Dr David MorganManaging Director and Chief Executive

Officer

9-10 June 1999

US Investor Roadshow

2

Strategy & team in placeStrategy & team in place

u Smooth leadership transition

u Minimal executive team changes

u Sticking to markets we know best

u Growing & deepening customerrelationships

3

1st half 1999 report card to investors1st half 1999 report card to investors1H

97

2H97

1H98

2H98

1H99

638

$701m

Profit*

36.3c

EPS* Dividends

16.4%

ROOE*

653 66

6 676

1H97

2H97

1H98

2H98

1H99

34.6

33.5

34.5

1H97

2H97

1H98

2H98

1H99

19.0

23.0c

20.0 21

.0 22.0

1H97

2H97

1H98

2H98

1H99

16.9

17.1

15.5

15.6

* Pre abnormals

33.2

4

$m 1H99 1H98Change %

(pcp)Net interest income 1,815 1,812 0.2 Non-interest income 1,038 976 6.4 Operating income 2,853 2,788 2.3 Bad debts (99) (50) 98.0 Expenses (1,724) (1,702) 1.3 NPBT 1,030 1,036 (0.6) Tax and OEI (329) (370) (11.1) NPAT 701 666 5.3

Looking at the 1st half 1999 earningsLooking at the 1st half 1999 earnings

5

14.5

15.5

16.5

17.5

18.5

19.5

20.5

21.5

22.5

1996 1997 1998 1H99

WBC Peer Average

%

* Pre abnormals

Cash Return on Tangible Equity*

Rising ‘cash’ returns

6

Business Group Results

4.054.0

104.0154.0204.0254.0304.0354.0404.0

ARFS IB NZ & PRB

1H98 1H99

NPAT

7

Achieving strong volume growthAchieving strong volume growth

1H99 2H98 Annualisedgrowth

$bn $bn %

Aust. - housing 37.9 35.4 14.4

Aust. - credit cards 3.3 3.0 26.8

Aust. - non housing 21.3 19.9 14.2

Group loans & accpt’s 108.1 103.7 8.5

FUM 22.0 19.3 28.0

8

Interest Spreads and Margins - Group

2.82

3.72

2.87

3.59

2.86

3.44

2.88

3.32

2.0

2.5

3.0

3.5

4.0

1996 1997 1998 1H99

Spread Margin

%

Margin impacts flowing through

9

25

27

29

31

33

35

37

39

41

1996 1997 1998 1H99

WBC Peer Average

%

Improving non-interest income

Non II / Total Income

10

45

47

49

51

53

55

57

59

61

63

1996 1997 1998 1H99

WBC Peer Average

%

* pre goodwill

Expenses / Total Income *

Efficiency improvement focus

11

Net impaired assets to equity & general provision%

0123456789

10

1996 1997 1998 1H99

WBC Peer Average

Benefiting from a quality balance sheetBenefiting from a quality balance sheet

12

Total provisions to total loans & acceptances%

0

1

1

2

2

3

1996 1997 1998 1H99

WBC Peer Average

Provisioning cover to protect earnings

13

4.0

5.0

6.0

7.0

8.0

9.0

TTE / TA TTE / RAA Tier 1 ratio

1997 1998 1H99

% Capital Ratios

Capital ratios broadly unchanged in 1H99

14

Franking of dividendsFranking of dividends

u The 1H 1999 interim dividend to be fullyfranked

u But 1999 final dividend likely to beunfranked

– Past tax losses utilised

– Removes P&L risk from possible changeto corporate tax regime

u Anticipate full franking in subsequentperiods

15

Foundations set for earnings growthFoundations set for earnings growth

u Quality balance sheet

u Powerful customer base

u Motivated workforce

u Customer satisfaction

16

Staff Morale IndexStaff Morale Index

5.92

6.42

6.92

7.42

7.92

8.42

8.92

SEP '97 DEC '97 MAR '98 JUNE'98 SEPT '98 DEC '98 MAR '99

Bottom quartile rankingvs AFS norms

Top quartile rankingvs AFS norms

Source: International Survey Research

Motivating our workforceMotivating our workforce

17

Improving customer satisfaction rankingImproving customer satisfaction ranking

Source: Colmar Brunton Research - MarketMind

12 week moving average

WBC

ANZ

NAB

CBA

18

Earnings growth potentialEarnings growth potential

u Lags in achieving optimal efficiency levels

u Non-interest income potential still to be fullytapped

u Lower reported ROE and EPS

Building the foundations for earnings growthhas come at an opportunity cost to short-termearnings

19

Source: Roy Morgan Survey Jan - Dec 1998.* Includes banking products but excludes insurance and retail investment products.+ Average of ANZ, CBA, NAB, SGB

Progress on product holdings/customerProgress on product holdings/customer

2.14 2.01

Westpac Aust. Majors +

1.811.78

Westpac Aust. Majors +

Main Financial Institution Total Customers

Product holdings per customer*

20

1500.0

1700.0

1900.0

2100.0

2300.0

1996 1997 1998 1H99*

Underlying profits

The challenge - core earnings growth

* Annualised

$m

21

The value opportunityThe value opportunity

6.6%

12.8%14.7%

11.9% 10.9%

16.3% 15.5%

2.8% 2.4% 2.0%0.9%

3.1%

% Customers Value per customer

Less than 8% contribute75% of total value

Customer value segmentLow High

22

Focusing on the franchiseFocusing on the franchise

For the first time in a decade,management can fully focus on ourfranchise - driving costs down,delivering more for customers, andbuilding long term shareholder value

23

Driving for growth - the prioritiesDriving for growth - the priorities

u Fully competitive cost structure

u Initiatives to improve revenue growth

u Continuing to improve capital efficiency

24

Greater urgency aroundthe unfinished work onexecuting the strategy

Going forwardGoing forward

25

To recapTo recap

u Sound first half result

u Now moving to capitalise on opportunitiespresented

u Clear agenda for moving forward

– Fully competitive cost structures

– Initiatives to improve revenue growth

– Continuing to improve capital efficiency