The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Victor German - Macquarie Research - Analyst
: Victor German from Macquarie. A couple of follow-up questions actually. So from Richard's question on front-to-back book issue, the RBA has been
fairly vocal that the gap is [really] high, and the previous management team accepted the fact that they've done quite a lot of repricing. So just
interested, how does it get us sort of back to 40 basis points given that now you are actually getting growth and, therefore, presumably, you're in
the market competing? Just interested perhaps if you can provide a little bit more color in terms of exactly how that 40 basis points is calculated
and whether it's the average of the overall book versus where the front book margins are.
And maybe -- yes, just secondly, a follow-up from Andy's question on growth. Clearly, we are missing something that you guys are seeing. I'd just
be interested to see -- because we're not really expecting kind of across all the banks to see something in the order of 12%, 13% revenue growth
given all the margin pressures, which kind of your guidance sort of imply over the next 3 years. So yes, where are you expecting that growth to
come from? And if it is balance sheet-led, how do you reconcile that 70% to 80% payout ratio? Because presumably even with 10% ROE, to do that
70% to 80%, if you're growing your balance sheet, something in the order of 5% would be very difficult.
Question: Victor German - Macquarie Research - Analyst
: That is consistent with your total revenue growth.
Question: Victor German - Macquarie Research - Analyst
: Victor German again. I just wanted to -- hoping that, Ewen, perhaps you could just perhaps respond to the question that was asked around the
dividend payout ratio in terms of just where -- am I missing kind of the math's component of growth, balance sheet growth versus that 70% to
80% payout? Is it just sort of running down capital more to sort of the level that you're expecting? Or is there something missing? And also, just,
George, you talked in your presentation about the increased focus on brokers as part of the strategy. Maybe if you can just provide us a little bit
more color in terms of how prominent that channel you're expecting to become, where are you now in terms of broker flows and where do you
think you can go with that.
|
