Proudly Supporting Australia 2016 Westpac Group Annual Review & Sustainability Report

Bob Mac Smith. Fifth generation farmer and Westpac customer.

IN THIS REPORT

02 2016 HIGHLIGHTS

  1. Supporting Customers

  2. Supporting Shareholders

  3. Supporting Employees

  4. Supporting Communities

  5. CHAIRMAN'S REPORT

12 CEO'S LETTER

  1. 2016 financial performance

  2. Profitability

  3. Revenue performance

  1. Expense performance and investment in growth

  2. Credit costs and asset quality

  3. Summary - financial performance

  4. Customer and market performance

  1. Creating a workforce for the future

  2. Bridging the trust gap 22 History and our future 22 Summary

24 SUSTAINABILITY LEADERSHIP

28 FIVE-YEAR SUMMARY

30 EXECUTIVE TEAM AND BOARD

  1. REMUNERATION

  2. FINANCIAL CALENDAR

& CONTACT DETAILS

1817

GOVERNOR LACHLAN MACQUARIE ESTABLISHES THE BANK OF NEW SOUTH WALES

1851

GOLD FEVER AND NEW SETTLEMENTS LEAD TO

THE BANK'S EXPANSION AND GROWTH

1861

FIRST NEW ZEALAND BRANCH OPENS IN AUCKLAND

1982

BANK OF NEW SOUTH WALES AND COMMERCIAL BANK OF AUSTRALIA MERGE TO CREATE WESTPAC

ON THE COVER

Bob Mac Smith, fifth generation farmer and Westpac customer. Read Bob's story on page 23 and online via the website address below.

THIS PAGE

Bob Mac Smith's canola crop in the NSW Central Tablelands.

2016annualreport. westpacgroup.com.au Visit our website to read more online, including customer stories

Westpac Banking Corporation ABN 33 007 457 141

1992

OFF THE BACK OF THE ECONOMIC DOWNTURN OF THE EARLY

1990S, WESTPAC

For almost 200 years, Westpac has supported Australia and New Zealand.

As Australia's oldest company, we've been a constant thread, through the ups and downs of economic cycles as a partner in the country's development. Our story is one of innovation, growth, resilience, and adaptation.

It's why we've been in business for 200 years.

As we approach our third century we're continuing to transform. The community wants more from banks. And Westpac is responding: we've strengthened our balance sheet; we're digitally transforming our operations and we're reviewing our policies, processes and incentives to further drive our service culture. In doing so, customers can trust we have their interests at heart and if we make a mistake we will set things right.

It's this attitude that will help us support customers, shareholders, employees and the community into the next 200 years.

DECLARES A LOSS OF $1.6BN, SPARKING A SIGNIFICANT RESTRUCTURE

1990s

AUSTRALIAN AND NEW ZEALAND RETAIL FOOTPRINT EXPANDS WITH THE ACQUISITIONS

OF CHALLENGE BANK, TRUST BANK (NZ) AND BANK OF MELBOURNE

2002

STRATEGIC RESHAPING WITH SALE OF AGC AND EXPANSION OF WEALTH

MANAGEMENT, ACQUIRING ROTHSCHILD AUSTRALIA ASSET MANAGEMENT AND BT FINANCIAL GROUP

2008

WESTPAC MERGES WITH ST.GEORGE BANK

2011

RELAUNCH BANK OF MELBOURNE

2017

8 APRIL MARKS WESTPAC'S 200TH ANNIVERSARY

To mark Westpac's 200th anniversary on 8 April, 2017 we are publishing 'The Westpac story', charting our history from 1817. It will be available to

all shareholders online via

e-book next year.

2

2016 HIGHLIGHTS

WESTPAC GROUP

Supporting

Customers1

No.1

Westpac Live ranking in Forrester's 2016 Global Mobile Banking

Functionality Benchmark2

FOCUS ON GREAT SERVICE

Introduced "Our Service Promise", a program of actions and commitments. Developed by our people, it defines our expectations of what it means to deliver consistently

CUSTOMER COMPLIMENTS

3x

3 times as many

compliments as complaints3

MAKING BANKING EASIER

22%

CUSTOMER COMPLAINTS

31%

across Australian

operations

great service in every customer interaction.

13 million

customers

HELPING CUSTOMERS

START OR GROW BUSINESSES

Our redesigned branches allow business customers to connect with business specialists via video conference

of banking products sold online in Australia

Branches redesigned to complement changing customer needs

HELPING CUSTOMERS ACHIEVE THEIR GOALS

From buying a home to starting and growing a business, we've helped customers achieve their goals

$404bn in Australian home loans NZ$45bn in New Zealand home loans

$150bn in Australian business loans NZ$29bn in New Zealand business loans

Emily Hartmann from Bank of Melbourne's Retail and Business Banking team.

$973m Life insurance in-force premiums

  1. All comparisons in this review are against results for the 12 months ended 30 September 2015 unless otherwise stated

  2. Westpac's mobile banking app, Westpac Live, rated No.1 in the Forrester 2016 Global Mobile Banking Functionality Report

  3. Across the Australian branch network in the second half of 2016

Westpac Banking Corporation published this content on 09 November 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 10 November 2016 05:24:04 UTC.

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