Slide 1: Westpac New Zealand Market Update
For personal use only Westpac New Zealand Market Update Brad Cooper, CEO Westpac NZ Overview Westpac NZ strategy Brad Cooper Business banking Bruce McLachlan Operating environment Gavin Street 2 NZ Market Update – Monday, 10 September 2007
Slide 2: Key messages
Key messages • Business diagnostic completed • Re-organised business to drive accountability and superior For personal use only Business strategy execution • Consistent, clear strategy developed • Focused on five key imperatives • Economy has been healthy for a sustained period Operating • Some sign
Slide 3: Progress since last update
Progress since last update Retain customers • 12 months of consecutive net customer growth For personal use only Greater share of • Expanded footprint – 3 new branches Auckland market • Share of mortgage registrations lifted from 14% to 19% • Realigned transaction fees Pricing • Floating / fixed mor
Slide 4: Leadership changes have been made
Leadership changes have been made Chief Executive Officer – Brad Cooper GM NZ GM NZ *CEO GM Product GM Marketing & For personal use only Business Consumer WIB NZ Management Brand Experience Bruce Recruiting David David McLachlan McLean Cunningham Ian and New COO and New Head of Sutcliffe Cards GM GM
Slide 5: Strategy developed and translated to operating plans
Strategy developed and translated to operating plans Westpac NZ strategy Vision Earn all our customers’ business For personal use only Real customer Engaged, Margin Channel Imperatives Productivity centred culture skilled staff management optimisation • Focus shifted to execution - 107 business lead
Slide 6: Stronger foundation built in Consumer banking
Stronger foundation built in Consumer banking • Customer retention sustainably Net consumer customer growth (‘000s) higher 11 9 For personal use only 4 5 • Pricing now aligned to market -1 • Coordinated customer contact Dec 05 -3 Mar 06 -3 Jun 06 Sep 06 Dec 06 Mar 07 Jun 07 programme established Not
Slide 7: Westpac New Zealand Business Banking
For personal use only Westpac New Zealand Business Banking Bruce McLachlan 12 Months ago…. 9 9 9 14 NZ Market Update – Monday, 10 September 2007
Slide 8: Market leadership continues
Market leadership continues Market share - main bank customers $5m-$100m t/o (%) • Market leadership defended…and 25 leveraged 21 For personal use only • Labour market under intense pressure…. key to market leadership 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 Westpac Competitors • New entran
Slide 9: Future growth in a competitive, slowing market
Future growth in a competitive, slowing market • Excellent momentum - Sector leading growth – more to come For personal use only - Particular strength in deposits • Franchise in excellent health - Leading market position - High and improving satisfaction • Yet to leverage new initiatives - Business
Slide 10: Implications of current environment
Implications of current environment • Near the top of the interest rate cycle Highest interest rates • Some evidence of easing in housing and consumer For personal use only in OECD spending • Combined with high interest rates, significant pressure for Exchange rate business volatility • Provisioning
Slide 11: Solid business momentum
Solid business momentum Growth in balance sheet relative to market (times) • Above system growth in deposits and 1.5 1.1 1.1 1.3 1.2 lending 0.9 1.0 For personal use only 0.6 • Margin decline has slowed • Impact of transaction fee realignment 1H06 2H06 1H07 Jun 07 YTD Lending Deposits substantially
Slide 12: Good quality book
Good quality book Personal loans – 90 day delinquencies (%) Cards – 90 day delinquencies (%) 1.44 1.27 1.14 For personal use only 0.84 $0.3bn balances $0.9bn balances 1% of lending 2% of lending 2002 2003 2004 2005 2006 1H07 Jun 07 2002 2003 2004 2005 2006 1H07 Jun 07 Note: balances as at 1H07 Sourc
Slide 13: Summary
For personal use only Summary Brad Cooper Summary • New Zealand is a valuable franchise in the Westpac portfolio • Elements are in place: - Strong brand - Great franchise - Focused leadership team • Executing around one strategy 26 NZ Market Update – Monday, 10 September 2007
Slide 14: Disclaimer
Disclaimer The material contained in this presentation is intended to be general background information on Westpac Banking Corporation and its activities. The information is supplied in summary form and is therefore not necessarily complete. Also, it is not intended that it be relied upon as advice