Westpac is Australia's oldest bank operating a significant banking franchise in Australia and New Zealand with balanced exposures to retail, corporate and institutional sectors. Aggressive expansion via acquisition in the wealth management area has complemented the banking activities transforming WBC into a solid financial services house.

While continuing to invest in the Business and Consumer Banking operations in Australia and NZ to protect and lift market share, WBC has aggressively increased its exposure to the wealth management sector. WBC is a bank earning most of its profit from consumer banking operations. WBC is generating strong earnings and has surplus capital allowing management to embrace capital management options. Strategy is focused on delivering above average earnings growth over the medium to long term with a lower than average risk profile.Westpac reported Cash NPAT up 10% to $3,079m for the year ended 30 September 2006. Cash EPS rose 10% to 167.2 cents. Revenues from ordinary activities were $9,217m, up 6% from the same period last year. EPS was 167.2 cents compared to 148.9 cents last year. Net operating cash outflow was $1,028m compared to an outflow of $2,290m last year. The interest margin was 2.29%, down from 2.45% last year. The final dividend declared was 60 cents taking the full year dividend to 116 cents compared to 100 cents last year. In looking forward Westpac CEO David Morgan, said "Overall, we expect a slight easing in housing credit growth in 2007, while still remaining in double digits. Business credit should return to more sustainable levels after a very buoyant 2006. We also expect wealth management conditions to remain very positive, with the recent superannuation taxation changes assisting in driving growth.".

30/09/07

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