Executive Update

At HBOS Australia, our long term vision is to be a major player in the Australian financial services market. We are not a typical bank. In fact, we are a group of five businesses trading under four different brands providing products and services to all types of retail and corporate businesses. We are a full scale financial services organisation meeting the financial needs of a wide range of customers.

As CEO, I am proud of what we have achieved. Striving to become a major player in the Australian financial services sector requires clear goals, fantastic people and a tremendous amount of drive and commitment.

To put our progress in perspective, at the end of 2003, we had 3100 colleagues and an average market share of just over 3%. At the end of 2007, we had nearly 6000 colleagues, an average market share of more than 5% with an increase in profit of more than 90% over this period.

Although our growth has been impressive, in many ways our journey has only just begun. We have an enormous amount of work happening across all of our businesses. Our BOS International, Capital Finance and St Andrew's businesses continue to grow in their respective market segments.

Over the next three years, we will continue our national BankWest expansion, which is one of the largest ever undertaken from scratch in this country. Simply, it is proving a better deal for all Australians.

The HBOS Group is investing heavily in our expansion. We are employing colleagues, upgrading systems, expanding premises and developing product as part of our plans for the future.

Our colleagues remain key to our success. The past four years' performance gives me confidence in our ability to continue on this exciting journey.

David Willis
CEO, HBOS Australia