BT Financial Group

Strongly positioned for growth in

Superannuation and Life Insurance

11 July 2012

Brad Cooper

Chief Executive

2

BT strongly positioned

BT attaining sound returns and delivering on strategic initiatives

Favourable long-term macro forces for the wealth sector remain, with

regulation, customer preference and technology driving change

BT is well positioned across the value chain and continues to invest in

extending its capability, particularly for Prime of Life1 and High Net Worth

customers, Superannuation and Life Insurance

Wealth a key investment priority of Westpac Group, helping to deepen

customer relationships while providing low capital intensive growth

1 Prime of Life customers defined as between 45 and 65 years of age.

3

BT solid earnings growth driven by improving wealth

penetration

3

1 Based on BTFG reported results for FY11 to be comparable with prior periods. From 1H12, BTFG results also include earnings from equities business. 2 FY08 includes St.George

on a pro forma basis. 3 ASX200 price on 30 September 2011 compared to 30 September 2007. 4 Refer to slide 21 for Wealth penetration metrics provider details. Period March

2008 to March 2012.

536 493

595

649

294

FY08 FY09 FY10 FY11 1H12

Around 10% of Group earnings

Solid 4 year earnings

performance (2008 to 2011)

despite ASX200 declining 39%

over same period3

Wealth penetration of WBC

Group customers up 230bps

since 20084

2

BT Cash earnings1 ($m)

Delivering against 2010 key strategic targets

4

1. Alignment of

banking and

wealth distribution

2. High net worth

(HNW) customers

3. Compelling

customer

experience

2010 Targets1 2012 Progress

20.3%

14.0%

13.6%

18.4%

15.5%

Mar-10 Sep-10 Mar-11 Sep-11 Mar-12

WRBB St.George Peers 1, 2 & 3 Wealth penetration (%)2

Highest wealth penetration

in sector with WRBB.

St.George has the fastest

growing wealth penetration

Customer service and

products being externally

recognised

Movement in HNW metrics 2010 to 20123

Total customer numbers Up 9%

Wealth penetration4 Up 26 percentage points to 50%

Customers with 8+ products4 Up 16%

High net worth customers

Focus on deepening

relationships across the

sector

Customer experience indicators

Westpac Private Banking won five Australian Private Banking awards in 2012

Asgard Infinity awarded “Best New Product” from Investment Trends in 2011

BT Super for Life Fast Mover Award 2011

1 Targets detailed in BT market presentation June 2010. 2 Refer to slide 21 for Wealth penetration metrics provider details. 3 Internally sourced. 4 Data for Westpac Private Bank.

Delivery against 2010 key strategic targets (cont.)

5

4. Target

insurance

segments

5. Superannuation,

accumulation and

transition to

retirement

6. Advice and

platform service

2.7

1.9 1.9

0.3 0.3 0.7

0

Jun-10 Dec-10 Jun-11 Dec-11

BT

Average of two nearest competitors by FUA

Insurance growth ($m)

Significant growth in

General and Life Insurance

from stronger sales and

extending distribution

Net platform flows ($bn)1

Capturing a high portion of

market flows on Wrap, BT

Super for Life & Corporate

Super – all platforms rank

#1 in last 12 months

Advisers

Solid growth in adviser

numbers and growth in

interviews per planner per

week (IPPPW)

2010 Targets 2012 Progress

Movement in advice metrics Mar10 to Mar12

IPPPW3 Up 29%

No. of IFA4 using BT platforms Up 10%

No. of salaried planners Up 6%

1 Plan for Life, December 2011, All platforms net flows per half year for BT and average of largest two nearest competitors. 2 $2.9bn was from the transfer of Westpac staff

superannuation plan. 3 IPPPW is interview per planner per week for Westpac Financial Planning. 4 IFA are independent financial advisers.

136 170

General Insurance Gross Written Premiums

Mar-10 Mar-12

2.92

2.1

424 540

Life In-force Premiums

Mar-10 Mar-12

CAGR 11%

CAGR 12%

Regulation, customers and technology driving change

Changing

Customer

Demands

→ Ageing population increasing focus on Superannuation and Life Insurance

→ Current low risk appetite and changing demographics is seeing increased

focus on different asset classes

→ Customers want to be more in control of their activities, with strong growth

in self managed superannuation

Regulatory

Change

→ Superannuation guarantee step-up to 12% by 2019/20 will lead to

increased competition and consolidation

→ FOFA provisions for scaled and self service advice will drive growth of

simple, affordable and scalable advice models

→ Increasing compliance costs will require increased economies of scale

6 6

Technology

→ Internet is accepted method for managing finances with nearly 70% of

consumers going online for bank transfers and bill payments

→ Detailed information and resources readily available online

→ Online and self directed choices will continue to grow at a faster rate than

the market

• Deeper customer relationships with

improving wealth cross sell

• Re-orientating to larger and

growing market profit

pools – Prime of Life,

HNW3, Superannuation,

Life Insurance

• Sector leading

planner productivity2

• Improved efficiency

over next 5 years with

– Scale economies and

„lean‟ process improvements

– Technology, including straight

through processing

• 21% market share in

platforms overall4

• Preferred primary

platforms in IFA space5

• Highly recognised brands6

• Well positioned for regulatory

changes

• Australian macro wealth industry trends very positive

• Group has relationships with ~11m customers

• Wealth penetration less than 20% of customers1

7

BT well positioned for change

Growth Higher growth

sector with

access to

customers

Return Re-orientating to

larger/higher return

profit pools

Strength Across products,

distribution and

brands

Productivity Scale

economies

1 Refer to slide 21 for Wealth penetration metrics provider details. 2 Comparator December 2011. 3 HNW is High Net Worth. 4 Plan for Life, December 2011, All Master Funds Admin.

5 Investment Trends April 2012 Planner Technology Report. 6 BT brand tracking.

Growth - macro wealth industry trends are very positive

8 8

Australia‟s superannuation growth expected to outpace

growth in the real economy

Australian wealth profit pool expected to increase 43% by

20171, driven by an aging population, compulsory

superannuation and Australians under-insured versus

other developed countries

Strongest growth in wealth profit pools expected to be in

– Superannuation (advice, administration and asset

management) with 7.4% CAGR to 2017

– Life Insurance with 7.3% CAGR to 2017

1 McKinsey & Co. 2 Internally sourced.

3.1

4.8

0.7

1.0

0.3

0.4

1.3

2.0

1.4

1.5

2011 2017

Personal/General Insurance

Life Insurance

Direct Equities

Managed Investments

Superannuation

6.8

9.7 Potential

profit pools

Life

Ins.

7.3%

CAGR

Super.

7.4%

CAGR

Expected Australian Wealth industry profit pools ($bn)1

0

2

4

6

8

Estimated value of

Australian

superannuation

assets ($tn)

9% CAGR

Expected growth in Australia’s superannuation assets ($tn)2

Productivity - driven by scale, technology and

regulatory reform

9 9

29

19

16

32

4

Retail Sector Funds

Industry Sector Funds

Public Sector Funds

SMSF

Corporate Sector Funds

Segmentation of the Superannuation Market (%)1

On conservative estimates, the Super industry profit pool is

expected to grow by 55% between 2011 and 2017

This estimate is based on significant margin decline yet little

change to the expense to income ratio

Significant opportunity exists to enhance this profit pool

through

– Scale from increased asset under administration

– Technology enhancements and straight through processing

– Regulation supporting electronic processing and simple

investment solutions

– Industry consolidation as some smaller players exit the

industry or join with more efficient players

Estimated Australian Superannuation industry profit pool

2011 2017

Total superannuation assets ($tn) 1.2 2.1

Revenue ($bn) 15.0 22.2

Assumed revenue margin (bps) 125 105

Assumed expense to income ratio (%) 79 78

Total industry profit pool ($bn) 3.1 4.8

11 out of 68

players have

75% of the

market

4 out of 30 players

have 70% of the

market (including

BTFG)

9 out of 54

players have

70% of the

market 7 out of 29

players have

61% of the

market

1 Plan for Life, December 2011.

Mass (all ages)

Affluent < 45 years

Affluent > 45 years

SME

Lending

General Insurance

Life Insurance

Superannuation and Investment

Deposits

Increased focus on

sources of highest

growth and value -

Deposit, Superannuation

and Life Insurance

Return - re-orientating focus to higher profit pools

Australian financial service profit pools by segment & product1 ($)

1 Lending = housing, business and personal loans along with credit cards; General insurance = home and contents and Personal insurance; Life Insurance = Retail Life Insurance

and excludes Group Life Insurance. Superannuation and Investment = Retail Superannuation and self managed superannuation funds (excludes corporate and industry

superannuation) and investments is retail investments.

Affluent (45+ years) and SME are the

highest profit pools for our targeted

areas of Superannuation, Life Insurance

and Deposits

Prime of Life customers (45-65yrs)

account for 80% of wealth inflows

Significant opportunity given wealth 54%

of total market footings for customers

45-65 years, yet only 5% of total WBC

Group footings

10

Superannuation remains a priority

11

1 Includes Westpac Staff Super of $2.9bn transferred March 2012. 2 IFA is Independent Financial Advisers. 3 Refer slide 16 for further details. 4 There is some overlap

between the SMSF and Mass Market. 5 Excludes $2.9bn of BT Super for Life that was transferred from Westpac Staff Super in March 2012.

Mass Market Advised Market Self Managed

Superannuation

Funds (SMSF)

Corporate

Superannuation

BT Super for Life 1,030 Planners

Over 10,000 IFA2

Strong platforms Growing Corporate

Superannuation

platform

$5bn FUM1 $90bn in FUA $14bn in FUA4 $10bn in FUA5

Continue to grow

BT Super for Life

penetration

Focus on

increasing account

balances

Continue to

expand direct and

aligned planner

network

Maintain platform

leadership

Launching BT

Select3

Established

banking accounts

designed for SMSF

Investing in

administration

capability to

support SMSF

Extended BT

Super for Life to

Corporate

Superannuation

market

Continue to

leverage Lead

Institutional Bank

position

Life Insurance a significant opportunity

12

1 IFA is Independent Financial Advisers. 2 Plan for Life data at December 2011. 3 Plan for Life, December 2011.

Australians significantly underinsured

– Reform amendments support growth

– Insurance within superannuation is an

attractive proposition

BT well positioned with broad distribution

– Retail adviser Life Insurance sales

$39m in 1H12 (up 105% on 1H11)

Strong upside potential given BT only

have a 7% share of in-force premium

market

– BT‟s Feb 2011 successful launch into

the IFA1 market took 19% of industry

growth in new customers in 20112

1H09 2H09 1H10 2H10 1H11 2H11 1H12

IFA Bank Aligned Planners

12

39 36

19 21 17 19

Life insurance sales by retail advisers ($m)

In-force premium share of market3 (%)

7

16

12

13 17

8

13

14

WBC

AMP

ANZ

Colonial First State

NAB

Suncorp

TAL

Other

1

13

Five measures of success

1. Alignment of banking and wealth distribution

2. Deepening relationships with Prime of Life1 and High Net Worth customers

3. Compelling customer experience

4. Market share of Superannuation and Life Insurance

5. Growing advice capability (scaled, salaried and aligned)

1 Prime of Life customers defined as between 45 and 65 years of age.

14

Summary

Wealth will increasingly be a strong growth driver supported by changing demographics, regulation and customer preferences

BT well positioned across the value chain to capitalise on change

Prime of Life and High Net Worth customers, Superannuation and Life Insurance are key focus areas for investment

BT Financial Group

Appendix

BT Select - accelerating growth via planner footprint

Attractive multi-brand advice offering

Aligned dealer groups saw net growth of 34 practices in

last 12 months to March 2012, 26 with Securitor and 8

with BT Select (previously Magnitude)

Bank financial planning saw net growth of 33 planners in

last 12 months to March 2012

offers flexibility and choice

BT Select is the new dealer group brand launched 11 July

2012

Focus is on recruiting Independent Financial Adviser

practices and Authorised Representatives

Offers advisers access to a broad range of resources

giving them both flexibility and choice

Practice Management

& Operations

16

35

32

9

19

5

Super & Investment

Private Bank / Advice / Equities

Asset Management

Insurance

Capital & Other

17

BT Financial Group at a glance

Note: Aligned Advisers includes 550 Securitor & BT Select advisers for which we hold the license, and 450 Licensee Select advisers who operate under their own licenses. BTFG

owns 64.5% of BT Investment Management (BTIM) which includes J O Hambro Capital Management.

OWNED

EXTERNAL

EXTERNAL

OWNED

EXTERNAL

(~100 dealer groups)

ALIGNED

OWNED

Customer

Advice &

Distribution Platforms &

Administration

Product

Management

Asset

Management

Diversified business

% of total BTFG

1H12 revenue

OWNED

Life Insurance customers (‘000)

396 423

463 509

Sep 10 Mar 11 Sep 11 Mar 12

Wealth penetration of banking customers1 (%) High net worth customers (‘000) and those

with 8+ products (%) Home and Contents cross sell2 (%)

70 76 79

105

47 58

68 68

Sep10 Mar 11 Sep 11 Mar 12

WRBB St.George

Platform market share3 (%)

19.9 20.0 19.9

20.7

Jun 10 Dec 10 Jun 11 Dec 11

191 218

253

288

0.0

0.5

1.0

1.5

2.0

2.5

0

50

100

150

200

250

300

350

Sep-10 Mar-11 Sep-11 Mar-12

St.George customers (LHS)

WRBB customers (LHS)

FUM (RHS)

(000‟s) ($bn)

BT Super for Life customer growth & FUM

Strong and improving wealth position

15.9

16.5

17.0

17.7

Sep10 Mar 11 Sep11 Mar12

36

38

40

42

44

46

6

7

8

9

10

11

Sep-10 Mar-11 Sep-11 Mar-12

High net worth customers ('000)

Customers with 8+ products (%)

18

1 Refer to slide 21 for Wealth penetration metrics provider details. 2 Home and Contents cross sell rates are defined as the number of risk sales divided by the total home loan sales.

3 Plan for Life to December 2011.

FUA and FUM

Average Period End

$bn % mov't

1H12 - 2H11 $bn

% mov't

1H12 - 2H11

BT Wrap/Asgard FUA 67.5 (3) 69.7 6

Corporate Super FUA1 11.8 30 12.7 48

Total FUA 82.5 – 85.6 11

Retail FUM 15.1 (6) 15.3 3

Institutional FUM 12.7 (8) 13.7 5

Wholesale FUM 13.8 (6) 15.2 12

Total FUM 41.6 (7) 44.2 7

Cash earnings 19%

• Cash earnings down $69m (19%) to

$294m

• Cash earnings impacted by irregular

items and markets impacts amounting to

$67m

Funds

management

Cash earnings

21%

• Cash earnings down 21% to $180m

• Average FUM up 17% (down 7%

excluding J O Hambro acquisition) with

solid net flows offset by avg. ASX200

down 6%

• Average FUA flat with wrap platform flow

and transfer of Westpac Staff

Superannuation balances to Corporate

Super, offset by avg. ASX200 down 6%

• BT/Asgard platforms (including corporate

super) increased market share by 1% to

21%2

Insurance Cash

earnings 33%

• Cash earnings down 33% to $83m (up

11% on 1H11)

• 7% growth in Life in-force premiums

offset by higher claims

• 13% growth in General Insurance gross

written premiums offset by seasonally

higher claims in first half

• LMI revenue down from de-risking of the

book and lower credit growth

Capital and

Other

Large

• Contribution was higher from a rise in

earnings on invested capital up $11m

and a reduction in expenses

1H12 solid underlying business momentum offset by

irregular items and market movements

Cash earnings movement half on half ($m)

FUM / FUA (excluding J O Hambro)

Movement 1H12 – 2H11

342 363

294

49

21

(8) (20) (49)

(41)

1H

11

Funds

Managem

ent

Insura

nce

Capital

2H

11

Funds

Managem

ent

Insura

nce

Capital

1H

12

Down 19% Up 6%

1 Growth in Corporate Super due to transfer of Westpac Staff Super balances. 2 Plan for Life, December 2011, All Master Funds Admin.

19

1H11 2H11 1H12 Change on

2H11

Employees (# FTE) 3,632 3,709 3,693

Women in senior leadership (%) 39.5 41.9 38.3 x

Revenue per adviser ($000‟s) 114 120 115 x

Customers with a Wealth product (#m) 1.59 1.62 1.67

Customers with an Insurance product

(#m) 1.0 1.1 1.2

Wealth penetration Group customers2

(%) 16.5 17.0 17.7

BT Super for Life customers („000) 218 253 288

BT Super for Life FUM ($bn) 1.3 1.5 2.0

H&C Insurance (WRBB) cross sell (%) 76 79 105

H&C Insurance (SGB) cross sell (%) 58 68 68 –

Deposits on Wrap6 ($bn) 8.4 9.2 10.1

• Platforms saw increased market share in BT Wrap / Asgard Platforms (including corporate

superannuation) up 1% to 21% and #1 in net flows at 60% share of annual new business1

• Cross sell continued improvement in wealth penetration2 to 17.7% (WRBB sector leading at

20.3% and St.George the fastest growing up 140bps to 14.0%)

• Advice continued investment through 549 advisers (up 8%), focused on wealth and aligning

the network to maximise affluent and high net worth opportunities

• Sector leading revenue per adviser3 (WRBB Financial Planner); St.George Financial

Planner in line with Bank sector median

• Deposits had strong growth, particularly on platforms, of $1.1b (6%)4 to $19.5b (up 20% on

1H11)

• Insurance premium growth above system5. Strong sales of Life Insurance through the IFA

network (up 33%) and cross sell of home and contents insurance. General insurance

gross written premiums up 13% and Life Insurance in-force premiums up 7%

Solid underlying performance, Cash earnings lower

Key metrics

• Participate across the full wealth value chain to earn all our Australian customers‟

superannuation, advice and insurance business

– The opportunity is significant, with Wealth penetration across the Westpac Group at only

17.7% (20.3% of WRBB and 14.0% of SGB)2

• Be the platform and services provider of choice for Independent and salaried Financial

Advisers

• Grow owned and aligned financial planning networks

• Grow a diversified asset management portfolio to achieve sustainable above market

performance

• Build on momentum in insurance sales from strengthened distribution and increased

product knowledge across banking channels

1 Plan for Life, December 2011, All Master Funds Admin. 2 Refer to slide 21 for Wealth penetration metrics provider details. 3 Comparator December 2011. 4 Includes Private

Wealth and term deposits on Wrap. 5 Plan for Life December 2011. 6 Includes cash accounts.

Key features of 1H12 underlying performance

Strategy

20

21

Definitions:

Wealth 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 group and who also have a Deposit or Transaction Account,

Mortgage, Personal Lending or Major Card with that group as a proportion of the total number of Australians who have a Deposit or Transaction

Account, Mortgage, Personal Lending or Major Card with that group. 12 month rolling average to March 2012. WRBB includes Bank of Melbourne

(until Jul-11), BT, Challenge Bank, RAMS (until December 2011), Rothschild, and Westpac. St.George includes Advance Bank, Asgard, BankSA,

Bank of Melbourne (from Aug-11), Barclays, Dragondirect, Sealcorp, St.George and RAMS (from January 2012). Westpac Group includes Bank of

Melbourne, BT, Challenge Bank, RAMS, Rothschild, Westpac, Advance Bank, Asgard, BankSA, Barclays, Dragondirect, Sealcorp and St.George.

Disclaimer:

The material contained in this presentation is intended to be general background information on Westpac Banking Corporation (Westpac) and its

Australian wealth division, BT Financial Group.

The information is supplied in summary form and is therefore not necessarily complete. It is not intended that it be relied upon as advice to investors

or potential investors, who should consider seeking independent professional advice depending upon their specific investment objectives, financial

situation or particular needs. The material contained in this presentation may include information derived from publicly available sources that have not

been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information.

All amounts are in Australian dollars unless otherwise indicated.

Unless otherwise noted, financial information in this presentation is presented on a Cash earnings basis. Refer to Westpac First Half 2012 Results

(incorporating the requirements of Appendix 4D) for the half year ended 31 March 2012 available at www.westpac.com.au for details of the basis of

preparation of Cash earnings.

This presentation contains statements that constitute “forward-looking statements” including within the meaning of Section 21E of the US Securities

Exchange Act of 1934. The forward-looking statements include statements regarding our intent, belief or current expectations with respect to our

business and operations, market conditions, results of operations and financial condition, including, without limitation, future loan loss provisions,

financial support to certain borrowers, indicative drivers, forecasted economic indicators and performance metric outcomes.

We use words such as “will”, “may”, “expect”, “indicative”, “intend”, “seek”, “would”, “should”, “could”, “continue”, “plan”, “probability”, “risk”, “forecast”,

“likely”, “estimate”, “anticipate”, “believe”, or similar words to identify forward-looking statements. These statements reflect our current views with

respect to future events and are subject to change, certain risks, uncertainties and assumptions which are, in many instances, beyond our control and

have been made based upon management‟s expectations and beliefs concerning future developments and their potential effect upon us. Should one

or more of the risks or uncertainties materialise, or should underlying assumptions prove incorrect, actual results may vary materially from the

expectations described in this presentation. Factors that may impact on the forward-looking statements made include those described in the section

entitled “Risk factors” in Westpac‟s Interim Financial Report for the half year ended 31 March 2012 available at www.westpac.com.au. When relying

on forward-looking statements to make decisions with respect to us, investors and others should carefully consider such factors and other

uncertainties and events. We are under no obligation, and do not intend, to update any forward-looking statements contained in this presentation.

For further information please contact Westpac Investor Relations. Andrew Bowden +61 2 8253 4008.