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Sales andDistributionJim L’EstrangeChief Executive OfficerAustralian Consumer Banking

13 August 2001

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DisclaimerDisclaimer

The material contained in the following presentation isintended to be general background information on WestpacBanking Corporation and its activities as at 13 August 2001.

The information is supplied in summary form and is thereforenot necessarily complete. Also, it is not intended that it berelied upon as advice to investors or potential investors, whoshould consider seeking independent professional advicedepending upon their specific investment objectives, financialsituation or particular needs.

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We have had a consistentWe have had a consistentstrategy for 3 years…strategy for 3 years…

• Focus on segmentation

• Developing our people

• Developing channels to meet customerneeds

• High performance culture

• Building alternative profitable distribution

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…which has delivered strong…which has delivered strongperformanceperformance

• Increased number of valuable customers

• Improved retention rates (mortgages,investments)

• Improved product penetration (2.24 è 2.51)

• Strong structured product sales - $750million

• Mortgage cross sale up 33%

• Improved planner and adviser productivity

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300

500

700

900

Mar-99 Sep-99 Mar-00 Sep-00 Mar-01

000’sNumber

…and an increase in valuable…and an increase in valuablecustomerscustomers

%

10

15

20

25

Mar-99 Sep-99 Mar-00 Sep-00 Mar-01

Proportion of Customers

Consumer Valuable* Customers

Growth 71%

* Priority or valuable customers are typically those with whom we have a multi-product relationship.

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Customer retention - mortgagesCustomer retention - mortgages& investments& investments

10

15

20

25

1999 2000 2001YTD*

Mortgages

Run

-off

%

10

15

20

25

1999 2000 2001YTD*

Investments

Red

empt

ion

Ret

ail F

UM

%

* Annualised

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Credit Card Outstandings

0

1

2

3

4

5

Mar-99 Jun-99 Sep-99 Dec-99 Mar-00 Jun-00 Sep-00 Dec-00 Mar-0110

12

14

16

18

20

22

Outstandings (LHS) Market share (RHS)

Market shareMarket share

Source: ABA

Home Loans, Investment & Equity Loans

25

30

35

40

45

50

55

60

Mar-99 Jun-99 Sep-99 Dec-99 Mar-00 Jun-00 Sep-00 Dec-00 Mar-010

5

10

15

20

25

Outstandings (LHS) Market share (RHS) 0

20

40

60

80

100

120

140

160

180

200

1997 1998 1999 2000 2001YTD

Wes

tpac

No.

Pol

icie

s S

old

(000

's)

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

Mar

ket

Sha

re

Westpac No. Policies Sold Market share

General Insurance Business

Fixed Rate Personal Loan Market Share

$b$b

$b$b %%

%%

10

12

14

16

18

20

22

Oct-99

Dec-9

9Fe

b-00

Apr-00

Jun-0

0Aug

-00

Oct-00

Dec-0

0Fe

b-01

Apr-0

1

%

Source: APRA

Source: ABS

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Growth opportunitiesGrowth opportunities• Grow product penetration through

– better identify customer life stage events, andtherefore financial needs

– continue to invest in CRM, training

• Grow wealth management capability– increase number of planners & advisers– double referrals growth over 3 years– improve wealth creation capability within branches– continue focus on broadening customer

relationships

• Continue to lower cost structures• New referral sources• Leads management program

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Growth of our adviser networkGrowth of our adviser networkis key to our strategyis key to our strategy

0

200

400

600

800

1000

1200

Sep-95 Sep-96 Sep-97 Sep-98 Sep-99 Sep-00 Mar-01 Jun-01 Sep-01 Sep-02 Sep-03

Consumer advisers

Priority advisers & financial planners

Business advisers

Target

Planner/Adviser Numbers

• Strong organicgrowth

• Strong focus onaddressing retention

• Continue externalrecruitment

Direct businessadvisers

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Financial planners & Financial planners & advisorsadvisorsproductivityproductivity

Advised Sales per FTE

0

100

200

300

400

500

600

700

800

900

0ct 9

9

Dec-99

Feb-0

0

Apr-00

Jun-0

0

Aug-00

Oct-00

Dec-00

Feb-0

1

Apr-01

Jun-0

1

FU

M/F

TE

/Mo

nth

($0

00s)

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Consumer opportunitiesConsumer opportunities

• 40% increase inPriority customers

• 30% improvementin EP of Personalcustomers

• 40% increase in EPper customer forPrivate Bankingclients

302

731

0100200300400500600700800

2000 2003

Economic Profit$m

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AgendaAgenda

• Business and Consumer Banking inAustralia– 3 year history– Strategy– Progress this financial year– Major Opportunities

• New Zealand and Pacific Banking

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New New Zealand Zealand Business &Business &ConsumerConsumer• Largest customer base• Opportunity in revenue

growth, wealth creation• Previously distracted by

merger integration• Staff morale improved• Customer satisfaction

stabilised• Income improving -

particularly BusinessBanking

• NZ Retail ROE 19.7% March2001

0

50

100

150

200

250

300

350

$NZm

1998 1999 2000 1H 2001*

NPAT Economic Profit

0

0.5

1

1.5

$NZb

1998 1999 2000 1H 2001

Funds under management

* annualised

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Pacific BankingPacific Banking

• Performing soundlydespite economicdisruptions

• Increased shareholdings• Solid earnings• PRB ROE 45.9% March

20010

10

20

30

40

50

60

$m

1998

1999

2000

1H-2

001*

NPAT Economic Profit

* annualised

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In summary...In summary...

• On track to double the economic profitof ARFS in Australia in 3 years to 2003

• Focusing on broadening anddeepening relationships across ourcustomer base

• Major opportunities in wealthmanagement and business banking

• Delivering both market share andefficiency gains

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