Westpac Banking Corp Wealth Market Update for 2017 Transcript

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

Question: Brian Johnston - CLSA - Analyst : Brian Johnston, CLSA. Brad, you don't get away that easily. On that last slide, short term headwinds, although significant long term opportunities. Can you just give us the exact quantification of those and the description of what they are? These short-term head winds please.

Question: Brian Johnston - CLSA - Analyst : Brian Johnston, CLSA. Brad, apologize, four quick questions but I assure you they are --

Question: Brian Johnston - CLSA - Analyst : Four -- number one, if you have a look at slides 5 and 8, it's the old gibber about basically tremendous system growth that we hear from everyone which never seems to flow into the profitability of the banks' businesses. Over the last nine years we've had an unbridled period of interest rates only going one way and real asset values rising. I'd just be interested -- what is the vulnerability on those overall growth projections to basically the end of the interest rate cycle and asset values falling? That's the first one. The second one is that it's fantastic that you'll get AUD250 million out of the life companies on page 12. But when you have a look on the next slide, slide 13, there's also neatly about another AUD240 million of capitalized software I'd imagine to go in, which is a capital deduction. How long is the software amortized over and am I right in reading it that net-net you'd think there's no regulatory capital release at all? The next one is that on the -- fantastic presentations -- I think this is amazing -- but I'm just wondering when you actually, you're in a world where the price of an annuity is right there on a screen in front of someone with the exact TD rate, can we just get a feeling as to what you think that might actually do to basically TDs which are a bit of a priority for the bank? Then the final one is, you've had a lot of questions today about the very low penetration but I sense what you've got here is something very special. Can we get a feel about the opportunity not only to improve the market share with your existing customers but to actually grow share from external participants as well? So it's basically the growth in the book, the amortization, the net capital release, annuity versus a TD and how much of the growth should we think is existing customers versus new customers?