Westpac Banking Corporation · ASX:WBC
Westpac Banking — Investor Presentation (July 2004)
10 slides from Westpac Banking's investor presentation, Jul 29, 2004
Slide 1: Westpac Institutional Bank
Wil#estpac Austratia’s First Banke Westpac institutional Bank Philip Coffey - Group Executive, WIB July 2004 Agenda * Business overview « Strategy execution + Growth potential * Balancing risk and reward Wildestpac Barker Undate July 2904 » Philip Daley 5 Forge Sask 2
Slide 2: WIB — business overview
WIB — business overview * Institutional Bank ~ clear . March client focused strategy * Strong focus on core Cash earnings o] ee $225 markets of Australia and Economic profit $1 28m New Zealand i ; _ Expense to income. 42.4% ratio * Building growth capabilities Total committed ”2$89.7bn : . exposure
Slide 3: Business overview — sustaining growth and earnings
Business overview — sustaining growth and earnings WIB On Balance Sheet Lending .. WIB Economic Profit and Cash. : : : Earnings -. : 12087 ~~ ofishore . BaAustealia & New Zealane ve “256 + “200 + tHOZ 202 HOS 2H03 1HO4 | Wilfestpac Austratiz’s Fires Gastk Strategy execution - Transformation project
Slide 4: Core franchise — why chase lead bank status?
Core franchise — why chase lead bank status? Drivers of Lead Bank Status 1. Lead bank delivers 55-70% of market share across product offerings 2. Results in higher value transactions eg Capital Market issues 3. Provides increased cross sell opportunities ~ 4.5 for Lead Bank versus 2.9 for Non-Lead B
Slide 5: Core franchise - position across markets
Core franchise - position across markets Source: Market Share, Greenwich Surveys, AustraliaiNew Zealand” Volume based "7 WBC data Wilfestpac cate July 290 Core franchise - cross-sell wins Significant cross-sell wins in past year: . Fairfax - $700m bridging finance facility for NZ acquisition fed to
Slide 6: Core franchise - leveraging across the organisation
Core franchise - leveraging across the organisation + Developing the WIB core franchise is also delivering benefits for the bank ~ Industry specialisation packages have assisted in the growth story for SME - Introduce BT superannuation package to corporate and institutional bank clients - Structured
Slide 7: Growth - alternative investment market
Growth - alternative investment market Risk ~ Return frontier Return Where SCG operates v Structured bonds/notes v High yield funds Capital Private Structured oe hee equity ¥ Structured property equity lafractuctuee H | v Infrastructure tedge ' seucturea "Pas | | _ oO v Structured equity Austrati nt
Slide 8: Retail distribution - building from a solid base
Retail distribution - building from a solid base $1367 biillion of structured products sold in last 12 months + Breadth: The number of retail investors has grown 30% to 16,850 from September 2003 to June 2004 + Depth: Clients are increasingly investing in more than one structured investment product
Slide 9: Risk / reward balance — trading
Risk / reward balance — trading Daily Average VaR Income Avg VAR Financlal Markets Income & 1996 © 2003 B 1926 @ 2003 Risk Reward Wilfestpac Uredate July 2004 ». Pili oe R's F31 7 Robust risk management framework Business Oversight iy Lee + Clear segregation of duties between each stage of a trade b
Slide 10: Summary
Summary « Diversified business - growth in quality of earnings, moving to annuity and client-focused revenues + Executing three core elements of Lead Bank strategy + Structured investments, capital markets and alternative assets delivering benefits across the Bank « Balancing risk and return Wilfest