Personal | Collectively assessed | |||
Reconciliation of provisions for Expected Credit Losses on loans and credit commitments | |||
Balance at the beginning of the year | 761 | ||
Restatement for adoption of AASB 9 | (761) | ||
Provisions for ECL on loans and credit commitments | Personal | Individually assessed | |||
Reconciliation of provisions for Expected Credit Losses on loans and credit commitments | |||
Balance at the beginning of the year | 3 | ||
Restatement for adoption of AASB 9 | (3) | ||
Provisions for ECL on loans and credit commitments | Business | |||
Reconciliation of provisions for Expected Credit Losses on loans and credit commitments | |||
Balance at the beginning of the year | 1,830 | 1,807 | |
Restatement for adoption of AASB 9 | 152 | ||
Restated at the beginning of the year | 1,959 | ||
Business activity during the year | 417 | 105 | |
Net remeasurement of provision for ECL | 1,443 | (35) | |
Write-offs | (322) | (213) | |
Exchange rate and other adjustments | (8) | 14 | |
Balance at the end of the year | 3,360 | 1,830 | |
Provisions for ECL on loans and credit commitments | Business | Collectively assessed | |||
Reconciliation of provisions for Expected Credit Losses on loans and credit commitments | |||
Balance at the beginning of the year | 1,485 | ||
Restatement for adoption of AASB 9 | (1,485) | ||
Provisions for ECL on loans and credit commitments | Business | Individually assessed | |||
Reconciliation of provisions for Expected Credit Losses on loans and credit commitments | |||
Balance at the beginning of the year | 322 | ||
Restatement for adoption of AASB 9 | (322) | ||
Performing - Stage 1 | |||
Reconciliation of provisions for Expected Credit Losses on loans and credit commitments | |||
Balance at the beginning of the year | 763 | ||
Balance at the end of the year | 902 | 763 | |
Performing - Stage 1 | Provisions for ECL on loans and credit commitments | |||
Reconciliation of provisions for Expected Credit Losses on loans and credit commitments | |||
Balance at the beginning of the year | 884 | ||
Restatement for adoption of AASB 9 | 877 | ||
Restated at the beginning of the year | 877 | ||
Transfers to Stage 1 | 1,578 | 1,458 | |
Transfers to Stage 2 | (345) | (242) | |
Transfers to Stage 3 | (7) | (5) | |
Business activity during the year | 212 | 179 | |
Net remeasurement of provision for ECL | (1,233) | (1,385) | |
Exchange rate and other adjustments | (5) | 2 | |
Balance at the end of the year | 1,084 | 884 | |
Performing - Stage 1 | Provisions for ECL on loans and credit commitments | Collectively assessed | |||
Reconciliation of provisions for Expected Credit Losses on loans and credit commitments | |||
Balance at the beginning of the year | 884 | ||
Balance at the end of the year | 1,084 | 884 | |
Performing - Stage 1 | Provisions for ECL on loans and credit commitments | Housing | |||
Reconciliation of provisions for Expected Credit Losses on loans and credit commitments | |||
Balance at the beginning of the year | 163 | ||
Restatement for adoption of AASB 9 | 130 | ||
Restated at the beginning of the year | 130 | ||
Transfers to Stage 1 | 566 | 343 | |
Transfers to Stage 2 | (68) | (38) | |
Business activity during the year | 25 | 17 | |
Net remeasurement of provision for ECL | (492) | (289) | |
Exchange rate and other adjustments | (2) | ||
Balance at the end of the year | 192 | 163 | |
Performing - Stage 1 | Provisions for ECL on loans and credit commitments | Personal | |||
Reconciliation of provisions for Expected Credit Losses on loans and credit commitments | |||
Balance at the beginning of the year | 268 | ||
Restatement for adoption of AASB 9 | 263 | ||
Restated at the beginning of the year | 263 | ||
Transfers to Stage 1 | 744 | 849 | |
Transfers to Stage 2 | (154) | (148) | |
Transfers to Stage 3 | (1) | (2) | |
Business activity during the year | 35 | 62 | |
Net remeasurement of provision for ECL | (676) | (757) | |
Exchange rate and other adjustments | 1 | ||
Balance at the end of the year | 216 | 268 | |
Performing - Stage 1 | Provisions for ECL on loans and credit commitments | Business | |||
Reconciliation of provisions for Expected Credit Losses on loans and credit commitments | |||
Balance at the beginning of the year | 453 | ||
Restatement for adoption of AASB 9 | 484 | ||
Restated at the beginning of the year | 484 | ||
Transfers to Stage 1 | 268 | 266 | |
Transfers to Stage 2 | (123) | (56) | |
Transfers to Stage 3 | (6) | (3) | |
Business activity during the year | 152 | 100 | |
Net remeasurement of provision for ECL | (65) | (339) | |
Exchange rate and other adjustments | (3) | 1 | |
Balance at the end of the year | 676 | 453 | |
Performing - Stage 2 | |||
Reconciliation of provisions for Expected Credit Losses on loans and credit commitments | |||
Balance at the beginning of the year | 1,496 | ||
Balance at the end of the year | 2,537 | 1,496 | |
Performing - Stage 2 | Provisions for ECL on loans and credit commitments | |||
Reconciliation of provisions for Expected Credit Losses on loans and credit commitments | |||
Balance at the beginning of the year | 1,674 | ||
Restatement for adoption of AASB 9 | 1,884 | ||
Restated at the beginning of the year | 1,884 | ||
Transfers to Stage 1 | (1,528) | (1,404) | |
Transfers to Stage 2 | 1,161 | 956 | |
Transfers to Stage 3 | (955) | (621) | |
Business activity during the year | 60 | (19) | |
Net remeasurement of provision for ECL | 2,474 | 874 | |
Exchange rate and other adjustments | (11) | 4 | |
Balance at the end of the year | 2,875 | 1,674 | |
Performing - Stage 2 | Provisions for ECL on loans and credit commitments | Collectively assessed | |||
Reconciliation of provisions for Expected Credit Losses on loans and credit commitments | |||
Balance at the beginning of the year | 1,674 | ||
Balance at the end of the year | 2,875 | 1,674 | |
Performing - Stage 2 | Provisions for ECL on loans and credit commitments | Housing | |||
Reconciliation of provisions for Expected Credit Losses on loans and credit commitments | |||
Balance at the beginning of the year | 354 | ||
Restatement for adoption of AASB 9 | 351 | ||
Restated at the beginning of the year | 351 | ||
Transfers to Stage 1 | (542) | (317) | |
Transfers to Stage 2 | 472 | 396 | |
Transfers to Stage 3 | (276) | (145) | |
Business activity during the year | (53) | (35) | |
Net remeasurement of provision for ECL | 798 | 104 | |
Exchange rate and other adjustments | (6) | ||
Balance at the end of the year | 747 | 354 | |
Performing - Stage 2 | Provisions for ECL on loans and credit commitments | Personal | |||
Reconciliation of provisions for Expected Credit Losses on loans and credit commitments | |||
Balance at the beginning of the year | 459 | ||
Restatement for adoption of AASB 9 | 589 | ||
Restated at the beginning of the year | 589 | ||
Transfers to Stage 1 | (732) | (839) | |
Transfers to Stage 2 | 368 | 368 | |
Transfers to Stage 3 | (342) | (350) | |
Business activity during the year | (37) | (18) | |
Net remeasurement of provision for ECL | 694 | 708 | |
Exchange rate and other adjustments | (2) | 1 | |
Balance at the end of the year | 408 | 459 | |
Performing - Stage 2 | Provisions for ECL on loans and credit commitments | Business | |||
Reconciliation of provisions for Expected Credit Losses on loans and credit commitments | |||
Balance at the beginning of the year | 861 | ||
Restatement for adoption of AASB 9 | 944 | ||
Restated at the beginning of the year | 944 | ||
Transfers to Stage 1 | (254) | (248) | |
Transfers to Stage 2 | 321 | 192 | |
Transfers to Stage 3 | (337) | (126) | |
Business activity during the year | 150 | 34 | |
Net remeasurement of provision for ECL | 982 | 62 | |
Exchange rate and other adjustments | (3) | 3 | |
Balance at the end of the year | 1,720 | 861 | |
Non-performing - Stage 3 | |||
Reconciliation of provisions for Expected Credit Losses on loans and credit commitments | |||
Balance at the beginning of the year | 1,349 | ||
Balance at the end of the year | 2,163 | 1,349 | |
Non-performing - Stage 3 | Provisions for ECL on loans and credit commitments | |||
Reconciliation of provisions for Expected Credit Losses on loans and credit commitments | |||
Balance at the beginning of the year | 1,355 | ||
Restatement for adoption of AASB 9 | 1,272 | ||
Restated at the beginning of the year | 1,272 | ||
Transfers to Stage 1 | (50) | (54) | |
Transfers to Stage 2 | (816) | (714) | |
Transfers to Stage 3 | 962 | 626 | |
Business activity during the year | (77) | (330) | |
Net remeasurement of provision for ECL | 1,915 | 1,647 | |
Write-offs | (1,170) | (1,154) | |
Exchange rate and other adjustments | 54 | 62 | |
Balance at the end of the year | 2,173 | 1,355 | |
Non-performing - Stage 3 | Provisions for ECL on loans and credit commitments | Collectively assessed | |||
Reconciliation of provisions for Expected Credit Losses on loans and credit commitments | |||
Balance at the beginning of the year | 943 | ||
Balance at the end of the year | 1,562 | 943 | |
Non-performing - Stage 3 | Provisions for ECL on loans and credit commitments | Individually assessed | |||
Reconciliation of provisions for Expected Credit Losses on loans and credit commitments | |||
Balance at the beginning of the year | 412 | ||
Balance at the end of the year | 611 | 412 | |
Non-performing - Stage 3 | Provisions for ECL on loans and credit commitments | Housing | |||
Reconciliation of provisions for Expected Credit Losses on loans and credit commitments | |||
Balance at the beginning of the year | 591 | ||
Restatement for adoption of AASB 9 | 501 | ||
Restated at the beginning of the year | 501 | ||
Transfers to Stage 1 | (24) | (26) | |
Transfers to Stage 2 | (404) | (358) | |
Transfers to Stage 3 | 276 | 145 | |
Business activity during the year | (142) | (141) | |
Net remeasurement of provision for ECL | 772 | 567 | |
Write-offs | (120) | (119) | |
Exchange rate and other adjustments | 28 | 22 | |
Balance at the end of the year | 977 | 591 | |
Non-performing - Stage 3 | Provisions for ECL on loans and credit commitments | Personal | |||
Reconciliation of provisions for Expected Credit Losses on loans and credit commitments | |||
Balance at the beginning of the year | 248 | ||
Restatement for adoption of AASB 9 | 240 | ||
Restated at the beginning of the year | 240 | ||
Transfers to Stage 1 | (12) | (10) | |
Transfers to Stage 2 | (214) | (220) | |
Transfers to Stage 3 | 343 | 352 | |
Business activity during the year | (50) | (160) | |
Net remeasurement of provision for ECL | 617 | 838 | |
Write-offs | (728) | (822) | |
Exchange rate and other adjustments | 28 | 30 | |
Balance at the end of the year | 232 | 248 | |
Non-performing - Stage 3 | Provisions for ECL on loans and credit commitments | Business | |||
Reconciliation of provisions for Expected Credit Losses on loans and credit commitments | |||
Balance at the beginning of the year | 516 | ||
Restatement for adoption of AASB 9 | 531 | ||
Restated at the beginning of the year | 531 | ||
Transfers to Stage 1 | (14) | (18) | |
Transfers to Stage 2 | (198) | (136) | |
Transfers to Stage 3 | 343 | 129 | |
Business activity during the year | 115 | (29) | |
Net remeasurement of provision for ECL | 526 | 242 | |
Write-offs | (322) | (213) | |
Exchange rate and other adjustments | (2) | 10 | |
Balance at the end of the year | 964 | 516 | |
Parent Entity | |||
Reconciliation of provisions for Expected Credit Losses on loans and credit commitments | |||
Business activity during the year | 207 | (183) | |
Net remeasurement of provision for ECL | 2,655 | 1,076 | |
Parent Entity | Provisions for ECL on loans and credit commitments | |||
Reconciliation of provisions for Expected Credit Losses on loans and credit commitments | |||
Balance at the beginning of the year | 3,378 | 2,613 | |
Restatement for adoption of AASB 9 | 846 | ||
Restated at the beginning of the year | 3,459 | ||
Business activity during the year | 207 | (183) | |
Net remeasurement of provision for ECL | 2,655 | 1,076 | |
Write-offs | (1,105) | (1,023) | |
Exchange rate and other adjustments | 37 | 49 | |
Balance at the end of the year | 5,172 | 3,378 | |
Parent Entity | Provisions for ECL on loans and credit commitments | Collectively assessed | |||
Reconciliation of provisions for Expected Credit Losses on loans and credit commitments | |||
Balance at the beginning of the year | 3,014 | 2,238 | |
Restatement for adoption of AASB 9 | (2,238) | ||
Balance at the end of the year | 4,652 | 3,014 | |
Parent Entity | Provisions for ECL on loans and credit commitments | Individually assessed | |||
Reconciliation of provisions for Expected Credit Losses on loans and credit commitments | |||
Balance at the beginning of the year | 364 | 375 | |
Restatement for adoption of AASB 9 | (375) | ||
Balance at the end of the year | 520 | 364 | |
Parent Entity | Provisions for ECL on loans and credit commitments | Housing | |||
Reconciliation of provisions for Expected Credit Losses on loans and credit commitments | |||
Balance at the beginning of the year | 1,033 | 598 | |
Restatement for adoption of AASB 9 | 243 | ||
Restated at the beginning of the year | 841 | ||
Business activity during the year | (154) | (145) | |
Net remeasurement of provision for ECL | 895 | 432 | |
Write-offs | (111) | (115) | |
Exchange rate and other adjustments | 25 | 20 | |
Balance at the end of the year | 1,688 | 1,033 | |
Parent Entity | Provisions for ECL on loans and credit commitments | Housing | Collectively assessed | |||
Reconciliation of provisions for Expected Credit Losses on loans and credit commitments | |||
Balance at the beginning of the year | 516 | ||
Restatement for adoption of AASB 9 | (516) | ||
Parent Entity | Provisions for ECL on loans and credit commitments | Housing | Individually assessed | |||
Reconciliation of provisions for Expected Credit Losses on loans and credit commitments | |||
Balance at the beginning of the year | 82 | ||
Restatement for adoption of AASB 9 | (82) | ||
Parent Entity | Provisions for ECL on loans and credit commitments | Personal | |||
Reconciliation of provisions for Expected Credit Losses on loans and credit commitments | |||
Balance at the beginning of the year | 843 | 527 | |
Restatement for adoption of AASB 9 | 428 | ||
Restated at the beginning of the year | 955 | ||
Business activity during the year | (38) | (107) | |
Net remeasurement of provision for ECL | 584 | 706 | |
Write-offs | (699) | (733) | |
Exchange rate and other adjustments | 25 | 22 | |
Balance at the end of the year | 715 | 843 | |
Parent Entity | Provisions for ECL on loans and credit commitments | Personal | Collectively assessed | |||
Reconciliation of provisions for Expected Credit Losses on loans and credit commitments | |||
Balance at the beginning of the year | 524 | ||
Restatement for adoption of AASB 9 | (524) | ||
Parent Entity | Provisions for ECL on loans and credit commitments | Personal | Individually assessed | |||
Reconciliation of provisions for Expected Credit Losses on loans and credit commitments | |||
Balance at the beginning of the year | 3 | ||
Restatement for adoption of AASB 9 | (3) | ||
Parent Entity | Provisions for ECL on loans and credit commitments | Business | |||
Reconciliation of provisions for Expected Credit Losses on loans and credit commitments | |||
Balance at the beginning of the year | 1,502 | 1,488 | |
Restatement for adoption of AASB 9 | 175 | ||
Restated at the beginning of the year | 1,663 | ||
Business activity during the year | 399 | 69 | |
Net remeasurement of provision for ECL | 1,176 | (62) | |
Write-offs | (295) | (175) | |
Exchange rate and other adjustments | (13) | 7 | |
Balance at the end of the year | 2,769 | 1,502 | |
Parent Entity | Provisions for ECL on loans and credit commitments | Business | Collectively assessed | |||
Reconciliation of provisions for Expected Credit Losses on loans and credit commitments | |||
Balance at the beginning of the year | 1,198 | ||
Restatement for adoption of AASB 9 | (1,198) | ||
Parent Entity | Provisions for ECL on loans and credit commitments | Business | Individually assessed | |||
Reconciliation of provisions for Expected Credit Losses on loans and credit commitments | |||
Balance at the beginning of the year | 290 | ||
Restatement for adoption of AASB 9 | (290) | ||
Parent Entity | Performing - Stage 1 | Provisions for ECL on loans and credit commitments | |||
Reconciliation of provisions for Expected Credit Losses on loans and credit commitments | |||
Balance at the beginning of the year | 747 | ||
Restatement for adoption of AASB 9 | 741 | ||
Restated at the beginning of the year | 741 | ||
Transfers to Stage 1 | 1,150 | 1,191 | |
Transfers to Stage 2 | (266) | (220) | |
Transfers to Stage 3 | (6) | (3) | |
Business activity during the year | 188 | 168 | |
Net remeasurement of provision for ECL | (897) | (1,130) | |
Exchange rate and other adjustments | (3) | ||
Balance at the end of the year | 913 | 747 | |
Parent Entity | Performing - Stage 1 | Provisions for ECL on loans and credit commitments | Collectively assessed | |||
Reconciliation of provisions for Expected Credit Losses on loans and credit commitments | |||
Balance at the beginning of the year | 747 | ||
Balance at the end of the year | 913 | 747 | |
Parent Entity | Performing - Stage 1 | Provisions for ECL on loans and credit commitments | Housing | |||
Reconciliation of provisions for Expected Credit Losses on loans and credit commitments | |||
Balance at the beginning of the year | 141 | ||
Restatement for adoption of AASB 9 | 105 | ||
Restated at the beginning of the year | 105 | ||
Transfers to Stage 1 | 376 | 322 | |
Transfers to Stage 2 | (44) | (36) | |
Business activity during the year | 19 | 15 | |
Net remeasurement of provision for ECL | (343) | (265) | |
Balance at the end of the year | 149 | 141 | |
Parent Entity | Performing - Stage 1 | Provisions for ECL on loans and credit commitments | Personal | |||
Reconciliation of provisions for Expected Credit Losses on loans and credit commitments | |||
Balance at the beginning of the year | 229 | ||
Restatement for adoption of AASB 9 | 215 | ||
Restated at the beginning of the year | 215 | ||
Transfers to Stage 1 | 549 | 635 | |
Transfers to Stage 2 | (131) | (138) | |
Transfers to Stage 3 | (1) | (1) | |
Business activity during the year | 36 | 62 | |
Net remeasurement of provision for ECL | (492) | (544) | |
Balance at the end of the year | 190 | 229 | |
Parent Entity | Performing - Stage 1 | Provisions for ECL on loans and credit commitments | Business | |||
Reconciliation of provisions for Expected Credit Losses on loans and credit commitments | |||
Balance at the beginning of the year | 377 | ||
Restatement for adoption of AASB 9 | 421 | ||
Restated at the beginning of the year | 421 | ||
Transfers to Stage 1 | 225 | 234 | |
Transfers to Stage 2 | (91) | (46) | |
Transfers to Stage 3 | (5) | (2) | |
Business activity during the year | 133 | 91 | |
Net remeasurement of provision for ECL | (62) | (321) | |
Exchange rate and other adjustments | (3) | ||
Balance at the end of the year | 574 | 377 | |
Parent Entity | Performing - Stage 2 | Provisions for ECL on loans and credit commitments | |||
Reconciliation of provisions for Expected Credit Losses on loans and credit commitments | |||
Balance at the beginning of the year | 1,420 | ||
Restatement for adoption of AASB 9 | 1,605 | ||
Restated at the beginning of the year | 1,605 | ||
Transfers to Stage 1 | (1,125) | (1,153) | |
Transfers to Stage 2 | 930 | 860 | |
Transfers to Stage 3 | (773) | (554) | |
Business activity during the year | 64 | 7 | |
Net remeasurement of provision for ECL | 1,880 | 654 | |
Exchange rate and other adjustments | (6) | 1 | |
Balance at the end of the year | 2,390 | 1,420 | |
Parent Entity | Performing - Stage 2 | Provisions for ECL on loans and credit commitments | Collectively assessed | |||
Reconciliation of provisions for Expected Credit Losses on loans and credit commitments | |||
Balance at the beginning of the year | 1,420 | ||
Balance at the end of the year | 2,390 | 1,420 | |
Parent Entity | Performing - Stage 2 | Provisions for ECL on loans and credit commitments | Housing | |||
Reconciliation of provisions for Expected Credit Losses on loans and credit commitments | |||
Balance at the beginning of the year | 335 | ||
Restatement for adoption of AASB 9 | 334 | ||
Restated at the beginning of the year | 334 | ||
Transfers to Stage 1 | (365) | (302) | |
Transfers to Stage 2 | 391 | 386 | |
Transfers to Stage 3 | (233) | (141) | |
Business activity during the year | (45) | (33) | |
Net remeasurement of provision for ECL | 552 | 91 | |
Balance at the end of the year | 635 | 335 | |
Parent Entity | Performing - Stage 2 | Provisions for ECL on loans and credit commitments | Personal | |||
Reconciliation of provisions for Expected Credit Losses on loans and credit commitments | |||
Balance at the beginning of the year | 401 | ||
Restatement for adoption of AASB 9 | 540 | ||
Restated at the beginning of the year | 540 | ||
Transfers to Stage 1 | (547) | (633) | |
Transfers to Stage 2 | 313 | 319 | |
Transfers to Stage 3 | (307) | (311) | |
Business activity during the year | (31) | (11) | |
Net remeasurement of provision for ECL | 503 | 497 | |
Balance at the end of the year | 332 | 401 | |
Parent Entity | Performing - Stage 2 | Provisions for ECL on loans and credit commitments | Business | |||
Reconciliation of provisions for Expected Credit Losses on loans and credit commitments | |||
Balance at the beginning of the year | 684 | ||
Restatement for adoption of AASB 9 | 731 | ||
Restated at the beginning of the year | 731 | ||
Transfers to Stage 1 | (213) | (218) | |
Transfers to Stage 2 | 226 | 155 | |
Transfers to Stage 3 | (233) | (102) | |
Business activity during the year | 140 | 51 | |
Net remeasurement of provision for ECL | 825 | 66 | |
Exchange rate and other adjustments | (6) | 1 | |
Balance at the end of the year | 1,423 | 684 | |
Parent Entity | Non-performing - Stage 3 | Provisions for ECL on loans and credit commitments | |||
Reconciliation of provisions for Expected Credit Losses on loans and credit commitments | |||
Balance at the beginning of the year | 1,211 | ||
Restatement for adoption of AASB 9 | 1,113 | ||
Restated at the beginning of the year | 1,113 | ||
Transfers to Stage 1 | (25) | (38) | |
Transfers to Stage 2 | (664) | (640) | |
Transfers to Stage 3 | 779 | 557 | |
Business activity during the year | (45) | (358) | |
Net remeasurement of provision for ECL | 1,672 | 1,552 | |
Write-offs | (1,105) | (1,023) | |
Exchange rate and other adjustments | 46 | 48 | |
Balance at the end of the year | 1,869 | 1,211 | |
Parent Entity | Non-performing - Stage 3 | Provisions for ECL on loans and credit commitments | Collectively assessed | |||
Reconciliation of provisions for Expected Credit Losses on loans and credit commitments | |||
Balance at the beginning of the year | 847 | ||
Balance at the end of the year | 1,349 | 847 | |
Parent Entity | Non-performing - Stage 3 | Provisions for ECL on loans and credit commitments | Individually assessed | |||
Reconciliation of provisions for Expected Credit Losses on loans and credit commitments | |||
Balance at the beginning of the year | 364 | ||
Balance at the end of the year | 520 | 364 | |
Parent Entity | Non-performing - Stage 3 | Provisions for ECL on loans and credit commitments | Housing | |||
Reconciliation of provisions for Expected Credit Losses on loans and credit commitments | |||
Balance at the beginning of the year | 557 | ||
Restatement for adoption of AASB 9 | 402 | ||
Restated at the beginning of the year | 402 | ||
Transfers to Stage 1 | (11) | (20) | |
Transfers to Stage 2 | (347) | (350) | |
Transfers to Stage 3 | 233 | 141 | |
Business activity during the year | (128) | (127) | |
Net remeasurement of provision for ECL | 686 | 606 | |
Write-offs | (111) | (115) | |
Exchange rate and other adjustments | 25 | 20 | |
Balance at the end of the year | 904 | 557 | |
Parent Entity | Non-performing - Stage 3 | Provisions for ECL on loans and credit commitments | Personal | |||
Reconciliation of provisions for Expected Credit Losses on loans and credit commitments | |||
Balance at the beginning of the year | 213 | ||
Restatement for adoption of AASB 9 | 200 | ||
Restated at the beginning of the year | 200 | ||
Transfers to Stage 1 | (2) | (2) | |
Transfers to Stage 2 | (182) | (181) | |
Transfers to Stage 3 | 308 | 312 | |
Business activity during the year | (43) | (158) | |
Net remeasurement of provision for ECL | 573 | 753 | |
Write-offs | (699) | (733) | |
Exchange rate and other adjustments | 25 | 22 | |
Balance at the end of the year | 193 | 213 | |
Parent Entity | Non-performing - Stage 3 | Provisions for ECL on loans and credit commitments | Business | |||
Reconciliation of provisions for Expected Credit Losses on loans and credit commitments | |||
Balance at the beginning of the year | 441 | ||
Restatement for adoption of AASB 9 | 511 | ||
Restated at the beginning of the year | $ 511 | ||
Transfers to Stage 1 | (12) | (16) | |
Transfers to Stage 2 | (135) | (109) | |
Transfers to Stage 3 | 238 | 104 | |
Business activity during the year | 126 | (73) | |
Net remeasurement of provision for ECL | 413 | 193 | |
Write-offs | (295) | (175) | |
Exchange rate and other adjustments | (4) | 6 | |
Balance at the end of the year | $ 772 | $ 441 |
Provisions for expected credi_5
Provisions for expected credit losses/impairment charges - Reconciliation of impairment charges (Details) - AUD ($) $ in Millions | 12 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Reconciliation of impairment charges | |||||
Recoveries | $ (193) | $ (172) | $ (179) | $ (168) | $ (137) |
Impairment charges | 3,178 | 794 | $ 710 | ||
Impairment charges for debt securities at amortised cost | |||||
Reconciliation of impairment charges | |||||
Impairment | 18 | ||||
Impairment charges for debt securities at FVOCI | |||||
Reconciliation of impairment charges | |||||
Impairment | 2 | ||||
Loans and credit commitments | |||||
Reconciliation of impairment charges | |||||
Business activity during the year | 195 | (170) | |||
Net remeasurement of provision for ECL | 3,156 | 1,136 | |||
Parent Entity | |||||
Reconciliation of impairment charges | |||||
Recoveries | (173) | (143) | |||
Impairment charges | 2,691 | 750 | |||
Parent Entity | Impairment charges for debt securities at FVOCI | |||||
Reconciliation of impairment charges | |||||
Impairment | 2 | ||||
Parent Entity | Loans and credit commitments | |||||
Reconciliation of impairment charges | |||||
Business activity during the year | 207 | (183) | |||
Net remeasurement of provision for ECL | $ 2,655 | $ 1,076 |
Provisions for expected credi_6
Provisions for expected credit losses/impairment charges - Impact of COVID-19 (Details) $ in Millions | 12 Months Ended | |
Sep. 30, 2020AUD ($)item | Sep. 30, 2019AUD ($)item | |
Provisions for expected credit losses | ||
Modelled provision for ECL | $ 5,480 | $ 3,801 |
Overlays | 652 | 112 |
Total net remeasurement of the provision for ECL | 6,132 | $ 3,913 |
COVID-19 overlay | $ 577 | |
Small business retail and transaction managed customers | ||
Provisions for expected credit losses | ||
Number of customers with COVID-19 relief packages | item | 10,000,000 | |
Retail lending | ||
Provisions for expected credit losses | ||
Amount of risk exposure | $ 7,500 | |
High risk industries | Business lending | ||
Provisions for expected credit losses | ||
Amount of risk exposure | $ 2,400 | |
Upside scenario | ||
Provisions for expected credit losses | ||
Percentage of weight assigned to scenario | 5.00% | 10.00% |
Base case scenario | ||
Provisions for expected credit losses | ||
Percentage of weight assigned to scenario | 55.00% | 62.50% |
Base case scenario | Calendar year 2021 | ||
Provisions for expected credit losses | ||
Percentage of Annual GDP growth | 2.50% | |
Percentage of price contraction forecasted for commercial property index | (19.30%) | |
Percentage of price contraction forecasted for residential property prices | (0.40%) | |
Cash rate, basis points | item | 10 | |
Base case scenario | Over the next 12 months | ||
Provisions for expected credit losses | ||
Percentage of Annual GDP growth | 2.50% | |
Reduction in the rate of growth for commercial property index | (1.10%) | |
Percentage of growth in residential property prices | 1.00% | |
Reduction in basis points, cash rate | item | (50) | |
Base case scenario | Australia | Over the next 12 months | ||
Provisions for expected credit losses | ||
Unemployment rate | 5.60% | |
Base case scenario | Australia | February 2021 | ||
Provisions for expected credit losses | ||
Unemployment rate | 7.90% | |
Base case scenario | Australia | December 2021 | ||
Provisions for expected credit losses | ||
Unemployment rate | 7.50% | |
Base case scenario | New Zealand | Over the next 12 months | ||
Provisions for expected credit losses | ||
Reduction in basis points, unemployment rate | item | (50) | |
Base case scenario | New Zealand | December 2020 | ||
Provisions for expected credit losses | ||
Unemployment rate | 7.00% | |
Base case scenario | New Zealand | December 2021 | ||
Provisions for expected credit losses | ||
Unemployment rate | 6.40% | |
Downside scenario | ||
Provisions for expected credit losses | ||
Percentage of weight assigned to scenario | 40.00% | 27.50% |
Stage 2 provisions | Retail lending | ||
Provisions for expected credit losses | ||
COVID-19 overlay | $ 354 | |
Stage 2 provisions | High risk industries | ||
Provisions for expected credit losses | ||
COVID-19 overlay | 223 | |
Provision for ECL | Reported probability-weighted ECL | ||
Provisions for expected credit losses | ||
Adjustment to ECL based on probability weighted scenario | 6,132 | $ 3,913 |
Provision for ECL | 100% base case ECL | ||
Provisions for expected credit losses | ||
Adjustment to ECL based on probability weighted scenario | 4,750 | 2,748 |
Provision for ECL | 100% downside ECL | ||
Provisions for expected credit losses | ||
Adjustment to ECL based on probability weighted scenario | 8,315 | 7,065 |
Parent Entity | ||
Provisions for expected credit losses | ||
Modelled provision for ECL | 4,659 | 3,266 |
Overlays | 513 | 112 |
Total net remeasurement of the provision for ECL | 5,172 | $ 3,378 |
Parent Entity | Retail lending | ||
Provisions for expected credit losses | ||
Amount of risk exposure | 5,700 | |
Parent Entity | High risk industries | Business lending | ||
Provisions for expected credit losses | ||
Amount of risk exposure | $ 1,300 | |
Parent Entity | Upside scenario | ||
Provisions for expected credit losses | ||
Percentage of weight assigned to scenario | 5.00% | 10.00% |
Parent Entity | Base case scenario | ||
Provisions for expected credit losses | ||
Percentage of weight assigned to scenario | 55.00% | 62.50% |
Parent Entity | Downside scenario | ||
Provisions for expected credit losses | ||
Percentage of weight assigned to scenario | 40.00% | 27.50% |
Parent Entity | Stage 2 provisions | Retail lending | ||
Provisions for expected credit losses | ||
COVID-19 overlay | $ 298 | |
Parent Entity | Stage 2 provisions | High risk industries | ||
Provisions for expected credit losses | ||
COVID-19 overlay | 140 | |
Parent Entity | Provision for ECL | Reported probability-weighted ECL | ||
Provisions for expected credit losses | ||
Adjustment to ECL based on probability weighted scenario | 5,172 | $ 3,378 |
Parent Entity | Provision for ECL | 100% base case ECL | ||
Provisions for expected credit losses | ||
Adjustment to ECL based on probability weighted scenario | 4,051 | 2,387 |
Parent Entity | Provision for ECL | 100% downside ECL | ||
Provisions for expected credit losses | ||
Adjustment to ECL based on probability weighted scenario | $ 6,956 | $ 6,067 |
Provisions for expected credi_7
Provisions for expected credit losses/impairment charges - Impact of changes in credit exposures on the provision for ECL (Details) - AUD ($) $ in Billions | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Performing - Stage 1 | ||
Provisions for expected credit losses | ||
Net increase (decrease) in exposure to credit risk from loans due to transfers between stages | $ (52.9) | $ 7.6 |
Increase (decrease) to due to staging methodology changes | (31.3) | |
Performing - Stage 2 | ||
Provisions for expected credit losses | ||
Net increase (decrease) in exposure to credit risk from loans due to transfers between stages | 34.3 | (2.1) |
Increase (decrease) to due to staging methodology changes | 31.3 | |
Non-performing - Stage 3 | ||
Provisions for expected credit losses | ||
Net increase (decrease) in exposure to credit risk from loans due to transfers between stages | 4.5 | 0.9 |
Parent Entity | Performing - Stage 1 | ||
Provisions for expected credit losses | ||
Net increase (decrease) in exposure to credit risk from loans due to transfers between stages | (51.9) | 4.1 |
Parent Entity | Performing - Stage 2 | ||
Provisions for expected credit losses | ||
Net increase (decrease) in exposure to credit risk from loans due to transfers between stages | 34.3 | (2.1) |
Parent Entity | Non-performing - Stage 3 | ||
Provisions for expected credit losses | ||
Net increase (decrease) in exposure to credit risk from loans due to transfers between stages | $ 4.5 | $ 0.9 |
Provisions for expected credi_8
Provisions for expected credit losses/impairment charges - COVID-19 deferral packages (Details) $ in Millions | 12 Months Ended |
Sep. 30, 2020AUD ($) | |
Provisions for expected credit losses | |
Increase (decrease) to modifications on assumption that the balance of Stage 1 was moved to Stage 2 | $ 900 |
Amounts moved from Stage 2/3 to Stage 1 | 700 |
Performing - Stage 1 | |
Provisions for expected credit losses | |
Gross loans | 21,475 |
Provision for ECL on loans | (42) |
Performing - Stage 2 | |
Provisions for expected credit losses | |
Gross loans | 13,949 |
Provision for ECL on loans | (612) |
Non-performing - Stage 3 | |
Provisions for expected credit losses | |
Gross loans | 200 |
Provision for ECL on loans | (36) |
Stages 2 and 3 | |
Provisions for expected credit losses | |
Gross loans | 4,000 |
Housing | |
Provisions for expected credit losses | |
Gross loans | 29,957 |
Provision for ECL on loans | (400) |
Housing | Performing - Stage 1 | |
Provisions for expected credit losses | |
Gross loans | 18,053 |
Provision for ECL on loans | (17) |
Housing | Performing - Stage 2 | |
Provisions for expected credit losses | |
Gross loans | 11,811 |
Provision for ECL on loans | (371) |
Housing | Non-performing - Stage 3 | |
Provisions for expected credit losses | |
Gross loans | 93 |
Provision for ECL on loans | (12) |
Personal | |
Provisions for expected credit losses | |
Gross loans | 426 |
Provision for ECL on loans | (73) |
Personal | Performing - Stage 1 | |
Provisions for expected credit losses | |
Gross loans | 275 |
Provision for ECL on loans | (8) |
Personal | Performing - Stage 2 | |
Provisions for expected credit losses | |
Gross loans | 145 |
Provision for ECL on loans | (60) |
Personal | Non-performing - Stage 3 | |
Provisions for expected credit losses | |
Gross loans | 6 |
Provision for ECL on loans | (5) |
Business | |
Provisions for expected credit losses | |
Gross loans | 5,241 |
Provision for ECL on loans | (217) |
Business | Performing - Stage 1 | |
Provisions for expected credit losses | |
Gross loans | 3,147 |
Provision for ECL on loans | (17) |
Business | Performing - Stage 2 | |
Provisions for expected credit losses | |
Gross loans | 1,993 |
Provision for ECL on loans | (181) |
Business | Non-performing - Stage 3 | |
Provisions for expected credit losses | |
Gross loans | 101 |
Provision for ECL on loans | (19) |
Parent Entity | |
Provisions for expected credit losses | |
Increase (decrease) to modifications on assumption that the balance of Stage 1 was moved to Stage 2 | 800 |
Parent Entity | Performing - Stage 1 | |
Provisions for expected credit losses | |
Gross loans | 18,059 |
Provision for ECL on loans | (35) |
Parent Entity | Performing - Stage 2 | |
Provisions for expected credit losses | |
Gross loans | 12,738 |
Provision for ECL on loans | (569) |
Parent Entity | Non-performing - Stage 3 | |
Provisions for expected credit losses | |
Gross loans | 127 |
Provision for ECL on loans | (18) |
Parent Entity | Housing | |
Provisions for expected credit losses | |
Gross loans | 25,795 |
Provision for ECL on loans | (354) |
Parent Entity | Housing | Performing - Stage 1 | |
Provisions for expected credit losses | |
Gross loans | 14,970 |
Provision for ECL on loans | (11) |
Parent Entity | Housing | Performing - Stage 2 | |
Provisions for expected credit losses | |
Gross loans | 10,779 |
Provision for ECL on loans | (339) |
Parent Entity | Housing | Non-performing - Stage 3 | |
Provisions for expected credit losses | |
Gross loans | 46 |
Provision for ECL on loans | (4) |
Parent Entity | Personal | |
Provisions for expected credit losses | |
Gross loans | 366 |
Provision for ECL on loans | (60) |
Parent Entity | Personal | Performing - Stage 1 | |
Provisions for expected credit losses | |
Gross loans | 243 |
Provision for ECL on loans | (7) |
Parent Entity | Personal | Performing - Stage 2 | |
Provisions for expected credit losses | |
Gross loans | 120 |
Provision for ECL on loans | (51) |
Parent Entity | Personal | Non-performing - Stage 3 | |
Provisions for expected credit losses | |
Gross loans | 3 |
Provision for ECL on loans | (2) |
Parent Entity | Business | |
Provisions for expected credit losses | |
Gross loans | 4,763 |
Provision for ECL on loans | (208) |
Parent Entity | Business | Performing - Stage 1 | |
Provisions for expected credit losses | |
Gross loans | 2,846 |
Provision for ECL on loans | (17) |
Parent Entity | Business | Performing - Stage 2 | |
Provisions for expected credit losses | |
Gross loans | 1,839 |
Provision for ECL on loans | (179) |
Parent Entity | Business | Non-performing - Stage 3 | |
Provisions for expected credit losses | |
Gross loans | 78 |
Provision for ECL on loans | $ (12) |
Provisions for expected credi_9
Provisions for expected credit losses/impairment charges - Debt securities (Details) - Provision for ECL - Debt Securities - AUD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Oct. 01, 2018 | |
Provisions for expected credit losses | |||
Balance at the beginning of the year | $ 11 | $ 0 | |
Restatement for adoption of AASB 9 | $ 11 | ||
Restated at the beginning of the year | 11 | ||
Stage 1 - change in the provision during the year | (7) | 0 | |
Stage 2 - change in the provision during the year | 27 | ||
Balance at the end of the year | 31 | 11 | |
FVOCI | |||
Provisions for expected credit losses | |||
Balance at the beginning of the year | 2 | 0 | |
Restatement for adoption of AASB 9 | 2 | ||
Restated at the beginning of the year | 2 | ||
Stage 1 - change in the provision during the year | 2 | 0 | |
Balance at the end of the year | 4 | 2 | |
Amortised cost | |||
Provisions for expected credit losses | |||
Balance at the beginning of the year | 9 | 0 | |
Restatement for adoption of AASB 9 | 9 | ||
Restated at the beginning of the year | 9 | ||
Stage 1 - change in the provision during the year | (9) | 0 | |
Stage 2 - change in the provision during the year | 27 | ||
Balance at the end of the year | 27 | 9 | |
Parent Entity | |||
Provisions for expected credit losses | |||
Balance at the beginning of the year | 2 | 0 | |
Restatement for adoption of AASB 9 | 2 | ||
Restated at the beginning of the year | 2 | ||
Stage 1 - change in the provision during the year | 2 | ||
Balance at the end of the year | 4 | 2 | |
Parent Entity | FVOCI | |||
Provisions for expected credit losses | |||
Balance at the beginning of the year | 2 | 0 | |
Restatement for adoption of AASB 9 | 2 | ||
Restated at the beginning of the year | 2 | ||
Stage 1 - change in the provision during the year | 2 | ||
Balance at the end of the year | 4 | 2 | |
Parent Entity | Amortised cost | |||
Provisions for expected credit losses | |||
Balance at the beginning of the year | $ 0 | 0 | |
Restatement for adoption of AASB 9 | 0 | ||
Restated at the beginning of the year | $ 0 | ||
Balance at the end of the year | $ 0 |
Provisions for expected cred_10
Provisions for expected credit losses/impairment charges - Reconciliation of provision for impairment charges (Details) - AUD ($) $ in Millions | 12 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Reconciliation of provision for impairment charges AASB 139 | |||||
Balance as at beginning of year | $ 3,913 | $ 3,053 | $ 3,119 | $ 3,602 | |
Write-offs | (1,170) | (1,154) | (1,127) | (1,656) | $ (1,189) |
Balance as at end of year | $ 6,132 | 3,913 | 3,053 | 3,119 | $ 3,602 |
Loans and credit commitments | |||||
Reconciliation of provision for impairment charges AASB 139 | |||||
Balance as at beginning of year | 3,053 | ||||
Balance as at end of year | 3,053 | ||||
Loans and credit commitments | Individually assessed | |||||
Reconciliation of provision for impairment charges AASB 139 | |||||
Balance as at beginning of year | 422 | 480 | |||
Provisions raised | 371 | ||||
Write-backs | (150) | ||||
Write-offs | (269) | ||||
Interest adjustment | (11) | ||||
Other adjustments | 1 | ||||
Balance as at end of year | 422 | 480 | |||
Loans and credit commitments | Collectively assessed | |||||
Reconciliation of provision for impairment charges AASB 139 | |||||
Balance as at beginning of year | 2,631 | 2,639 | |||
Provisions raised | 668 | ||||
Write-offs | (858) | ||||
Interest adjustment | 179 | ||||
Other adjustments | 3 | ||||
Balance as at end of year | 2,631 | $ 2,639 | |||
Loans | |||||
Reconciliation of provision for impairment charges AASB 139 | |||||
Balance as at beginning of year | 2,814 | ||||
Balance as at end of year | 2,814 | ||||
Credit commitments | |||||
Reconciliation of provision for impairment charges AASB 139 | |||||
Balance as at beginning of year | $ 239 | ||||
Balance as at end of year | $ 239 |
Provisions for expected cred_11
Provisions for expected credit losses/impairment charges - Provisions, write-offs and recoveries by industry classification (Details) - AUD ($) $ in Millions | 12 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Provisions, write-offs and recoveries by industry classification | |||||
Provisions for ECL/impairment | $ 6,132 | $ 3,913 | $ 3,053 | $ 3,119 | $ 3,602 |
Percentage of provision for ECL/impairment | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% |
Write-offs | $ (1,170) | $ (1,154) | $ (1,127) | $ (1,656) | $ (1,189) |
Recoveries | 193 | 172 | 179 | 168 | 137 |
Net write-offs and recoveries | (977) | (982) | (948) | (1,488) | (1,052) |
Contractual amount outstanding of write-offs which remain subject to enforcement activity | 1,127 | 1,093 | |||
Australia | |||||
Provisions, write-offs and recoveries by industry classification | |||||
Provisions for ECL/impairment | $ 5,271 | $ 3,506 | $ 2,644 | $ 2,692 | $ 3,064 |
Percentage of provision for ECL/impairment | 86.00% | 89.60% | 86.60% | 86.30% | 85.10% |
Write-offs | $ (1,036) | $ (1,098) | $ (1,058) | $ (1,602) | $ (1,119) |
Recoveries | 178 | 154 | 155 | 149 | 131 |
Australia | Accommodation, cafes and restaurants | |||||
Provisions, write-offs and recoveries by industry classification | |||||
Provisions for ECL/impairment | $ 222 | $ 75 | $ 62 | $ 67 | $ 95 |
Percentage of provision for ECL/impairment | 3.60% | 1.90% | 2.00% | 2.10% | 2.70% |
Write-offs | $ (6) | $ (12) | $ (14) | $ (38) | $ (17) |
Recoveries | 1 | 1 | 3 | ||
Australia | Agriculture, forestry and fishing | |||||
Provisions, write-offs and recoveries by industry classification | |||||
Provisions for ECL/impairment | $ 153 | $ 93 | $ 69 | $ 59 | $ 74 |
Percentage of provision for ECL/impairment | 2.50% | 2.40% | 2.30% | 1.90% | 2.10% |
Write-offs | $ (13) | $ (4) | $ (12) | $ (10) | $ (12) |
Recoveries | 1 | ||||
Australia | Construction | |||||
Provisions, write-offs and recoveries by industry classification | |||||
Provisions for ECL/impairment | $ 268 | $ 148 | $ 93 | $ 86 | $ 86 |
Percentage of provision for ECL/impairment | 4.40% | 3.80% | 3.00% | 2.80% | 2.40% |
Write-offs | $ (16) | $ (13) | $ (23) | $ (30) | $ (20) |
Recoveries | 4 | 1 | 1 | 2 | 1 |
Australia | Finance and insurance | |||||
Provisions, write-offs and recoveries by industry classification | |||||
Provisions for ECL/impairment | $ 104 | $ 55 | $ 67 | $ 53 | $ 131 |
Percentage of provision for ECL/impairment | 1.70% | 1.40% | 2.20% | 1.70% | 3.70% |
Write-offs | $ (2) | $ (4) | $ (4) | $ (6) | $ (13) |
Recoveries | 2 | 1 | 1 | 34 | |
Australia | Manufacturing | |||||
Provisions, write-offs and recoveries by industry classification | |||||
Provisions for ECL/impairment | $ 193 | $ 111 | $ 196 | $ 164 | $ 278 |
Percentage of provision for ECL/impairment | 3.10% | 2.80% | 6.40% | 5.30% | 7.70% |
Write-offs | $ (14) | $ (12) | $ (12) | $ (105) | $ (21) |
Recoveries | 1 | 1 | 2 | 1 | |
Australia | Mining | |||||
Provisions, write-offs and recoveries by industry classification | |||||
Provisions for ECL/impairment | $ 67 | $ 36 | $ 91 | $ 131 | $ 246 |
Percentage of provision for ECL/impairment | 1.10% | 0.90% | 3.00% | 4.20% | 6.80% |
Write-offs | $ (4) | $ (1) | $ (14) | $ (46) | $ (18) |
Recoveries | 1 | 1 | |||
Australia | Property | |||||
Provisions, write-offs and recoveries by industry classification | |||||
Provisions for ECL/impairment | $ 378 | $ 216 | $ 204 | $ 240 | $ 287 |
Percentage of provision for ECL/impairment | 6.20% | 5.50% | 6.70% | 7.70% | 8.00% |
Write-offs | $ (49) | $ (31) | $ (39) | $ (76) | $ (44) |
Recoveries | 3 | 8 | 7 | 10 | 3 |
Australia | Property services and business services | |||||
Provisions, write-offs and recoveries by industry classification | |||||
Provisions for ECL/impairment | $ 394 | $ 230 | $ 128 | $ 155 | $ 216 |
Percentage of provision for ECL/impairment | 6.40% | 5.90% | 4.20% | 5.00% | 6.00% |
Write-offs | $ (16) | $ (24) | $ (44) | $ (203) | $ (43) |
Recoveries | 2 | 1 | 1 | 3 | 2 |
Australia | Services | |||||
Provisions, write-offs and recoveries by industry classification | |||||
Provisions for ECL/impairment | $ 289 | $ 175 | $ 137 | $ 126 | $ 116 |
Percentage of provision for ECL/impairment | 4.70% | 4.50% | 4.50% | 4.00% | 3.20% |
Write-offs | $ (6) | $ (7) | $ (24) | $ (97) | $ (36) |
Recoveries | 1 | 1 | 2 | ||
Australia | Trade | |||||
Provisions, write-offs and recoveries by industry classification | |||||
Provisions for ECL/impairment | $ 394 | $ 242 | $ 199 | $ 183 | $ 213 |
Percentage of provision for ECL/impairment | 6.40% | 6.20% | 6.50% | 5.90% | 5.90% |
Write-offs | $ (11) | $ (62) | $ (56) | $ (59) | $ (30) |
Recoveries | 5 | 2 | 2 | 3 | 1 |
Australia | Transport and storage | |||||
Provisions, write-offs and recoveries by industry classification | |||||
Provisions for ECL/impairment | $ 188 | $ 109 | $ 79 | $ 92 | $ 73 |
Percentage of provision for ECL/impairment | 3.10% | 2.80% | 2.60% | 2.90% | 2.00% |
Write-offs | $ (18) | $ (14) | $ (17) | $ (17) | $ (48) |
Recoveries | 1 | 1 | 1 | 1 | 1 |
Australia | Utilities | |||||
Provisions, write-offs and recoveries by industry classification | |||||
Provisions for ECL/impairment | $ 34 | $ 17 | $ 13 | $ 15 | $ 9 |
Percentage of provision for ECL/impairment | 0.60% | 0.40% | 0.40% | 0.50% | 0.20% |
Write-offs | $ (4) | $ (1) | $ (1) | $ (1) | |
Australia | Retail lending | |||||
Provisions, write-offs and recoveries by industry classification | |||||
Provisions for ECL/impairment | $ 2,396 | $ 1,890 | $ 1,200 | $ 1,229 | $ 1,102 |
Percentage of provision for ECL/impairment | 39.10% | 48.30% | 39.30% | 39.40% | 30.60% |
Write-offs | $ (873) | $ (903) | $ (793) | $ (898) | $ (803) |
Recoveries | 157 | 135 | 139 | 118 | 84 |
Australia | Other | |||||
Provisions, write-offs and recoveries by industry classification | |||||
Provisions for ECL/impairment | $ 191 | $ 109 | $ 106 | $ 92 | $ 138 |
Percentage of provision for ECL/impairment | 3.10% | 2.80% | 3.50% | 2.90% | 3.80% |
Write-offs | $ (4) | $ (10) | $ (5) | $ (17) | $ (13) |
Recoveries | 5 | 5 | 2 | ||
New Zealand | |||||
Provisions, write-offs and recoveries by industry classification | |||||
Provisions for ECL/impairment | $ 609 | $ 327 | $ 329 | $ 350 | $ 445 |
Percentage of provision for ECL/impairment | 9.90% | 8.40% | 10.80% | 11.20% | 12.40% |
Write-offs | $ (36) | $ (54) | $ (69) | $ (53) | $ (67) |
Recoveries | 15 | 18 | 24 | 19 | 6 |
New Zealand | Accommodation, cafes and restaurants | |||||
Provisions, write-offs and recoveries by industry classification | |||||
Provisions for ECL/impairment | $ 4 | $ 2 | $ 3 | $ 2 | $ 2 |
Percentage of provision for ECL/impairment | 0.10% | 0.10% | 0.10% | 0.10% | 0.10% |
New Zealand | Agriculture, forestry and fishing | |||||
Provisions, write-offs and recoveries by industry classification | |||||
Provisions for ECL/impairment | $ 110 | $ 67 | $ 77 | $ 93 | $ 120 |
Percentage of provision for ECL/impairment | 1.80% | 1.70% | 2.50% | 3.00% | 3.30% |
Write-offs | $ (2) | $ (1) | |||
New Zealand | Construction | |||||
Provisions, write-offs and recoveries by industry classification | |||||
Provisions for ECL/impairment | $ 12 | $ 9 | $ 16 | $ 9 | $ 9 |
Percentage of provision for ECL/impairment | 0.20% | 0.20% | 0.50% | 0.30% | 0.20% |
Write-offs | $ (1) | $ (1) | $ (1) | ||
New Zealand | Finance and insurance | |||||
Provisions, write-offs and recoveries by industry classification | |||||
Provisions for ECL/impairment | $ 2 | $ 2 | $ 3 | $ 3 | $ 4 |
Percentage of provision for ECL/impairment | 0.10% | 0.10% | 0.10% | 0.10% | |
New Zealand | Manufacturing | |||||
Provisions, write-offs and recoveries by industry classification | |||||
Provisions for ECL/impairment | $ 45 | $ 14 | $ 26 | $ 24 | $ 53 |
Percentage of provision for ECL/impairment | 0.70% | 0.40% | 0.90% | 0.80% | 1.50% |
New Zealand | Mining | |||||
Provisions, write-offs and recoveries by industry classification | |||||
Provisions for ECL/impairment | $ 1 | $ 1 | $ 15 | ||
Percentage of provision for ECL/impairment | 0.40% | ||||
New Zealand | Property | |||||
Provisions, write-offs and recoveries by industry classification | |||||
Provisions for ECL/impairment | $ 34 | $ 20 | $ 27 | $ 38 | $ 52 |
Percentage of provision for ECL/impairment | 0.60% | 0.50% | 0.90% | 1.20% | 1.40% |
Write-offs | $ (4) | $ (13) | $ (2) | $ (10) | |
New Zealand | Property services and business services | |||||
Provisions, write-offs and recoveries by industry classification | |||||
Provisions for ECL/impairment | $ 7 | $ 5 | $ 8 | $ 11 | $ 21 |
Percentage of provision for ECL/impairment | 0.10% | 0.10% | 0.20% | 0.30% | 0.60% |
Write-offs | $ (2) | ||||
New Zealand | Services | |||||
Provisions, write-offs and recoveries by industry classification | |||||
Provisions for ECL/impairment | $ 13 | $ 9 | $ 9 | $ 14 | $ 13 |
Percentage of provision for ECL/impairment | 0.20% | 0.20% | 0.30% | 0.40% | 0.40% |
Write-offs | $ (1) | ||||
New Zealand | Trade | |||||
Provisions, write-offs and recoveries by industry classification | |||||
Provisions for ECL/impairment | $ 16 | $ 15 | $ 21 | $ 17 | $ 18 |
Percentage of provision for ECL/impairment | 0.30% | 0.40% | 0.70% | 0.50% | 0.50% |
Write-offs | $ (1) | $ (2) | $ (1) | $ (1) | $ (1) |
New Zealand | Transport and storage | |||||
Provisions, write-offs and recoveries by industry classification | |||||
Provisions for ECL/impairment | $ 4 | $ 3 | $ 5 | $ 5 | $ 7 |
Percentage of provision for ECL/impairment | 0.10% | 0.10% | 0.20% | 0.20% | 0.20% |
New Zealand | Utilities | |||||
Provisions, write-offs and recoveries by industry classification | |||||
Provisions for ECL/impairment | $ 2 | $ 1 | $ 2 | $ 3 | $ 4 |
Percentage of provision for ECL/impairment | 0.10% | 0.10% | 0.10% | ||
New Zealand | Retail lending | |||||
Provisions, write-offs and recoveries by industry classification | |||||
Provisions for ECL/impairment | $ 352 | $ 173 | $ 130 | $ 130 | $ 125 |
Percentage of provision for ECL/impairment | 5.70% | 4.40% | 4.30% | 4.20% | 3.50% |
Write-offs | $ (31) | $ (50) | $ (53) | $ (49) | $ (51) |
New Zealand | Other | |||||
Provisions, write-offs and recoveries by industry classification | |||||
Provisions for ECL/impairment | $ 8 | $ 7 | 1 | $ 2 | |
Percentage of provision for ECL/impairment | 0.10% | 0.20% | 0.10% | ||
Write-offs | $ (1) | ||||
Other overseas | |||||
Provisions, write-offs and recoveries by industry classification | |||||
Provisions for ECL/impairment | $ 252 | $ 80 | $ 80 | $ 77 | $ 93 |
Percentage of provision for ECL/impairment | 4.10% | 2.00% | 2.60% | 2.50% | 2.50% |
Write-offs | $ (98) | $ (2) | $ (1) | $ (3) | |
Parent Entity | |||||
Provisions, write-offs and recoveries by industry classification | |||||
Recoveries | 173 | 143 | |||
Contractual amount outstanding of write-offs which remain subject to enforcement activity | $ 1,062 | $ 962 |
Other financial assets (Details
Other financial assets (Details) - AUD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 |
Other financial assets | ||
Accrued interest receivable | $ 905 | $ 1,144 |
Securities sold not delivered | 2,358 | 1,687 |
Trade debtors | 992 | 998 |
Interbank lending | 299 | 514 |
Clearing and settlement balances | 630 | 750 |
Accrued fees and commissions | 170 | 159 |
Other | 120 | 115 |
Total other financial assets | 5,474 | 5,367 |
Parent Entity | ||
Other financial assets | ||
Accrued interest receivable | 797 | 1,005 |
Securities sold not delivered | 2,352 | 1,668 |
Trade debtors | 502 | 517 |
Interbank lending | 295 | 510 |
Clearing and settlement balances | 558 | 706 |
Accrued fees and commissions | 117 | 95 |
Other | 124 | 114 |
Total other financial assets | $ 4,745 | $ 4,615 |
Life insurance assets and lif_3
Life insurance assets and life insurance liabilities - Assets (Details) - AUD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 |
Investments held directly and in unit trusts | ||
Life insurance assets | $ 3,593 | $ 9,367 |
Unit Trusts | ||
Investments held directly and in unit trusts | ||
Life insurance assets | 333 | 6,764 |
Equities | ||
Investments held directly and in unit trusts | ||
Life insurance assets | 989 | |
Debt Securities | ||
Investments held directly and in unit trusts | ||
Life insurance assets | 2,818 | 1,589 |
Loans and other assets | ||
Investments held directly and in unit trusts | ||
Life insurance assets | 442 | 25 |
Parent Entity | ||
Investments held directly and in unit trusts | ||
Life insurance assets | $ 0 |
Life insurance assets and lif_4
Life insurance assets and life insurance liabilities - Liabilities (Details) - AUD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Reconciliation of movements in policy liabilities | ||
Balance as at beginning of year | $ 7,377 | $ 7,597 |
Movements in policy liabilities reflected in the income statement | 559 | 516 |
Contract contributions recognised in policy liabilities | 368 | 898 |
Contract withdrawals recognised in policy liabilities | (8,322) | (1,218) |
Contract fees, expenses and tax recoveries | (44) | (73) |
Change in external unit holders of managed investment schemes | 1,458 | (343) |
Balance as at end of year | 1,396 | 7,377 |
Life investment contracts | ||
Reconciliation of movements in policy liabilities | ||
Balance as at beginning of year | 8,206 | 8,438 |
Movements in policy liabilities reflected in the income statement | 221 | 504 |
Contract contributions recognised in policy liabilities | 368 | 898 |
Contract withdrawals recognised in policy liabilities | (8,322) | (1,218) |
Contract fees, expenses and tax recoveries | (44) | (73) |
Change in external unit holders of managed investment schemes | 1,458 | (343) |
Balance as at end of year | 1,887 | 8,206 |
Life insurance contracts | ||
Reconciliation of movements in policy liabilities | ||
Balance as at beginning of year | (829) | (841) |
Movements in policy liabilities reflected in the income statement | 338 | 12 |
Balance as at end of year | (491) | (829) |
Parent Entity | ||
Reconciliation of movements in policy liabilities | ||
Balance as at beginning of year | ||
Balance as at end of year | $ 0 |
Deposits and other borrowings -
Deposits and other borrowings - Summary (Details) - AUD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 |
Deposits and other borrowings | |||
Deposits and other borrowings | $ 591,131 | $ 563,247 | $ 559,285 |
Australia | |||
Deposits and other borrowings | |||
Deposits and other borrowings | 504,531 | 475,325 | |
Australia | Certificates of deposit | |||
Deposits and other borrowings | |||
Deposits and other borrowings | 25,647 | 26,259 | |
Australia | Non-interest bearing, repayable at call | |||
Deposits and other borrowings | |||
Deposits and other borrowings | 48,303 | 43,341 | |
Australia | Other interest bearing at call | |||
Deposits and other borrowings | |||
Deposits and other borrowings | 304,761 | 247,161 | |
Australia | Other interest bearing term | |||
Deposits and other borrowings | |||
Deposits and other borrowings | 125,820 | 158,564 | |
New Zealand | |||
Deposits and other borrowings | |||
Deposits and other borrowings | 68,473 | 60,801 | |
New Zealand | Certificates of deposit | |||
Deposits and other borrowings | |||
Deposits and other borrowings | 2,773 | 1,058 | |
New Zealand | Non-interest bearing, repayable at call | |||
Deposits and other borrowings | |||
Deposits and other borrowings | 10,711 | 6,368 | |
New Zealand | Other interest bearing at call | |||
Deposits and other borrowings | |||
Deposits and other borrowings | 26,300 | 22,291 | |
New Zealand | Other interest bearing term | |||
Deposits and other borrowings | |||
Deposits and other borrowings | 28,689 | 31,084 | |
Other overseas | |||
Deposits and other borrowings | |||
Deposits and other borrowings | 18,127 | 27,121 | |
Other overseas | Certificates of deposit | |||
Deposits and other borrowings | |||
Deposits and other borrowings | 7,258 | 11,414 | |
Other overseas | Non-interest bearing, repayable at call | |||
Deposits and other borrowings | |||
Deposits and other borrowings | 868 | 824 | |
Other overseas | Other interest bearing at call | |||
Deposits and other borrowings | |||
Deposits and other borrowings | 1,864 | 1,610 | |
Other overseas | Other interest bearing term | |||
Deposits and other borrowings | |||
Deposits and other borrowings | 8,137 | 13,273 | |
Parent Entity | |||
Deposits and other borrowings | |||
Deposits and other borrowings | 521,613 | 501,430 | |
Parent Entity | Australia | |||
Deposits and other borrowings | |||
Deposits and other borrowings | 504,531 | 475,325 | |
Parent Entity | Australia | Certificates of deposit | |||
Deposits and other borrowings | |||
Deposits and other borrowings | 25,647 | 26,259 | |
Parent Entity | Australia | Non-interest bearing, repayable at call | |||
Deposits and other borrowings | |||
Deposits and other borrowings | 48,303 | 43,341 | |
Parent Entity | Australia | Other interest bearing at call | |||
Deposits and other borrowings | |||
Deposits and other borrowings | 304,761 | 247,161 | |
Parent Entity | Australia | Other interest bearing term | |||
Deposits and other borrowings | |||
Deposits and other borrowings | 125,820 | 158,564 | |
Parent Entity | New Zealand | |||
Deposits and other borrowings | |||
Deposits and other borrowings | 1 | ||
Parent Entity | New Zealand | Other interest bearing term | |||
Deposits and other borrowings | |||
Deposits and other borrowings | 1 | ||
Parent Entity | Other overseas | |||
Deposits and other borrowings | |||
Deposits and other borrowings | 17,081 | 26,105 | |
Parent Entity | Other overseas | Certificates of deposit | |||
Deposits and other borrowings | |||
Deposits and other borrowings | 7,258 | 11,414 | |
Parent Entity | Other overseas | Non-interest bearing, repayable at call | |||
Deposits and other borrowings | |||
Deposits and other borrowings | 333 | 385 | |
Parent Entity | Other overseas | Other interest bearing at call | |||
Deposits and other borrowings | |||
Deposits and other borrowings | 1,559 | 1,233 | |
Parent Entity | Other overseas | Other interest bearing term | |||
Deposits and other borrowings | |||
Deposits and other borrowings | $ 7,931 | $ 13,073 |
Deposits and other borrowings_2
Deposits and other borrowings - Average balances and average rates for major categories of deposits (Details) - AUD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Australia | |||
Deposits and other borrowings | |||
Average balance | $ 481,108 | $ 468,254 | $ 463,162 |
Australia | Non-interest bearing, repayable at call | |||
Deposits and other borrowings | |||
Average balance | 45,231 | 42,455 | 41,156 |
Australia | Certificates of deposit | |||
Deposits and other borrowings | |||
Average balance | $ 25,041 | $ 30,367 | $ 31,424 |
Average rate (as a percent) | 0.80% | 2.00% | 2.00% |
Australia | Other interest bearing at call | |||
Deposits and other borrowings | |||
Average balance | $ 275,475 | $ 237,420 | $ 228,328 |
Average rate (as a percent) | 0.50% | 1.10% | 1.20% |
Australia | Other interest bearing term | |||
Deposits and other borrowings | |||
Average balance | $ 135,361 | $ 158,012 | $ 162,254 |
Average rate (as a percent) | 1.50% | 2.40% | 2.50% |
Overseas | |||
Deposits and other borrowings | |||
Average balance | $ 92,417 | $ 87,805 | $ 83,988 |
Overseas | Non-interest bearing, repayable at call | |||
Deposits and other borrowings | |||
Average balance | 9,661 | 6,815 | 6,021 |
Overseas | Certificates of deposit | |||
Deposits and other borrowings | |||
Average balance | $ 14,376 | $ 11,854 | $ 13,008 |
Average rate (as a percent) | 1.40% | 2.60% | 1.90% |
Overseas | Other interest bearing at call | |||
Deposits and other borrowings | |||
Average balance | $ 25,999 | $ 23,616 | $ 23,017 |
Average rate (as a percent) | 0.50% | 1.10% | 1.20% |
Overseas | Other interest bearing term | |||
Deposits and other borrowings | |||
Average balance | $ 42,381 | $ 45,520 | $ 41,942 |
Average rate (as a percent) | 2.30% | 3.00% | 2.80% |
Deposits and other borrowings_3
Deposits and other borrowings - Certificates of deposit and term deposits (Details) - Australia $ in Millions | Sep. 30, 2020AUD ($) |
Deposits and other borrowings | |
Certificates of deposit greater than US$100,000 | $ 25,647 |
Term deposits greater than US$100,000 | 108,519 |
Less Than 3 Months | |
Deposits and other borrowings | |
Certificates of deposit greater than US$100,000 | 13,363 |
Term deposits greater than US$100,000 | 61,663 |
Between 3 and 6 Months | |
Deposits and other borrowings | |
Certificates of deposit greater than US$100,000 | 11,440 |
Term deposits greater than US$100,000 | 18,001 |
Between 6 Months and 1 Year | |
Deposits and other borrowings | |
Certificates of deposit greater than US$100,000 | 817 |
Term deposits greater than US$100,000 | 24,315 |
Over 1 Year | |
Deposits and other borrowings | |
Certificates of deposit greater than US$100,000 | 27 |
Term deposits greater than US$100,000 | $ 4,540 |
Other financial liabilities (De
Other financial liabilities (Details) - AUD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 |
Other financial liabilities | ||
Repurchase agreements | $ 27,763 | $ 10,604 |
Interbank placements | 4,981 | 9,884 |
Accrued interest payable | 1,367 | 2,627 |
Securities purchased not yet delivered | 2,291 | 1,398 |
Trade creditors and other accrued expenses | 1,250 | 1,154 |
Settlement and clearing balances | 1,005 | 1,222 |
Securities sold short | 846 | 766 |
Other | 1,422 | 1,560 |
Total other financial liabilities | 40,925 | 29,215 |
Parent Entity | ||
Other financial liabilities | ||
Repurchase agreements | 27,763 | 10,604 |
Interbank placements | 4,710 | 9,834 |
Accrued interest payable | 1,169 | 2,312 |
Securities purchased not yet delivered | 2,291 | 1,395 |
Trade creditors and other accrued expenses | 1,045 | 927 |
Settlement and clearing balances | 989 | 1,197 |
Securities sold short | 846 | 766 |
Other | 1,343 | 1,481 |
Total other financial liabilities | $ 40,156 | $ 28,516 |
Debt issues - Summary of balanc
Debt issues - Summary of balances (Details) - AUD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 |
Debt issues | |||
Short-term debt | $ 16,477 | $ 25,838 | |
Long-term debt | 133,848 | 155,619 | |
Total debt issues | 150,325 | 181,457 | $ 172,596 |
Own issuances | |||
Debt issues | |||
Short-term debt | 16,477 | 25,838 | |
Covered bonds | |||
Debt issues | |||
Long-term debt | 36,051 | 38,037 | |
Senior | |||
Debt issues | |||
Long-term debt | 89,766 | 109,340 | |
Securitisation | |||
Debt issues | |||
Long-term debt | 8,000 | 8,190 | |
Structured notes | |||
Debt issues | |||
Long-term debt | 31 | 52 | |
Parent Entity | |||
Debt issues | |||
Short-term debt | 14,160 | 23,695 | |
Long-term debt | 113,506 | 132,979 | |
Total debt issues | 127,666 | 156,674 | $ 152,288 |
Parent Entity | Own issuances | |||
Debt issues | |||
Short-term debt | 14,160 | 23,695 | |
Parent Entity | Covered bonds | |||
Debt issues | |||
Long-term debt | 31,926 | 33,160 | |
Parent Entity | Senior | |||
Debt issues | |||
Long-term debt | $ 81,580 | $ 99,819 |
Debt issues - Movement Reconcil
Debt issues - Movement Reconciliation (Details) - AUD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Movement Reconciliation | ||
Balance at beginning of year | $ 181,457 | $ 172,596 |
Issuances | 34,766 | 61,484 |
Maturities, repayments, buy backs and reductions | (65,160) | (63,313) |
Total cash movements | (30,394) | (1,829) |
FX translation impact | (1,977) | 6,713 |
Fair value adjustments | 81 | 317 |
Fair value hedge accounting adjustments | 1,038 | 3,512 |
Other (amortisation of bond issue costs, etc.) | 120 | 148 |
Total non-cash movements | (738) | 10,690 |
Balance at beginning of year | 150,325 | 181,457 |
Parent Entity | ||
Movement Reconciliation | ||
Balance at beginning of year | 156,674 | 152,288 |
Issuances | 27,487 | 50,375 |
Maturities, repayments, buy backs and reductions | (55,761) | (56,347) |
Total cash movements | (28,274) | (5,972) |
FX translation impact | (2,005) | 6,514 |
Fair value adjustments | 81 | 318 |
Fair value hedge accounting adjustments | 1,076 | 3,376 |
Other (amortisation of bond issue costs, etc.) | 114 | 150 |
Total non-cash movements | (734) | 10,358 |
Balance at beginning of year | $ 127,666 | $ 156,674 |
Debt issues - By currency (Deta
Debt issues - By currency (Details) - AUD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 |
Debt issues | ||
Short-term debt | $ 16,477 | $ 25,838 |
Long-term debt | 133,848 | 155,619 |
AUD | ||
Debt issues | ||
Long-term debt | 36,062 | 43,532 |
CHF | ||
Debt issues | ||
Long-term debt | 3,177 | 3,480 |
EUR | ||
Debt issues | ||
Long-term debt | 34,498 | 37,464 |
GBP | ||
Debt issues | ||
Long-term debt | 3,440 | 5,545 |
JPY | ||
Debt issues | ||
Long-term debt | 2,439 | 2,538 |
NZD | ||
Debt issues | ||
Long-term debt | 3,519 | 3,197 |
USD | ||
Debt issues | ||
Long-term debt | 45,917 | 54,490 |
Other currencies | ||
Debt issues | ||
Long-term debt | 4,796 | 5,373 |
Own issuances | ||
Debt issues | ||
Short-term debt | 16,477 | 25,838 |
US commercial paper | ||
Debt issues | ||
Short-term debt | 13,864 | 19,950 |
Senior debt | AUD | ||
Debt issues | ||
Short-term debt | 100 | |
Senior debt | GBP | ||
Debt issues | ||
Short-term debt | 2,437 | 5,366 |
Senior debt | Other currencies | ||
Debt issues | ||
Short-term debt | $ 176 | $ 422 |
Debt issues - Short-term borrow
Debt issues - Short-term borrowings (Details) - US commercial paper - AUD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Debt issues | |||
Maximum amount outstanding at any month end, short-term borrowings | $ 21,639 | $ 26,879 | $ 28,331 |
Approximate average amount outstanding, short-term borrowings | $ 18,462 | $ 22,502 | $ 23,315 |
Approximate weighted average interest rate on average amount outstanding, short-term borrowings | 1.40% | 2.80% | 2.00% |
Approximate weighted average interest rate on amount outstanding as at year end, short-term borrowings | 0.40% | 3.20% | 2.50% |
Loan Capital - Summary (Details
Loan Capital - Summary (Details) - AUD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 |
Loan capital | |||
Loan capital | $ 23,949 | $ 21,826 | $ 17,265 |
Additional Tier 1 (AT1) loan capital | |||
Loan capital | |||
Loan capital | 9,364 | 9,324 | |
Westpac capital notes (WCN) | |||
Loan capital | |||
Loan capital | 7,423 | 7,411 | |
USD AT1 securities | |||
Loan capital | |||
Loan capital | 1,941 | 1,913 | |
Tier 2 loan capital | |||
Loan capital | |||
Loan capital | 14,585 | 12,502 | |
Subordinated notes | |||
Loan capital | |||
Loan capital | 14,090 | 11,981 | |
Subordinated perpetual notes | |||
Loan capital | |||
Loan capital | 495 | 521 | |
Parent Entity | |||
Loan capital | |||
Loan capital | 23,949 | 21,826 | $ 17,265 |
Parent Entity | Additional Tier 1 (AT1) loan capital | |||
Loan capital | |||
Loan capital | 9,364 | 9,324 | |
Parent Entity | Westpac capital notes (WCN) | |||
Loan capital | |||
Loan capital | 7,423 | 7,411 | |
Parent Entity | USD AT1 securities | |||
Loan capital | |||
Loan capital | 1,941 | 1,913 | |
Parent Entity | Tier 2 loan capital | |||
Loan capital | |||
Loan capital | 14,585 | 12,502 | |
Parent Entity | Subordinated notes | |||
Loan capital | |||
Loan capital | 14,090 | 11,981 | |
Parent Entity | Subordinated perpetual notes | |||
Loan capital | |||
Loan capital | $ 495 | $ 521 |
Loan Capital - Movement Reconci
Loan Capital - Movement Reconciliation (Details) - AUD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Loan capital | ||
Balance at beginning | $ 21,826 | $ 17,265 |
Issuances | 2,225 | 4,935 |
Maturities, repayments, buy backs and reductions | (262) | (1,662) |
Total cash movements | 1,963 | 3,273 |
Foreign exchange translation impact | (564) | 521 |
Fair value hedge accounting adjustments | 703 | 748 |
Other (amortisation of bond issue costs, etc.) | 21 | 19 |
Total non-cash movements | 160 | 1,288 |
Balance at ending | 23,949 | 21,826 |
Parent Entity | ||
Loan capital | ||
Balance at beginning | 21,826 | 17,265 |
Issuances | 2,225 | 4,935 |
Maturities, repayments, buy backs and reductions | (262) | (1,662) |
Total cash movements | 1,963 | 3,273 |
Foreign exchange translation impact | (564) | 521 |
Fair value hedge accounting adjustments | 703 | 748 |
Other (amortisation of bond issue costs, etc.) | 21 | 19 |
Total non-cash movements | 160 | 1,288 |
Balance at ending | $ 23,949 | $ 21,826 |
Loan Capital - Additional Tier
Loan Capital - Additional Tier 1 loan capital (Details) $ in Millions, $ in Millions | 12 Months Ended | ||||
Sep. 30, 2020USD ($) | Sep. 30, 2020AUD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2019AUD ($) | Sep. 30, 2018AUD ($) | |
Loan capital | |||||
Loan capital | $ 23,949 | $ 21,826 | $ 17,265 | ||
Additional Tier 1 (AT1) loan capital | |||||
Loan capital | |||||
Loan capital | 9,364 | 9,324 | |||
Number of business days for payment of dividend, distribution or interest | 20 days | ||||
Number of business days prior to scheduled conversion date to determine share price | 20 days | ||||
Discount rate on share price upon conversion | 1.00% | ||||
Common Equity Tier 1 Capital ratio threshold percentage | 5.125% | ||||
Number of business days prior to capital trigger event date or non-viability trigger event date to determine share price for conversion | 5 days | ||||
Discount rate on share price determined based on capital trigger event date or non-viability trigger event date | 1.00% | ||||
Percentage of share price to determine maximum conversion number | 20.00% | ||||
Westpac capital notes (WCN) | |||||
Loan capital | |||||
Loan capital | 7,423 | 7,411 | |||
$1,311 million WCN2 | |||||
Loan capital | |||||
Principal amount | 1,311 | 1,311 | |||
Loan capital | $ 1,307 | $ 1,308 | |||
$1,311 million WCN2 | 90 day bank bill rate | |||||
Loan capital | |||||
Interest rate adjustments (as a percent) | 3.05% | 3.05% | 3.05% | 3.05% | |
$1,324 million WCN3 | |||||
Loan capital | |||||
Principal amount | $ 1,324 | $ 1,324 | |||
Loan capital | $ 1,323 | $ 1,319 | |||
$1,324 million WCN3 | 90 day bank bill rate | |||||
Loan capital | |||||
Interest rate adjustments (as a percent) | 4.00% | 4.00% | 4.00% | 4.00% | |
$1,702 million WCN4 | |||||
Loan capital | |||||
Principal amount | $ 1,702 | $ 1,702 | |||
Loan capital | $ 1,698 | $ 1,694 | |||
$1,702 million WCN4 | 90 day bank bill rate | |||||
Loan capital | |||||
Interest rate adjustments (as a percent) | 4.90% | 4.90% | 4.90% | 4.90% | |
$1,690 million WCN5 | |||||
Loan capital | |||||
Principal amount | $ 1,690 | $ 1,690 | |||
Loan capital | $ 1,680 | $ 1,677 | |||
$1,690 million WCN5 | 90 day bank bill rate | |||||
Loan capital | |||||
Interest rate adjustments (as a percent) | 3.20% | 3.20% | 3.20% | 3.20% | |
$1,423 million WCN6 | |||||
Loan capital | |||||
Principal amount | $ 1,423 | $ 1,423 | |||
Loan capital | $ 1,415 | $ 1,413 | |||
$1,423 million WCN6 | 90 day bank bill rate | |||||
Loan capital | |||||
Interest rate adjustments (as a percent) | 3.70% | 3.70% | 3.70% | 3.70% | |
USD AT1 securities | |||||
Loan capital | |||||
Loan capital | $ 1,941 | $ 1,913 | |||
US$1,250 million securities | |||||
Loan capital | |||||
Principal amount | $ 1,250 | $ 1,250 | |||
Loan capital | $ 1,941 | $ 1,913 | |||
US$1,250 million securities | Fixed interest rate | |||||
Loan capital | |||||
Interest rate (as a percent) | 5.00% | 5.00% | 5.00% | 5.00% | |
US$1,250 million securities | 5-year USD mid-market swap rate | |||||
Loan capital | |||||
Interest rate adjustments (as a percent) | 2.89% | 2.89% | 2.89% | 2.89% | |
Parent Entity | |||||
Loan capital | |||||
Loan capital | $ 23,949 | $ 21,826 | $ 17,265 | ||
Parent Entity | Additional Tier 1 (AT1) loan capital | |||||
Loan capital | |||||
Loan capital | 9,364 | 9,324 | |||
Parent Entity | Westpac capital notes (WCN) | |||||
Loan capital | |||||
Loan capital | 7,423 | 7,411 | |||
Parent Entity | $1,311 million WCN2 | |||||
Loan capital | |||||
Principal amount | 1,311 | 1,311 | |||
Loan capital | $ 1,307 | $ 1,308 | |||
Parent Entity | $1,311 million WCN2 | 90 day bank bill rate | |||||
Loan capital | |||||
Interest rate adjustments (as a percent) | 3.05% | 3.05% | 3.05% | 3.05% | |
Parent Entity | $1,324 million WCN3 | |||||
Loan capital | |||||
Principal amount | $ 1,324 | $ 1,324 | |||
Loan capital | $ 1,323 | $ 1,319 | |||
Parent Entity | $1,324 million WCN3 | 90 day bank bill rate | |||||
Loan capital | |||||
Interest rate adjustments (as a percent) | 4.00% | 4.00% | 4.00% | 4.00% | |
Parent Entity | $1,702 million WCN4 | |||||
Loan capital | |||||
Principal amount | $ 1,702 | $ 1,702 | |||
Loan capital | $ 1,698 | $ 1,694 | |||
Parent Entity | $1,702 million WCN4 | 90 day bank bill rate | |||||
Loan capital | |||||
Interest rate adjustments (as a percent) | 4.90% | 4.90% | 4.90% | 4.90% | |
Parent Entity | $1,690 million WCN5 | |||||
Loan capital | |||||
Principal amount | $ 1,690 | $ 1,690 | |||
Loan capital | $ 1,680 | $ 1,677 | |||
Parent Entity | $1,690 million WCN5 | 90 day bank bill rate | |||||
Loan capital | |||||
Interest rate adjustments (as a percent) | 3.20% | 3.20% | 3.20% | 3.20% | |
Parent Entity | $1,423 million WCN6 | |||||
Loan capital | |||||
Principal amount | $ 1,423 | $ 1,423 | |||
Loan capital | $ 1,415 | $ 1,413 | |||
Parent Entity | $1,423 million WCN6 | 90 day bank bill rate | |||||
Loan capital | |||||
Interest rate adjustments (as a percent) | 3.70% | 3.70% | 3.70% | 3.70% | |
Parent Entity | USD AT1 securities | |||||
Loan capital | |||||
Loan capital | $ 1,941 | $ 1,913 | |||
Parent Entity | US$1,250 million securities | |||||
Loan capital | |||||
Principal amount | $ 1,250 | $ 1,250 | |||
Loan capital | $ 1,941 | $ 1,913 | |||
Parent Entity | US$1,250 million securities | Fixed interest rate | |||||
Loan capital | |||||
Interest rate (as a percent) | 5.00% | 5.00% | 5.00% | 5.00% | |
Parent Entity | US$1,250 million securities | 5-year USD mid-market swap rate | |||||
Loan capital | |||||
Interest rate adjustments (as a percent) | 2.89% | 2.89% | 2.89% | 2.89% |
Loan Capital - Tier 2 loan capi
Loan Capital - Tier 2 loan capital (Details) ¥ in Millions, ¥ in Millions, $ in Millions, $ in Millions, $ in Millions, $ in Millions, $ in Millions | 12 Months Ended | |||||||||||||
Sep. 30, 2020SGD ($) | Sep. 30, 2019SGD ($) | Sep. 30, 2020NZD ($) | Sep. 30, 2020JPY (¥) | Sep. 30, 2020HKD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2020AUD ($) | Sep. 30, 2019NZD ($) | Sep. 30, 2019JPY (¥) | Sep. 30, 2019HKD ($) | Sep. 30, 2019CNY (¥) | Sep. 30, 2019USD ($) | Sep. 30, 2019AUD ($) | Sep. 30, 2018AUD ($) | |
Loan capital | ||||||||||||||
Loan capital | $ 23,949 | $ 21,826 | $ 17,265 | |||||||||||
Subordinated notes | ||||||||||||||
Loan capital | ||||||||||||||
Loan capital | 14,090 | 11,981 | ||||||||||||
Percentage of share price to determine maximum conversion number | 20.00% | |||||||||||||
Number of business days for immediate and irrevocable termination of rights after non-viability trigger event if conversion not occur | 5 days | |||||||||||||
CNY1,250 million subordinated notes | ||||||||||||||
Loan capital | ||||||||||||||
Principal amount | ¥ | ¥ 1,250 | |||||||||||||
Loan capital | $ 260 | |||||||||||||
CNY1,250 million subordinated notes | Fixed interest rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate (as a percent) | 4.85% | 4.85% | 4.85% | 4.85% | 4.85% | 4.85% | 4.85% | |||||||
CNY1,250 million subordinated notes | One year CNH HIBOR reference rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate adjustments (as a percent) | 0.8345% | 0.8345% | 0.8345% | 0.8345% | 0.8345% | 0.8345% | 0.8345% | |||||||
A$350 million 4.5% subordinated notes | ||||||||||||||
Loan capital | ||||||||||||||
Principal amount | 350 | $ 350 | ||||||||||||
Loan capital | $ 361 | $ 362 | ||||||||||||
A$350 million 4.5% subordinated notes | Fixed interest rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate (as a percent) | 4.50% | 4.50% | 4.50% | 4.50% | 4.50% | 4.50% | 4.50% | 4.50% | 4.50% | 4.50% | 4.50% | 4.50% | 4.50% | |
A$350 million 4.5% subordinated notes | Five year AUD semi-quarterly mid-swap reference rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate adjustments (as a percent) | 1.95% | 1.95% | 1.95% | 1.95% | 1.95% | 1.95% | 1.95% | 1.95% | 1.95% | 1.95% | 1.95% | 1.95% | 1.95% | |
S$325 million subordinated notes | ||||||||||||||
Loan capital | ||||||||||||||
Principal amount | $ 325 | $ 325 | ||||||||||||
Loan capital | $ 347 | $ 356 | ||||||||||||
S$325 million subordinated notes | Fixed interest rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate (as a percent) | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | |
S$325 million subordinated notes | Five year SGD swap offer rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate adjustments (as a percent) | 1.54% | 1.54% | 1.54% | 1.54% | 1.54% | 1.54% | 1.54% | 1.54% | 1.54% | 1.54% | 1.54% | 1.54% | 1.54% | |
A$175 million subordinated notes | ||||||||||||||
Loan capital | ||||||||||||||
Principal amount | $ 175 | $ 175 | ||||||||||||
Loan capital | $ 185 | $ 182 | ||||||||||||
A$175 million subordinated notes | Fixed interest rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate (as a percent) | 4.80% | 4.80% | 4.80% | 4.80% | 4.80% | 4.80% | 4.80% | 4.80% | 4.80% | 4.80% | 4.80% | 4.80% | 4.80% | |
A$175 million subordinated notes | Five year AUD semi-quarterly mid-swap reference rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate adjustments (as a percent) | 2.65% | 2.65% | 2.65% | 2.65% | 2.65% | 2.65% | 2.65% | 2.65% | 2.65% | 2.65% | 2.65% | 2.65% | 2.65% | |
US$100 million subordinated notes | ||||||||||||||
Loan capital | ||||||||||||||
Principal amount | $ 100 | $ 100 | ||||||||||||
Loan capital | $ 175 | $ 161 | ||||||||||||
US$100 million subordinated notes | Fixed interest rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate (as a percent) | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | |
A$700 million subordinated notes | ||||||||||||||
Loan capital | ||||||||||||||
Principal amount | $ 700 | $ 700 | ||||||||||||
Loan capital | $ 700 | $ 697 | ||||||||||||
A$700 million subordinated notes | Floating 90 day bank bill rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate adjustments (as a percent) | 3.10% | 3.10% | 3.10% | 3.10% | 3.10% | 3.10% | 3.10% | 3.10% | 3.10% | 3.10% | 3.10% | 3.10% | 3.10% | |
JPY20,000 million subordinated notes | ||||||||||||||
Loan capital | ||||||||||||||
Principal amount | ¥ | ¥ 20,000 | ¥ 20,000 | ||||||||||||
Loan capital | $ 270 | $ 279 | ||||||||||||
JPY20,000 million subordinated notes | Fixed interest rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate (as a percent) | 1.16% | 1.16% | 1.16% | 1.16% | 1.16% | 1.16% | 1.16% | 1.16% | 1.16% | 1.16% | 1.16% | 1.16% | 1.16% | |
JPY10,200 million subordinated notes | ||||||||||||||
Loan capital | ||||||||||||||
Principal amount | ¥ | ¥ 10,200 | ¥ 10,200 | ||||||||||||
Loan capital | $ 137 | $ 142 | ||||||||||||
JPY10,200 million subordinated notes | Fixed interest rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate (as a percent) | 1.16% | 1.16% | 1.16% | 1.16% | 1.16% | 1.16% | 1.16% | 1.16% | 1.16% | 1.16% | 1.16% | 1.16% | 1.16% | |
JPY10,000 million subordinated notes | ||||||||||||||
Loan capital | ||||||||||||||
Principal amount | ¥ | ¥ 10,000 | ¥ 10,000 | ||||||||||||
Loan capital | $ 134 | $ 139 | ||||||||||||
JPY10,000 million subordinated notes | Fixed interest rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate (as a percent) | 0.76% | 0.76% | 0.76% | 0.76% | 0.76% | 0.76% | 0.76% | 0.76% | 0.76% | 0.76% | 0.76% | 0.76% | 0.76% | |
NZ$400 million subordinated notes | ||||||||||||||
Loan capital | ||||||||||||||
Principal amount | $ 400 | $ 400 | ||||||||||||
Loan capital | $ 376 | $ 373 | ||||||||||||
NZ$400 million subordinated notes | Fixed interest rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate (as a percent) | 4.695% | 4.695% | 4.695% | 4.695% | 4.695% | 4.695% | 4.695% | 4.695% | 4.695% | 4.695% | 4.695% | 4.695% | 4.695% | |
NZ$400 million subordinated notes | New Zealand 5 year swap rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate adjustments (as a percent) | 2.60% | 2.60% | 2.60% | 2.60% | 2.60% | 2.60% | 2.60% | 2.60% | 2.60% | 2.60% | 2.60% | 2.60% | 2.60% | |
JPY8,000 million subordinated notes | ||||||||||||||
Loan capital | ||||||||||||||
Principal amount | ¥ | ¥ 8,000 | ¥ 8,000 | ||||||||||||
Loan capital | $ 107 | $ 110 | ||||||||||||
JPY8,000 million subordinated notes | Fixed interest rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate (as a percent) | 0.9225% | 0.9225% | 0.9225% | 0.9225% | 0.9225% | 0.9225% | 0.9225% | 0.9225% | 0.9225% | 0.9225% | 0.9225% | 0.9225% | 0.9225% | |
JPY8,000 million subordinated notes | Five year JPY mid-swap rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate adjustments (as a percent) | 1.0005% | 1.0005% | 1.0005% | 1.0005% | 1.0005% | 1.0005% | 1.0005% | 1.0005% | 1.0005% | 1.0005% | 1.0005% | 1.0005% | 1.0005% | |
US$1500 million 4.322% subordinated notes | ||||||||||||||
Loan capital | ||||||||||||||
Principal amount | $ 1,500 | $ 1,500 | ||||||||||||
Loan capital | $ 2,320 | $ 2,297 | ||||||||||||
US$1500 million 4.322% subordinated notes | Fixed interest rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate (as a percent) | 4.322% | 4.322% | 4.322% | 4.322% | 4.322% | 4.322% | 4.322% | 4.322% | 4.322% | 4.322% | 4.322% | 4.322% | 4.322% | |
US$1500 million 4.322% subordinated notes | 5-year USD mid-market swap rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate adjustments (as a percent) | 2.236% | 2.236% | 2.236% | 2.236% | 2.236% | 2.236% | 2.236% | 2.236% | 2.236% | 2.236% | 2.236% | 2.236% | 2.236% | |
JPY12,000 million subordinated notes | ||||||||||||||
Loan capital | ||||||||||||||
Principal amount | ¥ | ¥ 12,000 | ¥ 12,000 | ||||||||||||
Loan capital | $ 161 | $ 166 | ||||||||||||
JPY12,000 million subordinated notes | Fixed interest rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate (as a percent) | 0.87% | 0.87% | 0.87% | 0.87% | 0.87% | 0.87% | 0.87% | 0.87% | 0.87% | 0.87% | 0.87% | 0.87% | 0.87% | |
JPY12,000 million subordinated notes | Five year JPY mid-swap rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate adjustments (as a percent) | 0.78% | 0.78% | 0.78% | 0.78% | 0.78% | 0.78% | 0.78% | 0.78% | 0.78% | 0.78% | 0.78% | 0.78% | 0.78% | |
JPY13,500 million subordinated notes | ||||||||||||||
Loan capital | ||||||||||||||
Principal amount | ¥ | ¥ 13,500 | ¥ 13,500 | ||||||||||||
Loan capital | $ 181 | $ 187 | ||||||||||||
JPY13,500 million subordinated notes | Fixed interest rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate (as a percent) | 0.868% | 0.868% | 0.868% | 0.868% | 0.868% | 0.868% | 0.868% | 0.868% | 0.868% | 0.868% | 0.868% | 0.868% | 0.868% | |
JPY13,500 million subordinated notes | Five year JPY mid-swap rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate adjustments (as a percent) | 0.778% | 0.778% | 0.778% | 0.778% | 0.778% | 0.778% | 0.778% | 0.778% | 0.778% | 0.778% | 0.778% | 0.778% | 0.778% | |
HKD600 million subordinated notes | ||||||||||||||
Loan capital | ||||||||||||||
Principal amount | $ 600 | $ 600 | ||||||||||||
Loan capital | $ 111 | $ 114 | ||||||||||||
HKD600 million subordinated notes | Fixed interest rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate (as a percent) | 3.15% | 3.15% | 3.15% | 3.15% | 3.15% | 3.15% | 3.15% | 3.15% | 3.15% | 3.15% | 3.15% | 3.15% | 3.15% | |
HKD600 million subordinated notes | Five year HKD mid-swap rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate adjustments (as a percent) | 1.34% | 1.34% | 1.34% | 1.34% | 1.34% | 1.34% | 1.34% | 1.34% | 1.34% | 1.34% | 1.34% | 1.34% | 1.34% | |
A$350 million 4.334% subordinated notes | ||||||||||||||
Loan capital | ||||||||||||||
Principal amount | $ 350 | $ 350 | ||||||||||||
Loan capital | $ 349 | $ 349 | ||||||||||||
A$350 million 4.334% subordinated notes | Fixed interest rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate (as a percent) | 4.334% | 4.334% | 4.334% | 4.334% | 4.334% | 4.334% | 4.334% | 4.334% | 4.334% | 4.334% | 4.334% | 4.334% | 4.334% | |
A$350 million 4.334% subordinated notes | Five year AUD semi-quarterly mid-swap reference rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate adjustments (as a percent) | 1.83% | 1.83% | 1.83% | 1.83% | 1.83% | 1.83% | 1.83% | 1.83% | 1.83% | 1.83% | 1.83% | 1.83% | 1.83% | |
A$185 million subordinated notes | ||||||||||||||
Loan capital | ||||||||||||||
Principal amount | $ 185 | $ 185 | ||||||||||||
Loan capital | $ 185 | $ 185 | ||||||||||||
A$185 million subordinated notes | Fixed interest rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate (as a percent) | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | |
A$250 million subordinated notes | ||||||||||||||
Loan capital | ||||||||||||||
Principal amount | $ 250 | $ 250 | ||||||||||||
Loan capital | $ 250 | $ 250 | ||||||||||||
A$250 million subordinated notes | 90 day bank bill rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate adjustments (as a percent) | 1.40% | 1.40% | 1.40% | 1.40% | 1.40% | 1.40% | 1.40% | 1.40% | 1.40% | 1.40% | 1.40% | 1.40% | 1.40% | |
A$130 million subordinated notes | ||||||||||||||
Loan capital | ||||||||||||||
Principal amount | $ 130 | $ 130 | ||||||||||||
Loan capital | $ 130 | $ 130 | ||||||||||||
A$130 million subordinated notes | Fixed interest rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate (as a percent) | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | |
A$725 million subordinated notes | ||||||||||||||
Loan capital | ||||||||||||||
Principal amount | $ 725 | $ 725 | ||||||||||||
Loan capital | $ 714 | $ 724 | ||||||||||||
A$725 million subordinated notes | 90 day bank bill rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate adjustments (as a percent) | 1.80% | 1.80% | 1.80% | 1.80% | 1.80% | 1.80% | 1.80% | 1.80% | 1.80% | 1.80% | 1.80% | 1.80% | 1.80% | |
US$1,000 million subordinated notes | ||||||||||||||
Loan capital | ||||||||||||||
Principal amount | $ 1,000 | $ 1,000 | ||||||||||||
Loan capital | $ 1,707 | $ 1,606 | ||||||||||||
US$1,000 million subordinated notes | Fixed interest rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate (as a percent) | 4.421% | 4.421% | 4.421% | 4.421% | 4.421% | 4.421% | 4.421% | 4.421% | 4.421% | 4.421% | 4.421% | 4.421% | 4.421% | |
US $1,250 million subordinated notes | ||||||||||||||
Loan capital | ||||||||||||||
Principal amount | $ 1,250 | $ 1,250 | ||||||||||||
Loan capital | $ 1,970 | $ 1,921 | ||||||||||||
US $1,250 million subordinated notes | Fixed interest rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate (as a percent) | 4.11% | 4.11% | 4.11% | 4.11% | 4.11% | 4.11% | 4.11% | 4.11% | 4.11% | 4.11% | 4.11% | 4.11% | 4.11% | |
US $1,250 million subordinated notes | 5-year USD Treasury rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate adjustments (as a percent) | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% | |
A$1,000 million subordinated notes | ||||||||||||||
Loan capital | ||||||||||||||
Principal amount | $ 1,000 | $ 1,000 | ||||||||||||
Loan capital | $ 1,000 | $ 991 | ||||||||||||
A$1,000 million subordinated notes | Floating 90 day bank bill rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate adjustments (as a percent) | 1.98% | 1.98% | 1.98% | 1.98% | 1.98% | 1.98% | 1.98% | 1.98% | 1.98% | 1.98% | 1.98% | 1.98% | 1.98% | |
US$1500 million 2.894% subordinated notes | ||||||||||||||
Loan capital | ||||||||||||||
Principal amount | $ 1,500 | |||||||||||||
Loan capital | $ 2,220 | |||||||||||||
US$1500 million 2.894% subordinated notes | Fixed interest rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate (as a percent) | 2.894% | 2.894% | 2.894% | 2.894% | 2.894% | 2.894% | ||||||||
US$1500 million 2.894% subordinated notes | 5-year USD Treasury rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate adjustments (as a percent) | 1.35% | 1.35% | 1.35% | 1.35% | 1.35% | 1.35% | ||||||||
Subordinated perpetual notes | ||||||||||||||
Loan capital | ||||||||||||||
Loan capital | $ 495 | $ 521 | ||||||||||||
Subordinated perpetual notes | 6 month US$ LIBOR | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate adjustments (as a percent) | 0.15% | 0.15% | 0.15% | 0.15% | 0.15% | 0.15% | 0.15% | 0.15% | 0.15% | 0.15% | 0.15% | 0.15% | 0.15% | |
Period prior to payment of dividend on share for payment of interest | 12 months | 12 months | ||||||||||||
Parent Entity | ||||||||||||||
Loan capital | ||||||||||||||
Loan capital | $ 23,949 | $ 21,826 | $ 17,265 | |||||||||||
Parent Entity | Subordinated notes | ||||||||||||||
Loan capital | ||||||||||||||
Loan capital | 14,090 | 11,981 | ||||||||||||
Parent Entity | CNY1,250 million subordinated notes | ||||||||||||||
Loan capital | ||||||||||||||
Principal amount | ¥ | ¥ 1,250 | |||||||||||||
Loan capital | $ 260 | |||||||||||||
Parent Entity | CNY1,250 million subordinated notes | Fixed interest rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate (as a percent) | 4.85% | 4.85% | 4.85% | 4.85% | 4.85% | 4.85% | 4.85% | |||||||
Parent Entity | CNY1,250 million subordinated notes | One year CNH HIBOR reference rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate adjustments (as a percent) | 0.8345% | 0.8345% | 0.8345% | 0.8345% | 0.8345% | 0.8345% | 0.8345% | |||||||
Parent Entity | A$350 million 4.5% subordinated notes | ||||||||||||||
Loan capital | ||||||||||||||
Principal amount | 350 | $ 350 | ||||||||||||
Loan capital | $ 361 | $ 362 | ||||||||||||
Parent Entity | A$350 million 4.5% subordinated notes | Fixed interest rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate (as a percent) | 4.50% | 4.50% | 4.50% | 4.50% | 4.50% | 4.50% | 4.50% | 4.50% | 4.50% | 4.50% | 4.50% | 4.50% | 4.50% | |
Parent Entity | A$350 million 4.5% subordinated notes | Five year AUD semi-quarterly mid-swap reference rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate adjustments (as a percent) | 1.95% | 1.95% | 1.95% | 1.95% | 1.95% | 1.95% | 1.95% | 1.95% | 1.95% | 1.95% | 1.95% | 1.95% | 1.95% | |
Parent Entity | S$325 million subordinated notes | ||||||||||||||
Loan capital | ||||||||||||||
Principal amount | $ 325 | $ 325 | ||||||||||||
Loan capital | $ 347 | $ 356 | ||||||||||||
Parent Entity | S$325 million subordinated notes | Fixed interest rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate (as a percent) | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | |
Parent Entity | S$325 million subordinated notes | Five year SGD swap offer rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate adjustments (as a percent) | 1.54% | 1.54% | 1.54% | 1.54% | 1.54% | 1.54% | 1.54% | 1.54% | 1.54% | 1.54% | 1.54% | 1.54% | 1.54% | |
Parent Entity | A$175 million subordinated notes | ||||||||||||||
Loan capital | ||||||||||||||
Principal amount | $ 175 | $ 175 | ||||||||||||
Loan capital | $ 185 | $ 182 | ||||||||||||
Parent Entity | A$175 million subordinated notes | Fixed interest rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate (as a percent) | 4.80% | 4.80% | 4.80% | 4.80% | 4.80% | 4.80% | 4.80% | 4.80% | 4.80% | 4.80% | 4.80% | 4.80% | 4.80% | |
Parent Entity | A$175 million subordinated notes | Five year AUD semi-quarterly mid-swap reference rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate adjustments (as a percent) | 2.65% | 2.65% | 2.65% | 2.65% | 2.65% | 2.65% | 2.65% | 2.65% | 2.65% | 2.65% | 2.65% | 2.65% | 2.65% | |
Parent Entity | US$100 million subordinated notes | ||||||||||||||
Loan capital | ||||||||||||||
Principal amount | $ 100 | $ 100 | ||||||||||||
Loan capital | $ 175 | $ 161 | ||||||||||||
Parent Entity | US$100 million subordinated notes | Fixed interest rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate (as a percent) | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | |
Parent Entity | A$700 million subordinated notes | ||||||||||||||
Loan capital | ||||||||||||||
Principal amount | $ 700 | $ 700 | ||||||||||||
Loan capital | $ 700 | $ 697 | ||||||||||||
Parent Entity | A$700 million subordinated notes | Floating 90 day bank bill rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate adjustments (as a percent) | 3.10% | 3.10% | 3.10% | 3.10% | 3.10% | 3.10% | 3.10% | 3.10% | 3.10% | 3.10% | 3.10% | 3.10% | 3.10% | |
Parent Entity | JPY20,000 million subordinated notes | ||||||||||||||
Loan capital | ||||||||||||||
Principal amount | ¥ | ¥ 20,000 | ¥ 20,000 | ||||||||||||
Loan capital | $ 270 | $ 279 | ||||||||||||
Parent Entity | JPY20,000 million subordinated notes | Fixed interest rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate (as a percent) | 1.16% | 1.16% | 1.16% | 1.16% | 1.16% | 1.16% | 1.16% | 1.16% | 1.16% | 1.16% | 1.16% | 1.16% | 1.16% | |
Parent Entity | JPY10,200 million subordinated notes | ||||||||||||||
Loan capital | ||||||||||||||
Principal amount | ¥ | ¥ 10,200 | ¥ 10,200 | ||||||||||||
Loan capital | $ 137 | $ 142 | ||||||||||||
Parent Entity | JPY10,200 million subordinated notes | Fixed interest rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate (as a percent) | 1.16% | 1.16% | 1.16% | 1.16% | 1.16% | 1.16% | 1.16% | 1.16% | 1.16% | 1.16% | 1.16% | 1.16% | 1.16% | |
Parent Entity | JPY10,000 million subordinated notes | ||||||||||||||
Loan capital | ||||||||||||||
Principal amount | ¥ | ¥ 10,000 | ¥ 10,000 | ||||||||||||
Loan capital | $ 134 | $ 139 | ||||||||||||
Parent Entity | JPY10,000 million subordinated notes | Fixed interest rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate (as a percent) | 0.76% | 0.76% | 0.76% | 0.76% | 0.76% | 0.76% | 0.76% | 0.76% | 0.76% | 0.76% | 0.76% | 0.76% | 0.76% | |
Parent Entity | NZ$400 million subordinated notes | ||||||||||||||
Loan capital | ||||||||||||||
Principal amount | $ 400 | $ 400 | ||||||||||||
Loan capital | $ 376 | $ 373 | ||||||||||||
Parent Entity | NZ$400 million subordinated notes | Fixed interest rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate (as a percent) | 4.695% | 4.695% | 4.695% | 4.695% | 4.695% | 4.695% | 4.695% | 4.695% | 4.695% | 4.695% | 4.695% | 4.695% | 4.695% | |
Parent Entity | NZ$400 million subordinated notes | New Zealand 5 year swap rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate adjustments (as a percent) | 2.60% | 2.60% | 2.60% | 2.60% | 2.60% | 2.60% | 2.60% | 2.60% | 2.60% | 2.60% | 2.60% | 2.60% | 2.60% | |
Parent Entity | JPY8,000 million subordinated notes | ||||||||||||||
Loan capital | ||||||||||||||
Principal amount | ¥ | ¥ 8,000 | ¥ 8,000 | ||||||||||||
Loan capital | $ 107 | $ 110 | ||||||||||||
Parent Entity | JPY8,000 million subordinated notes | Fixed interest rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate (as a percent) | 0.9225% | 0.9225% | 0.9225% | 0.9225% | 0.9225% | 0.9225% | 0.9225% | 0.9225% | 0.9225% | 0.9225% | 0.9225% | 0.9225% | 0.9225% | |
Parent Entity | JPY8,000 million subordinated notes | Five year JPY mid-swap rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate adjustments (as a percent) | 1.0005% | 1.0005% | 1.0005% | 1.0005% | 1.0005% | 1.0005% | 1.0005% | 1.0005% | 1.0005% | 1.0005% | 1.0005% | 1.0005% | 1.0005% | |
Parent Entity | US$1500 million 4.322% subordinated notes | ||||||||||||||
Loan capital | ||||||||||||||
Principal amount | $ 1,500 | $ 1,500 | ||||||||||||
Loan capital | $ 2,320 | $ 2,297 | ||||||||||||
Parent Entity | US$1500 million 4.322% subordinated notes | Fixed interest rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate (as a percent) | 4.322% | 4.322% | 4.322% | 4.322% | 4.322% | 4.322% | 4.322% | 4.322% | 4.322% | 4.322% | 4.322% | 4.322% | 4.322% | |
Parent Entity | US$1500 million 4.322% subordinated notes | 5-year USD mid-market swap rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate adjustments (as a percent) | 2.236% | 2.236% | 2.236% | 2.236% | 2.236% | 2.236% | 2.236% | 2.236% | 2.236% | 2.236% | 2.236% | 2.236% | 2.236% | |
Parent Entity | JPY12,000 million subordinated notes | ||||||||||||||
Loan capital | ||||||||||||||
Principal amount | ¥ | ¥ 12,000 | ¥ 12,000 | ||||||||||||
Loan capital | $ 161 | $ 166 | ||||||||||||
Parent Entity | JPY12,000 million subordinated notes | Fixed interest rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate (as a percent) | 0.87% | 0.87% | 0.87% | 0.87% | 0.87% | 0.87% | 0.87% | 0.87% | 0.87% | 0.87% | 0.87% | 0.87% | 0.87% | |
Parent Entity | JPY12,000 million subordinated notes | Five year JPY mid-swap rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate adjustments (as a percent) | 0.78% | 0.78% | 0.78% | 0.78% | 0.78% | 0.78% | 0.78% | 0.78% | 0.78% | 0.78% | 0.78% | 0.78% | 0.78% | |
Parent Entity | JPY13,500 million subordinated notes | ||||||||||||||
Loan capital | ||||||||||||||
Principal amount | ¥ | ¥ 13,500 | ¥ 13,500 | ||||||||||||
Loan capital | $ 181 | $ 187 | ||||||||||||
Parent Entity | JPY13,500 million subordinated notes | Fixed interest rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate (as a percent) | 0.868% | 0.868% | 0.868% | 0.868% | 0.868% | 0.868% | 0.868% | 0.868% | 0.868% | 0.868% | 0.868% | 0.868% | 0.868% | |
Parent Entity | JPY13,500 million subordinated notes | Five year JPY mid-swap rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate adjustments (as a percent) | 0.778% | 0.778% | 0.778% | 0.778% | 0.778% | 0.778% | 0.778% | 0.778% | 0.778% | 0.778% | 0.778% | 0.778% | 0.778% | |
Parent Entity | HKD600 million subordinated notes | ||||||||||||||
Loan capital | ||||||||||||||
Principal amount | $ 600 | $ 600 | ||||||||||||
Loan capital | $ 111 | $ 114 | ||||||||||||
Parent Entity | HKD600 million subordinated notes | Fixed interest rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate (as a percent) | 3.15% | 3.15% | 3.15% | 3.15% | 3.15% | 3.15% | 3.15% | 3.15% | 3.15% | 3.15% | 3.15% | 3.15% | 3.15% | |
Parent Entity | HKD600 million subordinated notes | Five year HKD mid-swap rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate adjustments (as a percent) | 1.34% | 1.34% | 1.34% | 1.34% | 1.34% | 1.34% | 1.34% | 1.34% | 1.34% | 1.34% | 1.34% | 1.34% | 1.34% | |
Parent Entity | A$350 million 4.334% subordinated notes | ||||||||||||||
Loan capital | ||||||||||||||
Principal amount | $ 350 | $ 350 | ||||||||||||
Loan capital | $ 349 | $ 349 | ||||||||||||
Parent Entity | A$350 million 4.334% subordinated notes | Fixed interest rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate (as a percent) | 4.334% | 4.334% | 4.334% | 4.334% | 4.334% | 4.334% | 4.334% | 4.334% | 4.334% | 4.334% | 4.334% | 4.334% | 4.334% | |
Parent Entity | A$350 million 4.334% subordinated notes | Five year AUD semi-quarterly mid-swap reference rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate adjustments (as a percent) | 1.83% | 1.83% | 1.83% | 1.83% | 1.83% | 1.83% | 1.83% | 1.83% | 1.83% | 1.83% | 1.83% | 1.83% | 1.83% | |
Parent Entity | A$185 million subordinated notes | ||||||||||||||
Loan capital | ||||||||||||||
Principal amount | $ 185 | $ 185 | ||||||||||||
Loan capital | $ 185 | $ 185 | ||||||||||||
Parent Entity | A$185 million subordinated notes | Fixed interest rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate (as a percent) | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | |
Parent Entity | A$250 million subordinated notes | ||||||||||||||
Loan capital | ||||||||||||||
Principal amount | $ 250 | $ 250 | ||||||||||||
Loan capital | $ 250 | $ 250 | ||||||||||||
Parent Entity | A$250 million subordinated notes | 90 day bank bill rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate adjustments (as a percent) | 1.40% | 1.40% | 1.40% | 1.40% | 1.40% | 1.40% | 1.40% | 1.40% | 1.40% | 1.40% | 1.40% | 1.40% | 1.40% | |
Parent Entity | A$130 million subordinated notes | ||||||||||||||
Loan capital | ||||||||||||||
Principal amount | $ 130 | $ 130 | ||||||||||||
Loan capital | $ 130 | $ 130 | ||||||||||||
Parent Entity | A$130 million subordinated notes | Fixed interest rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate (as a percent) | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | |
Parent Entity | A$725 million subordinated notes | ||||||||||||||
Loan capital | ||||||||||||||
Principal amount | $ 725 | $ 725 | ||||||||||||
Loan capital | $ 714 | $ 724 | ||||||||||||
Parent Entity | A$725 million subordinated notes | 90 day bank bill rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate adjustments (as a percent) | 1.80% | 1.80% | 1.80% | 1.80% | 1.80% | 1.80% | 1.80% | 1.80% | 1.80% | 1.80% | 1.80% | 1.80% | 1.80% | |
Parent Entity | US$1,000 million subordinated notes | ||||||||||||||
Loan capital | ||||||||||||||
Principal amount | $ 1,000 | $ 1,000 | ||||||||||||
Loan capital | $ 1,707 | $ 1,606 | ||||||||||||
Parent Entity | US$1,000 million subordinated notes | Fixed interest rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate (as a percent) | 4.421% | 4.421% | 4.421% | 4.421% | 4.421% | 4.421% | 4.421% | 4.421% | 4.421% | 4.421% | 4.421% | 4.421% | 4.421% | |
Parent Entity | US $1,250 million subordinated notes | ||||||||||||||
Loan capital | ||||||||||||||
Principal amount | $ 1,250 | $ 1,250 | ||||||||||||
Loan capital | $ 1,970 | $ 1,921 | ||||||||||||
Parent Entity | US $1,250 million subordinated notes | Fixed interest rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate (as a percent) | 4.11% | 4.11% | 4.11% | 4.11% | 4.11% | 4.11% | 4.11% | 4.11% | 4.11% | 4.11% | 4.11% | 4.11% | 4.11% | |
Parent Entity | US $1,250 million subordinated notes | 5-year USD Treasury rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate adjustments (as a percent) | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% | |
Parent Entity | A$1,000 million subordinated notes | ||||||||||||||
Loan capital | ||||||||||||||
Principal amount | $ 1,000 | $ 1,000 | ||||||||||||
Loan capital | $ 1,000 | $ 991 | ||||||||||||
Parent Entity | A$1,000 million subordinated notes | Floating 90 day bank bill rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate adjustments (as a percent) | 1.98% | 1.98% | 1.98% | 1.98% | 1.98% | 1.98% | 1.98% | 1.98% | 1.98% | 1.98% | 1.98% | 1.98% | 1.98% | |
Parent Entity | US$1500 million 2.894% subordinated notes | ||||||||||||||
Loan capital | ||||||||||||||
Principal amount | $ 1,500 | |||||||||||||
Loan capital | $ 2,220 | |||||||||||||
Parent Entity | US$1500 million 2.894% subordinated notes | Fixed interest rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate (as a percent) | 2.894% | 2.894% | 2.894% | 2.894% | 2.894% | 2.894% | ||||||||
Parent Entity | US$1500 million 2.894% subordinated notes | 5-year USD Treasury rate | ||||||||||||||
Loan capital | ||||||||||||||
Interest rate adjustments (as a percent) | 1.35% | 1.35% | 1.35% | 1.35% | 1.35% | 1.35% | ||||||||
Parent Entity | Subordinated perpetual notes | ||||||||||||||
Loan capital | ||||||||||||||
Loan capital | $ 495 | $ 521 |
Derivative financial instrume_3
Derivative financial instruments - Carrying value of derivative instruments (Details) - AUD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 |
Derivative Assets Held for Trading | ||
Gross derivative assets | $ 55,908 | $ 55,038 |
Impact of netting arrangements | (34,402) | (27,968) |
Total of net derivative assets held for trading | 21,506 | 27,070 |
Derivative Liabilities Held for Trading | ||
Gross derivative liabilities | (57,035) | (56,648) |
Impact of netting arrangements | 34,819 | 28,703 |
Total of net derivative liabilities held for trading | (22,216) | (27,945) |
Derivative Assets Held for Hedging | ||
Gross derivative assets | 7,427 | 6,426 |
Derivative assets, Impact of netting arrangements, Hedging | (5,566) | (3,637) |
Total of net derivative assets held for hedging | 1,861 | 2,789 |
Derivative Liabilities Held for Hedging | ||
Gross derivative liabilities | (10,518) | (7,640) |
Derivative liabilities, Impact of netting arrangements, Hedging | 9,680 | 6,489 |
Total of net derivative liabilities held for hedging | (838) | (1,151) |
Total derivatives carrying value, Assets | ||
Gross derivative assets | 63,335 | 61,464 |
Derivative assets, Impact of netting arrangements | (39,968) | (31,605) |
Total of net derivative assets | 23,367 | 29,859 |
Total derivatives carrying value, Liabilities | ||
Gross derivative liabilities | (67,553) | (64,288) |
Derivative liabilities, Impact of netting arrangements | 44,499 | 35,192 |
Total of net derivative liabilities | (23,054) | (29,096) |
Interest rate contracts | ||
Derivative Assets Held for Trading | ||
Gross derivative assets | 44,541 | 38,712 |
Derivative Liabilities Held for Trading | ||
Gross derivative liabilities | (42,903) | (37,390) |
Derivative Assets Held for Hedging | ||
Gross derivative assets | 5,916 | 4,073 |
Derivative Liabilities Held for Hedging | ||
Gross derivative liabilities | (10,331) | (7,568) |
Total derivatives carrying value, Assets | ||
Gross derivative assets | 50,457 | 42,785 |
Total derivatives carrying value, Liabilities | ||
Gross derivative liabilities | (53,234) | (44,958) |
Interest rate contracts | Forward rate agreements | ||
Derivative Assets Held for Trading | ||
Gross derivative assets | 14 | 35 |
Derivative Liabilities Held for Trading | ||
Gross derivative liabilities | (14) | (36) |
Total derivatives carrying value, Assets | ||
Gross derivative assets | 14 | 35 |
Total derivatives carrying value, Liabilities | ||
Gross derivative liabilities | (14) | (36) |
Interest rate contracts | Swap agreements | ||
Derivative Assets Held for Trading | ||
Gross derivative assets | 44,366 | 38,383 |
Derivative Liabilities Held for Trading | ||
Gross derivative liabilities | (42,724) | (37,051) |
Derivative Assets Held for Hedging | ||
Gross derivative assets | 5,916 | 4,073 |
Derivative Liabilities Held for Hedging | ||
Gross derivative liabilities | (10,331) | (7,568) |
Total derivatives carrying value, Assets | ||
Gross derivative assets | 50,282 | 42,456 |
Total derivatives carrying value, Liabilities | ||
Gross derivative liabilities | (53,055) | (44,619) |
Interest rate contracts | Interest rate options | ||
Derivative Assets Held for Trading | ||
Gross derivative assets | 161 | 294 |
Derivative Liabilities Held for Trading | ||
Gross derivative liabilities | (165) | (303) |
Total derivatives carrying value, Assets | ||
Gross derivative assets | 161 | 294 |
Total derivatives carrying value, Liabilities | ||
Gross derivative liabilities | (165) | (303) |
Foreign exchange contracts | ||
Derivative Assets Held for Trading | ||
Gross derivative assets | 10,955 | 15,991 |
Derivative Liabilities Held for Trading | ||
Gross derivative liabilities | (13,869) | (18,982) |
Derivative Assets Held for Hedging | ||
Gross derivative assets | 1,511 | 2,353 |
Derivative Liabilities Held for Hedging | ||
Gross derivative liabilities | (187) | (72) |
Total derivatives carrying value, Assets | ||
Gross derivative assets | 12,466 | 18,344 |
Total derivatives carrying value, Liabilities | ||
Gross derivative liabilities | (14,056) | (19,054) |
Foreign exchange contracts | Spot and forward contracts | ||
Derivative Assets Held for Trading | ||
Gross derivative assets | 5,595 | 6,857 |
Derivative Liabilities Held for Trading | ||
Gross derivative liabilities | (4,797) | (6,393) |
Derivative Assets Held for Hedging | ||
Gross derivative assets | 61 | 181 |
Derivative Liabilities Held for Hedging | ||
Gross derivative liabilities | (46) | (3) |
Total derivatives carrying value, Assets | ||
Gross derivative assets | 5,656 | 7,038 |
Total derivatives carrying value, Liabilities | ||
Gross derivative liabilities | (4,843) | (6,396) |
Foreign exchange contracts | Cross currency swap agreements (principal and interest) | ||
Derivative Assets Held for Trading | ||
Gross derivative assets | 4,977 | 8,934 |
Derivative Liabilities Held for Trading | ||
Gross derivative liabilities | (8,872) | (12,478) |
Derivative Assets Held for Hedging | ||
Gross derivative assets | 1,450 | 2,172 |
Derivative Liabilities Held for Hedging | ||
Gross derivative liabilities | (141) | (69) |
Total derivatives carrying value, Assets | ||
Gross derivative assets | 6,427 | 11,106 |
Total derivatives carrying value, Liabilities | ||
Gross derivative liabilities | (9,013) | (12,547) |
Foreign exchange contracts | Foreign exchange options | ||
Derivative Assets Held for Trading | ||
Gross derivative assets | 383 | 200 |
Derivative Liabilities Held for Trading | ||
Gross derivative liabilities | (200) | (111) |
Total derivatives carrying value, Assets | ||
Gross derivative assets | 383 | 200 |
Total derivatives carrying value, Liabilities | ||
Gross derivative liabilities | (200) | (111) |
Credit default swaps | ||
Derivative Assets Held for Trading | ||
Gross derivative assets | 57 | 83 |
Derivative Liabilities Held for Trading | ||
Gross derivative liabilities | (59) | (88) |
Total derivatives carrying value, Assets | ||
Gross derivative assets | 57 | 83 |
Total derivatives carrying value, Liabilities | ||
Gross derivative liabilities | (59) | (88) |
Credit default swaps | Credit protection bought | ||
Derivative Liabilities Held for Trading | ||
Gross derivative liabilities | (59) | (88) |
Total derivatives carrying value, Liabilities | ||
Gross derivative liabilities | (59) | (88) |
Credit default swaps | Credit protection sold | ||
Derivative Assets Held for Trading | ||
Gross derivative assets | 57 | 83 |
Total derivatives carrying value, Assets | ||
Gross derivative assets | 57 | 83 |
Commodity contracts | ||
Derivative Assets Held for Trading | ||
Gross derivative assets | 352 | 251 |
Derivative Liabilities Held for Trading | ||
Gross derivative liabilities | (204) | (187) |
Total derivatives carrying value, Assets | ||
Gross derivative assets | 352 | 251 |
Total derivatives carrying value, Liabilities | ||
Gross derivative liabilities | (204) | (187) |
Equities | ||
Derivative Assets Held for Trading | ||
Gross derivative assets | 3 | 1 |
Derivative Liabilities Held for Trading | ||
Gross derivative liabilities | (1) | |
Total derivatives carrying value, Assets | ||
Gross derivative assets | 3 | 1 |
Total derivatives carrying value, Liabilities | ||
Gross derivative liabilities | (1) | |
Parent Entity | ||
Derivative Assets Held for Trading | ||
Gross derivative assets | 56,099 | 55,274 |
Impact of netting arrangements | (34,521) | (27,968) |
Total of net derivative assets held for trading | 21,578 | 27,306 |
Derivative Liabilities Held for Trading | ||
Gross derivative liabilities | (57,443) | (57,032) |
Impact of netting arrangements | 35,175 | 28,703 |
Total of net derivative liabilities held for trading | (22,268) | (28,329) |
Derivative Assets Held for Hedging | ||
Gross derivative assets | 6,663 | 5,614 |
Derivative assets, Impact of netting arrangements, Hedging | (5,447) | (3,637) |
Total of net derivative assets held for hedging | 1,216 | 1,977 |
Derivative Liabilities Held for Hedging | ||
Gross derivative liabilities | (9,835) | (7,027) |
Derivative liabilities, Impact of netting arrangements, Hedging | 9,324 | 6,489 |
Total of net derivative liabilities held for hedging | (511) | (538) |
Total derivatives carrying value, Assets | ||
Gross derivative assets | 62,762 | 60,888 |
Derivative assets, Impact of netting arrangements | (39,968) | (31,605) |
Total of net derivative assets | 22,794 | 29,283 |
Total derivatives carrying value, Liabilities | ||
Gross derivative liabilities | (67,278) | (64,059) |
Derivative liabilities, Impact of netting arrangements | 44,499 | 35,192 |
Total of net derivative liabilities | (22,779) | (28,867) |
Parent Entity | Interest rate contracts | ||
Derivative Assets Held for Trading | ||
Gross derivative assets | 44,686 | 38,818 |
Derivative Liabilities Held for Trading | ||
Gross derivative liabilities | (43,287) | (37,777) |
Derivative Assets Held for Hedging | ||
Gross derivative assets | 5,749 | 3,955 |
Derivative Liabilities Held for Hedging | ||
Gross derivative liabilities | (9,807) | (7,018) |
Total derivatives carrying value, Assets | ||
Gross derivative assets | 50,435 | 42,773 |
Total derivatives carrying value, Liabilities | ||
Gross derivative liabilities | (53,094) | (44,795) |
Parent Entity | Interest rate contracts | Forward rate agreements | ||
Derivative Assets Held for Trading | ||
Gross derivative assets | 14 | 35 |
Derivative Liabilities Held for Trading | ||
Gross derivative liabilities | (14) | (36) |
Total derivatives carrying value, Assets | ||
Gross derivative assets | 14 | 35 |
Total derivatives carrying value, Liabilities | ||
Gross derivative liabilities | (14) | (36) |
Parent Entity | Interest rate contracts | Swap agreements | ||
Derivative Assets Held for Trading | ||
Gross derivative assets | 44,511 | 38,489 |
Derivative Liabilities Held for Trading | ||
Gross derivative liabilities | (43,108) | (37,438) |
Derivative Assets Held for Hedging | ||
Gross derivative assets | 5,749 | 3,955 |
Derivative Liabilities Held for Hedging | ||
Gross derivative liabilities | (9,807) | (7,018) |
Total derivatives carrying value, Assets | ||
Gross derivative assets | 50,260 | 42,444 |
Total derivatives carrying value, Liabilities | ||
Gross derivative liabilities | (52,915) | (44,456) |
Parent Entity | Interest rate contracts | Interest rate options | ||
Derivative Assets Held for Trading | ||
Gross derivative assets | 161 | 294 |
Derivative Liabilities Held for Trading | ||
Gross derivative liabilities | (165) | (303) |
Total derivatives carrying value, Assets | ||
Gross derivative assets | 161 | 294 |
Total derivatives carrying value, Liabilities | ||
Gross derivative liabilities | (165) | (303) |
Parent Entity | Foreign exchange contracts | ||
Derivative Assets Held for Trading | ||
Gross derivative assets | 11,001 | 16,121 |
Derivative Liabilities Held for Trading | ||
Gross derivative liabilities | (13,893) | (18,979) |
Derivative Assets Held for Hedging | ||
Gross derivative assets | 914 | 1,659 |
Derivative Liabilities Held for Hedging | ||
Gross derivative liabilities | (28) | (9) |
Total derivatives carrying value, Assets | ||
Gross derivative assets | 11,915 | 17,780 |
Total derivatives carrying value, Liabilities | ||
Gross derivative liabilities | (13,921) | (18,988) |
Parent Entity | Foreign exchange contracts | Spot and forward contracts | ||
Derivative Assets Held for Trading | ||
Gross derivative assets | 5,641 | 6,987 |
Derivative Liabilities Held for Trading | ||
Gross derivative liabilities | (4,821) | (6,389) |
Derivative Assets Held for Hedging | ||
Gross derivative assets | 14 | 46 |
Derivative Liabilities Held for Hedging | ||
Gross derivative liabilities | (19) | (3) |
Total derivatives carrying value, Assets | ||
Gross derivative assets | 5,655 | 7,033 |
Total derivatives carrying value, Liabilities | ||
Gross derivative liabilities | (4,840) | (6,392) |
Parent Entity | Foreign exchange contracts | Cross currency swap agreements (principal and interest) | ||
Derivative Assets Held for Trading | ||
Gross derivative assets | 4,977 | 8,934 |
Derivative Liabilities Held for Trading | ||
Gross derivative liabilities | (8,872) | (12,479) |
Derivative Assets Held for Hedging | ||
Gross derivative assets | 900 | 1,613 |
Derivative Liabilities Held for Hedging | ||
Gross derivative liabilities | (9) | (6) |
Total derivatives carrying value, Assets | ||
Gross derivative assets | 5,877 | 10,547 |
Total derivatives carrying value, Liabilities | ||
Gross derivative liabilities | (8,881) | (12,485) |
Parent Entity | Foreign exchange contracts | Foreign exchange options | ||
Derivative Assets Held for Trading | ||
Gross derivative assets | 383 | 200 |
Derivative Liabilities Held for Trading | ||
Gross derivative liabilities | (200) | (111) |
Total derivatives carrying value, Assets | ||
Gross derivative assets | 383 | 200 |
Total derivatives carrying value, Liabilities | ||
Gross derivative liabilities | (200) | (111) |
Parent Entity | Credit default swaps | ||
Derivative Assets Held for Trading | ||
Gross derivative assets | 57 | 83 |
Derivative Liabilities Held for Trading | ||
Gross derivative liabilities | (59) | (88) |
Total derivatives carrying value, Assets | ||
Gross derivative assets | 57 | 83 |
Total derivatives carrying value, Liabilities | ||
Gross derivative liabilities | (59) | (88) |
Parent Entity | Credit default swaps | Credit protection bought | ||
Derivative Liabilities Held for Trading | ||
Gross derivative liabilities | (59) | (88) |
Total derivatives carrying value, Liabilities | ||
Gross derivative liabilities | (59) | (88) |
Parent Entity | Credit default swaps | Credit protection sold | ||
Derivative Assets Held for Trading | ||
Gross derivative assets | 57 | 83 |
Total derivatives carrying value, Assets | ||
Gross derivative assets | 57 | 83 |
Parent Entity | Commodity contracts | ||
Derivative Assets Held for Trading | ||
Gross derivative assets | 352 | 251 |
Derivative Liabilities Held for Trading | ||
Gross derivative liabilities | (204) | (187) |
Total derivatives carrying value, Assets | ||
Gross derivative assets | 352 | 251 |
Total derivatives carrying value, Liabilities | ||
Gross derivative liabilities | (204) | (187) |
Parent Entity | Equities | ||
Derivative Assets Held for Trading | ||
Gross derivative assets | 3 | 1 |
Derivative Liabilities Held for Trading | ||
Gross derivative liabilities | (1) | |
Total derivatives carrying value, Assets | ||
Gross derivative assets | $ 3 | 1 |
Total derivatives carrying value, Liabilities | ||
Gross derivative liabilities | $ (1) |
Derivative financial instrume_4
Derivative financial instruments - Interest rate benchmark reform (Details) - Derivatives $ in Millions | Sep. 30, 2020AUD ($) |
USD | |
Summary of Libor exposures in hedging relationships | |
Notional hedged exposure | $ 40 |
GBP | |
Summary of Libor exposures in hedging relationships | |
Notional hedged exposure | 2 |
CHF | |
Summary of Libor exposures in hedging relationships | |
Notional hedged exposure | 2 |
JPY | |
Summary of Libor exposures in hedging relationships | |
Notional hedged exposure | 1 |
Parent Entity | USD | |
Summary of Libor exposures in hedging relationships | |
Notional hedged exposure | 40 |
Parent Entity | GBP | |
Summary of Libor exposures in hedging relationships | |
Notional hedged exposure | 2 |
Parent Entity | CHF | |
Summary of Libor exposures in hedging relationships | |
Notional hedged exposure | 2 |
Parent Entity | JPY | |
Summary of Libor exposures in hedging relationships | |
Notional hedged exposure | $ 1 |
Derivative financial instrume_5
Derivative financial instruments - Hedging instruments (Details) - AUD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 |
Financial instruments | ||
Notional amounts | 366,569 | 373,029 |
Gross hedged assets | $ 7,427 | $ 6,426 |
Impact of netting arrangements on hedged assets | (5,566) | (3,637) |
Carrying value, hedged assets | 1,861 | 2,789 |
Gross hedged liabilities | (10,518) | (7,640) |
Impact of netting arrangements on hedged liabilities | 9,680 | 6,489 |
Carrying value, hedged liabilities | $ (838) | $ (1,151) |
One-to-one hedge relationships | ||
Financial instruments | ||
Notional amounts | 172,051 | 177,388 |
Gross hedged assets | $ 5,906 | $ 4,901 |
Gross hedged liabilities | $ (8,997) | $ (5,744) |
One-to-one hedge relationships | Within 1 Year | ||
Financial instruments | ||
Notional amounts | 33,613 | 35,738 |
One-to-one hedge relationships | Over 1 Year to 5 Years | ||
Financial instruments | ||
Notional amounts | 78,229 | 89,963 |
One-to-one hedge relationships | Over 5 Years | ||
Financial instruments | ||
Notional amounts | 60,209 | 51,687 |
One-to-one hedge relationships | Fair-value hedges | Interest rate swap | Interest rate risk | ||
Financial instruments | ||
Notional amounts | 133,985 | 126,300 |
Gross hedged assets | $ 4,395 | $ 2,548 |
Gross hedged liabilities | $ (8,810) | $ (5,672) |
One-to-one hedge relationships | Fair-value hedges | Interest rate swap | Interest rate risk | Within 1 Year | ||
Financial instruments | ||
Notional amounts | 16,748 | 16,322 |
One-to-one hedge relationships | Fair-value hedges | Interest rate swap | Interest rate risk | Over 1 Year to 5 Years | ||
Financial instruments | ||
Notional amounts | 60,258 | 61,707 |
One-to-one hedge relationships | Fair-value hedges | Interest rate swap | Interest rate risk | Over 5 Years | ||
Financial instruments | ||
Notional amounts | 56,979 | 48,271 |
One-to-one hedge relationships | Fair-value hedges | Cross currency swap | Interest rate risk | ||
Financial instruments | ||
Notional amounts | 14,664 | 20,210 |
Gross hedged assets | $ 355 | $ 584 |
Gross hedged liabilities | $ (69) | |
One-to-one hedge relationships | Fair-value hedges | Cross currency swap | Interest rate risk | Within 1 Year | ||
Financial instruments | ||
Notional amounts | 4,668 | 5,632 |
One-to-one hedge relationships | Fair-value hedges | Cross currency swap | Interest rate risk | Over 1 Year to 5 Years | ||
Financial instruments | ||
Notional amounts | 8,381 | 12,870 |
One-to-one hedge relationships | Fair-value hedges | Cross currency swap | Interest rate risk | Over 5 Years | ||
Financial instruments | ||
Notional amounts | 1,615 | 1,708 |
One-to-one hedge relationships | Cash-flow hedges | Cross currency swap | Foreign exchange risk | ||
Financial instruments | ||
Notional amounts | 17,082 | 22,726 |
Gross hedged assets | $ 1,095 | $ 1,588 |
Gross hedged liabilities | $ (141) | |
One-to-one hedge relationships | Cash-flow hedges | Cross currency swap | Foreign exchange risk | Within 1 Year | ||
Financial instruments | ||
Notional amounts | 5,877 | 5,632 |
One-to-one hedge relationships | Cash-flow hedges | Cross currency swap | Foreign exchange risk | Over 1 Year to 5 Years | ||
Financial instruments | ||
Notional amounts | 9,590 | 15,386 |
One-to-one hedge relationships | Cash-flow hedges | Cross currency swap | Foreign exchange risk | Over 5 Years | ||
Financial instruments | ||
Notional amounts | 1,615 | 1,708 |
One-to-one hedge relationships | Net Investment Hedging | Forward contract | Foreign exchange risk | ||
Financial instruments | ||
Notional amounts | 6,320 | 8,152 |
Gross hedged assets | $ 61 | $ 181 |
Gross hedged liabilities | $ (46) | $ (3) |
One-to-one hedge relationships | Net Investment Hedging | Forward contract | Foreign exchange risk | Within 1 Year | ||
Financial instruments | ||
Notional amounts | 6,320 | 8,152 |
Macro hedge relationships | ||
Financial instruments | ||
Notional amounts | 194,518 | 195,641 |
Gross hedged assets | $ 1,521 | $ 1,525 |
Gross hedged liabilities | $ (1,521) | $ (1,896) |
Macro hedge relationships | Portfolio fair value hedges | Interest rate swap | Interest rate risk | ||
Financial instruments | ||
Notional amounts | 19,907 | 18,813 |
Gross hedged liabilities | $ (187) | $ (194) |
Macro hedge relationships | Macro cash flow hedges | Interest rate swap | Interest rate risk | ||
Financial instruments | ||
Notional amounts | 174,611 | 176,828 |
Gross hedged assets | $ 1,521 | $ 1,525 |
Gross hedged liabilities | $ (1,334) | $ (1,702) |
Parent Entity | ||
Financial instruments | ||
Notional amounts | 312,107 | 317,423 |
Gross hedged assets | $ 6,663 | $ 5,614 |
Impact of netting arrangements on hedged assets | (5,447) | (3,637) |
Carrying value, hedged assets | 1,216 | 1,977 |
Gross hedged liabilities | (9,835) | (7,027) |
Impact of netting arrangements on hedged liabilities | 9,324 | 6,489 |
Carrying value, hedged liabilities | $ (511) | $ (538) |
Parent Entity | One-to-one hedge relationships | ||
Financial instruments | ||
Notional amounts | 150,074 | 150,445 |
Gross hedged assets | $ 5,304 | $ 4,194 |
Gross hedged liabilities | $ (8,672) | $ (5,484) |
Parent Entity | One-to-one hedge relationships | Within 1 Year | ||
Financial instruments | ||
Notional amounts | 23,327 | 25,584 |
Parent Entity | One-to-one hedge relationships | Over 1 Year to 5 Years | ||
Financial instruments | ||
Notional amounts | 67,196 | 74,212 |
Parent Entity | One-to-one hedge relationships | Over 5 Years | ||
Financial instruments | ||
Notional amounts | 59,551 | 50,649 |
Parent Entity | One-to-one hedge relationships | Fair-value hedges | Interest rate swap | Interest rate risk | ||
Financial instruments | ||
Notional amounts | 131,732 | 122,046 |
Gross hedged assets | $ 4,390 | $ 2,535 |
Gross hedged liabilities | $ (8,644) | $ (5,475) |
Parent Entity | One-to-one hedge relationships | Fair-value hedges | Interest rate swap | Interest rate risk | Within 1 Year | ||
Financial instruments | ||
Notional amounts | 16,125 | 14,323 |
Parent Entity | One-to-one hedge relationships | Fair-value hedges | Interest rate swap | Interest rate risk | Over 1 Year to 5 Years | ||
Financial instruments | ||
Notional amounts | 58,628 | 59,842 |
Parent Entity | One-to-one hedge relationships | Fair-value hedges | Interest rate swap | Interest rate risk | Over 5 Years | ||
Financial instruments | ||
Notional amounts | 56,979 | 47,881 |
Parent Entity | One-to-one hedge relationships | Fair-value hedges | Cross currency swap | Interest rate risk | ||
Financial instruments | ||
Notional amounts | 8,551 | 13,042 |
Gross hedged assets | $ 252 | $ 441 |
Parent Entity | One-to-one hedge relationships | Fair-value hedges | Cross currency swap | Interest rate risk | Within 1 Year | ||
Financial instruments | ||
Notional amounts | 2,981 | 4,473 |
Parent Entity | One-to-one hedge relationships | Fair-value hedges | Cross currency swap | Interest rate risk | Over 1 Year to 5 Years | ||
Financial instruments | ||
Notional amounts | 4,284 | 7,185 |
Parent Entity | One-to-one hedge relationships | Fair-value hedges | Cross currency swap | Interest rate risk | Over 5 Years | ||
Financial instruments | ||
Notional amounts | 1,286 | 1,384 |
Parent Entity | One-to-one hedge relationships | Cash-flow hedges | Cross currency swap | Foreign exchange risk | ||
Financial instruments | ||
Notional amounts | 8,551 | 13,042 |
Gross hedged assets | $ 648 | $ 1,172 |
Gross hedged liabilities | $ (9) | $ (6) |
Parent Entity | One-to-one hedge relationships | Cash-flow hedges | Cross currency swap | Foreign exchange risk | Within 1 Year | ||
Financial instruments | ||
Notional amounts | 2,981 | 4,473 |
Parent Entity | One-to-one hedge relationships | Cash-flow hedges | Cross currency swap | Foreign exchange risk | Over 1 Year to 5 Years | ||
Financial instruments | ||
Notional amounts | 4,284 | 7,185 |
Parent Entity | One-to-one hedge relationships | Cash-flow hedges | Cross currency swap | Foreign exchange risk | Over 5 Years | ||
Financial instruments | ||
Notional amounts | 1,286 | 1,384 |
Parent Entity | One-to-one hedge relationships | Net Investment Hedging | Forward contract | Foreign exchange risk | ||
Financial instruments | ||
Notional amounts | 1,240 | 2,315 |
Gross hedged assets | $ 14 | $ 46 |
Gross hedged liabilities | $ (19) | $ (3) |
Parent Entity | One-to-one hedge relationships | Net Investment Hedging | Forward contract | Foreign exchange risk | Within 1 Year | ||
Financial instruments | ||
Notional amounts | 1,240 | 2,315 |
Parent Entity | Macro hedge relationships | ||
Financial instruments | ||
Notional amounts | 162,033 | 166,978 |
Gross hedged assets | $ 1,359 | $ 1,420 |
Gross hedged liabilities | $ (1,163) | $ (1,543) |
Parent Entity | Macro hedge relationships | Macro cash flow hedges | Interest rate swap | Interest rate risk | ||
Financial instruments | ||
Notional amounts | 162,033 | 166,978 |
Gross hedged assets | $ 1,359 | $ 1,420 |
Gross hedged liabilities | $ (1,163) | $ (1,543) |
Derivative financial instrume_6
Derivative financial instruments - Weighted average exchange rates in significant hedging instruments (Details) - Foreign exchange risk | Sep. 30, 2020 | Sep. 30, 2019 |
Cash-flow hedges | Cross currency swap | EUR:AUD | ||
Financial instruments | ||
Weighted average rate | 0.6687% | 0.6929% |
Cash-flow hedges | Cross currency swap | JPY:AUD | ||
Financial instruments | ||
Weighted average rate | 81.4507% | 81.4507% |
Cash-flow hedges | Cross currency swap | EUR:NZD | ||
Financial instruments | ||
Weighted average rate | 0.616% | 0.6079% |
Cash-flow hedges | Cross currency swap | HKD:NZD | ||
Financial instruments | ||
Weighted average rate | 4.967% | 4.967% |
Net Investment Hedging | Forward contract | NZD:AUD | ||
Financial instruments | ||
Weighted average rate | 1.0838% | 1.0545% |
Parent Entity | Cash-flow hedges | Cross currency swap | EUR:AUD | ||
Financial instruments | ||
Weighted average rate | 0.6687% | 0.6929% |
Parent Entity | Cash-flow hedges | Cross currency swap | JPY:AUD | ||
Financial instruments | ||
Weighted average rate | 81.4507% | 81.4507% |
Parent Entity | Cash-flow hedges | Cross currency swap | CNH:AUD | ||
Financial instruments | ||
Weighted average rate | 4.9492% | 4.9328% |
Parent Entity | Net Investment Hedging | Forward contract | NZD:AUD | ||
Financial instruments | ||
Weighted average rate | 1.0904% | 1.0546% |
Derivative financial instrume_7
Derivative financial instruments - Impact of hedge accounting on balance sheet and reserves (Details) - Fair-value hedges - AUD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 |
Derivative financial instruments | ||
FVHA included in carrying amounts relating to hedged items that have ceased to be adjusted for hedging gains and losses, assets | $ 0 | |
Debt issues and loan capital | ||
Derivative financial instruments | ||
Carrying value of hedged liabilities | (96,605) | $ (100,909) |
FVHA included in carrying amount, hedged liabilities | (4,559) | (2,818) |
Investment securities | ||
Derivative financial instruments | ||
Carrying value of hedged assets | 68,862 | 53,273 |
FVHA included in carrying amount, hedged assets | 3,285 | 2,815 |
Loans | ||
Derivative financial instruments | ||
Carrying value of hedged assets | 20,290 | 19,235 |
FVHA included in carrying amount, hedged assets | 140 | 133 |
Parent Entity | Debt issues and loan capital | ||
Derivative financial instruments | ||
Carrying value of hedged liabilities | (90,287) | (93,296) |
FVHA included in carrying amount, hedged liabilities | (4,440) | (2,661) |
Parent Entity | Investment securities | ||
Derivative financial instruments | ||
Carrying value of hedged assets | 66,529 | 49,132 |
FVHA included in carrying amount, hedged assets | 3,175 | 2,704 |
Parent Entity | Loans | ||
Derivative financial instruments | ||
Carrying value of hedged assets | 251 | 421 |
FVHA included in carrying amount, hedged assets | $ 8 | $ 5 |
Derivative financial instrume_8
Derivative financial instruments - Pre-tax impact of cash flow and net investment hedges on reserves (Details) - AUD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Derivative financial instruments | ||
Balances in cash flow hedge reserve relating to hedge relationships for which hedge accounting is no longer applied | $ 43 | $ 0 |
Foreign exchange risk | ||
Derivative financial instruments | ||
Loss relating to discontinued hedges | (210) | (210) |
Cash Flow and Net Investment Hedges | ||
Derivative financial instruments | ||
Opening balance | (182) | (176) |
Net gains/(losses) from changes in fair value | (95) | (203) |
Transferred to interest income | 218 | 197 |
Closing balance | (59) | (182) |
Cash Flow and Net Investment Hedges | Interest rate risk | ||
Derivative financial instruments | ||
Opening balance | (99) | (87) |
Net gains/(losses) from changes in fair value | (1) | (158) |
Transferred to interest income | 173 | 146 |
Closing balance | 73 | (99) |
Cash Flow and Net Investment Hedges | Foreign exchange risk | ||
Derivative financial instruments | ||
Opening balance | (83) | (89) |
Net gains/(losses) from changes in fair value | (94) | (45) |
Transferred to interest income | 45 | 51 |
Closing balance | (132) | (83) |
Net Investment Hedging | ||
Derivative financial instruments | ||
Net gains (losses) from changes in fair value of net investment hedges | (9) | (129) |
Parent Entity | Foreign exchange risk | ||
Derivative financial instruments | ||
Loss relating to discontinued hedges | (214) | (214) |
Parent Entity | Cash Flow and Net Investment Hedges | ||
Derivative financial instruments | ||
Opening balance | (92) | (99) |
Net gains/(losses) from changes in fair value | (28) | (121) |
Transferred to interest income | 150 | 128 |
Closing balance | 30 | (92) |
Parent Entity | Cash Flow and Net Investment Hedges | Interest rate risk | ||
Derivative financial instruments | ||
Opening balance | (70) | (42) |
Net gains/(losses) from changes in fair value | 16 | (130) |
Transferred to interest income | 137 | 102 |
Closing balance | 83 | (70) |
Parent Entity | Cash Flow and Net Investment Hedges | Foreign exchange risk | ||
Derivative financial instruments | ||
Opening balance | (22) | (57) |
Net gains/(losses) from changes in fair value | (44) | 9 |
Transferred to interest income | 13 | 26 |
Closing balance | (53) | (22) |
Parent Entity | Net Investment Hedging | ||
Derivative financial instruments | ||
Net gains (losses) from changes in fair value of net investment hedges | $ (17) | $ (52) |
Derivative financial instrume_9
Derivative financial instruments - Hedge effectiveness (Details) - AUD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Determination of hedge effectiveness | ||
Change in fair value of hedging instrument used for calculating | $ 1,483 | $ 1,595 |
Change in value of the hedged item used for calculating ineffectiveness | (1,396) | (1,567) |
Hedge ineffectiveness recognised in interest income | 87 | 28 |
Fair-value hedges | Interest rate swap | Interest rate risk | ||
Determination of hedge effectiveness | ||
Change in fair value of hedging instrument used for calculating | 1,403 | 1,532 |
Change in value of the hedged item used for calculating ineffectiveness | (1,372) | (1,512) |
Hedge ineffectiveness recognised in interest income | 31 | 20 |
Fair-value hedges | Cross currency swap | Interest rate risk | ||
Determination of hedge effectiveness | ||
Change in fair value of hedging instrument used for calculating | (110) | 192 |
Change in value of the hedged item used for calculating ineffectiveness | 108 | (190) |
Hedge ineffectiveness recognised in interest income | (2) | 2 |
Cash-flow hedges | Interest rate swap | Interest rate risk | ||
Determination of hedge effectiveness | ||
Change in fair value of hedging instrument used for calculating | 230 | (6) |
Change in value of the hedged item used for calculating ineffectiveness | (172) | 12 |
Hedge ineffectiveness recognised in interest income | 58 | 6 |
Cash-flow hedges | Cross currency swap | Foreign exchange risk | ||
Determination of hedge effectiveness | ||
Change in fair value of hedging instrument used for calculating | (49) | 6 |
Change in value of the hedged item used for calculating ineffectiveness | 49 | (6) |
Net Investment Hedging | Forward contract | Foreign exchange risk | ||
Determination of hedge effectiveness | ||
Change in fair value of hedging instrument used for calculating | 9 | (129) |
Change in value of the hedged item used for calculating ineffectiveness | (9) | 129 |
Parent Entity | ||
Determination of hedge effectiveness | ||
Change in fair value of hedging instrument used for calculating | 1,521 | 1,702 |
Change in value of the hedged item used for calculating ineffectiveness | (1,444) | (1,676) |
Hedge ineffectiveness recognised in interest income | 77 | 26 |
Parent Entity | Fair-value hedges | Interest rate swap | Interest rate risk | ||
Determination of hedge effectiveness | ||
Change in fair value of hedging instrument used for calculating | 1,408 | 1,684 |
Change in value of the hedged item used for calculating ineffectiveness | (1,377) | (1,664) |
Hedge ineffectiveness recognised in interest income | 31 | 20 |
Parent Entity | Fair-value hedges | Cross currency swap | Interest rate risk | ||
Determination of hedge effectiveness | ||
Change in fair value of hedging instrument used for calculating | (73) | 56 |
Change in value of the hedged item used for calculating ineffectiveness | 72 | (57) |
Hedge ineffectiveness recognised in interest income | (1) | (1) |
Parent Entity | Cash-flow hedges | Interest rate swap | Interest rate risk | ||
Determination of hedge effectiveness | ||
Change in fair value of hedging instrument used for calculating | 200 | (21) |
Change in value of the hedged item used for calculating ineffectiveness | (153) | 28 |
Hedge ineffectiveness recognised in interest income | 47 | 7 |
Parent Entity | Cash-flow hedges | Cross currency swap | Foreign exchange risk | ||
Determination of hedge effectiveness | ||
Change in fair value of hedging instrument used for calculating | (31) | 35 |
Change in value of the hedged item used for calculating ineffectiveness | 31 | (35) |
Parent Entity | Net Investment Hedging | Forward contract | Foreign exchange risk | ||
Determination of hedge effectiveness | ||
Change in fair value of hedging instrument used for calculating | 17 | (52) |
Change in value of the hedged item used for calculating ineffectiveness | $ (17) | $ 52 |
Financial risk - Credit risk co
Financial risk - Credit risk concentrations (Details) | Sep. 30, 2020 | Sep. 30, 2019 |
Trading securities and financial assets measured at FVIS | ||
Fair value related to credit risk | ||
Financial assets issued by financial institutions (as a percent) | 64.00% | 45.00% |
Financial assets issued by government or semi-government authorities (as a percent) | 33.00% | 51.00% |
Financial assets held in Australia (as a percent) | 79.00% | 71.00% |
Investment securities | ||
Fair value related to credit risk | ||
Financial assets issued by financial institutions (as a percent) | 18.00% | 24.00% |
Financial assets issued by government or semi-government authorities (as a percent) | 82.00% | 75.00% |
Financial assets held in Australia (as a percent) | 92.00% | 90.00% |
Derivative financial instruments | ||
Fair value related to credit risk | ||
Financial assets issued by financial institutions (as a percent) | 68.00% | 72.00% |
Financial assets held in Australia (as a percent) | 76.00% | 78.00% |
Parent Entity | Trading securities and financial assets measured at FVIS | ||
Fair value related to credit risk | ||
Financial assets issued by financial institutions (as a percent) | 67.00% | 44.00% |
Financial assets issued by government or semi-government authorities (as a percent) | 31.00% | 52.00% |
Financial assets held in Australia (as a percent) | 84.00% | 75.00% |
Parent Entity | Investment securities | ||
Fair value related to credit risk | ||
Financial assets issued by financial institutions (as a percent) | 18.00% | 25.00% |
Financial assets issued by government or semi-government authorities (as a percent) | 82.00% | 75.00% |
Financial assets held in Australia (as a percent) | 98.00% | 97.00% |
Parent Entity | Derivative financial instruments | ||
Fair value related to credit risk | ||
Financial assets issued by financial institutions (as a percent) | 68.00% | 72.00% |
Financial assets held in Australia (as a percent) | 78.00% | 80.00% |
Financial risk - Credit risk by
Financial risk - Credit risk by industry (Details) - AUD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 |
Financial risk | ||
Undrawn credit commitments | $ 196,941 | $ 191,340 |
Credit risk | ||
Financial risk | ||
Total on balance sheet | 894,040 | 884,300 |
Undrawn credit commitments | 196,941 | 191,340 |
Total gross credit risk | 1,090,981 | 1,075,640 |
Australia | Credit risk | ||
Financial risk | ||
Total on balance sheet | 760,194 | 752,564 |
Undrawn credit commitments | 160,494 | 151,773 |
Total gross credit risk | 920,688 | 904,337 |
New Zealand | Credit risk | ||
Financial risk | ||
Total on balance sheet | 101,176 | 95,791 |
Undrawn credit commitments | 25,020 | 23,075 |
Total gross credit risk | 126,196 | 118,866 |
Other overseas | Credit risk | ||
Financial risk | ||
Total on balance sheet | 32,670 | 35,945 |
Undrawn credit commitments | 11,427 | 16,492 |
Total gross credit risk | 44,097 | 52,437 |
Accommodation, cafes and restaurants | Australia | Credit risk | ||
Financial risk | ||
Total on balance sheet | 7,956 | 8,061 |
Undrawn credit commitments | 1,225 | 1,070 |
Total gross credit risk | 9,181 | 9,131 |
Accommodation, cafes and restaurants | New Zealand | Credit risk | ||
Financial risk | ||
Total on balance sheet | 389 | 356 |
Undrawn credit commitments | 51 | 36 |
Total gross credit risk | 440 | 392 |
Accommodation, cafes and restaurants | Other overseas | Credit risk | ||
Financial risk | ||
Total on balance sheet | 118 | 109 |
Undrawn credit commitments | 10 | 11 |
Total gross credit risk | 128 | 120 |
Agriculture, forestry and fishing | Australia | Credit risk | ||
Financial risk | ||
Total on balance sheet | 10,159 | 9,250 |
Undrawn credit commitments | 2,219 | 2,014 |
Total gross credit risk | 12,378 | 11,264 |
Agriculture, forestry and fishing | New Zealand | Credit risk | ||
Financial risk | ||
Total on balance sheet | 9,158 | 8,631 |
Undrawn credit commitments | 632 | 607 |
Total gross credit risk | 9,790 | 9,238 |
Agriculture, forestry and fishing | Other overseas | Credit risk | ||
Financial risk | ||
Total on balance sheet | 124 | 150 |
Undrawn credit commitments | 5 | 3 |
Total gross credit risk | 129 | 153 |
Construction | Australia | Credit risk | ||
Financial risk | ||
Total on balance sheet | 6,726 | 7,229 |
Undrawn credit commitments | 3,643 | 3,340 |
Total gross credit risk | 10,369 | 10,569 |
Construction | New Zealand | Credit risk | ||
Financial risk | ||
Total on balance sheet | 517 | 503 |
Undrawn credit commitments | 429 | 350 |
Total gross credit risk | 946 | 853 |
Construction | Other overseas | Credit risk | ||
Financial risk | ||
Total on balance sheet | 51 | 55 |
Undrawn credit commitments | 118 | 127 |
Total gross credit risk | 169 | 182 |
Finance and insurance | Australia | Credit risk | ||
Financial risk | ||
Total on balance sheet | 81,502 | 73,052 |
Undrawn credit commitments | 8,954 | 7,316 |
Total gross credit risk | 90,456 | 80,368 |
Finance and insurance | New Zealand | Credit risk | ||
Financial risk | ||
Total on balance sheet | 12,701 | 11,685 |
Undrawn credit commitments | 1,782 | 1,507 |
Total gross credit risk | 14,483 | 13,192 |
Finance and insurance | Other overseas | Credit risk | ||
Financial risk | ||
Total on balance sheet | 19,194 | 17,712 |
Undrawn credit commitments | 2,243 | 3,093 |
Total gross credit risk | 21,437 | 20,805 |
Government, administration and defence | Australia | Credit risk | ||
Financial risk | ||
Total on balance sheet | 80,182 | 63,582 |
Undrawn credit commitments | 1,588 | 1,766 |
Total gross credit risk | 81,770 | 65,348 |
Government, administration and defence | New Zealand | Credit risk | ||
Financial risk | ||
Total on balance sheet | 7,833 | 6,667 |
Undrawn credit commitments | 865 | 856 |
Total gross credit risk | 8,698 | 7,523 |
Government, administration and defence | Other overseas | Credit risk | ||
Financial risk | ||
Total on balance sheet | 4,787 | 5,646 |
Undrawn credit commitments | 18 | 23 |
Total gross credit risk | 4,805 | 5,669 |
Manufacturing | Australia | Credit risk | ||
Financial risk | ||
Total on balance sheet | 9,248 | 10,504 |
Undrawn credit commitments | 6,477 | 5,850 |
Total gross credit risk | 15,725 | 16,354 |
Manufacturing | New Zealand | Credit risk | ||
Financial risk | ||
Total on balance sheet | 1,804 | 2,079 |
Undrawn credit commitments | 1,782 | 1,758 |
Total gross credit risk | 3,586 | 3,837 |
Manufacturing | Other overseas | Credit risk | ||
Financial risk | ||
Total on balance sheet | 1,908 | 3,830 |
Undrawn credit commitments | 3,443 | 5,329 |
Total gross credit risk | 5,351 | 9,159 |
Mining | Australia | Credit risk | ||
Financial risk | ||
Total on balance sheet | 3,402 | 3,325 |
Undrawn credit commitments | 3,735 | 3,802 |
Total gross credit risk | 7,137 | 7,127 |
Mining | New Zealand | Credit risk | ||
Financial risk | ||
Total on balance sheet | 208 | 289 |
Undrawn credit commitments | 97 | 29 |
Total gross credit risk | 305 | 318 |
Mining | Other overseas | Credit risk | ||
Financial risk | ||
Total on balance sheet | 352 | 500 |
Undrawn credit commitments | 1,194 | 1,872 |
Total gross credit risk | 1,546 | 2,372 |
Property | Australia | Credit risk | ||
Financial risk | ||
Total on balance sheet | 45,139 | 45,467 |
Undrawn credit commitments | 10,869 | 10,119 |
Total gross credit risk | 56,008 | 55,586 |
Property | New Zealand | Credit risk | ||
Financial risk | ||
Total on balance sheet | 7,433 | 6,977 |
Undrawn credit commitments | 977 | 1,120 |
Total gross credit risk | 8,410 | 8,097 |
Property | Other overseas | Credit risk | ||
Financial risk | ||
Total on balance sheet | 416 | 493 |
Undrawn credit commitments | 27 | 29 |
Total gross credit risk | 443 | 522 |
Property services and business services | Australia | Credit risk | ||
Financial risk | ||
Total on balance sheet | 12,712 | 14,191 |
Undrawn credit commitments | 7,019 | 5,898 |
Total gross credit risk | 19,731 | 20,089 |
Property services and business services | New Zealand | Credit risk | ||
Financial risk | ||
Total on balance sheet | 1,033 | 1,300 |
Undrawn credit commitments | 712 | 557 |
Total gross credit risk | 1,745 | 1,857 |
Property services and business services | Other overseas | Credit risk | ||
Financial risk | ||
Total on balance sheet | 1,652 | 1,766 |
Undrawn credit commitments | 790 | 863 |
Total gross credit risk | 2,442 | 2,629 |
Services | Australia | Credit risk | ||
Financial risk | ||
Total on balance sheet | 11,922 | 12,340 |
Undrawn credit commitments | 7,595 | 6,523 |
Total gross credit risk | 19,517 | 18,863 |
Services | New Zealand | Credit risk | ||
Financial risk | ||
Total on balance sheet | 2,168 | 2,023 |
Undrawn credit commitments | 853 | 577 |
Total gross credit risk | 3,021 | 2,600 |
Services | Other overseas | Credit risk | ||
Financial risk | ||
Total on balance sheet | 218 | 244 |
Undrawn credit commitments | 698 | 637 |
Total gross credit risk | 916 | 881 |
Trade | Australia | Credit risk | ||
Financial risk | ||
Total on balance sheet | 13,633 | 16,593 |
Undrawn credit commitments | 10,171 | 7,677 |
Total gross credit risk | 23,804 | 24,270 |
Trade | New Zealand | Credit risk | ||
Financial risk | ||
Total on balance sheet | 2,025 | 2,441 |
Undrawn credit commitments | 1,510 | 1,259 |
Total gross credit risk | 3,535 | 3,700 |
Trade | Other overseas | Credit risk | ||
Financial risk | ||
Total on balance sheet | 1,555 | 2,318 |
Undrawn credit commitments | 1,931 | 2,859 |
Total gross credit risk | 3,486 | 5,177 |
Transport and storage | Australia | Credit risk | ||
Financial risk | ||
Total on balance sheet | 9,392 | 9,529 |
Undrawn credit commitments | 5,136 | 5,114 |
Total gross credit risk | 14,528 | 14,643 |
Transport and storage | New Zealand | Credit risk | ||
Financial risk | ||
Total on balance sheet | 1,249 | 1,209 |
Undrawn credit commitments | 871 | 755 |
Total gross credit risk | 2,120 | 1,964 |
Transport and storage | Other overseas | Credit risk | ||
Financial risk | ||
Total on balance sheet | 755 | 999 |
Undrawn credit commitments | 276 | 652 |
Total gross credit risk | 1,031 | 1,651 |
Utilities | Australia | Credit risk | ||
Financial risk | ||
Total on balance sheet | 6,368 | 5,567 |
Undrawn credit commitments | 4,918 | 4,487 |
Total gross credit risk | 11,286 | 10,054 |
Utilities | New Zealand | Credit risk | ||
Financial risk | ||
Total on balance sheet | 1,809 | 1,938 |
Undrawn credit commitments | 1,681 | 1,447 |
Total gross credit risk | 3,490 | 3,385 |
Utilities | Other overseas | Credit risk | ||
Financial risk | ||
Total on balance sheet | 952 | 1,088 |
Undrawn credit commitments | 615 | 931 |
Total gross credit risk | 1,567 | 2,019 |
Retail lending | Australia | Credit risk | ||
Financial risk | ||
Total on balance sheet | 454,986 | 467,206 |
Undrawn credit commitments | 84,454 | 84,057 |
Total gross credit risk | 539,440 | 551,263 |
Retail lending | New Zealand | Credit risk | ||
Financial risk | ||
Total on balance sheet | 52,645 | 49,542 |
Undrawn credit commitments | 12,596 | 12,056 |
Total gross credit risk | 65,241 | 61,598 |
Retail lending | Other overseas | Credit risk | ||
Financial risk | ||
Total on balance sheet | 459 | 864 |
Undrawn credit commitments | 32 | 37 |
Total gross credit risk | 491 | 901 |
Other | Australia | Credit risk | ||
Financial risk | ||
Total on balance sheet | 6,867 | 6,668 |
Undrawn credit commitments | 2,491 | 2,740 |
Total gross credit risk | 9,358 | 9,408 |
Other | New Zealand | Credit risk | ||
Financial risk | ||
Total on balance sheet | 204 | 151 |
Undrawn credit commitments | 182 | 161 |
Total gross credit risk | 386 | 312 |
Other | Other overseas | Credit risk | ||
Financial risk | ||
Total on balance sheet | 129 | 171 |
Undrawn credit commitments | 27 | 26 |
Total gross credit risk | 156 | 197 |
Parent Entity | ||
Financial risk | ||
Undrawn credit commitments | 171,979 | 168,487 |
Parent Entity | Credit risk | ||
Financial risk | ||
Total on balance sheet | 963,313 | 925,031 |
Undrawn credit commitments | 171,979 | 168,487 |
Total gross credit risk | 1,135,292 | 1,093,518 |
Parent Entity | Australia | Credit risk | ||
Financial risk | ||
Total on balance sheet | 919,598 | 876,011 |
Undrawn credit commitments | 160,474 | 151,773 |
Total gross credit risk | 1,080,072 | 1,027,784 |
Parent Entity | New Zealand | Credit risk | ||
Financial risk | ||
Total on balance sheet | 11,307 | 13,349 |
Undrawn credit commitments | 558 | 559 |
Total gross credit risk | 11,865 | 13,908 |
Parent Entity | Other overseas | Credit risk | ||
Financial risk | ||
Total on balance sheet | 32,408 | 35,671 |
Undrawn credit commitments | 10,947 | 16,155 |
Total gross credit risk | 43,355 | 51,826 |
Parent Entity | Accommodation, cafes and restaurants | Australia | Credit risk | ||
Financial risk | ||
Total on balance sheet | 7,880 | 7,989 |
Undrawn credit commitments | 1,225 | 1,070 |
Total gross credit risk | 9,105 | 9,059 |
Parent Entity | Accommodation, cafes and restaurants | New Zealand | Credit risk | ||
Financial risk | ||
Undrawn credit commitments | 1 | |
Total gross credit risk | 1 | |
Parent Entity | Accommodation, cafes and restaurants | Other overseas | Credit risk | ||
Financial risk | ||
Total on balance sheet | 81 | 67 |
Undrawn credit commitments | 10 | 10 |
Total gross credit risk | 91 | 77 |
Parent Entity | Agriculture, forestry and fishing | Australia | Credit risk | ||
Financial risk | ||
Total on balance sheet | 10,101 | 9,191 |
Undrawn credit commitments | 2,219 | 2,014 |
Total gross credit risk | 12,320 | 11,205 |
Parent Entity | Agriculture, forestry and fishing | New Zealand | Credit risk | ||
Financial risk | ||
Total on balance sheet | 48 | 67 |
Undrawn credit commitments | 4 | 7 |
Total gross credit risk | 52 | 74 |
Parent Entity | Agriculture, forestry and fishing | Other overseas | Credit risk | ||
Financial risk | ||
Total on balance sheet | 114 | 130 |
Undrawn credit commitments | 1 | 1 |
Total gross credit risk | 115 | 131 |
Parent Entity | Construction | Australia | Credit risk | ||
Financial risk | ||
Total on balance sheet | 6,213 | 6,853 |
Undrawn credit commitments | 3,643 | 3,340 |
Total gross credit risk | 9,856 | 10,193 |
Parent Entity | Construction | New Zealand | Credit risk | ||
Financial risk | ||
Total on balance sheet | 11 | 17 |
Undrawn credit commitments | 35 | 16 |
Total gross credit risk | 46 | 33 |
Parent Entity | Construction | Other overseas | Credit risk | ||
Financial risk | ||
Total on balance sheet | 46 | 47 |
Undrawn credit commitments | 114 | 125 |
Total gross credit risk | 160 | 172 |
Parent Entity | Finance and insurance | Australia | Credit risk | ||
Financial risk | ||
Total on balance sheet | 244,758 | 200,863 |
Undrawn credit commitments | 8,954 | 7,316 |
Total gross credit risk | 253,712 | 208,179 |
Parent Entity | Finance and insurance | New Zealand | Credit risk | ||
Financial risk | ||
Total on balance sheet | 8,173 | 9,501 |
Undrawn credit commitments | 135 | 116 |
Total gross credit risk | 8,308 | 9,617 |
Parent Entity | Finance and insurance | Other overseas | Credit risk | ||
Financial risk | ||
Total on balance sheet | 20,585 | 19,380 |
Undrawn credit commitments | 2,217 | 3,067 |
Total gross credit risk | 22,802 | 22,447 |
Parent Entity | Government, administration and defence | Australia | Credit risk | ||
Financial risk | ||
Total on balance sheet | 80,166 | 63,599 |
Undrawn credit commitments | 1,588 | 1,766 |
Total gross credit risk | 81,754 | 65,365 |
Parent Entity | Government, administration and defence | New Zealand | Credit risk | ||
Financial risk | ||
Total on balance sheet | 1,743 | 2,196 |
Undrawn credit commitments | 8 | 8 |
Total gross credit risk | 1,751 | 2,204 |
Parent Entity | Government, administration and defence | Other overseas | Credit risk | ||
Financial risk | ||
Total on balance sheet | 3,902 | 4,815 |
Undrawn credit commitments | 18 | 23 |
Total gross credit risk | 3,920 | 4,838 |
Parent Entity | Manufacturing | Australia | Credit risk | ||
Financial risk | ||
Total on balance sheet | 9,037 | 10,322 |
Undrawn credit commitments | 6,477 | 5,850 |
Total gross credit risk | 15,514 | 16,172 |
Parent Entity | Manufacturing | New Zealand | Credit risk | ||
Financial risk | ||
Total on balance sheet | 184 | 259 |
Undrawn credit commitments | 51 | 69 |
Total gross credit risk | 235 | 328 |
Parent Entity | Manufacturing | Other overseas | Credit risk | ||
Financial risk | ||
Total on balance sheet | 1,905 | 3,822 |
Undrawn credit commitments | 3,384 | 5,269 |
Total gross credit risk | 5,289 | 9,091 |
Parent Entity | Mining | Australia | Credit risk | ||
Financial risk | ||
Total on balance sheet | 3,381 | 3,304 |
Undrawn credit commitments | 3,735 | 3,802 |
Total gross credit risk | 7,116 | 7,106 |
Parent Entity | Mining | New Zealand | Credit risk | ||
Financial risk | ||
Total on balance sheet | 5 | 11 |
Total gross credit risk | 5 | 11 |
Parent Entity | Mining | Other overseas | Credit risk | ||
Financial risk | ||
Total on balance sheet | 330 | 497 |
Undrawn credit commitments | 1,134 | 1,869 |
Total gross credit risk | 1,464 | 2,366 |
Parent Entity | Property | Australia | Credit risk | ||
Financial risk | ||
Total on balance sheet | 45,139 | 45,405 |
Undrawn credit commitments | 10,868 | 10,119 |
Total gross credit risk | 56,007 | 55,524 |
Parent Entity | Property | New Zealand | Credit risk | ||
Financial risk | ||
Total on balance sheet | 102 | 117 |
Undrawn credit commitments | 3 | |
Total gross credit risk | 102 | 120 |
Parent Entity | Property | Other overseas | Credit risk | ||
Financial risk | ||
Total on balance sheet | 209 | 227 |
Undrawn credit commitments | 10 | 13 |
Total gross credit risk | 219 | 240 |
Parent Entity | Property services and business services | Australia | Credit risk | ||
Financial risk | ||
Total on balance sheet | 11,992 | 13,348 |
Undrawn credit commitments | 7,019 | 5,898 |
Total gross credit risk | 19,011 | 19,246 |
Parent Entity | Property services and business services | New Zealand | Credit risk | ||
Financial risk | ||
Total on balance sheet | 88 | 123 |
Undrawn credit commitments | 16 | 18 |
Total gross credit risk | 104 | 141 |
Parent Entity | Property services and business services | Other overseas | Credit risk | ||
Financial risk | ||
Total on balance sheet | 1,585 | 1,683 |
Undrawn credit commitments | 786 | 862 |
Total gross credit risk | 2,371 | 2,545 |
Parent Entity | Services | Australia | Credit risk | ||
Financial risk | ||
Total on balance sheet | 11,581 | 12,094 |
Undrawn credit commitments | 7,595 | 6,523 |
Total gross credit risk | 19,176 | 18,617 |
Parent Entity | Services | New Zealand | Credit risk | ||
Financial risk | ||
Total on balance sheet | 46 | 46 |
Undrawn credit commitments | 1 | |
Total gross credit risk | 46 | 47 |
Parent Entity | Services | Other overseas | Credit risk | ||
Financial risk | ||
Total on balance sheet | 196 | 216 |
Undrawn credit commitments | 695 | 634 |
Total gross credit risk | 891 | 850 |
Parent Entity | Trade | Australia | Credit risk | ||
Financial risk | ||
Total on balance sheet | 13,425 | 16,408 |
Undrawn credit commitments | 10,171 | 7,677 |
Total gross credit risk | 23,596 | 24,085 |
Parent Entity | Trade | New Zealand | Credit risk | ||
Financial risk | ||
Total on balance sheet | 337 | 392 |
Undrawn credit commitments | 157 | 170 |
Total gross credit risk | 494 | 562 |
Parent Entity | Trade | Other overseas | Credit risk | ||
Financial risk | ||
Total on balance sheet | 1,417 | 2,140 |
Undrawn credit commitments | 1,754 | 2,688 |
Total gross credit risk | 3,171 | 4,828 |
Parent Entity | Transport and storage | Australia | Credit risk | ||
Financial risk | ||
Total on balance sheet | 9,044 | 9,221 |
Undrawn credit commitments | 5,136 | 5,114 |
Total gross credit risk | 14,180 | 14,335 |
Parent Entity | Transport and storage | New Zealand | Credit risk | ||
Financial risk | ||
Total on balance sheet | 76 | 76 |
Undrawn credit commitments | 67 | 64 |
Total gross credit risk | 143 | 140 |
Parent Entity | Transport and storage | Other overseas | Credit risk | ||
Financial risk | ||
Total on balance sheet | 665 | 888 |
Undrawn credit commitments | 268 | 643 |
Total gross credit risk | 933 | 1,531 |
Parent Entity | Utilities | Australia | Credit risk | ||
Financial risk | ||
Total on balance sheet | 6,342 | 5,542 |
Undrawn credit commitments | 4,918 | 4,487 |
Total gross credit risk | 11,260 | 10,029 |
Parent Entity | Utilities | New Zealand | Credit risk | ||
Financial risk | ||
Total on balance sheet | 492 | 507 |
Undrawn credit commitments | 83 | 73 |
Total gross credit risk | 575 | 580 |
Parent Entity | Utilities | Other overseas | Credit risk | ||
Financial risk | ||
Total on balance sheet | 896 | 1,038 |
Undrawn credit commitments | 511 | 905 |
Total gross credit risk | 1,407 | 1,943 |
Parent Entity | Retail lending | Australia | Credit risk | ||
Financial risk | ||
Total on balance sheet | 454,808 | 466,188 |
Undrawn credit commitments | 84,437 | 84,057 |
Total gross credit risk | 539,245 | 550,245 |
Parent Entity | Retail lending | New Zealand | Credit risk | ||
Financial risk | ||
Undrawn credit commitments | 1 | 13 |
Total gross credit risk | 1 | 13 |
Parent Entity | Retail lending | Other overseas | Credit risk | ||
Financial risk | ||
Total on balance sheet | 359 | 588 |
Undrawn credit commitments | 31 | 32 |
Total gross credit risk | 390 | 620 |
Parent Entity | Other | Australia | Credit risk | ||
Financial risk | ||
Total on balance sheet | 5,731 | 5,684 |
Undrawn credit commitments | 2,489 | 2,740 |
Total gross credit risk | 8,220 | 8,424 |
Parent Entity | Other | New Zealand | Credit risk | ||
Financial risk | ||
Total on balance sheet | 2 | 37 |
Undrawn credit commitments | 1 | |
Total gross credit risk | 2 | 38 |
Parent Entity | Other | Other overseas | Credit risk | ||
Financial risk | ||
Total on balance sheet | 118 | 133 |
Undrawn credit commitments | 14 | 14 |
Total gross credit risk | $ 132 | $ 147 |
Financial risk - Credit quality
Financial risk - Credit quality of financial assets (Details) - AUD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 |
Credit risk | ||
Financial risk | ||
Credit quality exposure risk | $ 1,027,396 | $ 1,014,350 |
Credit risk | Strong | ||
Financial risk | ||
Credit quality exposure risk | 744,448 | 716,837 |
Credit risk | Good/Satisfactory | ||
Financial risk | ||
Credit quality exposure risk | 248,490 | 267,236 |
Credit risk | Weak | ||
Financial risk | ||
Credit quality exposure risk | 34,458 | 30,277 |
Credit risk | Loans | Housing | ||
Financial risk | ||
Credit quality exposure risk | 492,471 | 497,542 |
Credit risk | Loans | Housing | Strong | ||
Financial risk | ||
Credit quality exposure risk | 389,521 | 382,862 |
Credit risk | Loans | Housing | Good/Satisfactory | ||
Financial risk | ||
Credit quality exposure risk | 82,927 | 95,397 |
Credit risk | Loans | Housing | Weak | ||
Financial risk | ||
Credit quality exposure risk | 20,023 | 19,283 |
Credit risk | Loans | Personal | ||
Financial risk | ||
Credit quality exposure risk | 18,452 | 22,973 |
Credit risk | Loans | Personal | Strong | ||
Financial risk | ||
Credit quality exposure risk | 4,914 | 5,696 |
Credit risk | Loans | Personal | Good/Satisfactory | ||
Financial risk | ||
Credit quality exposure risk | 12,122 | 15,493 |
Credit risk | Loans | Personal | Weak | ||
Financial risk | ||
Credit quality exposure risk | 1,416 | 1,784 |
Credit risk | Loans | Business | ||
Financial risk | ||
Credit quality exposure risk | 187,738 | 197,863 |
Credit risk | Loans | Business | Strong | ||
Financial risk | ||
Credit quality exposure risk | 67,154 | 75,990 |
Credit quality exposure covered by highly rated guarantee | 131 | |
Credit risk | Loans | Business | Good/Satisfactory | ||
Financial risk | ||
Credit quality exposure risk | 110,137 | 114,122 |
Credit risk | Loans | Business | Weak | ||
Financial risk | ||
Credit quality exposure risk | 10,447 | 7,751 |
Credit risk | Debt Securities | ||
Financial risk | ||
Credit quality exposure risk | 91,413 | 73,276 |
Credit risk | Debt Securities | Strong | ||
Financial risk | ||
Credit quality exposure risk | 90,826 | 72,813 |
Credit risk | Debt Securities | Good/Satisfactory | ||
Financial risk | ||
Credit quality exposure risk | 463 | |
Credit risk | Debt Securities | Weak | ||
Financial risk | ||
Credit quality exposure risk | 587 | |
Credit risk | Debt securities measured at amortised cost | ||
Financial risk | ||
Credit quality exposure risk | 1,011 | 829 |
Credit risk | Debt securities measured at amortised cost | Strong | ||
Financial risk | ||
Credit quality exposure risk | 424 | 366 |
Credit risk | Other financial assets | ||
Financial risk | ||
Credit quality exposure risk | 40,381 | 31,356 |
Credit risk | Other financial assets | Strong | ||
Financial risk | ||
Credit quality exposure risk | 39,871 | 30,623 |
Credit risk | Other financial assets | Good/Satisfactory | ||
Financial risk | ||
Credit quality exposure risk | 470 | 685 |
Credit risk | Other financial assets | Weak | ||
Financial risk | ||
Credit quality exposure risk | 40 | 48 |
Credit risk | Undrawn credit commitments | ||
Financial risk | ||
Credit quality exposure risk | 196,941 | 191,340 |
Credit risk | Undrawn credit commitments | Strong | ||
Financial risk | ||
Credit quality exposure risk | 152,162 | 148,853 |
Credit risk | Undrawn credit commitments | Good/Satisfactory | ||
Financial risk | ||
Credit quality exposure risk | 42,834 | 41,076 |
Credit risk | Undrawn credit commitments | Weak | ||
Financial risk | ||
Credit quality exposure risk | 1,945 | 1,411 |
Credit risk | Performing - Stage 1 | ||
Financial risk | ||
Credit quality exposure risk | 943,292 | 970,015 |
Credit risk | Performing - Stage 1 | Strong | ||
Financial risk | ||
Credit quality exposure risk | 732,861 | 715,532 |
Credit risk | Performing - Stage 1 | Good/Satisfactory | ||
Financial risk | ||
Credit quality exposure risk | 205,568 | 249,080 |
Credit risk | Performing - Stage 1 | Weak | ||
Financial risk | ||
Credit quality exposure risk | 4,863 | 5,403 |
Credit risk | Performing - Stage 1 | Loans | Housing | ||
Financial risk | ||
Credit quality exposure risk | 449,338 | 470,391 |
Credit risk | Performing - Stage 1 | Loans | Housing | Strong | ||
Financial risk | ||
Credit quality exposure risk | 382,892 | 382,119 |
Credit risk | Performing - Stage 1 | Loans | Housing | Good/Satisfactory | ||
Financial risk | ||
Credit quality exposure risk | 62,324 | 84,071 |
Credit risk | Performing - Stage 1 | Loans | Housing | Weak | ||
Financial risk | ||
Credit quality exposure risk | 4,122 | 4,201 |
Credit risk | Performing - Stage 1 | Loans | Personal | ||
Financial risk | ||
Credit quality exposure risk | 15,779 | 20,805 |
Credit risk | Performing - Stage 1 | Loans | Personal | Strong | ||
Financial risk | ||
Credit quality exposure risk | 4,768 | 5,694 |
Credit risk | Performing - Stage 1 | Loans | Personal | Good/Satisfactory | ||
Financial risk | ||
Credit quality exposure risk | 10,607 | 14,538 |
Credit risk | Performing - Stage 1 | Loans | Personal | Weak | ||
Financial risk | ||
Credit quality exposure risk | 404 | 573 |
Credit risk | Performing - Stage 1 | Loans | Business | ||
Financial risk | ||
Credit quality exposure risk | 159,317 | 185,738 |
Credit risk | Performing - Stage 1 | Loans | Business | Strong | ||
Financial risk | ||
Credit quality exposure risk | 65,091 | 75,758 |
Credit risk | Performing - Stage 1 | Loans | Business | Good/Satisfactory | ||
Financial risk | ||
Credit quality exposure risk | 94,046 | 109,541 |
Credit risk | Performing - Stage 1 | Loans | Business | Weak | ||
Financial risk | ||
Credit quality exposure risk | 180 | 439 |
Credit risk | Performing - Stage 1 | Debt Securities | ||
Financial risk | ||
Credit quality exposure risk | 90,461 | 73,276 |
Credit risk | Performing - Stage 1 | Debt Securities | Strong | ||
Financial risk | ||
Credit quality exposure risk | 90,461 | 72,813 |
Credit risk | Performing - Stage 1 | Debt Securities | Good/Satisfactory | ||
Financial risk | ||
Credit quality exposure risk | 463 | |
Credit risk | Performing - Stage 1 | Other financial assets | ||
Financial risk | ||
Credit quality exposure risk | 40,381 | 31,356 |
Credit risk | Performing - Stage 1 | Other financial assets | Strong | ||
Financial risk | ||
Credit quality exposure risk | 39,871 | 30,623 |
Credit risk | Performing - Stage 1 | Other financial assets | Good/Satisfactory | ||
Financial risk | ||
Credit quality exposure risk | 470 | 685 |
Credit risk | Performing - Stage 1 | Other financial assets | Weak | ||
Financial risk | ||
Credit quality exposure risk | 40 | 48 |
Credit risk | Performing - Stage 1 | Undrawn credit commitments | ||
Financial risk | ||
Credit quality exposure risk | 188,016 | 188,449 |
Credit risk | Performing - Stage 1 | Undrawn credit commitments | Strong | ||
Financial risk | ||
Credit quality exposure risk | 149,778 | 148,525 |
Credit risk | Performing - Stage 1 | Undrawn credit commitments | Good/Satisfactory | ||
Financial risk | ||
Credit quality exposure risk | 38,121 | 39,782 |
Credit risk | Performing - Stage 1 | Undrawn credit commitments | Weak | ||
Financial risk | ||
Credit quality exposure risk | 117 | 142 |
Credit risk | Performing - Stage 2 | ||
Financial risk | ||
Credit quality exposure risk | 72,793 | 37,484 |
Credit risk | Performing - Stage 2 | Strong | ||
Financial risk | ||
Credit quality exposure risk | 11,587 | 1,305 |
Credit risk | Performing - Stage 2 | Good/Satisfactory | ||
Financial risk | ||
Credit quality exposure risk | 42,922 | 18,156 |
Credit risk | Performing - Stage 2 | Weak | ||
Financial risk | ||
Credit quality exposure risk | 18,284 | 18,023 |
Credit risk | Performing - Stage 2 | Loans | Housing | ||
Financial risk | ||
Credit quality exposure risk | 35,490 | 22,784 |
Credit risk | Performing - Stage 2 | Loans | Housing | Strong | ||
Financial risk | ||
Credit quality exposure risk | 6,629 | 743 |
Credit risk | Performing - Stage 2 | Loans | Housing | Good/Satisfactory | ||
Financial risk | ||
Credit quality exposure risk | 20,603 | 11,326 |
Credit risk | Performing - Stage 2 | Loans | Housing | Weak | ||
Financial risk | ||
Credit quality exposure risk | 8,258 | 10,715 |
Credit risk | Performing - Stage 2 | Loans | Personal | ||
Financial risk | ||
Credit quality exposure risk | 2,292 | 1,788 |
Credit risk | Performing - Stage 2 | Loans | Personal | Strong | ||
Financial risk | ||
Credit quality exposure risk | 146 | 2 |
Credit risk | Performing - Stage 2 | Loans | Personal | Good/Satisfactory | ||
Financial risk | ||
Credit quality exposure risk | 1,515 | 955 |
Credit risk | Performing - Stage 2 | Loans | Personal | Weak | ||
Financial risk | ||
Credit quality exposure risk | 631 | 831 |
Credit risk | Performing - Stage 2 | Loans | Business | ||
Financial risk | ||
Credit quality exposure risk | 25,354 | 10,155 |
Credit risk | Performing - Stage 2 | Loans | Business | Strong | ||
Financial risk | ||
Credit quality exposure risk | 2,063 | 232 |
Credit risk | Performing - Stage 2 | Loans | Business | Good/Satisfactory | ||
Financial risk | ||
Credit quality exposure risk | 16,091 | 4,581 |
Credit risk | Performing - Stage 2 | Loans | Business | Weak | ||
Financial risk | ||
Credit quality exposure risk | 7,200 | 5,342 |
Credit risk | Performing - Stage 2 | Debt Securities | ||
Financial risk | ||
Credit quality exposure risk | 952 | |
Credit risk | Performing - Stage 2 | Debt Securities | Strong | ||
Financial risk | ||
Credit quality exposure risk | 365 | |
Credit risk | Performing - Stage 2 | Debt Securities | Weak | ||
Financial risk | ||
Credit quality exposure risk | 587 | |
Credit risk | Performing - Stage 2 | Undrawn credit commitments | ||
Financial risk | ||
Credit quality exposure risk | 8,705 | 2,757 |
Credit risk | Performing - Stage 2 | Undrawn credit commitments | Strong | ||
Financial risk | ||
Credit quality exposure risk | 2,384 | 328 |
Credit risk | Performing - Stage 2 | Undrawn credit commitments | Good/Satisfactory | ||
Financial risk | ||
Credit quality exposure risk | 4,713 | 1,294 |
Credit risk | Performing - Stage 2 | Undrawn credit commitments | Weak | ||
Financial risk | ||
Credit quality exposure risk | 1,608 | 1,135 |
Credit risk | Non-performing - Stage 3 | ||
Financial risk | ||
Credit quality exposure risk | 11,311 | 6,851 |
Credit risk | Non-performing - Stage 3 | Weak | ||
Financial risk | ||
Credit quality exposure risk | 11,311 | 6,851 |
Credit risk | Non-performing - Stage 3 | Loans | Housing | ||
Financial risk | ||
Credit quality exposure risk | 7,643 | 4,367 |
Credit risk | Non-performing - Stage 3 | Loans | Housing | Weak | ||
Financial risk | ||
Credit quality exposure risk | 7,643 | 4,367 |
Credit risk | Non-performing - Stage 3 | Loans | Personal | ||
Financial risk | ||
Credit quality exposure risk | 381 | 380 |
Credit risk | Non-performing - Stage 3 | Loans | Personal | Weak | ||
Financial risk | ||
Credit quality exposure risk | 381 | 380 |
Credit risk | Non-performing - Stage 3 | Loans | Business | ||
Financial risk | ||
Credit quality exposure risk | 3,067 | 1,970 |
Credit risk | Non-performing - Stage 3 | Loans | Business | Weak | ||
Financial risk | ||
Credit quality exposure risk | 3,067 | 1,970 |
Credit risk | Non-performing - Stage 3 | Undrawn credit commitments | ||
Financial risk | ||
Credit quality exposure risk | 220 | 134 |
Credit risk | Non-performing - Stage 3 | Undrawn credit commitments | Weak | ||
Financial risk | ||
Credit quality exposure risk | 220 | 134 |
Parent Entity | Debt securities measured at amortised cost | ||
Financial risk | ||
Credit quality exposure risk | 3 | 27 |
Parent Entity | Credit risk | ||
Financial risk | ||
Credit quality exposure risk | 1,074,878 | 1,034,734 |
Parent Entity | Credit risk | Strong | ||
Financial risk | ||
Credit quality exposure risk | 833,578 | 795,275 |
Parent Entity | Credit risk | Good/Satisfactory | ||
Financial risk | ||
Credit quality exposure risk | 213,141 | 212,664 |
Parent Entity | Credit risk | Weak | ||
Financial risk | ||
Credit quality exposure risk | 28,159 | 26,795 |
Parent Entity | Credit risk | Loans | Housing | ||
Financial risk | ||
Credit quality exposure risk | 441,261 | 449,540 |
Parent Entity | Credit risk | Loans | Housing | Strong | ||
Financial risk | ||
Credit quality exposure risk | 351,467 | 362,263 |
Parent Entity | Credit risk | Loans | Housing | Good/Satisfactory | ||
Financial risk | ||
Credit quality exposure risk | 73,066 | 69,222 |
Parent Entity | Credit risk | Loans | Housing | Weak | ||
Financial risk | ||
Credit quality exposure risk | 16,728 | 18,055 |
Parent Entity | Credit risk | Loans | Personal | ||
Financial risk | ||
Credit quality exposure risk | 16,946 | 20,860 |
Parent Entity | Credit risk | Loans | Personal | Strong | ||
Financial risk | ||
Credit quality exposure risk | 4,427 | 5,107 |
Parent Entity | Credit risk | Loans | Personal | Good/Satisfactory | ||
Financial risk | ||
Credit quality exposure risk | 11,447 | 14,312 |
Parent Entity | Credit risk | Loans | Personal | Weak | ||
Financial risk | ||
Credit quality exposure risk | 1,072 | 1,441 |
Parent Entity | Credit risk | Loans | Business | ||
Financial risk | ||
Credit quality exposure risk | 154,310 | 164,639 |
Parent Entity | Credit risk | Loans | Business | Strong | ||
Financial risk | ||
Credit quality exposure risk | 55,082 | 64,164 |
Credit quality exposure covered by highly rated guarantee | 131 | |
Parent Entity | Credit risk | Loans | Business | Good/Satisfactory | ||
Financial risk | ||
Credit quality exposure risk | 90,605 | 94,392 |
Parent Entity | Credit risk | Loans | Business | Weak | ||
Financial risk | ||
Credit quality exposure risk | 8,623 | 6,083 |
Parent Entity | Credit risk | Debt Securities | ||
Financial risk | ||
Credit quality exposure risk | 85,758 | 68,332 |
Parent Entity | Credit risk | Debt Securities | Strong | ||
Financial risk | ||
Credit quality exposure risk | 85,758 | 68,309 |
Parent Entity | Credit risk | Debt Securities | Good/Satisfactory | ||
Financial risk | ||
Credit quality exposure risk | 23 | |
Parent Entity | Credit risk | Other financial assets | ||
Financial risk | ||
Credit quality exposure risk | 204,624 | 162,876 |
Parent Entity | Credit risk | Other financial assets | Strong | ||
Financial risk | ||
Credit quality exposure risk | 204,239 | 162,339 |
Parent Entity | Credit risk | Other financial assets | Good/Satisfactory | ||
Financial risk | ||
Credit quality exposure risk | 354 | 496 |
Parent Entity | Credit risk | Other financial assets | Weak | ||
Financial risk | ||
Credit quality exposure risk | 31 | 41 |
Parent Entity | Credit risk | Undrawn credit commitments | ||
Financial risk | ||
Credit quality exposure risk | 171,979 | 168,487 |
Parent Entity | Credit risk | Undrawn credit commitments | Strong | ||
Financial risk | ||
Credit quality exposure risk | 132,605 | 133,093 |
Parent Entity | Credit risk | Undrawn credit commitments | Good/Satisfactory | ||
Financial risk | ||
Credit quality exposure risk | 37,669 | 34,219 |
Parent Entity | Credit risk | Undrawn credit commitments | Weak | ||
Financial risk | ||
Credit quality exposure risk | 1,705 | 1,175 |
Parent Entity | Credit risk | Performing - Stage 1 | ||
Financial risk | ||
Credit quality exposure risk | 1,002,439 | 995,519 |
Parent Entity | Credit risk | Performing - Stage 1 | Strong | ||
Financial risk | ||
Credit quality exposure risk | 823,442 | 794,298 |
Parent Entity | Credit risk | Performing - Stage 1 | Good/Satisfactory | ||
Financial risk | ||
Credit quality exposure risk | 175,372 | 196,533 |
Parent Entity | Credit risk | Performing - Stage 1 | Weak | ||
Financial risk | ||
Credit quality exposure risk | 3,625 | 4,688 |
Parent Entity | Credit risk | Performing - Stage 1 | Loans | Housing | ||
Financial risk | ||
Credit quality exposure risk | 402,793 | 424,061 |
Parent Entity | Credit risk | Performing - Stage 1 | Loans | Housing | Strong | ||
Financial risk | ||
Credit quality exposure risk | 345,662 | 361,727 |
Parent Entity | Credit risk | Performing - Stage 1 | Loans | Housing | Good/Satisfactory | ||
Financial risk | ||
Credit quality exposure risk | 54,065 | 58,599 |
Parent Entity | Credit risk | Performing - Stage 1 | Loans | Housing | Weak | ||
Financial risk | ||
Credit quality exposure risk | 3,066 | 3,735 |
Parent Entity | Credit risk | Performing - Stage 1 | Loans | Personal | ||
Financial risk | ||
Credit quality exposure risk | 14,657 | 18,914 |
Parent Entity | Credit risk | Performing - Stage 1 | Loans | Personal | Strong | ||
Financial risk | ||
Credit quality exposure risk | 4,292 | 5,106 |
Parent Entity | Credit risk | Performing - Stage 1 | Loans | Personal | Good/Satisfactory | ||
Financial risk | ||
Credit quality exposure risk | 10,071 | 13,381 |
Parent Entity | Credit risk | Performing - Stage 1 | Loans | Personal | Weak | ||
Financial risk | ||
Credit quality exposure risk | 294 | 427 |
Parent Entity | Credit risk | Performing - Stage 1 | Loans | Business | ||
Financial risk | ||
Credit quality exposure risk | 130,786 | 155,340 |
Parent Entity | Credit risk | Performing - Stage 1 | Loans | Business | Strong | ||
Financial risk | ||
Credit quality exposure risk | 53,321 | 64,041 |
Parent Entity | Credit risk | Performing - Stage 1 | Loans | Business | Good/Satisfactory | ||
Financial risk | ||
Credit quality exposure risk | 77,330 | 90,937 |
Parent Entity | Credit risk | Performing - Stage 1 | Loans | Business | Weak | ||
Financial risk | ||
Credit quality exposure risk | 135 | 362 |
Parent Entity | Credit risk | Performing - Stage 1 | Debt Securities | ||
Financial risk | ||
Credit quality exposure risk | 85,434 | 68,332 |
Parent Entity | Credit risk | Performing - Stage 1 | Debt Securities | Strong | ||
Financial risk | ||
Credit quality exposure risk | 85,434 | 68,309 |
Parent Entity | Credit risk | Performing - Stage 1 | Debt Securities | Good/Satisfactory | ||
Financial risk | ||
Credit quality exposure risk | 23 | |
Parent Entity | Credit risk | Performing - Stage 1 | Other financial assets | ||
Financial risk | ||
Credit quality exposure risk | 204,624 | 162,876 |
Parent Entity | Credit risk | Performing - Stage 1 | Other financial assets | Strong | ||
Financial risk | ||
Credit quality exposure risk | 204,239 | 162,339 |
Parent Entity | Credit risk | Performing - Stage 1 | Other financial assets | Good/Satisfactory | ||
Financial risk | ||
Credit quality exposure risk | 354 | 496 |
Parent Entity | Credit risk | Performing - Stage 1 | Other financial assets | Weak | ||
Financial risk | ||
Credit quality exposure risk | 31 | 41 |
Parent Entity | Credit risk | Performing - Stage 1 | Undrawn credit commitments | ||
Financial risk | ||
Credit quality exposure risk | 164,145 | 165,996 |
Parent Entity | Credit risk | Performing - Stage 1 | Undrawn credit commitments | Strong | ||
Financial risk | ||
Credit quality exposure risk | 130,494 | 132,776 |
Parent Entity | Credit risk | Performing - Stage 1 | Undrawn credit commitments | Good/Satisfactory | ||
Financial risk | ||
Credit quality exposure risk | 33,552 | 33,097 |
Parent Entity | Credit risk | Performing - Stage 1 | Undrawn credit commitments | Weak | ||
Financial risk | ||
Credit quality exposure risk | 99 | 123 |
Parent Entity | Credit risk | Performing - Stage 2 | ||
Financial risk | ||
Credit quality exposure risk | 62,146 | 32,966 |
Parent Entity | Credit risk | Performing - Stage 2 | Strong | ||
Financial risk | ||
Credit quality exposure risk | 10,136 | 977 |
Parent Entity | Credit risk | Performing - Stage 2 | Good/Satisfactory | ||
Financial risk | ||
Credit quality exposure risk | 37,769 | 16,131 |
Parent Entity | Credit risk | Performing - Stage 2 | Weak | ||
Financial risk | ||
Credit quality exposure risk | 14,241 | 15,858 |
Parent Entity | Credit risk | Performing - Stage 2 | Loans | Housing | ||
Financial risk | ||
Credit quality exposure risk | 31,273 | 21,403 |
Parent Entity | Credit risk | Performing - Stage 2 | Loans | Housing | Strong | ||
Financial risk | ||
Credit quality exposure risk | 5,805 | 536 |
Parent Entity | Credit risk | Performing - Stage 2 | Loans | Housing | Good/Satisfactory | ||
Financial risk | ||
Credit quality exposure risk | 19,001 | 10,623 |
Parent Entity | Credit risk | Performing - Stage 2 | Loans | Housing | Weak | ||
Financial risk | ||
Credit quality exposure risk | 6,467 | 10,244 |
Parent Entity | Credit risk | Performing - Stage 2 | Loans | Personal | ||
Financial risk | ||
Credit quality exposure risk | 1,960 | 1,612 |
Parent Entity | Credit risk | Performing - Stage 2 | Loans | Personal | Strong | ||
Financial risk | ||
Credit quality exposure risk | 135 | 1 |
Parent Entity | Credit risk | Performing - Stage 2 | Loans | Personal | Good/Satisfactory | ||
Financial risk | ||
Credit quality exposure risk | 1,376 | 931 |
Parent Entity | Credit risk | Performing - Stage 2 | Loans | Personal | Weak | ||
Financial risk | ||
Credit quality exposure risk | 449 | 680 |
Parent Entity | Credit risk | Performing - Stage 2 | Loans | Business | ||
Financial risk | ||
Credit quality exposure risk | 20,935 | 7,575 |
Parent Entity | Credit risk | Performing - Stage 2 | Loans | Business | Strong | ||
Financial risk | ||
Credit quality exposure risk | 1,761 | 123 |
Parent Entity | Credit risk | Performing - Stage 2 | Loans | Business | Good/Satisfactory | ||
Financial risk | ||
Credit quality exposure risk | 13,275 | 3,455 |
Parent Entity | Credit risk | Performing - Stage 2 | Loans | Business | Weak | ||
Financial risk | ||
Credit quality exposure risk | 5,899 | 3,997 |
Parent Entity | Credit risk | Performing - Stage 2 | Debt Securities | ||
Financial risk | ||
Credit quality exposure risk | 324 | |
Parent Entity | Credit risk | Performing - Stage 2 | Debt Securities | Strong | ||
Financial risk | ||
Credit quality exposure risk | 324 | |
Parent Entity | Credit risk | Performing - Stage 2 | Undrawn credit commitments | ||
Financial risk | ||
Credit quality exposure risk | 7,654 | 2,376 |
Parent Entity | Credit risk | Performing - Stage 2 | Undrawn credit commitments | Strong | ||
Financial risk | ||
Credit quality exposure risk | 2,111 | 317 |
Parent Entity | Credit risk | Performing - Stage 2 | Undrawn credit commitments | Good/Satisfactory | ||
Financial risk | ||
Credit quality exposure risk | 4,117 | 1,122 |
Parent Entity | Credit risk | Performing - Stage 2 | Undrawn credit commitments | Weak | ||
Financial risk | ||
Credit quality exposure risk | 1,426 | 937 |
Parent Entity | Credit risk | Non-performing - Stage 3 | ||
Financial risk | ||
Credit quality exposure risk | 10,293 | 6,249 |
Parent Entity | Credit risk | Non-performing - Stage 3 | Weak | ||
Financial risk | ||
Credit quality exposure risk | 10,293 | 6,249 |
Parent Entity | Credit risk | Non-performing - Stage 3 | Loans | Housing | ||
Financial risk | ||
Credit quality exposure risk | 7,195 | 4,076 |
Parent Entity | Credit risk | Non-performing - Stage 3 | Loans | Housing | Weak | ||
Financial risk | ||
Credit quality exposure risk | 7,195 | 4,076 |
Parent Entity | Credit risk | Non-performing - Stage 3 | Loans | Personal | ||
Financial risk | ||
Credit quality exposure risk | 329 | 334 |
Parent Entity | Credit risk | Non-performing - Stage 3 | Loans | Personal | Weak | ||
Financial risk | ||
Credit quality exposure risk | 329 | 334 |
Parent Entity | Credit risk | Non-performing - Stage 3 | Loans | Business | ||
Financial risk | ||
Credit quality exposure risk | 2,589 | 1,724 |
Parent Entity | Credit risk | Non-performing - Stage 3 | Loans | Business | Weak | ||
Financial risk | ||
Credit quality exposure risk | 2,589 | 1,724 |
Parent Entity | Credit risk | Non-performing - Stage 3 | Undrawn credit commitments | ||
Financial risk | ||
Credit quality exposure risk | 180 | 115 |
Parent Entity | Credit risk | Non-performing - Stage 3 | Undrawn credit commitments | Weak | ||
Financial risk | ||
Credit quality exposure risk | $ 180 | $ 115 |
Financial risk - Non-performing
Financial risk - Non-performing loans and credit commitments (Details) - Credit risk - AUD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 |
Financial risk | |||||
Loans and credit commitments | $ 9,138 | $ 5,496 | $ 4,575 | $ 4,110 | $ 4,128 |
Gross amount | |||||
Financial risk | |||||
Loans and credit commitments | 11,311 | 6,851 | 5,433 | 5,000 | 5,340 |
Provision | |||||
Financial risk | |||||
Loans and credit commitments | (2,173) | (1,355) | (858) | (890) | (1,212) |
Impaired exposures | |||||
Financial risk | |||||
Loans and credit commitments | 1,627 | 971 | 763 | 828 | 1,092 |
Impaired exposures | Gross amount | |||||
Financial risk | |||||
Loans and credit commitments | 2,779 | 1,763 | 1,416 | 1,542 | 2,159 |
Impaired exposures | Provision | |||||
Financial risk | |||||
Loans and credit commitments | (1,152) | (792) | (653) | (714) | (1,067) |
Impaired exposures | Australia | Housing and business loans | |||||
Financial risk | |||||
Loans and credit commitments | 1,155 | 724 | 460 | 515 | 820 |
Impaired exposures | Australia | Housing and business loans | Gross amount | |||||
Financial risk | |||||
Loans and credit commitments | 1,845 | 1,215 | 882 | 975 | 1,589 |
Impaired exposures | Australia | Housing and business loans | Provision | |||||
Financial risk | |||||
Loans and credit commitments | (690) | (491) | (422) | (460) | (769) |
Impaired exposures | Australia | Personal loans greater than 90 days past due | |||||
Financial risk | |||||
Loans and credit commitments | 164 | 151 | 179 | 175 | 108 |
Impaired exposures | Australia | Personal loans greater than 90 days past due | Gross amount | |||||
Financial risk | |||||
Loans and credit commitments | 370 | 384 | 358 | 362 | 267 |
Impaired exposures | Australia | Personal loans greater than 90 days past due | Provision | |||||
Financial risk | |||||
Loans and credit commitments | (206) | (233) | (179) | (187) | (159) |
Impaired exposures | Australia | Restructured loans | |||||
Financial risk | |||||
Loans and credit commitments | 12 | 10 | 8 | 5 | 2 |
Impaired exposures | Australia | Restructured loans | Gross amount | |||||
Financial risk | |||||
Loans and credit commitments | 16 | 16 | 9 | 12 | 13 |
Impaired exposures | Australia | Restructured loans | Provision | |||||
Financial risk | |||||
Loans and credit commitments | (4) | (6) | (1) | (7) | (11) |
Impaired exposures | New Zealand | Housing and business loans | |||||
Financial risk | |||||
Loans and credit commitments | 87 | 36 | 94 | 111 | 123 |
Impaired exposures | New Zealand | Housing and business loans | Gross amount | |||||
Financial risk | |||||
Loans and credit commitments | 157 | 62 | 124 | 152 | 218 |
Impaired exposures | New Zealand | Housing and business loans | Provision | |||||
Financial risk | |||||
Loans and credit commitments | (70) | (26) | (30) | (41) | (95) |
Impaired exposures | New Zealand | Personal loans greater than 90 days past due | |||||
Financial risk | |||||
Loans and credit commitments | 10 | 5 | 3 | 3 | 3 |
Impaired exposures | New Zealand | Personal loans greater than 90 days past due | Gross amount | |||||
Financial risk | |||||
Loans and credit commitments | 36 | 20 | 12 | 11 | 10 |
Impaired exposures | New Zealand | Personal loans greater than 90 days past due | Provision | |||||
Financial risk | |||||
Loans and credit commitments | (26) | (15) | (9) | (8) | (7) |
Impaired exposures | New Zealand | Restructured loans | |||||
Financial risk | |||||
Loans and credit commitments | 9 | 10 | 10 | 12 | |
Impaired exposures | New Zealand | Restructured loans | Gross amount | |||||
Financial risk | |||||
Loans and credit commitments | 12 | 14 | 15 | 16 | |
Impaired exposures | New Zealand | Restructured loans | Provision | |||||
Financial risk | |||||
Loans and credit commitments | (3) | (4) | (5) | (4) | |
Impaired exposures | Other overseas | Housing and business loans | |||||
Financial risk | |||||
Loans and credit commitments | 199 | 33 | 7 | 9 | 23 |
Impaired exposures | Other overseas | Housing and business loans | Gross amount | |||||
Financial risk | |||||
Loans and credit commitments | 355 | 50 | 13 | 15 | 44 |
Impaired exposures | Other overseas | Housing and business loans | Provision | |||||
Financial risk | |||||
Loans and credit commitments | (156) | (17) | (6) | (6) | (21) |
Impaired exposures | Other overseas | Personal loans greater than 90 days past due | |||||
Financial risk | |||||
Loans and credit commitments | 1 | ||||
Impaired exposures | Other overseas | Personal loans greater than 90 days past due | Gross amount | |||||
Financial risk | |||||
Loans and credit commitments | 1 | 1 | |||
Impaired exposures | Other overseas | Personal loans greater than 90 days past due | Provision | |||||
Financial risk | |||||
Loans and credit commitments | (1) | ||||
Impaired exposures | Other overseas | Restructured loans | |||||
Financial risk | |||||
Loans and credit commitments | 2 | 2 | 1 | ||
Impaired exposures | Other overseas | Restructured loans | Gross amount | |||||
Financial risk | |||||
Loans and credit commitments | 3 | 3 | 2 | ||
Impaired exposures | Other overseas | Restructured loans | Provision | |||||
Financial risk | |||||
Loans and credit commitments | (1) | (1) | (1) | ||
90 days past due, or otherwise in default but not impaired | |||||
Financial risk | |||||
Loans and credit commitments | 7,511 | 4,525 | 3,812 | 3,282 | 3,036 |
90 days past due, or otherwise in default but not impaired | Gross amount | |||||
Financial risk | |||||
Loans and credit commitments | 8,532 | 5,088 | 4,017 | 3,458 | 3,181 |
90 days past due, or otherwise in default but not impaired | Provision | |||||
Financial risk | |||||
Loans and credit commitments | (1,021) | (563) | (205) | (176) | (145) |
90 days past due, or otherwise in default but not impaired | Australia | |||||
Financial risk | |||||
Loans and credit commitments | 7,035 | 4,163 | 3,668 | 3,157 | 2,938 |
90 days past due, or otherwise in default but not impaired | Australia | Gross amount | |||||
Financial risk | |||||
Loans and credit commitments | 7,976 | 4,684 | 3,861 | 3,322 | 3,075 |
90 days past due, or otherwise in default but not impaired | Australia | Provision | |||||
Financial risk | |||||
Loans and credit commitments | (941) | (521) | (193) | (165) | (137) |
90 days past due, or otherwise in default but not impaired | New Zealand | |||||
Financial risk | |||||
Loans and credit commitments | 431 | 307 | 117 | 108 | 82 |
90 days past due, or otherwise in default but not impaired | New Zealand | Gross amount | |||||
Financial risk | |||||
Loans and credit commitments | 503 | 340 | 127 | 117 | 89 |
90 days past due, or otherwise in default but not impaired | New Zealand | Provision | |||||
Financial risk | |||||
Loans and credit commitments | (72) | (33) | (10) | (9) | (7) |
90 days past due, or otherwise in default but not impaired | Other overseas | |||||
Financial risk | |||||
Loans and credit commitments | 45 | 55 | 27 | 17 | 16 |
90 days past due, or otherwise in default but not impaired | Other overseas | Gross amount | |||||
Financial risk | |||||
Loans and credit commitments | 53 | 64 | 29 | 19 | 17 |
90 days past due, or otherwise in default but not impaired | Other overseas | Provision | |||||
Financial risk | |||||
Loans and credit commitments | $ (8) | $ (9) | $ (2) | $ (2) | $ (1) |
Financial risk - Interest recei
Financial risk - Interest received and forgone on impaired loans (Details) - Loans - Impaired exposures $ in Millions | 12 Months Ended |
Sep. 30, 2020AUD ($) | |
Financial risk | |
Interest received | $ 11 |
Interest forgone | 30 |
Australia | |
Financial risk | |
Interest received | 3 |
Interest forgone | 30 |
Overseas | |
Financial risk | |
Interest received | $ 8 |
Financial risk - Collateral hel
Financial risk - Collateral held (Details) | Sep. 30, 2020 | Sep. 30, 2019 |
Performing loans | ||
Collateral held | ||
Secured loan to collateral value ratio (as a percent) | 100.00% | 100.00% |
Performing loans | Fully secured | ||
Collateral held | ||
Secured loan to collateral value ratio (as a percent) | 87.60% | 85.90% |
Performing loans | Partially secured | ||
Collateral held | ||
Secured loan to collateral value ratio (as a percent) | 5.90% | 6.30% |
Performing loans | Unsecured | ||
Collateral held | ||
Secured loan to collateral value ratio (as a percent) | 6.50% | 7.80% |
Performing loans | Housing | ||
Collateral held | ||
Secured loan to collateral value ratio (as a percent) | 100.00% | 100.00% |
Performing loans | Housing | Fully secured | ||
Collateral held | ||
Secured loan to collateral value ratio (as a percent) | 100.00% | 100.00% |
Performing loans | Personal | ||
Collateral held | ||
Secured loan to collateral value ratio (as a percent) | 100.00% | 100.00% |
Performing loans | Personal | Fully secured | ||
Collateral held | ||
Secured loan to collateral value ratio (as a percent) | 8.00% | 7.90% |
Performing loans | Personal | Partially secured | ||
Collateral held | ||
Secured loan to collateral value ratio (as a percent) | 32.50% | 29.90% |
Performing loans | Personal | Unsecured | ||
Collateral held | ||
Secured loan to collateral value ratio (as a percent) | 59.50% | 62.20% |
Performing loans | Business | ||
Collateral held | ||
Secured loan to collateral value ratio (as a percent) | 100.00% | 100.00% |
Performing loans | Business | Fully secured | ||
Collateral held | ||
Secured loan to collateral value ratio (as a percent) | 62.80% | 59.60% |
Performing loans | Business | Partially secured | ||
Collateral held | ||
Secured loan to collateral value ratio (as a percent) | 18.90% | 19.30% |
Performing loans | Business | Unsecured | ||
Collateral held | ||
Secured loan to collateral value ratio (as a percent) | 18.30% | 21.10% |
Non-performing loans | ||
Collateral held | ||
Secured loan to collateral value ratio (as a percent) | 100.00% | 100.00% |
Non-performing loans | Fully secured | ||
Collateral held | ||
Secured loan to collateral value ratio (as a percent) | 76.40% | 73.30% |
Non-performing loans | Partially secured | ||
Collateral held | ||
Secured loan to collateral value ratio (as a percent) | 13.50% | 17.00% |
Non-performing loans | Unsecured | ||
Collateral held | ||
Secured loan to collateral value ratio (as a percent) | 10.10% | 9.70% |
Non-performing loans | Housing | ||
Collateral held | ||
Secured loan to collateral value ratio (as a percent) | 100.00% | 100.00% |
Non-performing loans | Housing | Fully secured | ||
Collateral held | ||
Secured loan to collateral value ratio (as a percent) | 95.20% | 90.30% |
Non-performing loans | Housing | Partially secured | ||
Collateral held | ||
Secured loan to collateral value ratio (as a percent) | 4.80% | 9.70% |
Non-performing loans | Personal | ||
Collateral held | ||
Secured loan to collateral value ratio (as a percent) | 100.00% | 100.00% |
Non-performing loans | Personal | Partially secured | ||
Collateral held | ||
Secured loan to collateral value ratio (as a percent) | 49.40% | 38.20% |
Non-performing loans | Personal | Unsecured | ||
Collateral held | ||
Secured loan to collateral value ratio (as a percent) | 50.60% | 61.80% |
Non-performing loans | Business | ||
Collateral held | ||
Secured loan to collateral value ratio (as a percent) | 100.00% | 100.00% |
Non-performing loans | Business | Fully secured | ||
Collateral held | ||
Secured loan to collateral value ratio (as a percent) | 39.20% | 49.50% |
Non-performing loans | Business | Partially secured | ||
Collateral held | ||
Secured loan to collateral value ratio (as a percent) | 30.70% | 29.20% |
Non-performing loans | Business | Unsecured | ||
Collateral held | ||
Secured loan to collateral value ratio (as a percent) | 30.10% | 21.30% |
Parent Entity | Performing loans | ||
Collateral held | ||
Secured loan to collateral value ratio (as a percent) | 100.00% | 100.00% |
Parent Entity | Performing loans | Fully secured | ||
Collateral held | ||
Secured loan to collateral value ratio (as a percent) | 88.30% | 86.70% |
Parent Entity | Performing loans | Partially secured | ||
Collateral held | ||
Secured loan to collateral value ratio (as a percent) | 5.40% | 5.70% |
Parent Entity | Performing loans | Unsecured | ||
Collateral held | ||
Secured loan to collateral value ratio (as a percent) | 6.30% | 7.60% |
Parent Entity | Performing loans | Housing | ||
Collateral held | ||
Secured loan to collateral value ratio (as a percent) | 100.00% | 100.00% |
Parent Entity | Performing loans | Housing | Fully secured | ||
Collateral held | ||
Secured loan to collateral value ratio (as a percent) | 100.00% | 100.00% |
Parent Entity | Performing loans | Personal | ||
Collateral held | ||
Secured loan to collateral value ratio (as a percent) | 100.00% | 100.00% |
Parent Entity | Performing loans | Personal | Fully secured | ||
Collateral held | ||
Secured loan to collateral value ratio (as a percent) | 8.70% | 8.60% |
Parent Entity | Performing loans | Personal | Partially secured | ||
Collateral held | ||
Secured loan to collateral value ratio (as a percent) | 34.60% | 31.10% |
Parent Entity | Performing loans | Personal | Unsecured | ||
Collateral held | ||
Secured loan to collateral value ratio (as a percent) | 56.70% | 60.30% |
Parent Entity | Performing loans | Business | ||
Collateral held | ||
Secured loan to collateral value ratio (as a percent) | 100.00% | 100.00% |
Parent Entity | Performing loans | Business | Fully secured | ||
Collateral held | ||
Secured loan to collateral value ratio (as a percent) | 63.70% | 60.10% |
Parent Entity | Performing loans | Business | Partially secured | ||
Collateral held | ||
Secured loan to collateral value ratio (as a percent) | 17.70% | 18.20% |
Parent Entity | Performing loans | Business | Unsecured | ||
Collateral held | ||
Secured loan to collateral value ratio (as a percent) | 18.60% | 21.70% |
Parent Entity | Non-performing loans | ||
Collateral held | ||
Secured loan to collateral value ratio (as a percent) | 100.00% | 100.00% |
Parent Entity | Non-performing loans | Fully secured | ||
Collateral held | ||
Secured loan to collateral value ratio (as a percent) | 79.00% | 75.10% |
Parent Entity | Non-performing loans | Partially secured | ||
Collateral held | ||
Secured loan to collateral value ratio (as a percent) | 11.80% | 16.10% |
Parent Entity | Non-performing loans | Unsecured | ||
Collateral held | ||
Secured loan to collateral value ratio (as a percent) | 9.20% | 8.80% |
Parent Entity | Non-performing loans | Housing | ||
Collateral held | ||
Secured loan to collateral value ratio (as a percent) | 100.00% | 100.00% |
Parent Entity | Non-performing loans | Housing | Fully secured | ||
Collateral held | ||
Secured loan to collateral value ratio (as a percent) | 95.20% | 90.10% |
Parent Entity | Non-performing loans | Housing | Partially secured | ||
Collateral held | ||
Secured loan to collateral value ratio (as a percent) | 4.80% | 9.90% |
Parent Entity | Non-performing loans | Personal | ||
Collateral held | ||
Secured loan to collateral value ratio (as a percent) | 100.00% | 100.00% |
Parent Entity | Non-performing loans | Personal | Partially secured | ||
Collateral held | ||
Secured loan to collateral value ratio (as a percent) | 50.70% | 34.10% |
Parent Entity | Non-performing loans | Personal | Unsecured | ||
Collateral held | ||
Secured loan to collateral value ratio (as a percent) | 49.30% | 65.90% |
Parent Entity | Non-performing loans | Business | ||
Collateral held | ||
Secured loan to collateral value ratio (as a percent) | 100.00% | 100.00% |
Parent Entity | Non-performing loans | Business | Fully secured | ||
Collateral held | ||
Secured loan to collateral value ratio (as a percent) | 44.10% | 54.00% |
Parent Entity | Non-performing loans | Business | Partially secured | ||
Collateral held | ||
Secured loan to collateral value ratio (as a percent) | 26.40% | 27.40% |
Parent Entity | Non-performing loans | Business | Unsecured | ||
Collateral held | ||
Secured loan to collateral value ratio (as a percent) | 29.50% | 18.60% |
Financial risk - Collateral h_2
Financial risk - Collateral held against financial assets other than loans (Details) - AUD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 |
Disclosure of credit risk exposure [line items] | ||
Cash primarily for derivatives | $ 2,252 | $ 3,289 |
Securities under reverse repurchase agreement | 20,501 | 6,836 |
Securities under derivatives and stock borrowing | 32 | 119 |
Total other collateral held | 22,785 | 10,244 |
Parent Entity | ||
Disclosure of credit risk exposure [line items] | ||
Cash primarily for derivatives | 1,864 | 2,851 |
Securities under reverse repurchase agreement | 20,501 | 6,733 |
Securities under derivatives and stock borrowing | 32 | 119 |
Total other collateral held | $ 22,397 | $ 9,703 |
Financial risk - Liquid assets
Financial risk - Liquid assets (Details) - Liquidity risk - AUD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 |
Financial assets | ||
Liquid assets | $ 221,176 | $ 169,871 |
Average | ||
Financial assets | ||
Liquid assets | 192,604 | 156,295 |
Cash | ||
Financial assets | ||
Liquid assets | 29,099 | 18,398 |
Cash | Average | ||
Financial assets | ||
Liquid assets | 28,157 | 19,189 |
Trading securities and financial assets measured at FVIS | ||
Financial assets | ||
Liquid assets | 29,364 | 18,867 |
Trading securities and financial assets measured at FVIS | Average | ||
Financial assets | ||
Liquid assets | 14,789 | 17,184 |
Investment securities | ||
Financial assets | ||
Liquid assets | 91,097 | 73,328 |
Investment securities | Average | ||
Financial assets | ||
Liquid assets | 82,678 | 66,701 |
Loans | ||
Financial assets | ||
Liquid assets | 71,616 | 58,933 |
Loans | Average | ||
Financial assets | ||
Liquid assets | 66,512 | 52,498 |
Other financial assets | ||
Financial assets | ||
Liquid assets | 345 | |
Other financial assets | Average | ||
Financial assets | ||
Liquid assets | $ 468 | $ 723 |
Financial risk - Funding compos
Financial risk - Funding composition (Details) - AUD ($) $ in Billions | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Group's total funding | ||
Customer deposits | 65.00% | 62.50% |
Wholesale term funding with residual maturity greater than 12 months | 15.70% | 16.60% |
Wholesale funding with a residual maturity less than 12 months | 10.40% | 12.10% |
Securitisation | 0.90% | 1.00% |
Equity | 8.00% | 7.80% |
Group's total funding | 100.00% | 100.00% |
Movements in the Group's funding composition | ||
Increase in funding through customer deposits | 2.54% | |
Increase in customer deposits, amount | $ 30.9 | |
Decrease in long term funding with a residual maturity greater than 12 months, basis points | (0.94%) | |
Decrease in long term funding with a residual maturity greater than 12 months, amount | $ (5.6) | |
Issue of RMBS | $ 2.5 | |
Decrease in wholesale funding with a residual maturity less than 12 months, basis points | (1.69%) | |
Short term funding portfolio | $ 88.5 | |
Weighted average maturity period for short term funding portfolio | 127 days | |
Unencumbered repo-eligible liquid assets and cash (in AUD) | $ 221.2 | |
Long term wholesale funding raised | 12.9 | |
Tier 2 capital securities | ||
Movements in the Group's funding composition | ||
New Tier 2 capital securities raised | $ 2.2 |
Financial risk - Term Funding F
Financial risk - Term Funding Facility (Details) - Term Funding Facility (TFF) - AUD ($) $ in Billions | Oct. 01, 2020 | Sep. 30, 2020 |
Financial risk | ||
Westpac's total TFF allowance | $ 19.7 | |
Total amount drawn down | $ 17.9 | |
Forecast | ||
Financial risk | ||
Supplementary allowance | $ 11.9 |
Financial risk - Assets pledged
Financial risk - Assets pledged as collateral (Details) - AUD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 |
Assets pledged as collateral | ||
Financial assets pledged to secure liabilities | $ 43,198 | $ 21,616 |
Cash | ||
Assets pledged as collateral | ||
Financial assets pledged to secure liabilities | 4,762 | 5,912 |
Cash deposit on stock borrowed | ||
Assets pledged as collateral | ||
Financial assets pledged to secure liabilities | 16 | 18 |
Securities (including certificates of deposit) | ||
Assets pledged as collateral | ||
Financial assets pledged to secure liabilities | 1,693 | 1,932 |
Securities pledged under repurchase agreements | ||
Assets pledged as collateral | ||
Financial assets pledged to secure liabilities | 36,727 | 13,754 |
Parent Entity | ||
Assets pledged as collateral | ||
Financial assets pledged to secure liabilities | 43,061 | 21,459 |
Parent Entity | Cash | ||
Assets pledged as collateral | ||
Financial assets pledged to secure liabilities | 4,625 | 5,755 |
Parent Entity | Cash deposit on stock borrowed | ||
Assets pledged as collateral | ||
Financial assets pledged to secure liabilities | 16 | 18 |
Parent Entity | Securities (including certificates of deposit) | ||
Assets pledged as collateral | ||
Financial assets pledged to secure liabilities | 1,693 | 1,932 |
Parent Entity | Securities pledged under repurchase agreements | ||
Assets pledged as collateral | ||
Financial assets pledged to secure liabilities | $ 36,727 | $ 13,754 |
Financial risk - Contractual ma
Financial risk - Contractual maturity of financial liabilities (Details) - AUD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Disclosure of financial liabilities [abstract] | ||
Total financial liabilities excluding loan capital | $ 818,025 | $ 818,526 |
Loan Capital | 28,531 | 27,298 |
Total undiscounted financial liabilities | 846,556 | 845,824 |
Total undiscounted contingent liabilities and commitments | 196,941 | 191,340 |
Up to 1 Month | ||
Disclosure of financial liabilities [abstract] | ||
Total financial liabilities excluding loan capital | 483,700 | 429,919 |
Loan Capital | 1 | 1 |
Total undiscounted financial liabilities | 483,701 | 429,920 |
Total undiscounted contingent liabilities and commitments | 196,941 | 191,340 |
Over 1 Month to 3 Months | ||
Disclosure of financial liabilities [abstract] | ||
Total financial liabilities excluding loan capital | 80,430 | 98,795 |
Loan Capital | 68 | 76 |
Total undiscounted financial liabilities | 80,498 | 98,871 |
Over 3 Months to 1 Year | ||
Disclosure of financial liabilities [abstract] | ||
Total financial liabilities excluding loan capital | 119,485 | 144,179 |
Loan Capital | 387 | 371 |
Total undiscounted financial liabilities | 119,872 | 144,550 |
Over 1 Year to 5 Years | ||
Disclosure of financial liabilities [abstract] | ||
Total financial liabilities excluding loan capital | 108,702 | 115,103 |
Loan Capital | 6,665 | 6,293 |
Total undiscounted financial liabilities | 115,367 | 121,396 |
Over 5 Years | ||
Disclosure of financial liabilities [abstract] | ||
Total financial liabilities excluding loan capital | 25,708 | 30,530 |
Loan Capital | 21,410 | 20,557 |
Total undiscounted financial liabilities | 47,118 | 51,087 |
Collateral received | ||
Disclosure of financial liabilities [abstract] | ||
Non-derivative financial liabilities, excluding loan capital | 2,251 | 3,291 |
Collateral received | Up to 1 Month | ||
Disclosure of financial liabilities [abstract] | ||
Non-derivative financial liabilities, excluding loan capital | 2,251 | 3,291 |
Deposits and other borrowings | ||
Disclosure of financial liabilities [abstract] | ||
Non-derivative financial liabilities, excluding loan capital | 596,841 | 566,613 |
Deposits and other borrowings | Up to 1 Month | ||
Disclosure of financial liabilities [abstract] | ||
Non-derivative financial liabilities, excluding loan capital | 432,005 | 374,126 |
Deposits and other borrowings | Over 1 Month to 3 Months | ||
Disclosure of financial liabilities [abstract] | ||
Non-derivative financial liabilities, excluding loan capital | 67,944 | 83,365 |
Deposits and other borrowings | Over 3 Months to 1 Year | ||
Disclosure of financial liabilities [abstract] | ||
Non-derivative financial liabilities, excluding loan capital | 86,421 | 97,081 |
Deposits and other borrowings | Over 1 Year to 5 Years | ||
Disclosure of financial liabilities [abstract] | ||
Non-derivative financial liabilities, excluding loan capital | 10,408 | 11,968 |
Deposits and other borrowings | Over 5 Years | ||
Disclosure of financial liabilities [abstract] | ||
Non-derivative financial liabilities, excluding loan capital | 63 | 73 |
Other financial liabilities | ||
Disclosure of financial liabilities [abstract] | ||
Non-derivative financial liabilities, excluding loan capital | 39,563 | 26,632 |
Other financial liabilities | Up to 1 Month | ||
Disclosure of financial liabilities [abstract] | ||
Non-derivative financial liabilities, excluding loan capital | 20,275 | 19,425 |
Other financial liabilities | Over 1 Month to 3 Months | ||
Disclosure of financial liabilities [abstract] | ||
Non-derivative financial liabilities, excluding loan capital | 1,129 | 3,176 |
Other financial liabilities | Over 3 Months to 1 Year | ||
Disclosure of financial liabilities [abstract] | ||
Non-derivative financial liabilities, excluding loan capital | 94 | 3,874 |
Other financial liabilities | Over 1 Year to 5 Years | ||
Disclosure of financial liabilities [abstract] | ||
Non-derivative financial liabilities, excluding loan capital | 18,065 | 157 |
Derivative financial instruments: Held for trading | ||
Disclosure of financial liabilities [abstract] | ||
Derivative financial instruments | 22,216 | 27,945 |
Derivative financial instruments: Held for trading | Up to 1 Month | ||
Disclosure of financial liabilities [abstract] | ||
Derivative financial instruments | 22,216 | 27,945 |
Derivative financial instruments: Held for hedging purposes (net settled) | ||
Disclosure of financial liabilities [abstract] | ||
Derivative financial instruments | 652 | 1,093 |
Derivative financial instruments: Held for hedging purposes (net settled) | Up to 1 Month | ||
Disclosure of financial liabilities [abstract] | ||
Derivative financial instruments | 29 | 57 |
Derivative financial instruments: Held for hedging purposes (net settled) | Over 1 Month to 3 Months | ||
Disclosure of financial liabilities [abstract] | ||
Derivative financial instruments | 43 | 85 |
Derivative financial instruments: Held for hedging purposes (net settled) | Over 3 Months to 1 Year | ||
Disclosure of financial liabilities [abstract] | ||
Derivative financial instruments | 179 | 280 |
Derivative financial instruments: Held for hedging purposes (net settled) | Over 1 Year to 5 Years | ||
Disclosure of financial liabilities [abstract] | ||
Derivative financial instruments | 379 | 631 |
Derivative financial instruments: Held for hedging purposes (net settled) | Over 5 Years | ||
Disclosure of financial liabilities [abstract] | ||
Derivative financial instruments | 22 | 40 |
Derivative financial instruments: Held for hedging purposes (gross settled) | ||
Disclosure of financial liabilities [abstract] | ||
Derivative financial instruments: Cash outflow | 9,338 | 1,710 |
Derivative financial instruments: Cash inflow | (9,155) | (1,617) |
Derivative financial instruments: Held for hedging purposes (gross settled) | Up to 1 Month | ||
Disclosure of financial liabilities [abstract] | ||
Derivative financial instruments: Cash outflow | 204 | 4 |
Derivative financial instruments: Cash inflow | (200) | |
Derivative financial instruments: Held for hedging purposes (gross settled) | Over 1 Month to 3 Months | ||
Disclosure of financial liabilities [abstract] | ||
Derivative financial instruments: Cash outflow | 5,645 | 287 |
Derivative financial instruments: Cash inflow | (5,595) | (276) |
Derivative financial instruments: Held for hedging purposes (gross settled) | Over 3 Months to 1 Year | ||
Disclosure of financial liabilities [abstract] | ||
Derivative financial instruments: Cash outflow | 1,785 | 902 |
Derivative financial instruments: Cash inflow | (1,709) | (875) |
Derivative financial instruments: Held for hedging purposes (gross settled) | Over 1 Year to 5 Years | ||
Disclosure of financial liabilities [abstract] | ||
Derivative financial instruments: Cash outflow | 1,704 | 517 |
Derivative financial instruments: Cash inflow | (1,651) | (466) |
Debt issues | ||
Disclosure of financial liabilities [abstract] | ||
Non-derivative financial liabilities, excluding loan capital | 156,319 | 192,859 |
Debt issues | Up to 1 Month | ||
Disclosure of financial liabilities [abstract] | ||
Non-derivative financial liabilities, excluding loan capital | 6,920 | 5,071 |
Debt issues | Over 1 Month to 3 Months | ||
Disclosure of financial liabilities [abstract] | ||
Non-derivative financial liabilities, excluding loan capital | 11,264 | 12,158 |
Debt issues | Over 3 Months to 1 Year | ||
Disclosure of financial liabilities [abstract] | ||
Non-derivative financial liabilities, excluding loan capital | 32,715 | 42,917 |
Debt issues | Over 1 Year to 5 Years | ||
Disclosure of financial liabilities [abstract] | ||
Non-derivative financial liabilities, excluding loan capital | 79,797 | 102,296 |
Debt issues | Over 5 Years | ||
Disclosure of financial liabilities [abstract] | ||
Non-derivative financial liabilities, excluding loan capital | 25,623 | 30,417 |
Letters of credit and guarantees | ||
Disclosure of financial liabilities [abstract] | ||
Total undiscounted contingent liabilities and commitments | 12,610 | 15,150 |
Letters of credit and guarantees | Up to 1 Month | ||
Disclosure of financial liabilities [abstract] | ||
Total undiscounted contingent liabilities and commitments | 12,610 | 15,150 |
Commitments to extend credit | ||
Disclosure of financial liabilities [abstract] | ||
Total undiscounted contingent liabilities and commitments | 184,064 | 176,002 |
Commitments to extend credit | Up to 1 Month | ||
Disclosure of financial liabilities [abstract] | ||
Total undiscounted contingent liabilities and commitments | 184,064 | 176,002 |
Other commitments | ||
Disclosure of financial liabilities [abstract] | ||
Total undiscounted contingent liabilities and commitments | 267 | 188 |
Other commitments | Up to 1 Month | ||
Disclosure of financial liabilities [abstract] | ||
Total undiscounted contingent liabilities and commitments | 267 | 188 |
Parent Entity | ||
Disclosure of financial liabilities [abstract] | ||
Total financial liabilities excluding loan capital | 937,443 | 913,434 |
Loan Capital | 28,531 | 27,298 |
Total undiscounted financial liabilities | 965,974 | 940,732 |
Total undiscounted contingent liabilities and commitments | 171,979 | 168,487 |
Parent Entity | Up to 1 Month | ||
Disclosure of financial liabilities [abstract] | ||
Total financial liabilities excluding loan capital | 458,560 | 410,319 |
Loan Capital | 1 | 1 |
Total undiscounted financial liabilities | 458,561 | 410,320 |
Total undiscounted contingent liabilities and commitments | 171,979 | 168,487 |
Parent Entity | Over 1 Month to 3 Months | ||
Disclosure of financial liabilities [abstract] | ||
Total financial liabilities excluding loan capital | 70,571 | 85,876 |
Loan Capital | 68 | 76 |
Total undiscounted financial liabilities | 70,639 | 85,952 |
Parent Entity | Over 3 Months to 1 Year | ||
Disclosure of financial liabilities [abstract] | ||
Total financial liabilities excluding loan capital | 100,957 | 129,423 |
Loan Capital | 387 | 371 |
Total undiscounted financial liabilities | 101,344 | 129,794 |
Parent Entity | Over 1 Year to 5 Years | ||
Disclosure of financial liabilities [abstract] | ||
Total financial liabilities excluding loan capital | 111,660 | 117,027 |
Loan Capital | 6,665 | 6,293 |
Total undiscounted financial liabilities | 118,325 | 123,320 |
Parent Entity | Over 5 Years | ||
Disclosure of financial liabilities [abstract] | ||
Total financial liabilities excluding loan capital | 195,695 | 170,789 |
Loan Capital | 21,410 | 20,557 |
Total undiscounted financial liabilities | 217,105 | 191,346 |
Parent Entity | Collateral received | ||
Disclosure of financial liabilities [abstract] | ||
Non-derivative financial liabilities, excluding loan capital | 1,863 | 2,853 |
Parent Entity | Collateral received | Up to 1 Month | ||
Disclosure of financial liabilities [abstract] | ||
Non-derivative financial liabilities, excluding loan capital | 1,863 | 2,853 |
Parent Entity | Deposits and other borrowings | ||
Disclosure of financial liabilities [abstract] | ||
Non-derivative financial liabilities, excluding loan capital | 526,938 | 504,195 |
Parent Entity | Deposits and other borrowings | Up to 1 Month | ||
Disclosure of financial liabilities [abstract] | ||
Non-derivative financial liabilities, excluding loan capital | 389,498 | 339,448 |
Parent Entity | Deposits and other borrowings | Over 1 Month to 3 Months | ||
Disclosure of financial liabilities [abstract] | ||
Non-derivative financial liabilities, excluding loan capital | 57,543 | 70,761 |
Parent Entity | Deposits and other borrowings | Over 3 Months to 1 Year | ||
Disclosure of financial liabilities [abstract] | ||
Non-derivative financial liabilities, excluding loan capital | 71,368 | 83,602 |
Parent Entity | Deposits and other borrowings | Over 1 Year to 5 Years | ||
Disclosure of financial liabilities [abstract] | ||
Non-derivative financial liabilities, excluding loan capital | 8,466 | 10,311 |
Parent Entity | Deposits and other borrowings | Over 5 Years | ||
Disclosure of financial liabilities [abstract] | ||
Non-derivative financial liabilities, excluding loan capital | 63 | 73 |
Parent Entity | Other financial liabilities | ||
Disclosure of financial liabilities [abstract] | ||
Non-derivative financial liabilities, excluding loan capital | 38,992 | 26,243 |
Parent Entity | Other financial liabilities | Up to 1 Month | ||
Disclosure of financial liabilities [abstract] | ||
Non-derivative financial liabilities, excluding loan capital | 19,704 | 19,340 |
Parent Entity | Other financial liabilities | Over 1 Month to 3 Months | ||
Disclosure of financial liabilities [abstract] | ||
Non-derivative financial liabilities, excluding loan capital | 1,129 | 3,121 |
Parent Entity | Other financial liabilities | Over 3 Months to 1 Year | ||
Disclosure of financial liabilities [abstract] | ||
Non-derivative financial liabilities, excluding loan capital | 94 | 3,625 |
Parent Entity | Other financial liabilities | Over 1 Year to 5 Years | ||
Disclosure of financial liabilities [abstract] | ||
Non-derivative financial liabilities, excluding loan capital | 18,065 | 157 |
Parent Entity | Derivative financial instruments: Held for trading | ||
Disclosure of financial liabilities [abstract] | ||
Derivative financial instruments | 22,268 | 28,329 |
Parent Entity | Derivative financial instruments: Held for trading | Up to 1 Month | ||
Disclosure of financial liabilities [abstract] | ||
Derivative financial instruments | 22,268 | 28,329 |
Parent Entity | Derivative financial instruments: Held for hedging purposes (net settled) | ||
Disclosure of financial liabilities [abstract] | ||
Derivative financial instruments | 485 | 538 |
Parent Entity | Derivative financial instruments: Held for hedging purposes (net settled) | Up to 1 Month | ||
Disclosure of financial liabilities [abstract] | ||
Derivative financial instruments | 21 | 21 |
Parent Entity | Derivative financial instruments: Held for hedging purposes (net settled) | Over 1 Month to 3 Months | ||
Disclosure of financial liabilities [abstract] | ||
Derivative financial instruments | 28 | 9 |
Parent Entity | Derivative financial instruments: Held for hedging purposes (net settled) | Over 3 Months to 1 Year | ||
Disclosure of financial liabilities [abstract] | ||
Derivative financial instruments | 137 | 97 |
Parent Entity | Derivative financial instruments: Held for hedging purposes (net settled) | Over 1 Year to 5 Years | ||
Disclosure of financial liabilities [abstract] | ||
Derivative financial instruments | 277 | 378 |
Parent Entity | Derivative financial instruments: Held for hedging purposes (net settled) | Over 5 Years | ||
Disclosure of financial liabilities [abstract] | ||
Derivative financial instruments | 22 | 33 |
Parent Entity | Derivative financial instruments: Held for hedging purposes (gross settled) | ||
Disclosure of financial liabilities [abstract] | ||
Derivative financial instruments: Cash outflow | 2,581 | 278 |
Derivative financial instruments: Cash inflow | (2,553) | (266) |
Parent Entity | Derivative financial instruments: Held for hedging purposes (gross settled) | Up to 1 Month | ||
Disclosure of financial liabilities [abstract] | ||
Derivative financial instruments: Cash outflow | 7 | |
Derivative financial instruments: Cash inflow | (7) | |
Parent Entity | Derivative financial instruments: Held for hedging purposes (gross settled) | Over 1 Month to 3 Months | ||
Disclosure of financial liabilities [abstract] | ||
Derivative financial instruments: Cash outflow | 2,110 | 221 |
Derivative financial instruments: Cash inflow | (2,088) | (215) |
Parent Entity | Derivative financial instruments: Held for hedging purposes (gross settled) | Over 3 Months to 1 Year | ||
Disclosure of financial liabilities [abstract] | ||
Derivative financial instruments: Cash outflow | 9 | 57 |
Derivative financial instruments: Cash inflow | (21) | (51) |
Parent Entity | Derivative financial instruments: Held for hedging purposes (gross settled) | Over 1 Year to 5 Years | ||
Disclosure of financial liabilities [abstract] | ||
Derivative financial instruments: Cash outflow | 455 | |
Derivative financial instruments: Cash inflow | (437) | |
Parent Entity | Debt issues | ||
Disclosure of financial liabilities [abstract] | ||
Non-derivative financial liabilities, excluding loan capital | 133,166 | 166,980 |
Parent Entity | Debt issues | Up to 1 Month | ||
Disclosure of financial liabilities [abstract] | ||
Non-derivative financial liabilities, excluding loan capital | 6,596 | 4,790 |
Parent Entity | Debt issues | Over 1 Month to 3 Months | ||
Disclosure of financial liabilities [abstract] | ||
Non-derivative financial liabilities, excluding loan capital | 10,915 | 10,959 |
Parent Entity | Debt issues | Over 3 Months to 1 Year | ||
Disclosure of financial liabilities [abstract] | ||
Non-derivative financial liabilities, excluding loan capital | 24,980 | 37,104 |
Parent Entity | Debt issues | Over 1 Year to 5 Years | ||
Disclosure of financial liabilities [abstract] | ||
Non-derivative financial liabilities, excluding loan capital | 66,305 | 86,064 |
Parent Entity | Debt issues | Over 5 Years | ||
Disclosure of financial liabilities [abstract] | ||
Non-derivative financial liabilities, excluding loan capital | 24,370 | 28,063 |
Parent Entity | Due to subsidiaries | ||
Disclosure of financial liabilities [abstract] | ||
Non-derivative financial liabilities, excluding loan capital | 213,703 | 184,284 |
Parent Entity | Due to subsidiaries | Up to 1 Month | ||
Disclosure of financial liabilities [abstract] | ||
Non-derivative financial liabilities, excluding loan capital | 18,610 | 15,538 |
Parent Entity | Due to subsidiaries | Over 1 Month to 3 Months | ||
Disclosure of financial liabilities [abstract] | ||
Non-derivative financial liabilities, excluding loan capital | 934 | 1,020 |
Parent Entity | Due to subsidiaries | Over 3 Months to 1 Year | ||
Disclosure of financial liabilities [abstract] | ||
Non-derivative financial liabilities, excluding loan capital | 4,390 | 4,989 |
Parent Entity | Due to subsidiaries | Over 1 Year to 5 Years | ||
Disclosure of financial liabilities [abstract] | ||
Non-derivative financial liabilities, excluding loan capital | 18,529 | 20,117 |
Parent Entity | Due to subsidiaries | Over 5 Years | ||
Disclosure of financial liabilities [abstract] | ||
Non-derivative financial liabilities, excluding loan capital | 171,240 | 142,620 |
Parent Entity | Letters of credit and guarantees | ||
Disclosure of financial liabilities [abstract] | ||
Total undiscounted contingent liabilities and commitments | 12,069 | 14,583 |
Parent Entity | Letters of credit and guarantees | Up to 1 Month | ||
Disclosure of financial liabilities [abstract] | ||
Total undiscounted contingent liabilities and commitments | 12,069 | 14,583 |
Parent Entity | Commitments to extend credit | ||
Disclosure of financial liabilities [abstract] | ||
Total undiscounted contingent liabilities and commitments | 159,644 | 153,716 |
Parent Entity | Commitments to extend credit | Up to 1 Month | ||
Disclosure of financial liabilities [abstract] | ||
Total undiscounted contingent liabilities and commitments | 159,644 | 153,716 |
Parent Entity | Other commitments | ||
Disclosure of financial liabilities [abstract] | ||
Total undiscounted contingent liabilities and commitments | 266 | 188 |
Parent Entity | Other commitments | Up to 1 Month | ||
Disclosure of financial liabilities [abstract] | ||
Total undiscounted contingent liabilities and commitments | $ 266 | $ 188 |
Financial risk - Expected matur
Financial risk - Expected maturity of financial assets and financial liabilities (Details) - AUD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 |
Assets | ||
Cash and balances with central banks | $ 30,129 | $ 20,059 |
Collateral paid | 4,778 | 5,930 |
Trading securities and financial assets measured at FVIS | 40,667 | 31,781 |
Derivative financial instruments | 23,367 | 29,859 |
Investment securities | 91,539 | 73,401 |
Loans (net of provisions) | 693,059 | 714,770 |
Other financial assets | 5,474 | 5,367 |
Life insurance assets | 3,593 | 9,367 |
Investments in associates | 61 | 129 |
All other assets | 19,279 | 15,963 |
Total assets | 911,946 | 906,626 |
Liabilities | ||
Collateral received | 2,250 | 3,287 |
Deposits and other borrowings | 591,131 | 563,247 |
Other financial liabilities | 40,925 | 29,215 |
Derivative financial instruments | 23,054 | 29,096 |
Debt issues | 150,325 | 181,457 |
Life insurance liabilities | 1,396 | 7,377 |
All other liabilities | 10,842 | 5,614 |
Total liabilities excluding loan capital | 819,923 | 819,293 |
Loan capital | 23,949 | 21,826 |
Total liabilities | 843,872 | 841,119 |
Net assets/(net liabilities) | 68,074 | 65,507 |
Within 1 Year | ||
Assets | ||
Cash and balances with central banks | 30,129 | 20,059 |
Collateral paid | 4,778 | 5,930 |
Trading securities and financial assets measured at FVIS | 32,591 | 18,544 |
Derivative financial instruments | 13,583 | 20,695 |
Investment securities | 6,824 | 9,810 |
Loans (net of provisions) | 90,856 | 99,197 |
Other financial assets | 5,474 | 5,367 |
Life insurance assets | 3,450 | 1,541 |
All other assets | 1,400 | 1,222 |
Total assets | 189,085 | 182,365 |
Liabilities | ||
Collateral received | 2,250 | 3,287 |
Deposits and other borrowings | 584,037 | 551,817 |
Other financial liabilities | 22,861 | 29,059 |
Derivative financial instruments | 13,157 | 19,203 |
Debt issues | 49,070 | 56,933 |
Life insurance liabilities | 1,809 | 1,703 |
All other liabilities | 5,395 | 3,907 |
Total liabilities excluding loan capital | 678,579 | 665,909 |
Loan capital | 1,323 | |
Total liabilities | 679,902 | 665,909 |
Net assets/(net liabilities) | (490,817) | (483,544) |
Over 1 Year | ||
Assets | ||
Trading securities and financial assets measured at FVIS | 8,076 | 13,237 |
Derivative financial instruments | 9,784 | 9,164 |
Investment securities | 84,715 | 63,591 |
Loans (net of provisions) | 602,203 | 615,573 |
Life insurance assets | 143 | 7,826 |
Investments in associates | 61 | 129 |
All other assets | 17,879 | 14,741 |
Total assets | 722,861 | 724,261 |
Liabilities | ||
Deposits and other borrowings | 7,094 | 11,430 |
Other financial liabilities | 18,064 | 156 |
Derivative financial instruments | 9,897 | 9,893 |
Debt issues | 101,255 | 124,524 |
Life insurance liabilities | (413) | 5,674 |
All other liabilities | 5,447 | 1,707 |
Total liabilities excluding loan capital | 141,344 | 153,384 |
Loan capital | 22,626 | 21,826 |
Total liabilities | 163,970 | 175,210 |
Net assets/(net liabilities) | 558,891 | 549,051 |
Parent Entity | ||
Assets | ||
Cash and balances with central banks | 25,436 | 17,692 |
Collateral paid | 4,641 | 5,773 |
Trading securities and financial assets measured at FVIS | 38,030 | 29,565 |
Derivative financial instruments | 22,794 | 29,283 |
Investment securities | 85,826 | 68,398 |
Loans (net of provisions) | 607,824 | 631,936 |
Other financial assets | 4,745 | 4,615 |
Due from subsidiaries | 180,979 | 142,961 |
Investment in subsidiaries | 6,475 | 6,436 |
Investments in associates | 57 | 100 |
All other assets | 15,995 | 12,980 |
Total assets | 992,802 | 949,739 |
Liabilities | ||
Collateral received | 1,862 | 2,849 |
Deposits and other borrowings | 521,613 | 501,430 |
Other financial liabilities | 40,156 | 28,516 |
Derivative financial instruments | 22,779 | 28,867 |
Debt issues | 127,666 | 156,674 |
Due to subsidiaries | 186,263 | 148,607 |
All other liabilities | 8,766 | 4,132 |
Total liabilities excluding loan capital | 909,105 | 871,075 |
Loan capital | 23,949 | 21,826 |
Total liabilities | 933,054 | 892,901 |
Net assets/(net liabilities) | 59,748 | 56,838 |
Parent Entity | Within 1 Year | ||
Assets | ||
Cash and balances with central banks | 25,436 | 17,692 |
Collateral paid | 4,641 | 5,773 |
Trading securities and financial assets measured at FVIS | 30,550 | 16,736 |
Derivative financial instruments | 13,349 | 20,613 |
Investment securities | 5,120 | 7,200 |
Loans (net of provisions) | 70,453 | 79,956 |
Other financial assets | 4,745 | 4,615 |
Due from subsidiaries | 10,420 | 10,291 |
All other assets | 796 | 756 |
Total assets | 165,510 | 163,632 |
Liabilities | ||
Collateral received | 1,862 | 2,849 |
Deposits and other borrowings | 516,391 | 491,562 |
Other financial liabilities | 22,092 | 28,360 |
Derivative financial instruments | 12,805 | 19,167 |
Debt issues | 40,886 | 50,028 |
Due to subsidiaries | 20,551 | 17,563 |
All other liabilities | 3,770 | 2,545 |
Total liabilities excluding loan capital | 618,357 | 612,074 |
Loan capital | 1,323 | |
Total liabilities | 619,680 | 612,074 |
Net assets/(net liabilities) | (454,170) | (448,442) |
Parent Entity | Over 1 Year | ||
Assets | ||
Trading securities and financial assets measured at FVIS | 7,480 | 12,829 |
Derivative financial instruments | 9,445 | 8,670 |
Investment securities | 80,706 | 61,198 |
Loans (net of provisions) | 537,371 | 551,980 |
Due from subsidiaries | 170,559 | 132,670 |
Investment in subsidiaries | 6,475 | 6,436 |
Investments in associates | 57 | 100 |
All other assets | 15,199 | 12,224 |
Total assets | 827,292 | 786,107 |
Liabilities | ||
Deposits and other borrowings | 5,222 | 9,868 |
Other financial liabilities | 18,064 | 156 |
Derivative financial instruments | 9,974 | 9,700 |
Debt issues | 86,780 | 106,646 |
Due to subsidiaries | 165,712 | 131,044 |
All other liabilities | 4,996 | 1,587 |
Total liabilities excluding loan capital | 290,748 | 259,001 |
Loan capital | 22,626 | 21,826 |
Total liabilities | 313,374 | 280,827 |
Net assets/(net liabilities) | $ 513,918 | $ 505,280 |
Financial risk - Value-at-Risk
Financial risk - Value-at-Risk (Details) | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Key parameters of VaR | ||
Holding period | 1 day | 1 day |
Confidence level | 99.00% | 99.00% |
Period of historical data used | 1 year | 1 year |
Financial risk - Traded market
Financial risk - Traded market risk (Details) - AUD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 |
Net market risk | Maximum | |||
Traded market risk | |||
Value at risk | $ 42 | $ 45.3 | $ 28.1 |
Net market risk | Minimum | |||
Traded market risk | |||
Value at risk | 7.1 | 7.9 | 6.7 |
Net market risk | Average | |||
Traded market risk | |||
Value at risk | 20.4 | 14.4 | 13.4 |
Interest rate risk | Maximum | |||
Traded market risk | |||
Value at risk | 25.5 | 14.9 | 15.6 |
Interest rate risk | Minimum | |||
Traded market risk | |||
Value at risk | 7 | 6.6 | 5.1 |
Interest rate risk | Average | |||
Traded market risk | |||
Value at risk | 14.6 | 10.9 | 8.6 |
Foreign exchange risk | Maximum | |||
Traded market risk | |||
Value at risk | 11.7 | 8.6 | 6.9 |
Foreign exchange risk | Minimum | |||
Traded market risk | |||
Value at risk | 0.5 | 0.8 | 0.7 |
Foreign exchange risk | Average | |||
Traded market risk | |||
Value at risk | 4 | 4.1 | 3 |
Equity risk | Maximum | |||
Traded market risk | |||
Value at risk | 0.7 | 0.2 | 1 |
Equity risk | Minimum | |||
Traded market risk | |||
Value at risk | 0 | 0 | 0 |
Equity risk | Average | |||
Traded market risk | |||
Value at risk | 0.2 | 0 | 0.1 |
Commodity risk | Maximum | |||
Traded market risk | |||
Value at risk | 3.4 | 42 | 24.3 |
Commodity risk | Minimum | |||
Traded market risk | |||
Value at risk | 0.6 | 1.7 | 1.7 |
Commodity risk | Average | |||
Traded market risk | |||
Value at risk | 1.9 | 8.2 | 6.5 |
Other market risks | Maximum | |||
Traded market risk | |||
Value at risk | 32.9 | 5.5 | 5.8 |
Other market risks | Minimum | |||
Traded market risk | |||
Value at risk | 2.4 | 2 | 1.4 |
Other market risks | Average | |||
Traded market risk | |||
Value at risk | 14.6 | 3.5 | 3.8 |
Diversification effect | Average | |||
Traded market risk | |||
Value at risk | (14.9) | (12.3) | (8.6) |
Parent Entity | Net market risk | Maximum | |||
Traded market risk | |||
Value at risk | 42 | 45.3 | 28.1 |
Parent Entity | Net market risk | Minimum | |||
Traded market risk | |||
Value at risk | 7.1 | 7.9 | 6.7 |
Parent Entity | Net market risk | Average | |||
Traded market risk | |||
Value at risk | 20.4 | 14.4 | 13.4 |
Parent Entity | Interest rate risk | Maximum | |||
Traded market risk | |||
Value at risk | 25.5 | 14.9 | 15.6 |
Parent Entity | Interest rate risk | Minimum | |||
Traded market risk | |||
Value at risk | 7 | 6.6 | 5.1 |
Parent Entity | Interest rate risk | Average | |||
Traded market risk | |||
Value at risk | 14.6 | 10.9 | 8.6 |
Parent Entity | Foreign exchange risk | Maximum | |||
Traded market risk | |||
Value at risk | 11.7 | 8.6 | 6.9 |
Parent Entity | Foreign exchange risk | Minimum | |||
Traded market risk | |||
Value at risk | 0.5 | 0.8 | 0.7 |
Parent Entity | Foreign exchange risk | Average | |||
Traded market risk | |||
Value at risk | 4 | 4.1 | 3 |
Parent Entity | Equity risk | Maximum | |||
Traded market risk | |||
Value at risk | 0.7 | 0.2 | 1 |
Parent Entity | Equity risk | Minimum | |||
Traded market risk | |||
Value at risk | 0 | 0 | 0 |
Parent Entity | Equity risk | Average | |||
Traded market risk | |||
Value at risk | 0.2 | 0 | 0.1 |
Parent Entity | Commodity risk | Maximum | |||
Traded market risk | |||
Value at risk | 3.4 | 42 | 24.3 |
Parent Entity | Commodity risk | Minimum | |||
Traded market risk | |||
Value at risk | 0.6 | 1.7 | 1.7 |
Parent Entity | Commodity risk | Average | |||
Traded market risk | |||
Value at risk | 1.9 | 8.2 | 6.5 |
Parent Entity | Other market risks | Maximum | |||
Traded market risk | |||
Value at risk | 32.9 | 5.5 | 5.8 |
Parent Entity | Other market risks | Minimum | |||
Traded market risk | |||
Value at risk | 2.4 | 2 | 1.4 |
Parent Entity | Other market risks | Average | |||
Traded market risk | |||
Value at risk | 14.6 | 3.5 | 3.8 |
Parent Entity | Diversification effect | Average | |||
Traded market risk | |||
Value at risk | $ (14.9) | $ (12.3) | $ (8.6) |
Financial risk - Non-traded mar
Financial risk - Non-traded market risk (Details) - AUD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Non-traded market risk | ||
Time horizon for modelling of interest rate scenarios | 3 years | |
Confidence level | 99.00% | |
Net interest income-at-risk (NaR) | ||
Net interest income-at-risk (as a percent) | (0.27%) | 2.88% |
Value at Risk - IRRBB | ||
Value at Risk - IRBBB | $ 202.4 | $ 34.1 |
Maximum | ||
Non-traded market risk | ||
Variance from current market yield used in modelling interest rate scenarios | 2 | |
Net interest income-at-risk (NaR) | ||
Net interest income-at-risk (as a percent) | 3.09% | 2.88% |
Value at Risk - IRRBB | ||
Value at Risk - IRBBB | $ 219.7 | $ 37.3 |
Minimum | ||
Non-traded market risk | ||
Variance from current market yield used in modelling interest rate scenarios | 1 | |
Net interest income-at-risk (NaR) | ||
Net interest income-at-risk (as a percent) | (1.22%) | (0.46%) |
Value at Risk - IRRBB | ||
Value at Risk - IRBBB | $ 31 | $ 19.4 |
Average | ||
Net interest income-at-risk (NaR) | ||
Net interest income-at-risk (as a percent) | (0.25%) | 0.81% |
Value at Risk - IRRBB | ||
Value at Risk - IRBBB | $ 126.7 | $ 27.8 |
Parent Entity | ||
Net interest income-at-risk (NaR) | ||
Net interest income-at-risk (as a percent) | (0.38%) | 2.14% |
Value at Risk - IRRBB | ||
Value at Risk - IRBBB | $ 208.2 | $ 38.3 |
Parent Entity | Maximum | ||
Net interest income-at-risk (NaR) | ||
Net interest income-at-risk (as a percent) | 2.35% | 2.14% |
Parent Entity | Minimum | ||
Net interest income-at-risk (NaR) | ||
Net interest income-at-risk (as a percent) | (0.89%) | (0.42%) |
Parent Entity | Average | ||
Net interest income-at-risk (NaR) | ||
Net interest income-at-risk (as a percent) | (0.10%) | 0.43% |
Fair values of financial asse_3
Fair values of financial assets and financial liabilities - Hierarchy (Details) - AUD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 |
Deposits and other borrowings | ||
Fair values of financial assets and financial liabilities | ||
Contractual outstanding amount payable at maturity | $ 35,764 | $ 38,468 |
Other financial liabilities | ||
Fair values of financial assets and financial liabilities | ||
Contractual outstanding amount payable at maturity | 4,649 | 5,369 |
Debt issues | ||
Fair values of financial assets and financial liabilities | ||
Contractual outstanding amount payable at maturity | 5,062 | 5,632 |
Decrease in fair value of financial liabilities | (5) | (34) |
Recurring | ||
Fair values of financial assets and financial liabilities | ||
Financial assets measured at fair value on a recurring basis | 158,743 | 143,848 |
Financial liabilities measured at fair value on a recurring basis | 70,196 | 86,075 |
Recurring | Deposits and other borrowings | ||
Fair values of financial assets and financial liabilities | ||
Financial liabilities measured at fair value on a recurring basis | 35,764 | 38,413 |
Recurring | Other financial liabilities | ||
Fair values of financial assets and financial liabilities | ||
Financial liabilities measured at fair value on a recurring basis | 4,649 | 5,370 |
Recurring | Derivative financial instruments | ||
Fair values of financial assets and financial liabilities | ||
Financial liabilities measured at fair value on a recurring basis | 23,054 | 29,096 |
Recurring | Debt issues | ||
Fair values of financial assets and financial liabilities | ||
Financial liabilities measured at fair value on a recurring basis | 5,333 | 5,819 |
Recurring | Life insurance liabilities | ||
Fair values of financial assets and financial liabilities | ||
Financial liabilities measured at fair value on a recurring basis | 1,396 | 7,377 |
Recurring | Trading securities and financial assets measured at FVIS | ||
Fair values of financial assets and financial liabilities | ||
Financial assets measured at fair value on a recurring basis | 40,667 | 31,781 |
Recurring | Derivative financial instruments | ||
Fair values of financial assets and financial liabilities | ||
Financial assets measured at fair value on a recurring basis | 23,367 | 29,859 |
Recurring | Investment securities | ||
Fair values of financial assets and financial liabilities | ||
Financial assets measured at fair value on a recurring basis | 90,555 | 72,581 |
Recurring | Loans | ||
Fair values of financial assets and financial liabilities | ||
Financial assets measured at fair value on a recurring basis | 561 | 260 |
Recurring | Life insurance assets | ||
Fair values of financial assets and financial liabilities | ||
Financial assets measured at fair value on a recurring basis | 3,593 | 9,367 |
Recurring | Quoted market prices (Level 1) | ||
Fair values of financial assets and financial liabilities | ||
Financial assets measured at fair value on a recurring basis | 26,718 | 22,707 |
Financial liabilities measured at fair value on a recurring basis | 430 | 270 |
Recurring | Quoted market prices (Level 1) | Other financial liabilities | ||
Fair values of financial assets and financial liabilities | ||
Financial liabilities measured at fair value on a recurring basis | 420 | 262 |
Recurring | Quoted market prices (Level 1) | Derivative financial instruments | ||
Fair values of financial assets and financial liabilities | ||
Financial liabilities measured at fair value on a recurring basis | 10 | 8 |
Recurring | Quoted market prices (Level 1) | Trading securities and financial assets measured at FVIS | ||
Fair values of financial assets and financial liabilities | ||
Financial assets measured at fair value on a recurring basis | 8,059 | 10,440 |
Recurring | Quoted market prices (Level 1) | Derivative financial instruments | ||
Fair values of financial assets and financial liabilities | ||
Financial assets measured at fair value on a recurring basis | 10 | 7 |
Recurring | Quoted market prices (Level 1) | Investment securities | ||
Fair values of financial assets and financial liabilities | ||
Financial assets measured at fair value on a recurring basis | 18,032 | 11,163 |
Recurring | Quoted market prices (Level 1) | Life insurance assets | ||
Fair values of financial assets and financial liabilities | ||
Financial assets measured at fair value on a recurring basis | 617 | 1,097 |
Recurring | Valuation techniques (Market observable) (Level 2) | ||
Fair values of financial assets and financial liabilities | ||
Financial assets measured at fair value on a recurring basis | 131,626 | 120,742 |
Financial liabilities measured at fair value on a recurring basis | 69,753 | 85,776 |
Recurring | Valuation techniques (Market observable) (Level 2) | Deposits and other borrowings | ||
Fair values of financial assets and financial liabilities | ||
Financial liabilities measured at fair value on a recurring basis | 35,764 | 38,413 |
Recurring | Valuation techniques (Market observable) (Level 2) | Other financial liabilities | ||
Fair values of financial assets and financial liabilities | ||
Financial liabilities measured at fair value on a recurring basis | 4,229 | 5,108 |
Recurring | Valuation techniques (Market observable) (Level 2) | Derivative financial instruments | ||
Fair values of financial assets and financial liabilities | ||
Financial liabilities measured at fair value on a recurring basis | 23,031 | 29,059 |
Recurring | Valuation techniques (Market observable) (Level 2) | Debt issues | ||
Fair values of financial assets and financial liabilities | ||
Financial liabilities measured at fair value on a recurring basis | 5,333 | 5,819 |
Recurring | Valuation techniques (Market observable) (Level 2) | Life insurance liabilities | ||
Fair values of financial assets and financial liabilities | ||
Financial liabilities measured at fair value on a recurring basis | 1,396 | 7,377 |
Recurring | Valuation techniques (Market observable) (Level 2) | Trading securities and financial assets measured at FVIS | ||
Fair values of financial assets and financial liabilities | ||
Financial assets measured at fair value on a recurring basis | 32,387 | 21,121 |
Recurring | Valuation techniques (Market observable) (Level 2) | Derivative financial instruments | ||
Fair values of financial assets and financial liabilities | ||
Financial assets measured at fair value on a recurring basis | 23,353 | 29,828 |
Recurring | Valuation techniques (Market observable) (Level 2) | Investment securities | ||
Fair values of financial assets and financial liabilities | ||
Financial assets measured at fair value on a recurring basis | 72,370 | 61,284 |
Recurring | Valuation techniques (Market observable) (Level 2) | Loans | ||
Fair values of financial assets and financial liabilities | ||
Financial assets measured at fair value on a recurring basis | 540 | 239 |
Recurring | Valuation techniques (Market observable) (Level 2) | Life insurance assets | ||
Fair values of financial assets and financial liabilities | ||
Financial assets measured at fair value on a recurring basis | 2,976 | 8,270 |
Recurring | Valuation techniques (Non-market observable) (Level 3) | ||
Fair values of financial assets and financial liabilities | ||
Financial assets measured at fair value on a recurring basis | 399 | 399 |
Financial liabilities measured at fair value on a recurring basis | 13 | 29 |
Recurring | Valuation techniques (Non-market observable) (Level 3) | Derivative financial instruments | ||
Fair values of financial assets and financial liabilities | ||
Financial liabilities measured at fair value on a recurring basis | 13 | 29 |
Recurring | Valuation techniques (Non-market observable) (Level 3) | Trading securities and financial assets measured at FVIS | ||
Fair values of financial assets and financial liabilities | ||
Financial assets measured at fair value on a recurring basis | 221 | 220 |
Recurring | Valuation techniques (Non-market observable) (Level 3) | Derivative financial instruments | ||
Fair values of financial assets and financial liabilities | ||
Financial assets measured at fair value on a recurring basis | 4 | 24 |
Recurring | Valuation techniques (Non-market observable) (Level 3) | Investment securities | ||
Fair values of financial assets and financial liabilities | ||
Financial assets measured at fair value on a recurring basis | 153 | 134 |
Recurring | Valuation techniques (Non-market observable) (Level 3) | Loans | ||
Fair values of financial assets and financial liabilities | ||
Financial assets measured at fair value on a recurring basis | 21 | 21 |
Parent Entity | Deposits and other borrowings | ||
Fair values of financial assets and financial liabilities | ||
Contractual outstanding amount payable at maturity | 32,990 | 37,410 |
Parent Entity | Other financial liabilities | ||
Fair values of financial assets and financial liabilities | ||
Contractual outstanding amount payable at maturity | 4,649 | 5,369 |
Parent Entity | Debt issues | ||
Fair values of financial assets and financial liabilities | ||
Contractual outstanding amount payable at maturity | 2,714 | 3,436 |
Decrease in fair value of financial liabilities | (5) | (34) |
Parent Entity | Recurring | ||
Fair values of financial assets and financial liabilities | ||
Financial assets measured at fair value on a recurring basis | 147,871 | 128,376 |
Financial liabilities measured at fair value on a recurring basis | 63,644 | 76,807 |
Parent Entity | Recurring | Deposits and other borrowings | ||
Fair values of financial assets and financial liabilities | ||
Financial liabilities measured at fair value on a recurring basis | 32,991 | 37,355 |
Parent Entity | Recurring | Other financial liabilities | ||
Fair values of financial assets and financial liabilities | ||
Financial liabilities measured at fair value on a recurring basis | 4,649 | 5,370 |
Parent Entity | Recurring | Derivative financial instruments | ||
Fair values of financial assets and financial liabilities | ||
Financial liabilities measured at fair value on a recurring basis | 22,779 | 28,867 |
Parent Entity | Recurring | Debt issues | ||
Fair values of financial assets and financial liabilities | ||
Financial liabilities measured at fair value on a recurring basis | 2,986 | 3,624 |
Parent Entity | Recurring | Due to subsidiaries | ||
Fair values of financial assets and financial liabilities | ||
Financial liabilities measured at fair value on a recurring basis | 239 | 1,591 |
Parent Entity | Recurring | Trading securities and financial assets measured at FVIS | ||
Fair values of financial assets and financial liabilities | ||
Financial assets measured at fair value on a recurring basis | 38,030 | 29,565 |
Parent Entity | Recurring | Derivative financial instruments | ||
Fair values of financial assets and financial liabilities | ||
Financial assets measured at fair value on a recurring basis | 22,794 | 29,283 |
Parent Entity | Recurring | Investment securities | ||
Fair values of financial assets and financial liabilities | ||
Financial assets measured at fair value on a recurring basis | 85,823 | 68,371 |
Parent Entity | Recurring | Loans | ||
Fair values of financial assets and financial liabilities | ||
Financial assets measured at fair value on a recurring basis | 561 | 260 |
Parent Entity | Recurring | Due from subsidiaries | ||
Fair values of financial assets and financial liabilities | ||
Financial assets measured at fair value on a recurring basis | 663 | 897 |
Parent Entity | Recurring | Quoted market prices (Level 1) | ||
Fair values of financial assets and financial liabilities | ||
Financial assets measured at fair value on a recurring basis | 22,798 | 20,411 |
Financial liabilities measured at fair value on a recurring basis | 430 | 270 |
Parent Entity | Recurring | Quoted market prices (Level 1) | Other financial liabilities | ||
Fair values of financial assets and financial liabilities | ||
Financial liabilities measured at fair value on a recurring basis | 420 | 262 |
Parent Entity | Recurring | Quoted market prices (Level 1) | Derivative financial instruments | ||
Fair values of financial assets and financial liabilities | ||
Financial liabilities measured at fair value on a recurring basis | 10 | 8 |
Parent Entity | Recurring | Quoted market prices (Level 1) | Trading securities and financial assets measured at FVIS | ||
Fair values of financial assets and financial liabilities | ||
Financial assets measured at fair value on a recurring basis | 7,074 | 10,213 |
Parent Entity | Recurring | Quoted market prices (Level 1) | Derivative financial instruments | ||
Fair values of financial assets and financial liabilities | ||
Financial assets measured at fair value on a recurring basis | 10 | 7 |
Parent Entity | Recurring | Quoted market prices (Level 1) | Investment securities | ||
Fair values of financial assets and financial liabilities | ||
Financial assets measured at fair value on a recurring basis | 15,714 | 10,191 |
Parent Entity | Recurring | Valuation techniques (Market observable) (Level 2) | ||
Fair values of financial assets and financial liabilities | ||
Financial assets measured at fair value on a recurring basis | 124,787 | 107,662 |
Financial liabilities measured at fair value on a recurring basis | 63,201 | 76,509 |
Parent Entity | Recurring | Valuation techniques (Market observable) (Level 2) | Deposits and other borrowings | ||
Fair values of financial assets and financial liabilities | ||
Financial liabilities measured at fair value on a recurring basis | 32,991 | 37,355 |
Parent Entity | Recurring | Valuation techniques (Market observable) (Level 2) | Other financial liabilities | ||
Fair values of financial assets and financial liabilities | ||
Financial liabilities measured at fair value on a recurring basis | 4,229 | 5,108 |
Parent Entity | Recurring | Valuation techniques (Market observable) (Level 2) | Derivative financial instruments | ||
Fair values of financial assets and financial liabilities | ||
Financial liabilities measured at fair value on a recurring basis | 22,756 | 28,831 |
Parent Entity | Recurring | Valuation techniques (Market observable) (Level 2) | Debt issues | ||
Fair values of financial assets and financial liabilities | ||
Financial liabilities measured at fair value on a recurring basis | 2,986 | 3,624 |
Parent Entity | Recurring | Valuation techniques (Market observable) (Level 2) | Due to subsidiaries | ||
Fair values of financial assets and financial liabilities | ||
Financial liabilities measured at fair value on a recurring basis | 239 | 1,591 |
Parent Entity | Recurring | Valuation techniques (Market observable) (Level 2) | Trading securities and financial assets measured at FVIS | ||
Fair values of financial assets and financial liabilities | ||
Financial assets measured at fair value on a recurring basis | 30,763 | 19,159 |
Parent Entity | Recurring | Valuation techniques (Market observable) (Level 2) | Derivative financial instruments | ||
Fair values of financial assets and financial liabilities | ||
Financial assets measured at fair value on a recurring basis | 22,781 | 29,253 |
Parent Entity | Recurring | Valuation techniques (Market observable) (Level 2) | Investment securities | ||
Fair values of financial assets and financial liabilities | ||
Financial assets measured at fair value on a recurring basis | 70,040 | 58,114 |
Parent Entity | Recurring | Valuation techniques (Market observable) (Level 2) | Loans | ||
Fair values of financial assets and financial liabilities | ||
Financial assets measured at fair value on a recurring basis | 540 | 239 |
Parent Entity | Recurring | Valuation techniques (Market observable) (Level 2) | Due from subsidiaries | ||
Fair values of financial assets and financial liabilities | ||
Financial assets measured at fair value on a recurring basis | 663 | 897 |
Parent Entity | Recurring | Valuation techniques (Non-market observable) (Level 3) | ||
Fair values of financial assets and financial liabilities | ||
Financial assets measured at fair value on a recurring basis | 286 | 303 |
Financial liabilities measured at fair value on a recurring basis | 13 | 28 |
Parent Entity | Recurring | Valuation techniques (Non-market observable) (Level 3) | Derivative financial instruments | ||
Fair values of financial assets and financial liabilities | ||
Financial liabilities measured at fair value on a recurring basis | 13 | 28 |
Parent Entity | Recurring | Valuation techniques (Non-market observable) (Level 3) | Trading securities and financial assets measured at FVIS | ||
Fair values of financial assets and financial liabilities | ||
Financial assets measured at fair value on a recurring basis | 193 | 193 |
Parent Entity | Recurring | Valuation techniques (Non-market observable) (Level 3) | Derivative financial instruments | ||
Fair values of financial assets and financial liabilities | ||
Financial assets measured at fair value on a recurring basis | 3 | 23 |
Parent Entity | Recurring | Valuation techniques (Non-market observable) (Level 3) | Investment securities | ||
Fair values of financial assets and financial liabilities | ||
Financial assets measured at fair value on a recurring basis | 69 | 66 |
Parent Entity | Recurring | Valuation techniques (Non-market observable) (Level 3) | Loans | ||
Fair values of financial assets and financial liabilities | ||
Financial assets measured at fair value on a recurring basis | $ 21 | $ 21 |
Fair values of financial asse_4
Fair values of financial assets and financial liabilities - Non-market observable valuation techniques Level 3 (Details) - AUD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Oct. 01, 2018 | |
Day one profit or loss | |||
Closing balance of unrecognised day one profit (loss) | $ 4 | $ 3 | |
At fair value | Valuation techniques (Non-market observable) (Level 3) | |||
Assets | |||
Balance at the beginning of the year | 399 | 964 | |
Impact on adoption of AASB 9 | $ (492) | ||
Restated at the beginning of the year | 472 | ||
Gains/(losses) on assets recognised in: Income statements | (4) | 48 | |
Gains/(losses) on assets recognised in: OCI | (15) | 11 | |
Acquisition and issues | 78 | 115 | |
Disposal and settlements | (59) | (250) | |
Foreign currency translation impacts | 3 | ||
Balance at the end of the year | 399 | 399 | |
Unrealised gains/(losses) recognised in the income statements for financial instruments held as at end of year | (1) | 42 | |
Liabilities | |||
Balance at the beginning of the year | 29 | 6 | |
Impact on adoption of AASB 9 | |||
Restated opening balance | 6 | ||
(Gains)/losses on liabilities recognised in: Income statements | (4) | 7 | |
Acquisition and issues | 7 | 4 | |
Disposal and settlements | (19) | (6) | |
Transfer into or out of non-market observables | 18 | ||
Balance at the end of the year | 13 | 29 | |
Unrealised gains/(losses) recognised in the income statements for financial instruments held as at end of year | (3) | (11) | |
At fair value | Valuation techniques (Non-market observable) (Level 3) | Derivative financial instruments | |||
Liabilities | |||
Balance at the beginning of the year | 29 | 6 | |
Impact on adoption of AASB 9 | |||
Restated opening balance | 6 | ||
(Gains)/losses on liabilities recognised in: Income statements | (4) | 7 | |
Acquisition and issues | 7 | 4 | |
Disposal and settlements | (19) | (6) | |
Transfer into or out of non-market observables | 18 | ||
Balance at the end of the year | 13 | 29 | |
Unrealised gains/(losses) recognised in the income statements for financial instruments held as at end of year | (3) | (11) | |
At fair value | Valuation techniques (Non-market observable) (Level 3) | Trading securities and financial assets measured at FVIS | |||
Assets | |||
Balance at the beginning of the year | 220 | 330 | |
Impact on adoption of AASB 9 | 4 | ||
Restated at the beginning of the year | 334 | ||
Gains/(losses) on assets recognised in: Income statements | (2) | 36 | |
Acquisition and issues | 26 | 63 | |
Disposal and settlements | (23) | (216) | |
Foreign currency translation impacts | 3 | ||
Balance at the end of the year | 221 | 220 | |
Unrealised gains/(losses) recognised in the income statements for financial instruments held as at end of year | (4) | 26 | |
At fair value | Valuation techniques (Non-market observable) (Level 3) | Available-for-sale securities | |||
Assets | |||
Balance at the beginning of the year | 619 | ||
Impact on adoption of AASB 9 | (619) | ||
Restated at the beginning of the year | |||
At fair value | Valuation techniques (Non-market observable) (Level 3) | Investment securities | |||
Assets | |||
Balance at the beginning of the year | 134 | ||
Impact on adoption of AASB 9 | 109 | ||
Restated at the beginning of the year | 109 | ||
Gains/(losses) on assets recognised in: OCI | (15) | 11 | |
Acquisition and issues | 40 | 36 | |
Disposal and settlements | (6) | (22) | |
Balance at the end of the year | 153 | 134 | |
At fair value | Valuation techniques (Non-market observable) (Level 3) | Other assets | |||
Assets | |||
Balance at the beginning of the year | 45 | 15 | |
Impact on adoption of AASB 9 | 14 | ||
Restated at the beginning of the year | 29 | ||
Gains/(losses) on assets recognised in: Income statements | (2) | 12 | |
Acquisition and issues | 12 | 16 | |
Disposal and settlements | (30) | (12) | |
Balance at the end of the year | 25 | 45 | |
Unrealised gains/(losses) recognised in the income statements for financial instruments held as at end of year | 3 | 16 | |
Parent Entity | |||
Day one profit or loss | |||
Closing balance of unrecognised day one profit (loss) | 4 | 3 | |
Parent Entity | At fair value | Valuation techniques (Non-market observable) (Level 3) | |||
Assets | |||
Balance at the beginning of the year | 303 | 289 | |
Impact on adoption of AASB 9 | 11 | ||
Restated at the beginning of the year | 300 | ||
Gains/(losses) on assets recognised in: Income statements | (4) | 19 | |
Acquisition and issues | 41 | 35 | |
Disposal and settlements | (54) | (54) | |
Foreign currency translation impacts | 3 | ||
Balance at the end of the year | 286 | 303 | |
Unrealised gains/(losses) recognised in the income statements for financial instruments held as at end of year | (1) | 19 | |
Liabilities | |||
Balance at the beginning of the year | 28 | 6 | |
Impact on adoption of AASB 9 | |||
Restated opening balance | 6 | ||
(Gains)/losses on liabilities recognised in: Income statements | (4) | 6 | |
Acquisition and issues | 7 | 4 | |
Disposal and settlements | (18) | (6) | |
Transfer into or out of non-market observables | 18 | ||
Balance at the end of the year | 13 | 28 | |
Unrealised gains/(losses) recognised in the income statements for financial instruments held as at end of year | (3) | (10) | |
Parent Entity | At fair value | Valuation techniques (Non-market observable) (Level 3) | Derivative financial instruments | |||
Liabilities | |||
Balance at the beginning of the year | 28 | 6 | |
Impact on adoption of AASB 9 | |||
Restated opening balance | 6 | ||
(Gains)/losses on liabilities recognised in: Income statements | (4) | 6 | |
Acquisition and issues | 7 | 4 | |
Disposal and settlements | (18) | (6) | |
Transfer into or out of non-market observables | 18 | ||
Balance at the end of the year | 13 | 28 | |
Unrealised gains/(losses) recognised in the income statements for financial instruments held as at end of year | (3) | (10) | |
Parent Entity | At fair value | Valuation techniques (Non-market observable) (Level 3) | Trading securities and financial assets measured at FVIS | |||
Assets | |||
Balance at the beginning of the year | 193 | 206 | |
Impact on adoption of AASB 9 | |||
Restated at the beginning of the year | 206 | ||
Gains/(losses) on assets recognised in: Income statements | (2) | 6 | |
Acquisition and issues | 26 | 17 | |
Disposal and settlements | (24) | (39) | |
Foreign currency translation impacts | 3 | ||
Balance at the end of the year | 193 | 193 | |
Unrealised gains/(losses) recognised in the income statements for financial instruments held as at end of year | (4) | 3 | |
Parent Entity | At fair value | Valuation techniques (Non-market observable) (Level 3) | Available-for-sale securities | |||
Assets | |||
Balance at the beginning of the year | 70 | ||
Impact on adoption of AASB 9 | (70) | ||
Restated at the beginning of the year | |||
Parent Entity | At fair value | Valuation techniques (Non-market observable) (Level 3) | Investment securities | |||
Assets | |||
Balance at the beginning of the year | 66 | ||
Impact on adoption of AASB 9 | 67 | ||
Restated at the beginning of the year | 67 | ||
Acquisition and issues | 3 | 2 | |
Disposal and settlements | (3) | ||
Balance at the end of the year | 69 | 66 | |
Parent Entity | At fair value | Valuation techniques (Non-market observable) (Level 3) | Other assets | |||
Assets | |||
Balance at the beginning of the year | 44 | 13 | |
Impact on adoption of AASB 9 | 14 | ||
Restated at the beginning of the year | $ 27 | ||
Gains/(losses) on assets recognised in: Income statements | (2) | 13 | |
Acquisition and issues | 12 | 16 | |
Disposal and settlements | (30) | (12) | |
Balance at the end of the year | 24 | 44 | |
Unrealised gains/(losses) recognised in the income statements for financial instruments held as at end of year | $ 3 | $ 16 |
Fair values of financial asse_5
Fair values of financial assets and financial liabilities - Not measured at fair value (Details) - Not measured at fair value - AUD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 |
Fair values of financial assets and financial liabilities | ||
Financial assets | $ 733,863 | $ 746,686 |
Financial assets, Fair Value | 735,629 | 748,306 |
Financial liabilities, Carrying Amount | 762,834 | 749,430 |
Financial liabilities, Fair Value | 764,483 | 751,562 |
Collateral received | ||
Fair values of financial assets and financial liabilities | ||
Financial liabilities, Carrying Amount | 2,250 | 3,287 |
Financial liabilities, Fair Value | 2,250 | 3,287 |
Deposits and other borrowings | ||
Fair values of financial assets and financial liabilities | ||
Financial liabilities, Carrying Amount | 555,367 | 524,834 |
Financial liabilities, Fair Value | 555,621 | 525,516 |
Other financial liabilities | ||
Fair values of financial assets and financial liabilities | ||
Financial liabilities, Carrying Amount | 36,276 | 23,845 |
Financial liabilities, Fair Value | 36,276 | 23,845 |
Debt issues | ||
Fair values of financial assets and financial liabilities | ||
Financial liabilities, Carrying Amount | 144,992 | 175,638 |
Financial liabilities, Fair Value | 146,402 | 176,838 |
Loan capital | ||
Fair values of financial assets and financial liabilities | ||
Financial liabilities, Carrying Amount | 23,949 | 21,826 |
Financial liabilities, Fair Value | 23,934 | 22,076 |
Cash and balances with central banks | ||
Fair values of financial assets and financial liabilities | ||
Financial assets | 30,129 | 20,059 |
Financial assets, Fair Value | 30,129 | 20,059 |
Collateral paid | ||
Fair values of financial assets and financial liabilities | ||
Financial assets | 4,778 | 5,930 |
Financial assets, Fair Value | 4,778 | 5,930 |
Investment securities | ||
Fair values of financial assets and financial liabilities | ||
Financial assets | 984 | 820 |
Financial assets, Fair Value | 984 | 820 |
Loans | ||
Fair values of financial assets and financial liabilities | ||
Financial assets | 692,498 | 714,510 |
Financial assets, Fair Value | 694,264 | 716,130 |
Other financial assets | ||
Fair values of financial assets and financial liabilities | ||
Financial assets | 5,474 | 5,367 |
Financial assets, Fair Value | 5,474 | 5,367 |
Quoted market prices (Level 1) | ||
Fair values of financial assets and financial liabilities | ||
Financial assets, Fair Value | 34,907 | 25,989 |
Financial liabilities, Fair Value | 2,250 | 3,287 |
Quoted market prices (Level 1) | Collateral received | ||
Fair values of financial assets and financial liabilities | ||
Financial liabilities, Fair Value | 2,250 | 3,287 |
Quoted market prices (Level 1) | Cash and balances with central banks | ||
Fair values of financial assets and financial liabilities | ||
Financial assets, Fair Value | 30,129 | 20,059 |
Quoted market prices (Level 1) | Collateral paid | ||
Fair values of financial assets and financial liabilities | ||
Financial assets, Fair Value | 4,778 | 5,930 |
Valuation techniques (Market observable) (Level 2) | ||
Fair values of financial assets and financial liabilities | ||
Financial assets, Fair Value | 5,898 | 5,733 |
Financial liabilities, Fair Value | 757,062 | 745,485 |
Valuation techniques (Market observable) (Level 2) | Deposits and other borrowings | ||
Fair values of financial assets and financial liabilities | ||
Financial liabilities, Fair Value | 552,192 | 522,726 |
Valuation techniques (Market observable) (Level 2) | Other financial liabilities | ||
Fair values of financial assets and financial liabilities | ||
Financial liabilities, Fair Value | 36,276 | 23,845 |
Valuation techniques (Market observable) (Level 2) | Debt issues | ||
Fair values of financial assets and financial liabilities | ||
Financial liabilities, Fair Value | 144,660 | 176,838 |
Valuation techniques (Market observable) (Level 2) | Loan capital | ||
Fair values of financial assets and financial liabilities | ||
Financial liabilities, Fair Value | 23,934 | 22,076 |
Valuation techniques (Market observable) (Level 2) | Investment securities | ||
Fair values of financial assets and financial liabilities | ||
Financial assets, Fair Value | 424 | 366 |
Valuation techniques (Market observable) (Level 2) | Other financial assets | ||
Fair values of financial assets and financial liabilities | ||
Financial assets, Fair Value | 5,474 | 5,367 |
Valuation techniques (Non-market observable) (Level 3) | ||
Fair values of financial assets and financial liabilities | ||
Financial assets, Fair Value | 694,824 | 716,584 |
Financial liabilities, Fair Value | 5,171 | 2,790 |
Valuation techniques (Non-market observable) (Level 3) | Deposits and other borrowings | ||
Fair values of financial assets and financial liabilities | ||
Financial liabilities, Fair Value | 3,429 | 2,790 |
Valuation techniques (Non-market observable) (Level 3) | Debt issues | ||
Fair values of financial assets and financial liabilities | ||
Financial liabilities, Fair Value | 1,742 | |
Valuation techniques (Non-market observable) (Level 3) | Investment securities | ||
Fair values of financial assets and financial liabilities | ||
Financial assets, Fair Value | 560 | 454 |
Valuation techniques (Non-market observable) (Level 3) | Loans | ||
Fair values of financial assets and financial liabilities | ||
Financial assets, Fair Value | 694,264 | 716,130 |
Parent Entity | ||
Fair values of financial assets and financial liabilities | ||
Financial assets | 811,227 | 793,682 |
Financial assets, Fair Value | 813,719 | 795,965 |
Financial liabilities, Carrying Amount | 860,644 | 811,962 |
Financial liabilities, Fair Value | 861,967 | 813,889 |
Parent Entity | Collateral received | ||
Fair values of financial assets and financial liabilities | ||
Financial liabilities, Carrying Amount | 1,862 | 2,849 |
Financial liabilities, Fair Value | 1,862 | 2,849 |
Parent Entity | Deposits and other borrowings | ||
Fair values of financial assets and financial liabilities | ||
Financial liabilities, Carrying Amount | 488,622 | 464,075 |
Financial liabilities, Fair Value | 488,744 | 464,691 |
Parent Entity | Other financial liabilities | ||
Fair values of financial assets and financial liabilities | ||
Financial liabilities, Carrying Amount | 35,507 | 23,146 |
Financial liabilities, Fair Value | 35,507 | 23,146 |
Parent Entity | Debt issues | ||
Fair values of financial assets and financial liabilities | ||
Financial liabilities, Carrying Amount | 124,680 | 153,050 |
Financial liabilities, Fair Value | 125,896 | 154,111 |
Parent Entity | Due to subsidiaries | ||
Fair values of financial assets and financial liabilities | ||
Financial liabilities, Carrying Amount | 186,024 | 147,016 |
Financial liabilities, Fair Value | 186,024 | 147,016 |
Parent Entity | Loan capital | ||
Fair values of financial assets and financial liabilities | ||
Financial liabilities, Carrying Amount | 23,949 | 21,826 |
Financial liabilities, Fair Value | 23,934 | 22,076 |
Parent Entity | Cash and balances with central banks | ||
Fair values of financial assets and financial liabilities | ||
Financial assets | 25,436 | 17,692 |
Financial assets, Fair Value | 25,436 | 17,692 |
Parent Entity | Collateral paid | ||
Fair values of financial assets and financial liabilities | ||
Financial assets | 4,641 | 5,773 |
Financial assets, Fair Value | 4,641 | 5,773 |
Parent Entity | Investment securities | ||
Fair values of financial assets and financial liabilities | ||
Financial assets | 3 | 27 |
Financial assets, Fair Value | 3 | 27 |
Parent Entity | Loans | ||
Fair values of financial assets and financial liabilities | ||
Financial assets | 607,263 | 631,676 |
Financial assets, Fair Value | 608,602 | 633,003 |
Parent Entity | Due from subsidiaries | ||
Fair values of financial assets and financial liabilities | ||
Financial assets | 169,139 | 133,899 |
Financial assets, Fair Value | 170,292 | 134,855 |
Long-term debt instruments with equity characteristics included in investments in subsidiaries | 11,177 | 8,165 |
Parent Entity | Other financial assets | ||
Fair values of financial assets and financial liabilities | ||
Financial assets | 4,745 | 4,615 |
Financial assets, Fair Value | 4,745 | 4,615 |
Parent Entity | Quoted market prices (Level 1) | ||
Fair values of financial assets and financial liabilities | ||
Financial assets, Fair Value | 30,077 | 23,465 |
Financial liabilities, Fair Value | 1,862 | 2,849 |
Parent Entity | Quoted market prices (Level 1) | Collateral received | ||
Fair values of financial assets and financial liabilities | ||
Financial liabilities, Fair Value | 1,862 | 2,849 |
Parent Entity | Quoted market prices (Level 1) | Cash and balances with central banks | ||
Fair values of financial assets and financial liabilities | ||
Financial assets, Fair Value | 25,436 | 17,692 |
Parent Entity | Quoted market prices (Level 1) | Collateral paid | ||
Fair values of financial assets and financial liabilities | ||
Financial assets, Fair Value | 4,641 | 5,773 |
Parent Entity | Valuation techniques (Market observable) (Level 2) | ||
Fair values of financial assets and financial liabilities | ||
Financial assets, Fair Value | 131,371 | 94,299 |
Financial liabilities, Fair Value | 679,594 | 669,326 |
Parent Entity | Valuation techniques (Market observable) (Level 2) | Deposits and other borrowings | ||
Fair values of financial assets and financial liabilities | ||
Financial liabilities, Fair Value | 487,452 | 463,440 |
Parent Entity | Valuation techniques (Market observable) (Level 2) | Other financial liabilities | ||
Fair values of financial assets and financial liabilities | ||
Financial liabilities, Fair Value | 35,507 | 23,146 |
Parent Entity | Valuation techniques (Market observable) (Level 2) | Debt issues | ||
Fair values of financial assets and financial liabilities | ||
Financial liabilities, Fair Value | 125,896 | 154,111 |
Parent Entity | Valuation techniques (Market observable) (Level 2) | Due to subsidiaries | ||
Fair values of financial assets and financial liabilities | ||
Financial liabilities, Fair Value | 6,805 | 6,553 |
Parent Entity | Valuation techniques (Market observable) (Level 2) | Loan capital | ||
Fair values of financial assets and financial liabilities | ||
Financial liabilities, Fair Value | 23,934 | 22,076 |
Parent Entity | Valuation techniques (Market observable) (Level 2) | Investment securities | ||
Fair values of financial assets and financial liabilities | ||
Financial assets, Fair Value | 3 | 4 |
Parent Entity | Valuation techniques (Market observable) (Level 2) | Due from subsidiaries | ||
Fair values of financial assets and financial liabilities | ||
Financial assets, Fair Value | 126,623 | 89,680 |
Parent Entity | Valuation techniques (Market observable) (Level 2) | Other financial assets | ||
Fair values of financial assets and financial liabilities | ||
Financial assets, Fair Value | 4,745 | 4,615 |
Parent Entity | Valuation techniques (Non-market observable) (Level 3) | ||
Fair values of financial assets and financial liabilities | ||
Financial assets, Fair Value | 652,271 | 678,201 |
Financial liabilities, Fair Value | 180,511 | 141,714 |
Parent Entity | Valuation techniques (Non-market observable) (Level 3) | Deposits and other borrowings | ||
Fair values of financial assets and financial liabilities | ||
Financial liabilities, Fair Value | 1,292 | 1,251 |
Parent Entity | Valuation techniques (Non-market observable) (Level 3) | Due to subsidiaries | ||
Fair values of financial assets and financial liabilities | ||
Financial liabilities, Fair Value | 179,219 | 140,463 |
Parent Entity | Valuation techniques (Non-market observable) (Level 3) | Investment securities | ||
Fair values of financial assets and financial liabilities | ||
Financial assets, Fair Value | 23 | |
Parent Entity | Valuation techniques (Non-market observable) (Level 3) | Loans | ||
Fair values of financial assets and financial liabilities | ||
Financial assets, Fair Value | 608,602 | 633,003 |
Parent Entity | Valuation techniques (Non-market observable) (Level 3) | Due from subsidiaries | ||
Fair values of financial assets and financial liabilities | ||
Financial assets, Fair Value | $ 43,669 | $ 45,175 |
Offsetting financial assets a_3
Offsetting financial assets and financial liabilities (Details) - AUD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 |
Assets, Effects of Offsetting on Balance Sheet | ||
Gross Amounts | $ 114,941 | $ 89,803 |
Amounts Offset | (73,266) | (56,294) |
Net Amounts Reported on the Balance Sheet | 41,675 | 33,509 |
Amounts Subject to Enforceable Netting Arrangements But Not Offset | ||
Other Recognised Financial Instruments | (14,719) | (18,609) |
Cash Collateral | (2,252) | (3,289) |
Financial Instrument Collateral | (20,428) | (6,943) |
Net Amount | 4,276 | 4,668 |
Liabilities, Effects of Offsetting on Balance Sheet | ||
Gross Amounts | 143,422 | 104,554 |
Amounts Offset | (73,266) | (56,294) |
Net Amounts Reported on the Balance Sheet | 70,156 | 48,260 |
Amounts Subject to Enforceable Netting Arrangements But Not Offset | ||
Other Recognised Financial Instruments | (14,719) | (18,609) |
Cash Collateral | (4,524) | (5,625) |
Financial Instrument Collateral | (29,358) | (12,533) |
Net Amount | 21,555 | 11,493 |
Collateral received | ||
Amounts Subject to Enforceable Netting Arrangements But Not Offset | ||
Cash collateral, subject to enforceable netting arrangements with derivative financial assets and reverse repurchase agreements | 2,250 | 3,287 |
Collateral paid | ||
Amounts Subject to Enforceable Netting Arrangements But Not Offset | ||
Cash collateral, subject to enforceable netting arrangements with derivative financial liabilities and reverse repurchase agreements | 4,524 | 5,625 |
Stock borrowing arrangements | 16 | 18 |
Futures margin | 238 | 287 |
Collateral received | ||
Liabilities, Effects of Offsetting on Balance Sheet | ||
Gross Amounts | 5,516 | 3,024 |
Amounts Offset | (5,501) | (2,972) |
Net Amounts Reported on the Balance Sheet | 15 | 52 |
Amounts Subject to Enforceable Netting Arrangements But Not Offset | ||
Net Amount | 15 | 52 |
Derivative financial instruments | ||
Liabilities, Effects of Offsetting on Balance Sheet | ||
Gross Amounts | 66,144 | 62,046 |
Amounts Offset | (44,499) | (35,192) |
Net Amounts Reported on the Balance Sheet | 21,645 | 26,854 |
Amounts Subject to Enforceable Netting Arrangements But Not Offset | ||
Other Recognised Financial Instruments | (14,719) | (18,609) |
Cash Collateral | (4,426) | (5,622) |
Financial Instrument Collateral | (1,693) | (1,932) |
Net Amount | 807 | 691 |
Financial liabilities not subject to offsetting | 1,409 | 2,242 |
Repurchase agreements | ||
Liabilities, Effects of Offsetting on Balance Sheet | ||
Gross Amounts | 27,763 | 10,604 |
Net Amounts Reported on the Balance Sheet | 27,763 | 10,604 |
Amounts Subject to Enforceable Netting Arrangements But Not Offset | ||
Cash Collateral | (98) | (3) |
Financial Instrument Collateral | (27,665) | (10,601) |
Deposits and other borrowings | ||
Liabilities, Effects of Offsetting on Balance Sheet | ||
Gross Amounts | 43,999 | 28,880 |
Amounts Offset | (23,266) | (18,130) |
Net Amounts Reported on the Balance Sheet | 20,733 | 10,750 |
Amounts Subject to Enforceable Netting Arrangements But Not Offset | ||
Net Amount | 20,733 | 10,750 |
Collateral paid | ||
Assets, Effects of Offsetting on Balance Sheet | ||
Gross Amounts | 10,068 | 6,643 |
Amounts Offset | (10,032) | (6,559) |
Net Amounts Reported on the Balance Sheet | 36 | 84 |
Amounts Subject to Enforceable Netting Arrangements But Not Offset | ||
Financial Instrument Collateral | (16) | (17) |
Net Amount | 20 | 67 |
Derivative financial instruments | ||
Assets, Effects of Offsetting on Balance Sheet | ||
Gross Amounts | 61,171 | 58,125 |
Amounts Offset | (39,968) | (31,605) |
Net Amounts Reported on the Balance Sheet | 21,203 | 26,520 |
Amounts Subject to Enforceable Netting Arrangements But Not Offset | ||
Other Recognised Financial Instruments | (14,719) | (18,609) |
Cash Collateral | (2,247) | (3,280) |
Financial Instrument Collateral | (16) | (102) |
Net Amount | 4,221 | 4,529 |
Amounts Subject to Enforceable Netting Arrangements But Not Offset | ||
Financial assets not subject to offsetting | 2,164 | 3,339 |
Reverse repurchase agreements | ||
Assets, Effects of Offsetting on Balance Sheet | ||
Gross Amounts | 20,401 | 6,833 |
Net Amounts Reported on the Balance Sheet | 20,401 | 6,833 |
Amounts Subject to Enforceable Netting Arrangements But Not Offset | ||
Cash Collateral | (5) | (9) |
Financial Instrument Collateral | (20,396) | (6,824) |
Loans | ||
Assets, Effects of Offsetting on Balance Sheet | ||
Gross Amounts | 23,301 | 18,202 |
Amounts Offset | (23,266) | (18,130) |
Net Amounts Reported on the Balance Sheet | 35 | 72 |
Amounts Subject to Enforceable Netting Arrangements But Not Offset | ||
Net Amount | 35 | 72 |
Parent Entity | ||
Assets, Effects of Offsetting on Balance Sheet | ||
Gross Amounts | 114,386 | 89,126 |
Amounts Offset | (73,266) | (56,294) |
Net Amounts Reported on the Balance Sheet | 41,120 | 32,832 |
Amounts Subject to Enforceable Netting Arrangements But Not Offset | ||
Other Recognised Financial Instruments | (14,586) | (18,526) |
Cash Collateral | (1,864) | (2,851) |
Financial Instrument Collateral | (20,428) | (6,841) |
Net Amount | 4,242 | 4,614 |
Liabilities, Effects of Offsetting on Balance Sheet | ||
Gross Amounts | 143,152 | 104,315 |
Amounts Offset | (73,266) | (56,294) |
Net Amounts Reported on the Balance Sheet | 69,886 | 48,021 |
Amounts Subject to Enforceable Netting Arrangements But Not Offset | ||
Other Recognised Financial Instruments | (14,586) | (18,526) |
Cash Collateral | (4,387) | (5,469) |
Financial Instrument Collateral | (29,358) | (12,533) |
Net Amount | 21,555 | 11,493 |
Parent Entity | Collateral received | ||
Amounts Subject to Enforceable Netting Arrangements But Not Offset | ||
Cash collateral, subject to enforceable netting arrangements with derivative financial assets and reverse repurchase agreements | 1,862 | 2,849 |
Parent Entity | Collateral paid | ||
Amounts Subject to Enforceable Netting Arrangements But Not Offset | ||
Cash collateral, subject to enforceable netting arrangements with derivative financial liabilities and reverse repurchase agreements | 4,387 | 5,469 |
Stock borrowing arrangements | 16 | 18 |
Futures margin | 238 | 286 |
Parent Entity | Collateral received | ||
Liabilities, Effects of Offsetting on Balance Sheet | ||
Gross Amounts | 5,516 | 3,024 |
Amounts Offset | (5,501) | (2,972) |
Net Amounts Reported on the Balance Sheet | 15 | 52 |
Amounts Subject to Enforceable Netting Arrangements But Not Offset | ||
Net Amount | 15 | 52 |
Parent Entity | Derivative financial instruments | ||
Liabilities, Effects of Offsetting on Balance Sheet | ||
Gross Amounts | 65,874 | 61,807 |
Amounts Offset | (44,499) | (35,192) |
Net Amounts Reported on the Balance Sheet | 21,375 | 26,615 |
Amounts Subject to Enforceable Netting Arrangements But Not Offset | ||
Other Recognised Financial Instruments | (14,586) | (18,526) |
Cash Collateral | (4,289) | (5,466) |
Financial Instrument Collateral | (1,693) | (1,932) |
Net Amount | 807 | 691 |
Financial liabilities not subject to offsetting | 1,404 | 2,252 |
Parent Entity | Repurchase agreements | ||
Liabilities, Effects of Offsetting on Balance Sheet | ||
Gross Amounts | 27,763 | 10,604 |
Net Amounts Reported on the Balance Sheet | 27,763 | 10,604 |
Amounts Subject to Enforceable Netting Arrangements But Not Offset | ||
Cash Collateral | (98) | (3) |
Financial Instrument Collateral | (27,665) | (10,601) |
Parent Entity | Deposits and other borrowings | ||
Liabilities, Effects of Offsetting on Balance Sheet | ||
Gross Amounts | 43,999 | 28,880 |
Amounts Offset | (23,266) | (18,130) |
Net Amounts Reported on the Balance Sheet | 20,733 | 10,750 |
Amounts Subject to Enforceable Netting Arrangements But Not Offset | ||
Net Amount | 20,733 | 10,750 |
Parent Entity | Collateral paid | ||
Assets, Effects of Offsetting on Balance Sheet | ||
Gross Amounts | 10,068 | 6,643 |
Amounts Offset | (10,032) | (6,559) |
Net Amounts Reported on the Balance Sheet | 36 | 84 |
Amounts Subject to Enforceable Netting Arrangements But Not Offset | ||
Financial Instrument Collateral | (16) | (17) |
Net Amount | 20 | 67 |
Parent Entity | Derivative financial instruments | ||
Assets, Effects of Offsetting on Balance Sheet | ||
Gross Amounts | 60,616 | 57,550 |
Amounts Offset | (39,968) | (31,605) |
Net Amounts Reported on the Balance Sheet | 20,648 | 25,945 |
Amounts Subject to Enforceable Netting Arrangements But Not Offset | ||
Other Recognised Financial Instruments | (14,586) | (18,526) |
Cash Collateral | (1,859) | (2,842) |
Financial Instrument Collateral | (16) | (102) |
Net Amount | 4,187 | 4,475 |
Amounts Subject to Enforceable Netting Arrangements But Not Offset | ||
Financial assets not subject to offsetting | 2,146 | 3,338 |
Parent Entity | Reverse repurchase agreements | ||
Assets, Effects of Offsetting on Balance Sheet | ||
Gross Amounts | 20,401 | 6,731 |
Net Amounts Reported on the Balance Sheet | 20,401 | 6,731 |
Amounts Subject to Enforceable Netting Arrangements But Not Offset | ||
Cash Collateral | (5) | (9) |
Financial Instrument Collateral | (20,396) | (6,722) |
Parent Entity | Loans | ||
Assets, Effects of Offsetting on Balance Sheet | ||
Gross Amounts | 23,301 | 18,202 |
Amounts Offset | (23,266) | (18,130) |
Net Amounts Reported on the Balance Sheet | 35 | 72 |
Amounts Subject to Enforceable Netting Arrangements But Not Offset | ||
Net Amount | $ 35 | $ 72 |
Securitisation, covered bonds_3
Securitisation, covered bonds and other transferred assets (Details) $ in Millions | Sep. 30, 2020AUD ($)item | Sep. 30, 2019AUD ($)item |
Securitisation, covered bonds and other transferred assets | ||
Carrying amount of transferred assets | $ 88,410 | $ 66,651 |
Carrying amount of associated liabilities | 71,814 | 56,831 |
Fair value of transferred assets | 8,072 | 8,268 |
Fair value of associated liabilities | 7,994 | 8,177 |
Net fair value position | 78 | 91 |
Securitisation | ||
Securitisation, covered bonds and other transferred assets | ||
Undrawn funding and liquidity facilities | 492 | 537 |
Carrying amount of transferred assets | 8,029 | 8,221 |
Carrying amount of associated liabilities | 8,000 | 8,190 |
Fair value of transferred assets | 8,072 | 8,268 |
Fair value of associated liabilities | 7,994 | 8,177 |
Net fair value position | $ 78 | $ 91 |
Covered bonds | ||
Securitisation, covered bonds and other transferred assets | ||
Number of covered bond programs | item | 2 | 2 |
Carrying amount of transferred assets | $ 43,654 | $ 44,676 |
Carrying amount of associated liabilities | 36,051 | 38,037 |
Repurchase agreements | ||
Securitisation, covered bonds and other transferred assets | ||
Carrying amount of transferred assets | 36,727 | 13,754 |
Carrying amount of associated liabilities | 27,763 | 10,604 |
Parent Entity | ||
Securitisation, covered bonds and other transferred assets | ||
Carrying amount of transferred assets | 215,076 | 153,140 |
Carrying amount of associated liabilities | 200,689 | 144,910 |
Fair value of transferred assets | 141,991 | 101,871 |
Fair value of associated liabilities | 138,870 | 100,268 |
Net fair value position | 3,121 | 1,603 |
Parent Entity | Securitisation | ||
Securitisation, covered bonds and other transferred assets | ||
Carrying amount of transferred assets | 141,660 | 101,689 |
Carrying amount of associated liabilities | 141,000 | 101,146 |
Fair value of transferred assets | 141,991 | 101,871 |
Fair value of associated liabilities | 138,870 | 100,268 |
Net fair value position | 3,121 | 1,603 |
Parent Entity | Covered bonds | ||
Securitisation, covered bonds and other transferred assets | ||
Carrying amount of transferred assets | 36,689 | 37,697 |
Carrying amount of associated liabilities | 31,926 | 33,160 |
Parent Entity | Repurchase agreements | ||
Securitisation, covered bonds and other transferred assets | ||
Carrying amount of transferred assets | 36,727 | 13,754 |
Carrying amount of associated liabilities | $ 27,763 | $ 10,604 |
Intangible assets - Useful life
Intangible assets - Useful life (Details) - Computer software | 12 Months Ended |
Sep. 30, 2020 | |
Minimum | |
Intangible assets | |
Useful life (in years) | 3 years |
Maximum | |
Intangible assets | |
Useful life (in years) | 10 years |
Intangible assets - Changes (De
Intangible assets - Changes (Details) - AUD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Goodwill | ||
Goodwill, Balance as at beginning of year | $ 8,895 | $ 8,890 |
Impairment | (498) | |
Other adjustments | 5 | |
Goodwill, Balance as at end of year | 8,397 | 8,895 |
Computer software | ||
Intangible assets other than goodwill | ||
Intangible assets, Balance as at beginning of year | 2,365 | 2,177 |
Additions | 1,035 | 906 |
Impairment | (171) | (25) |
Amortisation | (799) | (694) |
Other adjustments | 1 | |
Intangible assets, Balance as at end of year | 2,430 | 2,365 |
Brand Names | ||
Intangible assets other than goodwill | ||
Intangible assets, Balance as at beginning of year | 670 | 670 |
Intangible assets, Balance as at end of year | 670 | 670 |
Other intangible assets | ||
Intangible assets other than goodwill | ||
Intangible assets, Balance as at beginning of year | 23 | 26 |
Impairment | (20) | |
Amortisation | (3) | (3) |
Intangible assets, Balance as at end of year | 23 | |
Parent Entity | ||
Goodwill | ||
Goodwill, Balance as at beginning of year | 6,844 | 6,844 |
Impairment | (116) | |
Goodwill, Balance as at end of year | 6,728 | 6,844 |
Parent Entity | Computer software | ||
Intangible assets other than goodwill | ||
Intangible assets, Balance as at beginning of year | 2,207 | 2,014 |
Additions | 955 | 846 |
Impairment | (165) | (25) |
Amortisation | (731) | (628) |
Intangible assets, Balance as at end of year | 2,266 | 2,207 |
Parent Entity | Brand Names | ||
Intangible assets other than goodwill | ||
Intangible assets, Balance as at beginning of year | 636 | 636 |
Intangible assets, Balance as at end of year | $ 636 | $ 636 |
Intangible assets - Balances (D
Intangible assets - Balances (Details) - AUD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 |
Total intangible assets | |||
Goodwill | $ 8,397 | $ 8,895 | $ 8,890 |
Total intangible assets, including goodwill | 11,497 | 11,953 | |
Computer software | |||
Total intangible assets | |||
Intangible assets | 2,430 | 2,365 | 2,177 |
Computer software | Gross amount | |||
Total intangible assets | |||
Intangible assets | 7,370 | 6,395 | |
Computer software | Accumulated amortisation and impairment | |||
Total intangible assets | |||
Intangible assets | (4,940) | (4,030) | |
Brand Names | |||
Total intangible assets | |||
Intangible assets | 670 | 670 | 670 |
Other intangible assets | |||
Total intangible assets | |||
Intangible assets | 23 | 26 | |
Other intangible assets | Gross amount | |||
Total intangible assets | |||
Intangible assets | 141 | 144 | |
Other intangible assets | Accumulated amortisation and impairment | |||
Total intangible assets | |||
Intangible assets | (141) | (121) | |
Parent Entity | |||
Total intangible assets | |||
Goodwill | 6,728 | 6,844 | 6,844 |
Total intangible assets, including goodwill | 9,630 | 9,687 | |
Parent Entity | Computer software | |||
Total intangible assets | |||
Intangible assets | 2,266 | 2,207 | 2,014 |
Parent Entity | Computer software | Gross amount | |||
Total intangible assets | |||
Intangible assets | 6,372 | 5,464 | |
Parent Entity | Computer software | Accumulated amortisation and impairment | |||
Total intangible assets | |||
Intangible assets | (4,106) | (3,257) | |
Parent Entity | Brand Names | |||
Total intangible assets | |||
Intangible assets | $ 636 | $ 636 | $ 636 |
Intangible assets - Goodwill al
Intangible assets - Goodwill allocation (Details) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020AUD ($)item | Sep. 30, 2019AUD ($) | Sep. 30, 2018AUD ($) | |
Goodwill allocation | |||
Goodwill | $ 8,397 | $ 8,895 | $ 8,890 |
Impairment of goodwill | 498 | ||
Sensitivity analysis | |||
Headroom | $ 578 | ||
Increase in discount rate (bps) | item | 56 | ||
Decrease in cash flows (%) | (6.20%) | ||
Decrease in terminal growth rate (bps) | item | (76) | ||
Consumer | |||
Goodwill allocation | |||
Goodwill | $ 3,359 | 4,060 | |
Business | |||
Goodwill allocation | |||
Goodwill | 3,205 | 3,860 | |
Westpac Institutional Bank | |||
Goodwill allocation | |||
Goodwill | $ 487 | $ 487 | |
Westpac Institutional Bank | Discount rate | |||
Significant assumptions used in recoverable amount for goodwill | |||
Group's equity rate | 11.00% | 11.00% | |
Group's adjusted pre-tax equity rate | 14.40% | 15.70% | |
Westpac Institutional Bank | Cash flows | |||
Significant assumptions used in recoverable amount for goodwill | |||
Forecast period | 5 years | 2 years | |
Terminal growth rate | 2.00% | 0.00% | |
New Zealand | |||
Goodwill allocation | |||
Goodwill | $ 488 | $ 488 | |
New Zealand | Discount rate | |||
Significant assumptions used in recoverable amount for goodwill | |||
Group's equity rate | 11.00% | 11.00% | |
Group's adjusted pre-tax equity rate | 14.50% | 15.30% | |
New Zealand | Cash flows | |||
Significant assumptions used in recoverable amount for goodwill | |||
Forecast period | 3 years | 2 years | |
Terminal growth rate | 2.00% | 0.00% | |
Specialist Businesses | |||
Goodwill allocation | |||
Goodwill | $ 858 | ||
Impairment of goodwill | 498 | ||
Life Insurance | |||
Goodwill allocation | |||
Impairment of goodwill | 374 | ||
Auto and Vendor Finance | |||
Goodwill allocation | |||
Goodwill | 0 | ||
Impairment of goodwill | $ 124 | ||
All other significant CGUs | Discount rate | |||
Significant assumptions used in recoverable amount for goodwill | |||
Group's equity rate | 11.00% | 11.00% | |
Group's adjusted pre-tax equity rate | 15.70% | ||
All other significant CGUs | Discount rate | Minimum | |||
Significant assumptions used in recoverable amount for goodwill | |||
Group's adjusted pre-tax equity rate | 15.00% | ||
All other significant CGUs | Discount rate | Maximum | |||
Significant assumptions used in recoverable amount for goodwill | |||
Group's adjusted pre-tax equity rate | 15.20% | ||
All other significant CGUs | Cash flows | |||
Significant assumptions used in recoverable amount for goodwill | |||
Forecast period | 3 years | 2 years | |
Terminal growth rate | 2.00% | 0.00% | |
Brand Names | |||
Goodwill allocation | |||
Intangible assets | $ 670 | $ 670 | 670 |
Brand Names | Consumer | |||
Goodwill allocation | |||
Intangible assets | 382 | 382 | |
Brand Names | Business | |||
Goodwill allocation | |||
Intangible assets | 286 | 288 | |
Brand Names | Specialist Businesses | |||
Goodwill allocation | |||
Intangible assets | 2 | ||
Parent Entity | |||
Goodwill allocation | |||
Goodwill | 6,728 | 6,844 | 6,844 |
Impairment of goodwill | 116 | ||
Sensitivity analysis | |||
Headroom | $ 578 | ||
Increase in discount rate (bps) | item | 56 | ||
Decrease in cash flows (%) | (6.20%) | ||
Decrease in terminal growth rate (bps) | item | (76) | ||
Parent Entity | Consumer | |||
Goodwill allocation | |||
Goodwill | $ 3,144 | 3,144 | |
Parent Entity | Business | |||
Goodwill allocation | |||
Goodwill | 3,022 | 3,213 | |
Parent Entity | Westpac Institutional Bank | |||
Goodwill allocation | |||
Goodwill | 487 | 487 | |
Parent Entity | Specialist Businesses | |||
Goodwill allocation | |||
Goodwill | 75 | ||
Impairment of goodwill | 116 | ||
Parent Entity | Life Insurance | |||
Goodwill allocation | |||
Impairment of goodwill | 0 | ||
Parent Entity | Auto and Vendor Finance | |||
Goodwill allocation | |||
Impairment of goodwill | 116 | ||
Parent Entity | Brand Names | |||
Goodwill allocation | |||
Intangible assets | 636 | $ 636 | $ 636 |
Parent Entity | Brand Names | Consumer | |||
Goodwill allocation | |||
Intangible assets | 350 | ||
Parent Entity | Brand Names | Business | |||
Goodwill allocation | |||
Intangible assets | $ 286 |
Lessee disclosures - ROU assets
Lessee disclosures - ROU assets (Details) - AUD ($) | 12 Months Ended | |
Sep. 30, 2020 | Oct. 01, 2019 | |
Lessee disclosures | ||
Maximum amount for low value leases | $ 10,000 | |
ROU assets | ||
Beginning balance | 0 | |
Impact on adoption of AASB 16 | $ 3,178,000,000 | |
Restated opening balance | 3,178,000,000 | |
Additions | 370,000,000 | |
Depreciation | (630,000,000) | |
Ending balance | 2,918,000,000 | |
Property | ||
ROU assets | ||
Beginning balance | 0 | |
Impact on adoption of AASB 16 | 2,686,000,000 | |
Restated opening balance | 2,686,000,000 | |
Additions | 354,000,000 | |
Depreciation | (506,000,000) | |
Ending balance | 2,534,000,000 | |
Other | ||
ROU assets | ||
Beginning balance | 0 | |
Impact on adoption of AASB 16 | 492,000,000 | |
Restated opening balance | 492,000,000 | |
Additions | 16,000,000 | |
Depreciation | (124,000,000) | |
Ending balance | 384,000,000 | |
Parent Entity | ||
ROU assets | ||
Beginning balance | 0 | |
Impact on adoption of AASB 16 | 2,888,000,000 | |
Restated opening balance | 2,888,000,000 | |
Additions | 335,000,000 | |
Depreciation | (567,000,000) | |
Other | (4,000,000) | |
Ending balance | 2,652,000,000 | |
Parent Entity | Property | ||
ROU assets | ||
Beginning balance | 0 | |
Impact on adoption of AASB 16 | 2,432,000,000 | |
Restated opening balance | 2,432,000,000 | |
Additions | 319,000,000 | |
Depreciation | (455,000,000) | |
Other | (5,000,000) | |
Ending balance | 2,291,000,000 | |
Parent Entity | Other | ||
ROU assets | ||
Beginning balance | 0 | |
Impact on adoption of AASB 16 | 456,000,000 | |
Restated opening balance | $ 456,000,000 | |
Additions | 16,000,000 | |
Depreciation | (112,000,000) | |
Other | 1,000,000 | |
Ending balance | $ 361,000,000 |
Lessee disclosures - Lease liab
Lessee disclosures - Lease liabilities (Details) - AUD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Lessee disclosures | ||
Lease liabilities | $ 2,925 | |
Undiscounted lease liabilities, AASB 16 | 3,206 | |
Undiscounted lease liabilities, AASB 117 | $ 3,745 | |
Cash outflow for leases | 607 | |
Within 1 Year | ||
Lessee disclosures | ||
Undiscounted lease liabilities, AASB 16 | 568 | |
Undiscounted lease liabilities, AASB 117 | 608 | |
Over 1 Year to 5 Years | ||
Lessee disclosures | ||
Undiscounted lease liabilities, AASB 16 | 1,537 | |
Undiscounted lease liabilities, AASB 117 | 1,716 | |
Over 5 Years | ||
Lessee disclosures | ||
Undiscounted lease liabilities, AASB 16 | 1,101 | |
Undiscounted lease liabilities, AASB 117 | 1,421 | |
Property | ||
Lessee disclosures | ||
Lease liabilities | 2,538 | |
Other | ||
Lessee disclosures | ||
Lease liabilities | 387 | |
Parent Entity | ||
Lessee disclosures | ||
Lease liabilities | 2,672 | |
Undiscounted lease liabilities, AASB 16 | 2,927 | |
Undiscounted lease liabilities, AASB 117 | 3,443 | |
Cash outflow for leases | 555 | |
Parent Entity | Within 1 Year | ||
Lessee disclosures | ||
Undiscounted lease liabilities, AASB 16 | 515 | |
Undiscounted lease liabilities, AASB 117 | 555 | |
Parent Entity | Over 1 Year to 5 Years | ||
Lessee disclosures | ||
Undiscounted lease liabilities, AASB 16 | 1,415 | |
Undiscounted lease liabilities, AASB 117 | 1,583 | |
Parent Entity | Over 5 Years | ||
Lessee disclosures | ||
Undiscounted lease liabilities, AASB 16 | 997 | |
Undiscounted lease liabilities, AASB 117 | $ 1,305 | |
Parent Entity | Property | ||
Lessee disclosures | ||
Lease liabilities | 2,309 | |
Parent Entity | Other | ||
Lessee disclosures | ||
Lease liabilities | $ 363 |
Provisions, contingent liabil_3
Provisions, contingent liabilities, contingent assets and credit commitments - Provisions (Details) $ in Millions | 12 Months Ended |
Sep. 30, 2020AUD ($) | |
Reconciliation of changes in other provisions | |
Balance at beginning of the year | $ 3,169 |
Additions | 3,936 |
Utilisation | (1,569) |
Reversal of unutilised provisions | (246) |
Other | (3) |
Balance at end of the year | 5,287 |
Long service leave | |
Reconciliation of changes in other provisions | |
Balance at beginning of the year | 456 |
Additions | 95 |
Utilisation | (40) |
Balance at end of the year | 511 |
Annual leave and other employee benefits | |
Reconciliation of changes in other provisions | |
Balance at beginning of the year | 614 |
Additions | 795 |
Utilisation | (794) |
Reversal of unutilised provisions | (19) |
Balance at end of the year | 596 |
Litigation and non-lending losses | |
Reconciliation of changes in other provisions | |
Balance at beginning of the year | 38 |
Additions | 1,391 |
Utilisation | (46) |
Reversal of unutilised provisions | (9) |
Other | (3) |
Balance at end of the year | 1,371 |
Provision for impairment on credit commitments | |
Reconciliation of changes in other provisions | |
Balance at beginning of the year | 305 |
Additions | 225 |
Balance at end of the year | 530 |
Lease restoration obligations | |
Reconciliation of changes in other provisions | |
Balance at beginning of the year | 24 |
Additions | 197 |
Utilisation | (12) |
Reversal of unutilised provisions | (1) |
Balance at end of the year | 208 |
Restructuring provisions | |
Reconciliation of changes in other provisions | |
Balance at beginning of the year | 160 |
Additions | 126 |
Utilisation | (110) |
Balance at end of the year | 176 |
Compliance, regulation and remediation provisions | |
Reconciliation of changes in other provisions | |
Balance at beginning of the year | 1,572 |
Additions | 1,107 |
Utilisation | (567) |
Reversal of unutilised provisions | (217) |
Balance at end of the year | 1,895 |
Parent Entity | |
Reconciliation of changes in other provisions | |
Balance at beginning of the year | 2,980 |
Additions | 3,713 |
Utilisation | (1,476) |
Reversal of unutilised provisions | (233) |
Other | (1) |
Balance at end of the year | 4,983 |
Parent Entity | Long service leave | |
Reconciliation of changes in other provisions | |
Balance at beginning of the year | 428 |
Additions | 92 |
Utilisation | (38) |
Balance at end of the year | 482 |
Parent Entity | Annual leave and other employee benefits | |
Reconciliation of changes in other provisions | |
Balance at beginning of the year | 557 |
Additions | 749 |
Utilisation | (747) |
Reversal of unutilised provisions | (19) |
Balance at end of the year | 540 |
Parent Entity | Litigation and non-lending losses | |
Reconciliation of changes in other provisions | |
Balance at beginning of the year | 23 |
Additions | 1,358 |
Utilisation | (34) |
Reversal of unutilised provisions | (3) |
Other | (1) |
Balance at end of the year | 1,343 |
Parent Entity | Provision for impairment on credit commitments | |
Reconciliation of changes in other provisions | |
Balance at beginning of the year | 275 |
Additions | 204 |
Balance at end of the year | 479 |
Parent Entity | Lease restoration obligations | |
Reconciliation of changes in other provisions | |
Balance at beginning of the year | 24 |
Additions | 166 |
Utilisation | (10) |
Reversal of unutilised provisions | (1) |
Balance at end of the year | 179 |
Parent Entity | Restructuring provisions | |
Reconciliation of changes in other provisions | |
Balance at beginning of the year | 160 |
Additions | 92 |
Utilisation | (110) |
Balance at end of the year | 142 |
Parent Entity | Compliance, regulation and remediation provisions | |
Reconciliation of changes in other provisions | |
Balance at beginning of the year | 1,513 |
Additions | 1,052 |
Utilisation | (537) |
Reversal of unutilised provisions | (210) |
Balance at end of the year | $ 1,818 |
Provisions, contingent liabil_4
Provisions, contingent liabilities, contingent assets and credit commitments - Legislative liabilities (Details) - AUD ($) $ in Thousands | Sep. 30, 2020 | Sep. 24, 2020 | Mar. 31, 2020 | Sep. 30, 2019 |
AUSTRAC proceedings | ||||
Legislative liabilities | ||||
Amount of civil penalty | $ 1,300,000 | |||
Amount of legal costs | $ 3,750 | |||
Provision in relation to the AUSTRAC civil proceedings | ||||
Legislative liabilities | ||||
Legal proceedings provision | $ 1,300,000 | $ 900,000 | ||
New South Wales | ||||
Legislative liabilities | ||||
Assessed liabilities | 22,000 | $ 22,000 | ||
Victoria | ||||
Legislative liabilities | ||||
Assessed liabilities | 7,000 | 7,000 | ||
South Australia | ||||
Legislative liabilities | ||||
Assessed liabilities | 6,000 | 6,000 | ||
Queensland | ||||
Legislative liabilities | ||||
Assessed liabilities | 1,000 | 1,000 | ||
Australian Capital Territory | ||||
Legislative liabilities | ||||
Assessed liabilities | 0 | 0 | ||
Western Australia | ||||
Legislative liabilities | ||||
Assessed liabilities | 1,000 | 1,000 | ||
Tasmania | ||||
Legislative liabilities | ||||
Assessed liabilities | $ 1,000 | $ 1,000 |
Provisions, contingent liabil_5
Provisions, contingent liabilities, contingent assets and credit commitments - Compliance, regulation and remediation provisions (Details) $ in Millions | Sep. 30, 2020AUD ($) |
Ongoing advice service fees charged by salaried financial planners | |
Provisions | |
Provision for customer refunds | $ 112 |
Ongoing advice service fees charged by authorised representatives of Securitor and Magnitude | |
Provisions | |
Customer remediation costs | $ 646 |
Provisions, contingent liabil_6
Provisions, contingent liabilities, contingent assets and credit commitments - Contingent liabilities (Details) - Guarantees | Sep. 30, 2020AUD ($) |
Contingent liabilities | |
Maximum deposits insured under FCS | $ 250,000 |
Maximum percentage of FCS levy | 0.50% |
Parent Entity | |
Contingent liabilities | |
Maximum guarantees to certain wholly owned subsidiaries which are Australian financial services or credit licensees to comply with legislative requirements | $ 40,000,000 |
Provisions, contingent liabil_7
Provisions, contingent liabilities, contingent assets and credit commitments - Undrawn credit commitments (Details) - AUD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 |
Undrawn credit commitments | ||
Letters of credit and guarantees | $ 12,610 | $ 15,150 |
Commitments to extend credit | 184,064 | 176,002 |
Other | 267 | 188 |
Total undrawn credit commitments | 196,941 | 191,340 |
Commitments to customers, which had not yet been accepted | 4,900 | 5,000 |
Within 1 Year | ||
Undrawn credit commitments | ||
Letters of credit and guarantees | 5,909 | |
Commitments to extend credit | 71,350 | |
Total undrawn credit commitments | 77,259 | |
Over 1 to 3 years | ||
Undrawn credit commitments | ||
Letters of credit and guarantees | 3,709 | |
Commitments to extend credit | 33,832 | |
Total undrawn credit commitments | 37,541 | |
Over 3 to 5 Years | ||
Undrawn credit commitments | ||
Letters of credit and guarantees | 492 | |
Commitments to extend credit | 13,428 | |
Other | 67 | |
Total undrawn credit commitments | 13,987 | |
Over 5 Years | ||
Undrawn credit commitments | ||
Letters of credit and guarantees | 2,500 | |
Commitments to extend credit | 65,454 | |
Other | 200 | |
Total undrawn credit commitments | 68,154 | |
Parent Entity | ||
Undrawn credit commitments | ||
Letters of credit and guarantees | 12,069 | 14,583 |
Commitments to extend credit | 159,644 | 153,716 |
Other | 266 | 188 |
Total undrawn credit commitments | $ 171,979 | $ 168,487 |
Shareholders' equity - Share ca
Shareholders' equity - Share capital (Details) - AUD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 |
Shareholders' equity | ||
Ordinary share capital, fully paid | $ 40,509 | $ 37,508 |
Treasury shares held for RSP | (618) | (572) |
Other treasury shares held | 55 | 19 |
Total treasury shares held | (563) | (553) |
Total share capital | 39,946 | 36,955 |
NCI | $ 51 | $ 53 |
Number of unvested RSP treasury shares held | 4,588,277 | 4,784,213 |
Number of other treasury shares held | 0 | 1,721,532 |
Parent Entity | ||
Shareholders' equity | ||
Ordinary share capital, fully paid | $ 40,509 | $ 37,508 |
Treasury shares held for RSP | (618) | (572) |
Other treasury shares held | (3) | (3) |
Total treasury shares held | (621) | (575) |
Total share capital | $ 39,888 | $ 36,933 |
Shareholders' equity - Movement
Shareholders' equity - Movement in number of ordinary shares (Details) | 12 Months Ended | ||
Sep. 30, 2020AUD ($)$ / sharesshares | Sep. 30, 2019$ / sharesshares | Sep. 30, 2018$ / sharesshares | |
Reconciliation of movement in number of ordinary shares | |||
Share issuances | $ | $ 2,751,000,000 | ||
Ordinary shares | |||
Shareholders' equity | |||
Par value | $ 0 | $ 0 | |
Number of votes per ordinary shares | 1 | ||
Reconciliation of movement in number of ordinary shares | |||
Number of shares outstanding at beginning of period | shares | 3,489,928,773 | 3,434,796,711 | |
Share issuances | $ | $ 110,919,861 | ||
Dividend reinvestment plan | shares | 10,836,236 | 55,132,062 | |
Number of shares outstanding at end of period | shares | 3,611,684,870 | 3,489,928,773 | 3,434,796,711 |
Average price per share | $ 24.81 | ||
Dividend reinvestment plan - price per share for interim dividend | $ 2,019 | $ 27.36 | |
Dividend reinvestment plan - price per share for final dividend | $ 25.17 | $ 25.82 | |
Parent Entity | |||
Reconciliation of movement in number of ordinary shares | |||
Number of shares outstanding at beginning of period | shares | 3,489,928,773 | 3,434,796,711 | |
Share issuances | $ | $ 110,919,861 | ||
Dividend reinvestment plan | shares | 10,836,236 | 55,132,062 | |
Number of shares outstanding at end of period | shares | 3,611,684,870 | 3,489,928,773 | 3,434,796,711 |
Parent Entity | Ordinary shares | |||
Reconciliation of movement in number of ordinary shares | |||
Average price per share | $ 24.81 | ||
Dividend reinvestment plan - price per share for interim dividend | $ 0 | $ 27.36 | |
Dividend reinvestment plan - price per share for final dividend | $ 25.17 | $ 25.82 |
Shareholders' equity - Ordinary
Shareholders' equity - Ordinary shares purchased and sold on market (Details) - $ / shares | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based payments | ||
Number of treasury shares purchased | 114,376 | |
Number of treasury shares sold | (1,835,908) | |
Net number of ordinary shares purchased/(sold) on market | 1,317,470 | |
Treasury shares purchased - average price | $ 24.52 | |
Treasury shares sold - average price | $ 20.23 | |
Employee Share Plan (ESP) | ||
Share-based payments | ||
Number of ordinary shares purchased on market | 931,524 | |
Average share price, ordinary shares | $ 26.46 | |
RSP | ||
Share-based payments | ||
Number of ordinary shares purchased on market | 1,931,521 | |
Average share price, ordinary shares | $ 24.06 | |
Westpac Performance Plan (WPP) | Share rights | ||
Share-based payments | ||
Number of ordinary shares purchased on market | 175,957 | |
Average share price, ordinary shares | $ 26 | |
Westpac Long Term Variable Reward Plan (LTVR) | Share options | ||
Share-based payments | ||
Average exercise price, options | $ 23.40 | |
Parent Entity | ||
Share-based payments | ||
Number of treasury shares purchased | 114,376 | |
Number of treasury shares sold | (1,835,908) | |
Net number of ordinary shares purchased/(sold) on market | 1,317,470 | |
Treasury shares purchased - average price | $ 24.52 | |
Treasury shares sold - average price | $ 20.23 | |
Parent Entity | Employee Share Plan (ESP) | ||
Share-based payments | ||
Number of ordinary shares purchased on market | 931,524 | |
Average share price, ordinary shares | $ 26.46 | |
Parent Entity | RSP | ||
Share-based payments | ||
Number of ordinary shares purchased on market | 1,931,521 | |
Average share price, ordinary shares | $ 24.06 | |
Parent Entity | Westpac Performance Plan (WPP) | Share rights | ||
Share-based payments | ||
Number of ordinary shares purchased on market | 175,957 | |
Average share price, ordinary shares | $ 26 |
Shareholders' equity - Reconcil
Shareholders' equity - Reconciliation of movement in reserves (Details) - AUD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Available-for-sale securities reserve | |||
Opening balance | $ 37 | ||
Impact on adoption of AASB 9 | (37) | ||
Transferred to income statements | $ 66 | ||
Closing balance | 37 | ||
Debt securities at FVOCI reserve | |||
Opening balance | (22) | ||
Impact on adoption of AASB 9 | 33 | ||
Net gains/(losses) from changes in fair value | 360 | (47) | |
Income tax effect | (96) | 12 | |
Transferred to income statement | (79) | (29) | |
Income tax effect | 15 | 8 | |
Loss allowance on debt securities measured at FVOCI | 2 | ||
Exchange differences | (3) | 1 | |
Closing balance | 177 | (22) | |
Equity securities at FVOCI reserve | |||
Opening balance | 17 | ||
Impact on adoption of AASB 9 | 6 | ||
Net gains/(losses) from changes in fair value | (21) | 11 | |
Closing balance | (4) | 17 | |
Share-based payment reserve | |||
Opening balance | 1,642 | 1,534 | |
Share-based payment expense | 78 | 108 | 103 |
Closing balance | 1,720 | 1,642 | 1,534 |
Cash flow hedge reserve | |||
Opening balance | (129) | (125) | |
Net gains/(losses) from changes in fair value | (95) | (203) | (161) |
Income tax effect | 28 | 60 | |
Transferred to income statements | 218 | 197 | 203 |
Income tax effect | (64) | (58) | |
Closing balance | (42) | (129) | (125) |
Foreign currency translation reserve | |||
Opening balance | (179) | (351) | |
Exchange differences on translation of foreign operations (net of associated hedges) | (177) | 311 | |
Gains/losses on net investment hedges | 9 | (129) | |
Transferred to income statements | 55 | (10) | (3) |
Closing balance | (292) | (179) | (351) |
Other reserves | |||
Opening balance | (18) | (18) | |
Transactions with owners | 3 | ||
Closing balance | (15) | (18) | (18) |
Total other reserves | 1,544 | 1,311 | |
Parent Entity | |||
Available-for-sale securities reserve | |||
Opening balance | 24 | ||
Impact on adoption of AASB 9 | (24) | ||
Closing balance | 24 | ||
Debt securities at FVOCI reserve | |||
Opening balance | (25) | ||
Impact on adoption of AASB 9 | 25 | ||
Net gains/(losses) from changes in fair value | 292 | (40) | |
Income tax effect | (77) | 10 | |
Transferred to income statement | (79) | (29) | |
Income tax effect | 15 | 8 | |
Loss allowance on debt securities measured at FVOCI | 2 | ||
Exchange differences | (3) | 1 | |
Closing balance | 125 | (25) | |
Equity securities at FVOCI reserve | |||
Opening balance | (1) | ||
Impact on adoption of AASB 9 | 1 | ||
Net gains/(losses) from changes in fair value | 1 | (2) | |
Closing balance | (1) | ||
Share-based payment reserve | |||
Opening balance | 1,533 | 1,425 | |
Share-based payment expense | 78 | 108 | |
Closing balance | 1,611 | 1,533 | 1,425 |
Cash flow hedge reserve | |||
Opening balance | (65) | (69) | |
Net gains/(losses) from changes in fair value | (28) | (121) | |
Income tax effect | 9 | 36 | |
Transferred to income statements | 150 | 128 | |
Income tax effect | (46) | (39) | |
Closing balance | 20 | (65) | (69) |
Foreign currency translation reserve | |||
Opening balance | (145) | (307) | |
Exchange differences on translation of foreign operations (net of associated hedges) | (148) | 214 | |
Gains/losses on net investment hedges | 17 | (52) | |
Transferred to income statements | 55 | ||
Closing balance | (221) | (145) | (307) |
Other reserves | |||
Opening balance | 41 | 41 | |
Closing balance | 41 | 41 | $ 41 |
Total other reserves | $ 1,576 | $ 1,338 |
Capital adequacy (Details)
Capital adequacy (Details) $ in Billions | Sep. 30, 2020AUD ($) |
Capital adequacy | |
Minimum capital buffer for D-SIBs, percentage | 8 |
Minimum capital buffer for D-SIBs | $ 13.7 |
Minimum requirement of Common Equity Tier 1 (CET1) | 4.5 |
Minimum requirement of Tier 1 capital ratio | 6 |
Minimum requirement of Total Regulatory Capital ratio | 8 |
Capital conservation buffer | 3.5 |
Capital conservation buffer, surcharge | 1 |
Countercyclical capital buffer | 0 |
COVID-19 | |
Capital adequacy | |
Minimum requirement of Common Equity Tier 1 (CET1) | 8 |
Minimum requirement of Total Regulatory Capital ratio | 3.5 |
Capital conservation buffer | 4.5 |
Dividends (Details)
Dividends (Details) $ / shares in Units, $ / shares in Units, $ in Millions, $ in Millions | Nov. 17, 2020 | Sep. 30, 2020NZD ($)$ / shares | Sep. 30, 2020AUD ($)$ / shares | Sep. 30, 2019NZD ($)$ / shares | Sep. 30, 2019AUD ($)$ / shares | Sep. 30, 2018NZD ($)$ / shares | Sep. 30, 2018AUD ($)$ / shares | Sep. 30, 2017AUD ($) |
Dividends | ||||||||
Final dividend 31 cents per share (2019: 80 cents, 2018: 94 cents) all fully franked at 30% | $ 1,120 | $ 2,791 | $ 3,227 | $ 3,187 | ||||
Total dividends not recognised at year end | $ 1,120 | $ 2,791 | $ 3,227 | |||||
Proposed final dividend per share | $ / shares | $ 0.31 | $ 0.80 | $ 0.94 | |||||
Dividend tax rate (as a percent) | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | |
Forecast | ||||||||
Dividends | ||||||||
Percentage discount from market price for shares under dividend reinvestment plan | 1.50% | |||||||
Trading period to determine number of shares for dividend reinvestment plan | 15 days | |||||||
New Zealand | ||||||||
Dividends | ||||||||
Imputation credits per share | $ / shares | $ 0.07 | $ 0.07 | $ 0.07 | |||||
Parent Entity | ||||||||
Dividends | ||||||||
Final dividend 31 cents per share (2019: 80 cents, 2018: 94 cents) all fully franked at 30% | $ 1,120 | $ 2,792 | $ 3,229 | |||||
Total dividends not recognised at year end | $ 1,120 | $ 2,792 | ||||||
Dividend tax rate (as a percent) | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | ||
Parent Entity | Australia | ||||||||
Dividends | ||||||||
Franking credits | $ 3,448 | $ 1,558 | $ 1,357 | |||||
Parent Entity | New Zealand | ||||||||
Dividends | ||||||||
Imputation credits | $ 980 | $ 860 | $ 530 |
Investments in subsidiaries a_3
Investments in subsidiaries and associates (Details) $ in Millions | Feb. 08, 2019AUD ($) | Mar. 23, 2018AUD ($) | Sep. 30, 2020AUD ($)item | Sep. 30, 2019AUD ($) | Sep. 30, 2018AUD ($) |
Investments in subsidiaries and associates | |||||
Gain on derecognition of associates | $ 316 | $ 38 | |||
Gain (loss) on businesses disposed during the year | $ 3 | $ (9) | |||
Number of associates material to the Group | item | 0 | ||||
Zip Co Limited | |||||
Investments in subsidiaries and associates | |||||
Gain on derecognition of associates | $ 316 | ||||
Westpac Bank-PNG-Limited | |||||
Investments in subsidiaries and associates | |||||
Percentage of equity owned by parent | 89.90% | 89.90% | |||
Westpac NZ Covered Bond Limited | |||||
Investments in subsidiaries and associates | |||||
Percentage of equity owned by parent | 19.00% | 19.00% | |||
Westpac NZ Securitisation Limited | |||||
Investments in subsidiaries and associates | |||||
Percentage of equity owned by parent | 19.00% | 19.00% | |||
Ascalon Capital Managers (Asia) Limited and Ascalon Capital Managers Limited | |||||
Investments in subsidiaries and associates | |||||
Gain (loss) on businesses disposed during the year | $ 3 | ||||
Hastings offshore subsidiaries | |||||
Investments in subsidiaries and associates | |||||
Gain (loss) on businesses disposed during the year | $ (9) |
Structured entities (Details)
Structured entities (Details) - AUD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 |
Structured entities | ||
Total on-balance sheet exposures | $ 45,099 | $ 59,672 |
Total notional amounts of off-balance sheet exposures | 13,934 | 15,345 |
Maximum exposure to loss | 59,033 | 75,017 |
Size of structured entities | 193,172 | 262,672 |
Trading securities and financial assets measured at FVIS | ||
Structured entities | ||
Total on-balance sheet exposures | 1,560 | 2,109 |
Investment securities | ||
Structured entities | ||
Total on-balance sheet exposures | 6,105 | 6,940 |
Loans | ||
Structured entities | ||
Total on-balance sheet exposures | 37,049 | 43,805 |
Life insurance assets | ||
Structured entities | ||
Total on-balance sheet exposures | 333 | 6,764 |
Other assets | ||
Structured entities | ||
Total on-balance sheet exposures | 52 | 54 |
Investment in Third Party Mortgage and Other Asset-Backed Securities | ||
Structured entities | ||
Total on-balance sheet exposures | 7,631 | 8,767 |
Maximum exposure to loss | 7,631 | 8,767 |
Size of structured entities | 59,324 | 66,015 |
Investment in Third Party Mortgage and Other Asset-Backed Securities | Trading securities and financial assets measured at FVIS | ||
Structured entities | ||
Total on-balance sheet exposures | 1,526 | 1,827 |
Investment in Third Party Mortgage and Other Asset-Backed Securities | Investment securities | ||
Structured entities | ||
Total on-balance sheet exposures | 6,105 | 6,940 |
Financing to Securitisation Vehicles | ||
Structured entities | ||
Total on-balance sheet exposures | 20,094 | 20,979 |
Total notional amounts of off-balance sheet exposures | 6,122 | 5,157 |
Maximum exposure to loss | 26,216 | 26,136 |
Size of structured entities | 26,216 | 26,136 |
Financing to Securitisation Vehicles | Loans | ||
Structured entities | ||
Total on-balance sheet exposures | 20,094 | 20,979 |
Group Managed Funds | ||
Structured entities | ||
Total on-balance sheet exposures | 256 | 4,948 |
Total notional amounts of off-balance sheet exposures | 44 | 102 |
Maximum exposure to loss | 300 | 5,050 |
Size of structured entities | 67,423 | 71,538 |
Group Managed Funds | Loans | ||
Structured entities | ||
Total on-balance sheet exposures | 9 | |
Group Managed Funds | Life insurance assets | ||
Structured entities | ||
Total on-balance sheet exposures | 204 | 4,885 |
Group Managed Funds | Other assets | ||
Structured entities | ||
Total on-balance sheet exposures | 52 | 54 |
Interest in Other Structured Entities | ||
Structured entities | ||
Total on-balance sheet exposures | 17,118 | 24,978 |
Total notional amounts of off-balance sheet exposures | 7,768 | 10,086 |
Maximum exposure to loss | 24,886 | 35,064 |
Size of structured entities | 40,209 | 98,983 |
Interest in Other Structured Entities | Trading securities and financial assets measured at FVIS | ||
Structured entities | ||
Total on-balance sheet exposures | 34 | 282 |
Interest in Other Structured Entities | Loans | ||
Structured entities | ||
Total on-balance sheet exposures | 16,955 | 22,817 |
Interest in Other Structured Entities | Life insurance assets | ||
Structured entities | ||
Total on-balance sheet exposures | $ 129 | $ 1,879 |
Share-based payments - Summary
Share-based payments - Summary of plans (Details) | 12 Months Ended |
Sep. 30, 2020AUD ($)$ / shares | |
Westpac Long Term Variable Reward Plan (LTVR) | |
Share-based payments | |
Performance period | 4 years |
Holding lock period | 1 year |
Vesting period | 4 years |
Westpac Long Term Variable Reward Plan (LTVR) | 2011 to 2014 Award Dates | |
Share-based payments | |
Performance period | 3 years |
Vesting period | 3 years |
Westpac Long Term Variable Reward Plan (LTVR) | 2015 Awards | |
Share-based payments | |
Performance period | 4 years |
Performance period, cash EPS (CAGR) | 3 years |
Holding lock period | 1 year |
Westpac Long Term Variable Reward Plan (LTVR) | Share rights | |
Share-based payments | |
Cost of shares allocated | $ 0 |
Exercise price | $ / shares | $ 0 |
Westpac Performance Plan (WPP) | Share rights | |
Share-based payments | |
Cost of shares allocated | $ 0 |
Exercise price | $ / shares | $ 0 |
RSP | |
Share-based payments | |
Cost of shares allocated | $ 0 |
Employee Share Plan (ESP) | |
Share-based payments | |
Cost of shares allocated | 0 |
Threshold amount of shares allocated at free of cost per employee | $ 1,000 |
Service conditions | 3 years |
Vesting period | 1 year |
Share-based payments - Westpac
Share-based payments - Westpac Long Term Incentive Plan, Westpac Performance Plan (WPP) & Restricted Share Plan (RSP) (Details) | 12 Months Ended | |
Sep. 30, 2020AUD ($)OptionsEquityInstruments | Sep. 30, 2019AUD ($)EquityInstruments$ / shares | |
Share options | ||
Granted during the year | Options | 0 | |
Outstanding at the end of the year | Options | 0 | |
Westpac Long Term Variable Reward Plan (LTVR) | Share rights | ||
Share options | ||
Outstanding at the beginning of the year | 3,066,326 | 4,554,589 |
Granted during the year | 779,581 | |
Lapsed during the year | 2,267,844 | |
Outstanding at the end of the year | 3,066,326 | |
Outstanding and Exercisable at the end of the year | 3,719 | |
Equity instruments other than options | ||
Weighted average remaining contractual life | 12 years 4 months 24 days | 12 years 3 months 18 days |
Weighted average fair value at grant date | $ | $ 28.44 | $ 15.62 |
Westpac Long Term Variable Reward Plan (LTVR) | Share options | ||
Share options | ||
Outstanding at the beginning of the year | 52,350 | |
Exercised during the year | 37,831 | |
Lapsed during the year | 14,519 | |
Weighted Average Exercise Price | ||
Outstanding at the beginning of the year | 23.40% | |
Exercised during the year | $ / shares | $ 23.40 | |
Westpac Long Term Variable Reward Plan (LTVR) | Performance share rights | ||
Equity instruments other than options | ||
Outstanding at the beginning of the year | 4,554,589 | 4,712,843 |
Granted during the year | 1,169,704 | |
Lapsed during the year | 1,327,958 | |
Outstanding at the end of the year | 4,554,589 | |
Outstanding and Exercisable at the end of the year | 3,719 | |
Westpac Performance Plan (WPP) | Share rights | ||
Equity instruments other than options | ||
Outstanding at the beginning of the year | 786,466 | |
Granted during the year | 438,858 | |
Exercised during the year | 175,957 | |
Lapsed during the year | 92,232 | |
Outstanding at the end of the year | 957,135 | 786,466 |
Outstanding and Exercisable at the end of the year | 164,219 | |
Weighted average remaining contractual life | 12 years 9 months 18 days | 12 years 9 months 18 days |
Weighted average fair value at grant date | $ | $ 24.68 | $ 23.08 |
Westpac Performance Plan (WPP) | Share rights | One-year vesting period | ||
Equity instruments other than options | ||
Outstanding at the beginning of the year | 197,888 | |
Granted during the year | 120,562 | |
Exercised during the year | 75,417 | |
Lapsed during the year | 36,792 | |
Outstanding at the end of the year | 206,241 | 197,888 |
Outstanding and Exercisable at the end of the year | 90,451 | |
Westpac Performance Plan (WPP) | Share rights | Two-year vesting period | ||
Equity instruments other than options | ||
Outstanding at the beginning of the year | 289,909 | |
Granted during the year | 113,649 | |
Exercised during the year | 79,568 | |
Lapsed during the year | 31,049 | |
Outstanding at the end of the year | 292,941 | 289,909 |
Outstanding and Exercisable at the end of the year | 55,846 | |
Westpac Performance Plan (WPP) | Share rights | Three-year vesting period | ||
Equity instruments other than options | ||
Outstanding at the beginning of the year | 95,249 | |
Granted during the year | 18,357 | |
Exercised during the year | 20,972 | |
Lapsed during the year | 15,786 | |
Outstanding at the end of the year | 76,848 | 95,249 |
Outstanding and Exercisable at the end of the year | 17,922 | |
Westpac Performance Plan (WPP) | Share rights | Four-year vesting period | ||
Equity instruments other than options | ||
Outstanding at the beginning of the year | 203,420 | |
Granted during the year | 186,290 | |
Lapsed during the year | 8,605 | |
Outstanding at the end of the year | 381,105 | 203,420 |
Westpac Performance Plan (WPP) | Performance share rights | ||
Equity instruments other than options | ||
Outstanding at the beginning of the year | 786,466 | 673,889 |
Granted during the year | 385,646 | |
Exercised during the year | 184,043 | |
Lapsed during the year | 89,026 | |
Outstanding at the end of the year | 786,466 | |
Outstanding and Exercisable at the end of the year | 130,946 | |
RSP | ||
Equity instruments other than options | ||
Outstanding at the beginning of the year | 4,773,171 | 4,189,644 |
Granted during the year | 2,100,030 | 2,861,262 |
Released | 2,081,545 | 2,214,509 |
Forfeited during the year | 402,495 | 63,226 |
Outstanding at the end of the year | 4,389,161 | 4,773,171 |
Weighted average fair value at grant date | $ | $ 23.88 | $ 25.20 |
Share-based payments - Employee
Share-based payments - Employee Share Plan (Details) - Employee Share Plan (ESP) | 12 Months Ended | |
Sep. 30, 2020AUD ($)EquityInstrumentsemployee$ / sharesshares | Sep. 30, 2019AUD ($)EquityInstrumentsemployee$ / sharesshares | |
Share-based payments | ||
Number of Participants | employee | 25,725 | 27,245 |
Average Number of Shares Allocated per Participant | shares | 38 | 39 |
Total Number of Shares Allocated | EquityInstruments | 977,550 | 1,062,555 |
Market Price per Share | $ / shares | $ 26.20 | $ 25.35 |
Total Fair Value | $ 25,611,810 | $ 26,935,769 |
Other employee benefits | $ 28,000,000 | $ 26,000,000 |
Share-based payments - Fair val
Share-based payments - Fair value assumptions (Details) - Share options and share rights | 12 Months Ended |
Sep. 30, 2020 | |
Fair value assumptions | |
Risk-free rate | 0.80% |
Dividend yield | 6.50% |
Volatility rate | 21.00% |
Superannuation commitments (Det
Superannuation commitments (Details) - AUD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Superannuation commitments | ||
Funding surplus | $ 154 | $ 158 |
Westpac Group Plan | ||
Superannuation commitments | ||
Percentage of contribution on member's salary | 12.10% | |
Westpac New Zealand Superannuation Scheme | ||
Superannuation commitments | ||
Percentage of contribution on member's salary | 17.00% |
Superannuation commitments - Co
Superannuation commitments - Contributions and Expense recognised (Details) - AUD ($) $ in Millions | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Superannuation commitments | ||||
Employer contributions | $ 26 | $ 28 | ||
Member contributions | 10 | 11 | ||
Current service cost | 44 | 33 | $ 37 | |
Net interest cost on net benefit liability | 8 | (2) | 1 | |
Total defined benefit expense | 52 | 31 | $ 38 | |
Defined benefit balances recognised | ||||
Benefit obligation at end of the year | 2,880 | 2,799 | ||
Fair value of plan assets at end of the year | 2,350 | 2,464 | ||
Defined benefit surplus | 71 | 73 | ||
Defined benefit deficit | (601) | (408) | ||
Net surplus/(deficit) | $ (530) | $ (335) | ||
Average duration of the defined benefit obligation | 14 years | 14 years | ||
Forecast | ||||
Superannuation commitments | ||||
Expected contribution from the employer | $ 25 | |||
Parent Entity | ||||
Superannuation commitments | ||||
Employer contributions | $ 26 | $ 27 | ||
Member contributions | 10 | 11 | ||
Current service cost | 43 | 32 | ||
Net interest cost on net benefit liability | 8 | (2) | ||
Total defined benefit expense | 51 | 30 | ||
Defined benefit balances recognised | ||||
Benefit obligation at end of the year | 2,790 | 2,710 | ||
Fair value of plan assets at end of the year | 2,295 | 2,405 | ||
Defined benefit surplus | 71 | 73 | ||
Defined benefit deficit | (566) | (378) | ||
Net surplus/(deficit) | $ (495) | $ (305) |
Superannuation commitments - Si
Superannuation commitments - Significant assumptions (Details) | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Australia | ||
Superannuation commitments | ||
Discount rate | 2.60% | 2.60% |
Salary increases | 2.70% | 2.40% |
Inflation rate (pensioners received inflationary increase) | 1.70% | 1.40% |
Life expectancy of a 60-year-old male | 31 years 3 months 18 days | 31 years 1 month 6 days |
Life expectancy of a 60-year-old female | 34 years 2 months 12 days | 34 years |
Overseas | Minimum | ||
Superannuation commitments | ||
Discount rate | 0.70% | 1.10% |
Salary increases | 3.00% | 3.00% |
Inflation rate (pensioners received inflationary increase) | 2.00% | 2.00% |
Life expectancy of a 60-year-old male | 28 years 1 month 6 days | 27 years 10 months 24 days |
Life expectancy of a 60-year-old female | 29 years 6 months | 29 years 3 months 18 days |
Overseas | Maximum | ||
Superannuation commitments | ||
Discount rate | 1.50% | 1.80% |
Salary increases | 4.60% | 4.90% |
Inflation rate (pensioners received inflationary increase) | 3.10% | 3.40% |
Life expectancy of a 60-year-old male | 28 years 2 months 12 days | 28 years 1 month 6 days |
Life expectancy of a 60-year-old female | 29 years 7 months 6 days | 29 years 6 months |
Parent Entity | Australia | ||
Superannuation commitments | ||
Discount rate | 2.60% | 2.60% |
Salary increases | 2.70% | 2.40% |
Inflation rate (pensioners received inflationary increase) | 1.70% | 1.40% |
Life expectancy of a 60-year-old male | 31 years 3 months 18 days | 31 years 1 month 6 days |
Life expectancy of a 60-year-old female | 34 years 2 months 12 days | 34 years |
Parent Entity | Overseas | Minimum | ||
Superannuation commitments | ||
Discount rate | 0.70% | 1.10% |
Salary increases | 3.00% | 3.00% |
Inflation rate (pensioners received inflationary increase) | 2.00% | 2.00% |
Life expectancy of a 60-year-old male | 28 years 1 month 6 days | 27 years 10 months 24 days |
Life expectancy of a 60-year-old female | 29 years 6 months | 29 years 3 months 18 days |
Parent Entity | Overseas | Maximum | ||
Superannuation commitments | ||
Discount rate | 1.50% | 1.80% |
Salary increases | 4.60% | 4.90% |
Inflation rate (pensioners received inflationary increase) | 3.10% | 3.40% |
Life expectancy of a 60-year-old male | 28 years 2 months 12 days | 28 years 1 month 6 days |
Life expectancy of a 60-year-old female | 29 years 7 months 6 days | 29 years 6 months |
Superannuation commitments - Se
Superannuation commitments - Sensitivity to changes in significant assumptions (Details) - AUD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Discount rate | ||
Superannuation commitments | ||
Decrease in actuarial assumption (as a percent) | 0.50% | 0.50% |
Increase in actuarial assumption, Increase (decrease) in the net defined benefit obligation | $ 230 | $ 205 |
annual salary increases | ||
Superannuation commitments | ||
Increase in actuarial assumption (as a percent) | 0.50% | 0.50% |
Increase in actuarial assumption, Increase (decrease) in the net defined benefit obligation | $ 19 | $ 14 |
inflation rate | ||
Superannuation commitments | ||
Increase in actuarial assumption (as a percent) | 0.50% | 0.50% |
Increase in actuarial assumption, Increase (decrease) in the net defined benefit obligation | $ 201 | $ 188 |
Expected lifetime | ||
Superannuation commitments | ||
Increase in actuarial assumption, Increase (decrease) in the net defined benefit obligation | $ 68 | $ 45 |
Increase in term of life expectancy | 1 year | 1 year |
Superannuation commitments - As
Superannuation commitments - Asset allocation (Details) | Sep. 30, 2020 | Sep. 30, 2019 |
Australia | ||
Superannuation commitments | ||
Asset allocation percentage | 100.00% | 100.00% |
Australia | Cash | ||
Superannuation commitments | ||
Asset allocation percentage | 6.00% | 3.00% |
Australia | Equity instruments | ||
Superannuation commitments | ||
Asset allocation percentage | 45.00% | 45.00% |
Australia | Debt instruments | ||
Superannuation commitments | ||
Asset allocation percentage | 25.00% | 28.00% |
Australia | Property | ||
Superannuation commitments | ||
Asset allocation percentage | 8.00% | 10.00% |
Australia | Other assets | ||
Superannuation commitments | ||
Asset allocation percentage | 16.00% | 14.00% |
Overseas | ||
Superannuation commitments | ||
Asset allocation percentage | 100.00% | 100.00% |
Overseas | Cash | ||
Superannuation commitments | ||
Asset allocation percentage | 1.00% | 3.00% |
Overseas | Equity instruments | ||
Superannuation commitments | ||
Asset allocation percentage | 9.00% | 7.00% |
Overseas | Debt instruments | ||
Superannuation commitments | ||
Asset allocation percentage | 4.00% | 5.00% |
Overseas | Property | ||
Superannuation commitments | ||
Asset allocation percentage | 1.00% | 1.00% |
Overseas | Other assets | ||
Superannuation commitments | ||
Asset allocation percentage | 85.00% | 84.00% |
Auditor's remuneration (Details
Auditor's remuneration (Details) - AUD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Auditor's remuneration | ||
Audit fees | $ 32,962 | $ 31,369 |
Audit-related fees | 4,511 | 3,697 |
Total audit and audit-related fees | 37,473 | 35,066 |
Tax fees | 57 | 53 |
Other fees | 572 | |
Total audit and non-audit fees | 37,530 | 35,691 |
PwC Australia | ||
Auditor's remuneration | ||
Audit fees | 27,667 | 28,153 |
Audit-related fees | 4,404 | 3,569 |
Tax fees | 57 | 53 |
Other fees | 70 | |
Overseas PwC network firms | ||
Auditor's remuneration | ||
Audit fees | 5,295 | 3,216 |
Audit-related fees | 107 | 128 |
Other fees | 502 | |
Non-consolidated entities | ||
Auditor's remuneration | ||
Fees received by auditor from various entities related to Westpac | 6,100 | 7,500 |
Parent Entity | ||
Auditor's remuneration | ||
Audit fees | 28,372 | 28,346 |
Audit-related fees | 4,404 | 3,420 |
Total audit and audit-related fees | 32,776 | 31,766 |
Tax fees | 57 | 53 |
Other fees | 572 | |
Total audit and non-audit fees | 32,833 | 32,391 |
Parent Entity | PwC Australia | ||
Auditor's remuneration | ||
Audit fees | 27,667 | 28,025 |
Audit-related fees | 4,404 | 3,418 |
Tax fees | 57 | 53 |
Other fees | 70 | |
Parent Entity | Overseas PwC network firms | ||
Auditor's remuneration | ||
Audit fees | $ 705 | 321 |
Audit-related fees | 2 | |
Other fees | $ 502 |
Related party disclosures - Sup
Related party disclosures - Superannuation plans (Details) - AUD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Related party disclosures | ||
Group contributions to defined contribution plans | $ 361 | $ 347 |
Group contributions to defined benefit plans | $ 26 | $ 28 |
Related party disclosures - Rem
Related party disclosures - Remuneration of KMP (Details) - AUD ($) | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Related party disclosures | ||
Short-term benefits | $ 22,759,397 | $ 23,805,197 |
Post employment benefits | 967,898 | 712,883 |
Other long-term benefits | 657,375 | 36,572 |
Termination benefits | 1,176,487 | 558,984 |
Share-based payments | 3,748,106 | 20,691,480 |
Total | 29,309,263 | 45,805,116 |
Parent Entity | ||
Related party disclosures | ||
Short-term benefits | 21,766,691 | 22,515,477 |
Post employment benefits | 873,350 | 625,173 |
Other long-term benefits | 657,375 | 36,572 |
Termination benefits | 1,176,487 | 558,984 |
Share-based payments | 3,035,423 | 19,783,900 |
Total | $ 27,509,326 | $ 43,520,106 |
Related party disclosures - Oth
Related party disclosures - Other transactions with KMP (Details) - Key management personnel | 12 Months Ended | |
Sep. 30, 2020AUD ($)item | Sep. 30, 2019AUD ($)item | |
Related party disclosures | ||
Interest payable for the year | $ 549,257 | $ 672,167 |
Closing loan balance | $ 15,779,157 | $ 31,718,007 |
Number of KMP with loans | item | 8 | 14 |
Related party disclosures - Opt
Related party disclosures - Options and share rights holdings (Details) | Sep. 30, 2020OptionsEquityInstruments |
Related party disclosures | |
Number of options outstanding | Options | 0 |
Managing Director & Chief Executive Officer | Peter King | |
Related party disclosures | |
Number of Share Rights | 346,795 |
Group Executive | Rebecca Lim | |
Related party disclosures | |
Number of Share Rights | 220,403 |
Group Executive | Guilherme Lima | |
Related party disclosures | |
Number of Share Rights | 57,819 |
Group Executive | Carolyn McCann | |
Related party disclosures | |
Number of Share Rights | 102,207 |
Group Executive | David McLean | |
Related party disclosures | |
Number of Share Rights | 382,588 |
Group Executive | Christine Parker | |
Related party disclosures | |
Number of Share Rights | 252,231 |
Group Executive | David Stephen | |
Related party disclosures | |
Number of Share Rights | 364,381 |
Group Executive | Gary Thursby | |
Related party disclosures | |
Number of Share Rights | 250,336 |
Group Executive | Les Vance | |
Related party disclosures | |
Number of Share Rights | 22,227 |
Group Executive | Jason Yetton | |
Related party disclosures | |
Number of Share Rights | 54,213 |
Former Group Executive | Lyn Cobley | |
Related party disclosures | |
Number of Share Rights | 319,631 |
Notes to the cash flow statem_2
Notes to the cash flow statements - Reconciliation of operating activities (Details) - AUD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Reconciliation of net cash provided by/(used in) operating activities to net profit for the year | |||
Net profit for the year | $ 2,292 | $ 6,790 | $ 8,099 |
Adjustments: | |||
Depreciation, amortisation and impairment | 2,473 | 1,079 | 1,144 |
Impairment charges | 3,371 | 966 | 889 |
Net decrease/(increase) in current and deferred tax | (1,112) | (541) | (96) |
(Increase)/decrease in accrued interest receivable | 239 | 132 | (83) |
(Decrease)/increase in accrued interest payable | (1,260) | (341) | 241 |
(Decrease)/increase in provisions | 1,925 | 1,143 | 289 |
Other non-cash items | (693) | (832) | 332 |
Cash flows from operating activities before changes in operating assets and liabilities | 7,235 | 8,396 | 10,815 |
Net (increase)/decrease in derivative financial instruments | 1,851 | 7,605 | 8,584 |
Net (increase)/decrease in life insurance assets and liabilities | (277) | (134) | (230) |
(Increase)/decrease in other operating assets: | |||
Collateral paid | 348 | (847) | 969 |
Trading securities and other financial assets measured at FVIS | (8,756) | (7,629) | 3,492 |
Loans | 18,272 | (4,188) | (24,740) |
Other financial assets | 273 | 336 | 859 |
Other assets | 70 | (13) | 10 |
(Decrease)/increase in other operating liabilities: | |||
Collateral received | (1,096) | 1,007 | (295) |
Deposits and other borrowings | 28,910 | 1,113 | 23,928 |
Other financial liabilities | 11,817 | 1,463 | (3,632) |
Other liabilities | 4 | (5) | 10 |
Net cash provided by/(used in) operating activities | 58,651 | 7,104 | $ 19,770 |
Parent Entity | |||
Reconciliation of net cash provided by/(used in) operating activities to net profit for the year | |||
Net profit for the year | 2,658 | 7,121 | |
Adjustments: | |||
Depreciation, amortisation and impairment | 2,142 | 1,082 | |
Impairment charges | 2,864 | 893 | |
Net decrease/(increase) in current and deferred tax | (937) | (804) | |
(Increase)/decrease in accrued interest receivable | 208 | 98 | |
(Decrease)/increase in accrued interest payable | (1,143) | (321) | |
(Decrease)/increase in provisions | 2,003 | 1,214 | |
Other non-cash items | (1,114) | (329) | |
Cash flows from operating activities before changes in operating assets and liabilities | 6,681 | 8,954 | |
Net (increase)/decrease in derivative financial instruments | 2,103 | 6,581 | |
(Increase)/decrease in other operating assets: | |||
Collateral paid | 329 | (755) | |
Trading securities and other financial assets measured at FVIS | (8,266) | (7,358) | |
Loans | 21,273 | (3,312) | |
Other financial assets | 283 | 324 | |
Other assets | 50 | (41) | |
(Decrease)/increase in other operating liabilities: | |||
Collateral received | (1,072) | 1,004 | |
Deposits and other borrowings | 20,859 | 963 | |
Other financial liabilities | 11,866 | 1,555 | |
Other liabilities | (7) | (24) | |
Net cash provided by/(used in) operating activities | $ 54,099 | $ 7,891 |
Notes to the cash flow statem_3
Notes to the cash flow statements - Assets and liabilities over which control ceased (Details) - AUD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2020 | |
Assets: | |||
Cash and balances with central banks | $ 20,059 | $ 30,129 | |
Trading securities and other financial assets measured at FVIS | 31,781 | $ 23,132 | 40,667 |
Property and equipment | 1,155 | 3,910 | |
Deferred tax assets | 2,048 | 1,180 | 3,064 |
Intangible assets | 11,953 | 11,497 | |
Other financial assets | 807 | 808 | |
Total assets | 906,626 | 911,946 | |
Liabilities: | |||
Provisions | 3,169 | 5,287 | |
Other liabilities | 2,238 | 5,359 | |
Total liabilities | 841,119 | 843,872 | |
Total equity attributable to owners of WBC | 65,454 | 68,023 | |
Assets and liabilities over which control ceased | |||
Assets: | |||
Cash and balances with central banks | 3 | 10 | |
Trading securities and other financial assets measured at FVIS | 3 | ||
Property and equipment | 2 | ||
Deferred tax assets | 4 | ||
Intangible assets | 15 | ||
Other financial assets | 3 | 5 | |
Total assets | 9 | 36 | |
Liabilities: | |||
Provisions | 2 | ||
Other liabilities | 3 | ||
Total liabilities | 5 | ||
Total equity attributable to owners of WBC | 9 | 31 | |
Cash proceeds (net of transaction costs) | 2 | 19 | |
Total consideration | 2 | 19 | |
Reserves recycled to income statement | 10 | 3 | |
Gain/(loss) on disposal | 3 | (9) | |
Reconciliation of cash proceeds from disposal | |||
Cash proceeds received (net of transaction costs) | 2 | 19 | |
Less: Cash deconsolidated | (3) | (10) | |
Cash consideration (paid)/received (net of transaction costs and cash held) | (1) | 9 | |
Parent Entity | |||
Assets: | |||
Cash and balances with central banks | 17,692 | 25,436 | |
Trading securities and other financial assets measured at FVIS | 29,565 | 38,030 | |
Property and equipment | 948 | 3,447 | |
Deferred tax assets | 1,925 | $ 1,102 | 2,497 |
Intangible assets | 9,687 | 9,630 | |
Other financial assets | 420 | 421 | |
Total assets | 949,739 | 992,802 | |
Liabilities: | |||
Provisions | 2,980 | 4,983 | |
Other liabilities | 1,064 | 3,770 | |
Total liabilities | 892,901 | 933,054 | |
Total equity attributable to owners of WBC | $ 56,838 | $ 59,748 |
Notes to the cash flow statem_4
Notes to the cash flow statements - Non-cash financing activities and restricted cash (Details) - AUD ($) $ / shares in Units, $ in Millions | Apr. 03, 2018 | Mar. 13, 2018 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 |
Non-cash financing activities | |||||
Shares issued under the dividend reinvestment plan | $ 273 | $ 1,489 | $ 631 | ||
Shares issued from the conversion of Westpac CPS | $ 566 | ||||
Increase in lease liabilities | 177 | ||||
Minimum balances with central banks | 457 | 330 | |||
Westpac CPS converted to Westpac Capital Notes | |||||
Non-cash financing activities | |||||
Number of Westpac CPS converted | 623 | ||||
Value per share of Westpac CPS transferred to nominated party prior to conversion | $ 100 | ||||
Westpac CPS converted to ordinary shares | |||||
Non-cash financing activities | |||||
Value of Westpac CPS converted | $ 566 | ||||
Value per share of Westpac CPS transferred to nominated party prior to conversion | $ 100 | ||||
Shares issued on conversion of Westpac CPS | 19,189,765 | ||||
Parent Entity | |||||
Non-cash financing activities | |||||
Shares issued under the dividend reinvestment plan | 273 | 1,489 | |||
Increase in lease liabilities | 173 | ||||
Minimum balances with central banks | $ 380 | $ 224 |
Subsequent events (Details)
Subsequent events (Details) - AUD ($) $ / shares in Units, $ in Millions | Dec. 18, 2020 | Nov. 17, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 |
Subsequent events | |||||
Proposed final dividend per share | $ 0.31 | $ 0.80 | $ 0.94 | ||
Proposed dividend | $ 1,120 | $ 2,791 | $ 3,227 | ||
Forecast | |||||
Subsequent events | |||||
Percentage discount from market price for shares under dividend reinvestment plan | 1.50% | ||||
Trading period to determine number of shares for dividend reinvestment plan | 15 days | ||||
Proposed dividend | Forecast | |||||
Subsequent events | |||||
Proposed final dividend per share | $ 0.31 | ||||
Proposed dividend | $ 1,120 | ||||
Shares Issued to satisfy DRP for 2020 final ordinary dividend | |||||
Subsequent events | |||||
Percentage discount from market price for shares under dividend reinvestment plan | 1.50% | ||||
Trading period to determine number of shares for dividend reinvestment plan | 15 days |