Overview of Westpac's 1Q24 financial performance

Westpac Banking Corporation (ASX: $WBC) has released its 1Q24 Investor Discussion Pack, covering capital, credit quality, funding, and financial performance for the three months ended December 2023. The pack includes key metrics such as the CET1 capital ratio, risk weighted asset movements, provision coverage, stressed exposures and delinquencies, mortgage portfolio composition, repayment buffers, New Zealand credit quality, funding and liquidity measures, financial summary, and net profit.

Executive commentary on 1Q24 performance

The 1Q24 performance reflects our continued focus on maintaining strong capital levels, managing credit quality, and ensuring robust funding and liquidity measures. We are pleased with the progress made in maintaining a CET1 capital ratio of 12.3% and closely monitoring risk weighted asset movements. Our provision coverage and management of stressed exposures and delinquencies demonstrate our commitment to prudent risk management. Additionally, the overview of the mortgage portfolio composition and repayment buffers provides insights into the quality and resilience of our lending activities. The discussion also includes an assessment of credit quality in New Zealand and key funding and liquidity measures, highlighting our ongoing efforts to ensure stability and resilience in our operations.

Summary of 1Q24 and outlook

Westpac's 1Q24 Investor Discussion Pack provides a comprehensive overview of the company's financial performance, emphasizing its strong capital position, effective risk management, and prudent approach to credit quality. The discussion also underscores the company's focus on maintaining robust funding and liquidity measures to support its operations. Looking ahead, Westpac remains committed to its strategic goals of sustaining capital strength, managing credit risk prudently, and ensuring stable funding and liquidity. The company's proactive approach to risk management and its emphasis on maintaining a resilient financial position bode well for its future performance and ability to navigate potential challenges in the operating environment.