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4 June 2006

Westpac and Opportunity International Australia partnership advances poverty alleviation in tsunami torn region of India

Westpac is partnering with Opportunity International Australia to significantly expand the not-for-profit organisation's provision of microfinance and enterprise development services to poor entrepreneurs in the tsunami affected region of southern India.

The generous AUD$ 400,000 Westpac donation will enable Opportunity International's strategic partner in India, IMED, to establish a new branch to serve tsumani affected families and communities in the state of Tamil Nadu.

The branch will provide loans, savings and insurance services, as well as enterprise development programs and training to clients who would otherwise not have access to such services. An average loan of AUD$98 will empower a poor entrepreneur to start their own business and work their way out of poverty.

"Partnership is essential in the fight to end poverty. Westpac's generous investment in Opportunity International to see individuals, families and their communities transformed and released from poverty in southern India will have a life-changing return," said Paul Peters, CEO of Opportunity International Australia.

Westpac CEO David Morgan said, "This investment is effectively the second stage of our original $1million pledge to tsunami relief.

"When we announced our commitment, we made it clear that we wanted to ensure our donation contributed to ongoing redevelopment initiatives and restoring local enterprise. Westpac has spent the past 12 months working with Opportunity International to extend their existing microfinance program to tsunami affected areas.

"Our desire was to provide more than just a handout. We want to see people and their communities transformed with dignity, empowerment and through economic development.

"The aim for this project is to provide the community and the economy with the means to become self-sustaining, creating further employment opportunities and encouraging further education," Dr Morgan said.

IMED has been in operation in the state capital, Chennai, since 1996, and currently has 5,000 clients. Microfinance and enterprise development services provided by Opportunity International make a significant impact to the lives of the poor in India. With a population of over one billion people and approximately 400 million of the total population living in absolute poverty, there is a strong demand for microfinance as a means of poverty alleviation in this country.

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About Opportunity International
Opportunity International is a global leader and pioneer with 35 years experience in providing microfinance and enterprise development services to the working poor in developing countries. Microfinance includes the provision of collateral free loans, savings, insurance and money transfers. Enterprise development incorporates a variety of training and support services for establishing and growing small businesses.

Opportunity currently operates in 27 developing countries has empowered millions of people to lift themselves out of poverty. Today, Opportunity International is one of the leading microfinance providers worldwide in terms of client numbers and performance. At the end of 2005, Opportunity had 810,220 active clients globally and a loan portfolio of $250.9 million, creating or sustaining almost two million jobs. The average repayment rate is 98 percent. Opportunity International's objective is to reach 1 million clients in India by 2015.

About Westpac Banking Corporation
Westpac Banking Corporation was founded in Sydney in 1817 as the Bank of New South Wales; and in 1982 its name was changed to that used today. With a customer base of 8.3 million, Westpac is a leading provider of banking and financial services in Australia, New Zealand and the Pacific region. In these markets it operates through more than 1,000 branches and agencies. Westpac also maintains offices in the key financial centres around the world.

The Westpac Group employs almost 27,000 people around the world and has total assets of over A$290 billion. Westpac is ranked in the top 10 listed companies by market capitalisation in Australia and as at the end of March 2006 its market capitalisation was approximately A$44 billion.

Westpac is recognised as a global leader in sustainability and corporate responsibility and is committed to maintaining total community contributions above 1% of pre-tax profits.

Westpac has undertaken a range of innovative micro-enterprise initiatives including its initiatives in the Cape York region of Australia which aims to address the educational, financial and employment disadvantage of indigenous Australians.
Westpac's initiative was recognised in 2003 when it was awarded a global Corporate Conscience Award for innovative Enterprise Partnerships. This award honours outstanding social and environmental performance and seeks to encourage widespread adoption of responsible business practices.