Westpac Banking Corporation · ASX:WBC
Westpac Banking — UBS Global Financial Services Conference 2007
9 slides from Westpac Banking's conference presentation, May 14, 2007
Slide 1: Australia's First Bank: Growing in our core markets
Wifestpac Austraiia’s First Bank Growing in our core markets May 2007 Westpac Banking Corporation — at a glance ¢ Australia’s first bank: est: 1817 * Consistent earnings growth : A$1,678m Cash earnings US$1.360m * Strong franchise in core markets of : Australia, New Zealand and the Return.on equity
Slide 2: Balanced portfolio — significant growth opportunities
Balanced portfolio — significant growth opportunities Approx. Revenue Indicative Medium Term Major Business Units Contribution by Portfolio Revenue Growth Potential Funds Mgt & Distribution 12% — 15% Insurance 12% — 14% BT Financial Group Business Financial Services Business Banking 9% ~ 11% Payment
Slide 3: Points of differentiation
Points of differentiation Focus. on core _ *--Major Australian bank most focussed on Australian / markets : New Zealand growth opportunities Leading institutional -. *.Leader in debt capital markets, foreign exchange and bank | -~-transactional banking _ *-. Balanced approach to risk | «Well provisi
Slide 4: 1H07 - A revenue driven performance
1HO7 - A revenue driven performance Cash earnings movement 1H06 — 1H07 ($m) Cash earnings be 41% 2,400 4 EPS A 11% Oy Revenue up 7% Dividends A 13% 2200 | reflecting strong volume growth Return on equity Ps to 24% 2,000 + (94) 4,800 + q ; a (47) 1,678 es) $ 4,600 4 4,400 4 4,200 + 4,000. T T 1HO6 Re
Slide 5: Growing balance sheet around system in Australia
9 Growing balance sheet around system in Australia Westpac total Australian credit growth* as a multiple of banking system growth 1.4 4.2 4.0 Fe 0.8 ee 06 0.4 0.2 0.0 + r r r 1 1 + 1 r Mar Jun Sep Dec Mar Jun Sep Dec Mar 05 05 05 05 06 06 06 06 07 * Annual (12-monthly) change Source. APRA Credit / d
Slide 6: Sound asset quality, impairment losses trending higher
1 Sound asset quality, impairment losses trending higher Stressed exposures as a % of TCE O Watchiist & substandard 90 days past due well secured & Impaired’ 2001 2002 2003 "2004 2005 2006 “1HO7 * Impaired assets up 3% over the year, to 0.22% of loans * Stressed exposures as a % of total exposures a
Slide 7: Strong outcomes for shareholders - dividend up 13%
13 Strong outcomes for shareholders - dividend up 13% * Strong dividend increase in 1HO7 supported by: - 24% ROE, up 60 bps - Strong capital position * Higher pay-out ratio ~70% maintained UGS Global Financial Services Ganference ~ May 2007 Dividends per share (cents) 70.5 60 5 50.4 40 4 30 5 20 5 1
Slide 8: Credit growth solid but moderating
16 Credit growth solid but moderating i Forecasts Credit growth (%) ‘to Dec 2007) 24 20.5 + 20 16 5 + 16 12.4 + 12 8.5 +8 44 + 4 0 T T T T T T T T r r r 1 T T T 0 CPEP ERE REEL ERE EE 8 SOG SOB OB OB BOB SO SOS. SB SB. BOS —— Aust. housing _——Total credit (Aust). +--+ Total credit avg (Aust). -——— T
Slide 9: Summary & Outlook
V7 Summary & Outlook * Westpac has a strong Australasian regional franchise ¢ Well defined growth options focused on organic opportunities in core markets * Strong 1HO7 performance and consistent long run returns ¢ Banking and wealth management environment remains very healthy ¢ Confident we can con
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