Westpac Banking Corp Q3 2020 Earnings Call Transcript

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

Question: Victor German - Macquarie Research - Analyst : I was just hoping to ask also a follow-up question on margins on Slide 4. One of the buckets that you disclosed that sort of surprised me a little bit was the impact on capital and other, 4 basis points in the quarter. It seems a little bit larger than I would have thought would come through given your hedge. Just interested whether you expect this to be fairly linear and you expect a similar impact in the next quarter. Or was it lumpy at all? And also, you've made a comment about shortened duration of capital hedge, if you can just sort of elaborate on that as well.

Question: Victor German - Macquarie Research - Analyst : [On the] shortened duration [of hedge].

Question: Victor German - Macquarie Research - Analyst : So does that mean your historic hedge obviously rolls off kind of on the 3-year basis that you've hedged it, but going forward, you're just leaving it at 1 year? Is that kind of how we should think about it?

Question: Victor German - Macquarie Research - Analyst : All right. And does that apply both capital and deposits, is it?

Question: Victor German - Macquarie Research - Analyst : All right, okay. And then just...

Question: Victor German - Macquarie Research - Analyst : All right, just capital. Deposits are still hedged the same as before, 3 years?

Question: Victor German - Macquarie Research - Analyst : Okay. And just a point of clarification to earlier question about dividend policy from APRA. Can you just maybe remind us kind of how historically APRA approached capitalized software reduction from that statutory capital -- statutory profits impact? Obviously, it impacts statutory profits, but it's a capital deduction. Is that generally viewed as a...

Question: Victor German - Macquarie Research - Analyst : Right. So they did intend to look through the capitalized software write-offs...