Westpac Banking Corporation · ASX:WBC

Westpac Banking — UBS Australian Financial Services Conference 2012

16 slides from Westpac Banking's conference presentation, Jun 21, 2012

  1. Slide 1: Westpac Retail & Business Banking

    For personal use only WESTPAC RETAIL & BUSINESS BANKING Jason Yetton Group Executive Westpac Banking Corporation ABN 33 007 457 141

  2. Slide 2: Westpac RBB is well positioned for continued solid returns

    Westpac RBB is well positioned for continued solid returns For personal use only Westpac Local has created a strong relationship Strong based franchise, supported by a step change in foundation leadership and banker capability Strong performance with a good balance across Disciplined growth / return

  3. Slide 3: Westpac Local – a recap of last three years

    Westpac Local – a recap of last three years For personal use only Westpac RBB strategy is focused on generating superior returns through more customers and deeper customer relationships - delivered via Westpac Local Increased skills & Building strong local More available with segment specific Making

  4. Slide 4: Westpac Local has delivered on key metrics

    Westpac Local has delivered on key metrics For personal use only WRBB Customer numbers (m) WRBB Customers with 4+ products (%) 5.25 5.18 29.9 29.3 5.06 28.5 27.5 4.90 Sep-09 Sep-10 Sep-11 Mar-12 Sep-09 Sep-10 Sep-11 Mar-12 Key metrics (avg. per wk) Mar 09 Mar 12 Increase WRBB Revenue per avg. FTE (

  5. Slide 5: Local has driven solid earnings growth, with balanced revenue and expense growth

    Westpac Local has driven solid earnings growth, with balanced revenue and expense growth For personal use only WRBB Net operating income ($m) WRBB Expense to income ratio (%) 6,350 % 49.8 49.4 6,177 6,106 31.0 29.9 48.6 30.0 29.0 28.3 5,643 28.0 47.527.5 27.0 26.1 26.0 25.0 24.0 FY08 FY09 FY10 FY11

  6. Slide 6: Local has helped establish a leadership position in banking and wealth cross sell

    Westpac Local has helped us establish a leadership position in banking and wealth cross sell For personal use only Sector leading wealth penetration1 (%) BT Super for Life customer numbers3 (‘000) WRBB Peer 1 Peer 2 Peer 3 232 20.3% 211 18.4% 172 128 15.5% 13.6% 49 Mar-10 Sep-10 Mar-11 Sep-11 Mar-12

  7. Slide 7: RBB's disciplined approach continues to deliver solid momentum in 1H12

    Westpac RBB’s disciplined approach continues to deliver solid momentum in 1H121 For personal use only  Deposit growth (retail) 1.2x system2  Net operating income up 1%  Mortgage growth 0.7x system3  Cash earnings up 6%  Wealth penetration sector  Margins 4bps lower leading at 20.3%4 Growth Ret

  8. Slide 8: RBB is positioning for continued success

    Westpac RBB is positioning for continued success For personal use only  1m+ mobile customers, up 90% in last 12 months  New apps currently under development Digitalisation  Online Transformation Program underway  Simplifying sales and service online  Changing distribution footprint to align wit

  9. Slide 9: Re-orientating growth to higher market profit pools

    Re-orientating growth to higher market profit pools For personal use only Australian financial service profit pools by segment & product1 ($) Increased focus on sources of highest deposit, super and Lending life insurance growth and value General Insurance Life Insurance Super and Investment Deposit

  10. Slide 10: RBB is well positioned for continued solid returns

    Westpac RBB is well positioned for continued solid returns For personal use only Strong  Grow customer numbers relationship based  Deepen products per customer franchise  Retain customers for all of life Disciplined  Maintain margin management disciplines approach to growth,  Focus on gathering

  11. Slide 11: Appendix

    For personal use only WESTPAC RETAIL & BUSINESS BANKING APPENDIX Jason Yetton Group Executive Westpac Banking Corporation ABN 33 007 457 141

  12. Slide 12: RBB Cash earnings up 6%

    Westpac RBB Cash earnings up 6% For personal use only WRBB Cash earnings movement half on half ($m) WRBB Movement 1H12 – 2H11 56 (51)  Cash earnings up 6% to $1,049m (represents 33% of Cash earnings  6% 13 1,049 Westpac Group) 109 3 (37) 34 (1) (1) 994 3 Core earnings  3%  Core earnings up 3% to

  13. Slide 13: RBB delivering improved metrics

    Westpac RBB delivering improved metrics For personal use only WRBB Key features of 1H12 WRBB Key metrics  Westpac Local strategy continues to deliver relationship based growth, with a stronger Change on balance sheet, tightly controlled expenses and a strong risk profile 1H11 2H11 1H12 2H11  Impro

  14. Slide 14: Strong risk culture with clear market differentiation on credit quality and impairments

    Strong risk culture with clear market differentiation on credit quality and impairments For personal use only WRBB Strong risk profile WRBB Movement in impairment charges ($m) Credit Risk (1H12 compared to 2H11)  Stressed exposures as a % of TCE1 at 137bps, down 273 274 (11) 11 (17) (12) 13bps (27)

  15. Slide 15: Ongoing changes in the operating environment will significantly impact financial services

    Ongoing changes in the operating environment will significantly impact financial services For personal use only Digitalisation of the economy is transforming how customers Digitalisation interact with businesses and is placing customers more in control The commodities super cycle and demand from Asi

  16. Slide 16: Definitions and Disclaimer

    Definitions and Disclaimer For personal use only DEFINITIONS: Wealth and Home and Content Penetration Metrics: Data based on Roy Morgan Research, Respondents aged 14+. Wealth penetration is defined as the number of Australians who have Managed Investments, Superannuation or Insurance with each finan

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