Half Year 2019 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 : Victor German from Macquarie. Two related questions, one on expenses. Brian, you talked about some of the initiatives that you're putting in. And obviously, we have guidance for this year, but just interested in the observations. If challenging revenue environment continues -- and you're getting lots of questions on low interest rates and all that sort of stuff that does to revenue. Just in terms of your thoughts on expenses as we go out into 2020, '21. One of your peers obviously is talking about significant reduction in the expense space? And second related question on dividends. I appreciate that this year lots of volatility. But on an underlying basis, earnings are down 1% and dividend is flat. You're issuing more shares. And that's obviously continued to put pressure on your payout ratio. How you're thinking about dividend more broadly? Is it you're trying to sort of return as much franking credits to your shareholders and that's the key driver? Or do you think as we go out 2, 3 years, you will be able to get into a more reasonable payout ratio because either revenue improves or you'll be able to do a lot more on costs?

Question: Victor German - Macquarie Research - Analyst : Sorry, Brian, just if I can push my luck up. Completely appreciate. And shareholders would certainly not want you to sacrifice that investment. One of the things that's difficult for us is how far progressed are you? I mean are we -- is it still another 2, 3 years of further investment or we're getting towards the end of that?