ANZ-OCBC Bank Joint Venture

Media Briefing17 July 2000

Joint venture key points

ANZ and OCBC have established a joint venture to develop a stand alone internet bank with a regional network

New business model will deliver a complete proposition for customers’ financial services lifestyle

High growth model, with low customer acquisition costs and scalable technology

Joint venture will make strategic investment in a range of internet services companies - first partner, BOOM.COM

Investment of US$100 million over three years

Launch end 2000

e-commerce in Asia is key to new growth

There is a largely untapped opportunity to provide financial services to Asia’s emerging mass affluent consumers

e-commerce provides a more cost efficient and low risk way of targeting regional growth opportunities

The need for speed and access to markets means it makes sense to combine the strengths of ANZ and OCBC

The business model recognises the weaknesses of existing pure online propositions and includes specific responses

Asia’s mass affluent market is emerging

J apan

14.00

24.24

2000 2005

Korea

1.50

3.23

2000 2005 Hong Kong

1.34

3.53

2000 2005

Singapore

1.34

2.61

2000 2005

Taiwan

1.24

2.98

2000 2005

Malaysia

0.500.89

2000 2005

Thailand

0.45

1.11

2000 2005

China 3

0.120.39

2000 2005

Indonesia

0.10 0.26

2000 2005

Philippines

0.10 0.23

2000 2005

Adults in urban areas:

• Annual income over approx. US$10,000

• Connected to the Internet

Wired Emerging Affluent

Strategic logic for ANZ/OCBC

ANZ’s focus is on growth of new positions in the Pacific and Asia

- re-energise existing positions and direct new investment towards e-commerce

- 29% stake in PT Panin Bank in Indonesia

- e-commerce joint venture with OCBC

OCBC strategy to transform into a “click-and-mortar” bank and at the forefront of the e-financial landscape

- finatiQ.com

tx123.com iOCBC.com iWap

OCBC/ANZ partnership makes sense

Shared vision of opportunity across Asia

Complementary licences, strategic fit

Complementary strengths provide core skills for a successful e-venture

Both banks embrace the e-space at home

Partnership Benefits Country/BranchesOCBC ANZ

China

42 1

Hong Kong 3 1

Indonesia

5 2

Malaysia 25 1 Rep.

Philippines

11

Singapore

Taiwan

1

1

Thailand

0

Vietnam

2Japan

Korea

1 Rep.

JV Panin

1

1

1 Rep. 2

1

Pipeline under development

Regional e-based financial institution

+

Internet Service Provider

B2B and B2C

Enabling

Online Stockbroking

Retail Alliances

Leading Financial

Portal

Banking front end