Westpac Banking Corporation · ASX:WBC
Westpac Banking — Credit Suisse Asian Investment Conference 2007
18 slides from Westpac Banking's conference presentation, Mar 29, 2007
Slide 1: Australia's First Bank
WMfestpac Australia’s First Bank Westpac Banking Corporation David Morgan Chief Executive Officer March 2007
Slide 2: Westpac Banking Corporation — at a glance
Westpac Banking Corporation — at a glance * Australia’s first bank — est. 1817 | 30 September 2006 * Top 50 bank globally! EEE es eS Cash earnings “$3,079 million * Consistent earnings growth * Strong franchise .in core markets of ..} Return on equity 23% Australia, New Zealand and the - ; : near. P
Slide 3: Consistent, low-risk strategy — tilted towards growth
Consistent, low-risk strategy — tilted towards growth Focused on core markets Oriented to growth Disciplined & low risk Sustainability led Focus on Australia, New Zealand and the near Pacific Given crowded heartland, innovating to support: strengthened distribution; deep segmentation; end-to-end pro
Slide 4: Strong franchise — significant growth opportunity
Strong franchise — significant growth opportunity Busines Unis Poona en nae Me orm BT Financial Funds Management & Distribution 13% ~ 15% Group _ _ Insurance 12% - 14% Business Business Banking 10% ~ 11% Financial Services Payments 8% ~ 9% 7% Unsecured Lending 9% ~ 10% Consumer Financial Services Co
Slide 5: Strong franchise — significant growth opportunity
5 Strong franchise — significant growth opportunity Business Units Areas of Opportunity Wealth « Capture growth with leading Wrap and Corporate Super platforms i i Further build suite of investment products (Specialised Capital and inancia management Structured Equities) Group ucturt quities) Insura
Slide 6: Supported by sound economic environment
Supported by sound economic environment * Expansion continues in Australia, Annual GDP (Year average, Calendar years %) despite impact from drought : “GDP (Aust). GDP.(N2) + By contrast, a period of slower growth and consolidation in New Zealand * Continuing solid global growth * In Australia: 2004
Slide 7: 2007 off to a solid start
2007 off to a solid start * Growth in line with system in first Westpac credit growth as a multiple of financial system moe " } : four months of year (Oct 06 — 18 Jan 07%): 1 * Robust growth across all product sets 08 * Double digit wealth growth continues ot ; = : : 4HO5 2HO5 1HO6 2HO06 YTD O7* Ann
Slide 8: Mortgages — solid growth across all channels
Mortgages — solid growth across all channels $bn of now growth . Australian outstandings up 12% 110 9 (annualised 4 months to 100 4 31 Jan 07) 90 * 0.9 times financial system 20 + 1.1 times banking system 10 + Proportion of loans via Westpac channels strong at just above 60 J 60%, supported by: 50 4
Slide 9: Cards — solid growth from existing customers
Cards — solid growth from existing customers Sources of growth Existing customers 60% @ Organic growth / a WBC acquisition New \. customers 40% & Virgin acquisition FY06 Existing customer growth — 60% Utilising improved analytics to generate increased business from established customers 50% increase
Slide 10: Business growth
10 Business growth i 2006 YTD 07* Strong growth in Australian business lending in four months to 31 January 2007, up 16% (annualised): Business Financial Services up 12% since 30 September 2006 (annualised) - Pinnacle embedded with 80% of deals automatically assessed - Lending through third party re
Slide 11: BT — increasing share in a fast growing market
BT — increasing share in a fast growing market Se Le ee A EH a Ve eo. oe c LD a / / Lo L TG a ye _ ee ee _ Bs Oe Retail 11 4 CorporateSuper Boe 10 eee) Platforms 12 2 MarginLending ss 15 3 Wholesale 3 13 23 3 Life Insurance 6 ge ae eee 7 Source: Retail — S&P Dec 2006; Corporate Super —- Dexx&r Dec 2
Slide 12: Growth without compromising risk and return
12 Growth without compromising risk and return Strong asset growth is impacting outcomes across other performance metrics Margins Decline likely to be at -- top end of 5-10. bps expectations given. - Strong growth driving bigger front book impact : - Increased wholesale funding task - Relatively hig
Slide 13: Forward credit indicators — modest upward trend
13 Forward credit indicators — modest upward trend « Asset quality environment remains sound: - Consistent economic growth - Low unemployment « Modest increase in risk in NZ and the Pacific Islands « Household delinquencies trending higher but below industry experience Household - 90 day delinquenci
Slide 14: Key challenges
14 Key challenges New Zealand * Early signs of franchise turnaround * Higher impairment losses offsetting underlying performance improvements Competition * Tough competition from new and existing players continues Funding * Structural shift to high interest deposit accounts continues * High asset gr
Slide 15: Key opportunities
16 Key opportunities Wealth management — continuing to grow our share profitably * Capture growth in superannuation with leading Wrap and Corporate Super platforms + Positioning investment to capitalise on changes to super regime * Improved cross sell from strong insurance product set * Expand the s
Slide 16: Summary
16 Summary * Environment remains positive * Solid start to 2007, with robust lending growth * Credit quality remains sound, although delinquencies and impairment losses trending up from historic lows * Established portfolio of growth opportunities supports positive outlook Wfestpac Credit Suisse Asi
Slide 17: Disclaimer
17 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 advi
Slide 18: Australia's First Bank
WMfestpac Australia’s First Bank Westpac Banking Corporation David Morgan Chief Executive Officer March 2007
Westpac Banking — Credit Suisse Asian Investment Conference 2007 on 6ix