Westpac Banking Corporation · ASX:WBC
Westpac Banking — Salomon Smith Barney Financial Services Conference 2003
16 slides from Westpac Banking's conference presentation, Mar 4, 2003
Slide 1: Salomon Smith Barney Financial Services Conference 2003
VTi | Aust lalate First Bank - Salomon Smith Barney . - Financial Services Conference 2003 ~ David Morgan. : Chief Executive Officer 4 March 2003 ~
Slide 2: What the market is asking
What the market is asking Slowdown in housing lending Asset quality and the credit cycle Wealth management — where's the value? The service challenge Can high single digit returns continue? SSB Conference 2003
Slide 3: Credit growth — similar trends
Credit growth — similar trends Australian credit growth 0, 5 . % ann forecast 24 a Q Soe —— on aay 204 \ ; 20 16.5, r 16 12 > | 12 85 +8 Al 44 +4 0 Lo. 44 po 8 ee ee ee 8 Jan-90 0 Jan-92 Jan-94 Jan-96 Jan-98 “Jdan-00 Jan-02 ——Personal —— Housing owe BUSINESS ——Total oe S88 Conference 2003
Slide 4: Credit quality sound...
Credit quality sound... Categories of stressed loans* as a % of total commitments 0, , . . 3.0% @ AGC stressed loans ~ oe () Watchlist & substandard 2.5% ; @ 90 days past. due well secured an iw Impaired 2.0% ‘on “1.5% ae -_ 1.0% 0.5% - 0.0% ———— — ~ a a Sep96.. Sep. 97. Sep.98.. Sep99... Sep.00...
Slide 5: ...and no signs of stress across the portfolio
...and no signs of stress across the portfolio Housing Portfolio - 90 day delinquencies % 15 1.0 IN ; 0.0.64 065 Nt 0.26. 0.25. 9.23 5 45 0.16 . +o Oye 0.04 T T T 7 y y " : 1996 .1997-.1998 -1999.:2000 2001 2002 01 : . : 2003 - Consumer Unsecured ~ 90 day delinquencies yg me 1.98 “~m- Including AGC
Slide 6: Wealth management — across the value chain
Wealth management — across the value chain 7.5 Million Westpac customers Access to non- Westpac customers though EFA networks 700 Westpac planners & advisers Over 15,000 EFAs Leading wrap and corporate super platforms Broad product range Proven servicing capability Core Australlan equites style Exte
Slide 7: BT value - sensitivity analysis
BT value - sensitivity analysis ¢ At acquisition, $900m consideration equated to 81% of assessed value * Present value of additional synergies identified - $230 million — $37million p.a. in additional ongoing synergies ~— $27 million in one-off costs to extract synergies * Further benefits realised
Slide 8: Wealth management
Wealth management « Investment consistent with the size of the wealth management opportunity - Risk - Control - Price * Only major bank offering a Wrap capability * Components of value (August 02) Portfolio services-Wrap & Corp Super Retail product and distribution New Zealand 5% Margin lending and
Slide 9: How are we tracking?
How are we tracking? Integration is on track - Key functions integrated - Relocation to Chifley - 50% of 2003 synergies to be realised by end March 2003 Solid institutional flows offset by lower net retail FUM Wrap presence continues to expand and attract solid inflows Reinforcing the brand and cult
Slide 10: The service opportunity
The service opportunity Staff Customers Shareholders improve commitment by | Improve satisfaction by | Maintain 20% at least 5% at least 5% ROE “ASK ONCE” ( Sustraliats fest Bank, SSB Conference 2003
Slide 11: Strong staff commitment
Strong staff commitment Percent of Staff demonstrating a high degree of commitment to Westpac 80 60 4 40 20. Jun-00.- Jun-01Jun-02- . Sep-02.- Dec-02 # ‘Quarterly surveys based on a~6% sample versus full staff participation in the annual survey. 05 oe S88 Conference 2003
Slide 12: Staff satisfaction ahead of norms
Staff satisfaction ahead of norms : 2002 vs 2001 Global Financial Services Norm Staff perspectives Centre Line: Westpac Overall 2001 Centre Line: Global Financia! Services Norm survey 2002 (N=22,137) (N=150,000) ilies aca S82 Conference
Slide 13: Translating staff commitment into customer satisfaction
Translating staff commitment into customer satisfaction ¢ Ann Sherry —|lmplementing New Zealand transformation ¢ Mike Pratt —~ Major Australian change program * Michael Coomer — Functionality to deliver the promise ¢ Phil Coffey — WIB transformation SSB Conference 2003
Slide 14: The branch is back
The branch is back ¢ Only major Australian bank to expand its branch presence in year to June 2002' ¢ Extending branch opening hours 1 APRA Points of Presence Survey as at June 2002. ( Sustraliats fest Bank, SSB Conference
Slide 15: Looking ahead
Looking ahead * In November 2002, we articulated our expectation for cash EPS* growth of 7% - 9% in 2002/03 * Given global uncertainties, we noted the balance of risks to the outlook was on the downside * Core businesses continue to perform well * To date, downside risks have yet to materialise # Ca
Slide 16: Disclaimer
Disclaimer The material contained in the following presentation is intended to be general background information on Westpac Banking Corporation and its activities as at 4 March 2003. The information is supplied in summary form and is therefore not necessarily complete. Also, it is not intended that
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