Performance Against Targets
The WATC Board sets annual performance targets for WATC. These targets form part of the Statement of Corporate Intent, which is submitted to the Minister at the start of each financial year in accordance with Section 16I(1) of the Western Australian Treasury Corporation Act 1986.
Estimated Interest Rate Savings
Target: Savings > 0.00%
Outcome: Estimated interest rate savings to clients by reference bond credit rating and term to maturity were greater than 0.00%.
Target achieved. WATC continued to deliver significant interest rate savings to clients in 2017/18. See Key Performance Indicator section for a more detailed explanation.
Assessment of Client Satisfaction
Target: 90% client satisfaction
Outcome: 99% client satisfaction with the alignment of WATC’s products and services to client needs.
98% client satisfaction with the overall quality of service provided.
Target achieved. The survey results also indicated that WATC continued to outperform financial industry benchmarks in terms of quality of service and understanding of clients’ financial needs.
Administration Cost Ratio
Target: Administration Cost Ratio > 0.060%
Outcome: Administration Cost Ratio = 0.034%
Target achieved. WATC continued to deliver scale benefits to the State by keeping net administration expenses in check while average client debt funding requirements increased by 10.6% over the year. See Key Performance Indicator section for a more detailed explanation.
Pre-Tax Profit
Target: Profit = $30.6 million
Outcome: Profit = $34.8 million
Target achieved. Unlike private sector financial institutions, it is not the primary objective of WATC to maximise pre-tax profit, but rather to maintain an adequate profit while providing cost-effective financial products and services to the State and Western Australian public sector agencies.
Return on Capital
Target: Return = 5.2%
Outcome: Return = 29.34%
Target achieved. WATC achieved well above its target minimum return on capital for 2017/18 through our effectiveness in constraining administrative and loan-raising expenses, as well as effective hedge management of portfolio exposures.
Staff Engagement Rating
Target: Employee Engagement Rating > 55%
Outcome: Employee Engagement Rating = 56%
Target achieved. Work continues on the strategic approach to improve employee engagement, encouraging and developing self-leadership, accountability and continuous improvement aligned to WATC’s vision, objectives and values.
Five-Year KPI Summary
| 2017/18 | 2016/17 | 2015/16 | 2014/15 | 2013/14 | |
| Estimated Interest Rate Savings > 0.00% | Yes | Yes | Yes | Yes | Yes |
| Assessment of Client Satisfaction* | 99% | 100% | 100% | 100% | 98% |
| Administration Cost Ratio | 0.034% | 0.037% | 0.039% | 0.044% | 0.047% |
| Pre-Tax Profit | $34.8m | $17.6m | $16.0m | $23.1m | $20.5m |
| Return on Capital | 29.34% | 15.49% | 14.30% | 22.08% | 19.98% |
| Staff Engagement Rating* | 56% | 46% | 51% | 40% | 43% |
* Different methodology used in prior years.
Five-Year Financial Summary
| 2017/18 $m |
2016/17 $m |
2015/16 $m |
2014/15 $m |
2013/14 $m |
|
| Financial Performance | |||||
| Profit Before Income Tax Equivalent Expense | 34.8 | 17.6 | 16.0 | 23.1 | 20.5 |
| Financial Position | |||||
| Total Assets | 55,985.8 | 54,987.8 | 50,976.1 | 42,823.5 | 40,009.5 |
| Percentage Change in Assets (%) | 1.8 | 7.9 | 19.0 | 7.0 | 4.1 |
| Total Liabilities | 55,851.3 | 54,868.3 | 50,861.7 | 42,709.8 | 39,902.6 |
| Equity | 134.5 | 119.5 | 114.4 | 113.7 | 106.9 |
Previous: Chairperson and CEO’s ReportNext: Board of Directors