Full Year 2021 Westpac Banking Corp Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Victor German - Macquarie Research - Analyst : I was hoping to just follow up on costs as well. I appreciate you don't want to give a guidance for 2022, but you did say that costs are going be lower. Would you be able to at least provide us the base that we should work from? Given that there's a few moving parts, including divested businesses, it'd just be useful to understand down from what number. And then sort of a related question: With specialist businesses, I can see in that -- I appreciate it's illustrative parts, but it looks like you're providing -- or you're suggesting that they will drop out by 2023. Should we assume that, that is the timing of your divestments? Or should we now start thinking about potential stranded costs with these businesses as well?

Question: Victor German - Macquarie Research - Analyst : So Michael, just to be clear: You are expecting a reduction in the cost base ex the divestments on an underlying basis.

Question: Victor German - Macquarie Research - Analyst : Okay. And just one thing to confirm also. With this Fix number of $1.1 billion, which is you're expecting to reduce over time, I noticed that in your investment spend you've got -- obviously it increased quite materially this year. It's now around $2 billion, but within that number, that 70% relates REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 31, 2021 / 11:00PM, WBC.AX - Full Year 2021 Westpac Banking Corp Earnings Call to Fix. So as that number reduces, presumably you're not expecting your investment spend to reduce well below $1 billion. Does that mean that there is some capturing of that investment in the BAU line? How should we sort of think about that mix?