Westpac Investor U

pdate 2002

1 August 2002

Phil CoffeyGroup Executive

Westpac Institutional Bank

84

Westpac Investor U

pdate 2002Agenda

• WIB at a glance

• Growing distribution capabilities

• Offshore exposures

• Market share

85

Westpac Investor U

pdate 2002WIB at a glance

• Australian and New Zealand focusØ 1,500 customers

Ø 1,300 staff

Ø full range of services

Ø global reach

Ø operating revenues ~$1bn

• Segmented relationship management

• Specialist product expertise

86

Westpac Investor U

pdate 2002Our focus is unchanged

Our vision is to be the pre-eminent wholesale bank in Australasia by leveraging customer relationships

Our strategic drivers:

ØCustomer service focusØ Product excellenceØDistributionØOperational efficienciesØCulture

87

Westpac Investor U

pdate 2002Prime position to distribute to wholesale investors - sound position in capital markets

Greenwich December 2001

ANZ12%

UBS0%

Deutsche 17%

CBA17%

WBC20%

NAB25%

Citi9%

ANZ8%

UBS24%

Citi19%

NAB10%

WBC14%

CBA8%

Deutsche 17%

ANZ4%

UBS24%

Citi22%

NAB13%

WBC17%

CBA4%

Deutsche 17%

Short Dated Securities Bonds/Semis Credit Securities

Market share – Most active investors

ANZ4%

UBS24%

Citi22%

NAB13%

WBC17%

CBA4%

Deutsche 17%

Short Dated Securities Bonds/Semis Credit Securities

Market share – Most active investors

88

Westpac Investor U

pdate 2002And top 3 arranger of Australian syndicated loans1998 1999

2000 2001

Source: Thomson Financial Securities Data

Barclays8%

ABN8%

Deutsche12%

NAB12%

Chase22%

WBC13%

BT5%

CBA6%

Warburg6%

ANZ8%

Chase23%

WBC16%

CBA12%

ANZ10%

NAB10%

Toronto Dominion

4%

ABN Amro6%

Citigroup9%

BofAmerica7%

Barclays3%

ANZ17%

J.P. Morgan Chase & Co

14%

NAB14%

TD3%

Deutsche4%

Citigroup6%

ABN Amro7%

Westpac18%

Barclays Capital12%

CBA6%

ABN Amro8%

Barclays Capital4%

NAB17%

J.P. Morgan Chase & Co

8%ANZ8%

Westpac12%

HSBC5%

Deutsche7%

CBA11%

Citigroup20%

89

Westpac Investor U

pdate 2002Case study - Crane Group Limited

• Relationship of over 100 years with Crane Group Ltd

• Crane’s credit profile and asset maturity matched US private placement investor appetite

• WIB alliance with Banc of America Securities

Ø Successful private placement for Crane to US market

Ø Alliance has seen three mandates in four months

90

Westpac Investor U

pdate 2002Distributing to retail investors –growth opportunity

Retail distribution – volume of products sold

Products across a variety of asset classes – 2002 FY

Forecast

$0

$500

$1,000

$1,500

A$m

1999 2000 2001 2002 FYForecast

Equity11%

Fixed interest

66%

Property4%

Cash19%

91

Westpac Investor U

pdate 2002Tapping our large retail customer base

• Leverage:Øwholesale product expertise;

Øretail investor relationships; and

Øexternal planners

• Expanding range of investments:Ø capital guaranteed offerings

Ø warrants

Ø property trusts

Ø hybrid equity / mezzanine debt

92

Westpac Investor U

pdate 2002Case study - Westpac Family Restaurants Trust

• 6 year unlisted property syndicate

• 36 Hungry Jacks & KFC stores

• $20m fully underwritten equity

• internal allocation filled in four days

• external distribution reached 1,000 third party financial advisors across 27 firms

93

Westpac Investor U

pdate 2002Offshore exposures

• Integral part of relationship banking

• Focus on regional opportunities

• Measured use of financing product as part of full service

• Strict discipline around:Ø Customer presence in Australasia

Ø Economic Profit of relationship

Ø Global limits

94

Westpac Investor U

pdate 2002We have a diversified high quality portfolio

% of funded loans*

Australia/NZ vs Offshore

Top 10 offshore funded loans*

By rating / industry & % of gross loans and acceptances

*on-balance sheet exposures

Industrial

Health

Industrials

Industrial

Industrial

NBFI

Telco/Power

Industrial

Industrial

NBFI

0.00%

0.01%

0.02%

0.03%

0.04%

0.05%

0.06%

0.07%

0.08%

0.09%

0.10%

0.11%

10

9

8

7

6

5

4

3

2

1

'BB-'

'A'

'AA-'

'BB+'

'BBB+'

'BBB+'

'<B'

'BBB+'

'BBB-'

'AA'

Australia/NZ98%

Offshore2%

95

Westpac Investor U

pdate 2002

05

1 01 52 02 53 03 5

W e s t p a c ANZ N A B CBA Ci t i

%

0

5

10

15

20

Westpac ANZ NAB CBA Citi

%

0

10

20

30

40

Westpac ANZ Bank of NZ CBA/ASB NationalBank of NZ

%Corporate market share

1June 2002

2Sept 2001

Principal Corporate Banker Australia -East Survey1 of Top 500 Corporates

Principal Transactional Banker Australia - East Survey1 of Top 500Corporates

Greenwich Large Corporate Banking –Survey2 Top 200 New Zealand Corporates

96

Westpac Investor U

pdate 2002Corporate market share

• Westpac is Australia’s leading corporate and transactional banker

• Some easing in market share measuresØ tighter segmentation of target market (Economic

Profit driven)

Ø reducing single name concentrations

Ø transition to new transaction banking platform

• Increased number of value enhancing relationships

97

Westpac Investor U

pdate 2002We are differentiated by

• Our customer service focus

• Our product excellence

• Our distribution capability

• The strength of our franchise

• Our market leadership position

98

Westpac Investor U

pdate 2002