#1A AUSWIDE BANK INVESTOR PRESENTATION FY21 FINANCIAL RESULTS 27 AUGUST 2021 1#2About 01. Auswide Bank Martin Barrett, MD FY21 Result 02. Overview Bill Schafer, CFO Strategy 03. & Outlook Martin Barrett, MD INVESTOR PRESENTATION | FY21 Results - 27 August 2021 年 2#301. About Auswide Bank Martin Barrett, Managing Director INVESTOR PRESENTATION | FY21 Results - 27 August 2021 3#4About Auswide Bank Small things. Big Differences. > Established in 1966, Auswide Bank provides home loans, consumer lending and credit cards through its national digital offering, branches, broker networks and private banking > Strong legacy in regional Qld, growing across SE Qld, NSW and Victoria > High quality loan book with over $4.0b in assets > Track record of delivering profitable growth and attractive dividends > Strong focus on customer service and value > Partnership with Queensland Rugby League and jersey sponsor of Qld Maroons > Industry-leading staff engagement score of 981 > Partnerships continue to expand our reach and opportunities 1. In 2021,87% of staff participated in Auswide Bank Employee Engagement & Satisfaction Survey AUSTRALIA OTHER 5.5% QLD 71.2% FY21 LOAN BOOK DISTRIBUTION BY REGION VIC NSW 13.7% 9.6% INVESTOR PRESENTATION | FY21 Results - 27 August 2021 4#5FY21 Financial Highlights Strong FY21 performance across all key metrics STATUTORY NPAT LOAN BOOK $3.593b¹ 10.0% GROWTH, 3.2x SYSTEM² HOME LOAN APPROVALS $1.012b ↑ 38.1% NET INTEREST MARGIN 200BPS ↑ 3BPS COST TO INCOME RATIO 60.1% ↓2.4% $24.155m ↑30.5% ↑ CUSTOMER DEPOSITS EPS 56.7CPS $2.933b ↑11.9% RONTA TOTAL DIVIDEND 12.1% ↑12.9CPS ↑ FROM 9.7% 1. Including Investments in Managed Investment Schemes (MISS) reported in Financial Assets in Balance Sheet 2. System growth of 3.1% per RBA Financial Aggregates - total credit growth 40.OCPS ↑12.25CPS CAPITAL 13.31% ↑ FROM 12.95% JUN 20 INVESTOR PRESENTATION | FY21 Results - 27 August 2021 5#6FY21 Operational Highlights Home loan growth at record highs supported by increased NIM > Very strong result with growth across all key metrics including NPAT of $24.155m, up 30.5% and net interest revenue of $78.161m, up 10.8% > Achieved FY21 financial targets with above system loan book growth (3.2x), further reduction of Cost to Income Ratio and Return on Net Tangible Assets above 10% > Loan book growth of 10.0% driven by strong broker flows and Private Bank as Auswide extends presence in SE Qld, NSW and Vic; lending quality maintained through robust risk management; approvals exceeded $1b, a new high for the bank > Cost to Income Ratio declined to 60.1% reflecting increasing revenue, careful cost management, disciplined investment in online capabilities. > 11.9% growth in customer deposits to $2.933b; continuing to transform funding mix, reduce funding costs > Strong capital position of 13.31% meets 'unquestionably strong' regulatory targets; CET1 of 10.84% From little things, big things grow! INVESTOR PRESENTATION | FY21 Results - 27 August 2021 6#7Macro trends support sustainable growth Positive outlook as economy improves, broker channels provide growth opportunities Improving Economic Outlook > Queensland economy strong, diversified and growing faster than national average > Retail trade in Queensland increased by 4.5% in the twelve months to June 2021; Australia increased by 2.9%¹ > Strong recovery occurring in Regional Qld COVID-19 Assistance > At 30 June 2021, less than 0.1% of Auswide's loan book still receiving assistance Improving Economic Outlook Buoyant Housing Market Buoyant Housing Market > Regional Queensland house values up 17.1% and Brisbane house values up 13.2% in 12 months to June 20212 > Housing activity buoyed by population growth, government stimulus and low interest rates Brokers Continue to Capture Brokers Continue to Capture Market Share > Brokers originated 57.7% of new home loans in March Quarter 2021 (March Qtr 2020: 52.3%)³ > Post Royal Commission, shift in relationship between brokers and big 4 banks, creates opportunities for smaller banks > Down from 8.9% of the loan book at 30 June 2020 COVID-19 Assistance Market Share > COVID-19 related provisions remain in place > Arrears at historic lows, 0.25% of loan book 1. Queensland Government statistician's office Retail trade, June 2021 2. Corelogic monthly chart pack July 2021. 3. Mortgage & Finance Association of Australia (MFAA). INVESTOR PRESENTATION | FY21 Results - 27 August 2021 7#8Brokers represent important distribution channel Significant growth opportunity KEY INITIATIVES TRANSFORM BROKER OFFERING > Invest in business development managers to build stronger broker relationships > Back office efficiencies substantially reduce loan processing times to among industry best > Reduce processing cost per loan > Support higher loan application volumes with flexible workforce and tech initiatives including use of Robotics > QRL partnership lifts brand profile, valuable reference point BUILDING STRONGER BROKER RELATIONSHIPS ACROSS AUSTRALIA > Mortgage brokers continue to increase share of new home loans > Auswide now provides efficient end-to-end home loan process and scalable business offering > Building a wider broker network and younger customer group > Diversifying geographic footprint outside Qld > Inclusion in First Home Loan Deposit Scheme (FHLDS) from Feb 2020 > Government guarantee provided for FHLDS loan monies above 80% LVR > FHLDS continues into FY22 providing further opportunities INVESTOR PRESENTATION | FY21 Results - 27 August 2021 8#9Private Banking overview High Net Worth customers focusing on - medical, professional and sporting with borrowing needs ideally over $1m PRIVATE BANKING PORTFOLIO Material growth in Private Bank up from $125.4m at June 20 to $219.5m at June 21 $125.4m $219.5m JUN 20 JUN 21 PORTFOLIO DISSECTION Engineer/Architecture Dentist Pro Sportsperson Misc. Vet 1% Medico High Net Worth 4% 3% 4% 6% 7% 42% Lawyers 9% 9% 15% Accountants Professional Misc. INVESTOR PRESENTATION | FY21 Results - 27 August 2021 9#10Track record of delivering profitable growth Above system loan book growth, NIM expansion and careful cost management STATUTORY NPAT $24.2m NET INTEREST REVENUE $17.9m $18.5m $17.2m $15.1m $78.2m $70.5m $63.2m $61.0m $57.5m NET INTEREST MARGIN 1.93% 1.90% 2.00% 1.97% 1.87% JUN 17 JUN 18 JUN 19 JUN 20 JUN 21 JUN 17 JUN 18 JUN 19 JUN 20 JUN 21 JUN 17 JUN 18 JUN 19 JUN 20 JUN 21 LOAN BOOK STATUTORY EARNINGS PER SHARE (CPS) COST TO INCOME RATIO $3,593m 56.7 66.0% $3,266m $3,131m $2,945m $2,788m 42.8 43.8 40.8 37.3 64.5% 63.5% 62.5% 60.1% JUN 17 JUN 18 JUN 19 JUN 20 JUN 21 JUN 17 JUN 18 JUN 19 JUN 20 JUN 21 JUN 17 JUN 18 JUN 19 JUN 20 JUN 21 INVESTOR PRESENTATION | FY21 Results - 27 August 2021 10#11Balance sheet strength Strong deposit growth, RONTA ahead of FY21 targets CUSTOMER DEPOSITS CAPITAL ADEQUACY RATIO $2,108m $2,057m $2,933m $2,620m $2,373m STATUTORY RONTA 12.1% 14.58% 14.89% 9.9% 9.7% 13.79% 8.9% 9.1% 13.31% 12.95% JUN 17 JUN 18 JUN 19 JUN 20 JUN 21 JUN 17 JUN 18 JUN 19 JUN 20 JUN 21 > 11.9% growth in deposits reflects strategic focus on cost effective funding lines > Capital remains strong at 13.31% > CET1 of 10.84% >75.7% of funding from deposits (FY20: 74.5%) JUN 17 JUN 18 JUN 19 JUN 20 JUN 21 > Return on Net Tangible Assets of 12.1% up from 8.9% in June 17 > Ahead of strategic target of 10% INVESTOR PRESENTATION | FY21 Results - 27 August 2021 11#1202. FY21 Result Overview Bill Schafer, Chief Financial Officer INVESTOR PRESENTATION | FY21 Results - 27 August 2021 12#13FY21 $24.155m FY20 CHANGE $18.504m Loan Book¹ $3.593b Net Interest Revenue $78.161m Net Interest Margin (NIM) (bps) 200bps Final dividend per share (fully franked) 21.0c Total dividend per share (fully franked) 40.0c EPS (cents) 56.7c 43.8c RONTA² 12.1% 9.7% Cost to Income Ratio 60.1% Capital Adequacy Ratio 13.31% Deposits $2.933b $2.620b ↑ 30.5% $3.266b ↑ $327m $70.516m ↑ 10.8% 197bps ↑ 3bps 10.75c ↑ 10.25c 27.75c ↑ 12.25c ↑ ↑ 2.4% 62.5% ↓ 2.4% 12.95% ↑ 0.36% $313m Financial overview Strong NPAT result reflecting above system loan book growth, NIM expansion and ongoing cost discipline NPAT (Consolidated) > NPAT of $24.155m, up 30.5% reflects strong growth in net interest revenue and ongoing cost discipline (CIR of 60.1% vs 62.5% in FY20) > Net interest revenue of $78.161m, up 10.8% due to profitable loan book growth and increase in NIM > Loan book growth of 10.0% was 3.2x system growth > NIM of 200bps, up 3bps on FY20 12.9c > Deposits up 11.9%; now 75.7% of funding (FY20: 74.5%) > Strong balance sheet, capital adequacy ratio of 13.31% > RONTA of 12.1% exceeds strategic target of 10.0% 1. Including Investments in Managed Investment Schemes (MISS) reported in Financial Assets in Balance Sheet 2. Return on Net Tangible Assets (equivalent to Return on Tangible Equity (ROTE)) > Final dividend of 21.0cps reflects strong financial results and prudent payout ratio of 70.9% INVESTOR PRESENTATION | FY21 Results - 27 August 2021 13#14Consolidated NPAT reconciliation Strong NPAT growth $000's FY20 Statutory NPAT $18,504 Net interest revenue $7,647 Non interest Employee benefits income expense Bad and doubtful debts $403 ($903) expense Impairment to MIS investments $3,294 Fees and commissions ($1,424) Occupancy, amortisation and general expenses ($812) Income tax expense ($2,554) FY21 Statutory NPAT $24,155 > Consolidated NPAT of $24.155m, up 30.5% on FY20 despite competitive lending environment > Net interest revenue growth of 10.8% reflects loan book growth and 3bps expansion in NIM > Disciplined approach to cost management with cost to income ratio of 60.1% (FY20: 62.5%) INVESTOR PRESENTATION | FY21 Results - 27 August 2021 14#15Loan book Strong growth in net interest revenue LOANS AND ADVANCES BALANCES NET INTEREST REVENUE $63m $78m $98m $3,432m $80m $63m $61m $62m $136m $44m $122m $3,050m $2,947m $120m $2,781m $71m JUN 18 JUN 19 JUN 20 JUN 21 NET INTEREST MARGIN 2.00% 1.97% 1.93% $2,945m $3,131m $3,266m $3,593m JUN 18 JUN 19 JUN 20 JUN 21 1.87% Housing Loans Business Consumer Loans JUN 18 JUN 19 JUN 20 JUN 21 > Net interest revenue of $78m, up 10.8% on FY20 > Net interest margin of 2.00% (FY20: 1.97%) > Loan book growth of 10.0% on FY20, 3.2x system, reflecting strong broker flows, First Home Loan Deposit Scheme (FHLDS) and partnerships > Housing loans of $3,432m, up 12.5% on FY20 (95.5% of loan book) > Business lending of $98m following change in strategy with lending pause in place (2.7% of loan book) INVESTOR PRESENTATION | FY21 Results - 27 August 2021 15#16Loan book distribution Loan diversification accelerates driven by strong broker flows and private bank LOAN BOOK % OF LOAN BOOK JUN 20 JUN 21 GROWTH JUN 20 JUN 21 RATE SOUTH EAST QUEENSLAND $1,244.2m $1,370.9m 10.2% T 38.9% 38.7% QUEENSLAND OTHER $1,148.7m $1,150.9m 0.1% ↑ 36.0% 32.5% > Strong broker flows accelerate growth in SE QLD, NSW and Victoria > 28.8% of loan book outside Queensland (FY20: 25.1%) > SE QLD remains a significant growth opportunity and largest contributor to loan book by region > In FY21, growth in broker flows contributed to: . • 38.1% increase on FY20 Home Loan Approvals $381.3m $484.7m NSW 27.1% 1 11.9% 13.7% • 41.8% increase on FY20 Home Loan Settlements VICTORIA $255.0m $341.6m 34.0% ↑ 8.0% 9.6% AUSTRALIA OTHER $166.8m $195.2m 17.7% ↑ 5.2% 5.5% INVESTOR PRESENTATION | FY21 Results - 27 August 2021 16#17Loan book arrears Arrears at historic lows and well below peers 25m 0.73% 0.68% 1 LOANS PAST DUE V. SPIN (PERCENTAGE OF TOTAL LOANS) AUSWIDE SPIN (Other) SPIN (Regional) > 30 days past due (includes >90 days 0.25 1.05 1.41 past due) % > 90 days past due 0.15 0.57 0.78 (Auswide figures: at 30 Jun 21) SPINS: at 30 June 21 (latest available) $3.4m $3.0m $0.7m $0.1m > Arrears of 0.25% are at historic lows highlighting loan book quality $6.4m 0.48% $6.5m 0.46% 0.42% 0.39% 0.39% $2.9m $1.1m $4.7m $4.6m $1.6m $1.1m $5.0m $3.5m 0.26% 0.25% $0.0m $3.2m $0.9m $2.3m $10.0m $11.5m $9.4m $5.3m $6.4m $7.5m $9.9m $5.3m $5.2m Om 0 JUN 17 DEC 17 JUN 18 DEC 18 JUN 19 DEC 19 JUN 20 DEC 20 JUN 21 Over 90 days past due 60-90 days past due 30-60 days past due - Arrears as % of Loan Book > Current arrears of $8.9m, down 48 basis points compared to June 2017 INVESTOR PRESENTATION | FY21 Results - 27 August 2021 17#18Total provisions & coverage ratios Board confidence in collective provision TOTAL PROVISIONS AND GRCL ($M) TOTAL PROVISION COVERAGE RATIO 9.9 9.5 8.9 1.0 1.8 1.0 0.53% 7.3 0.52% 7.0 2.4 2.4 2.4 2.4 2.4 0.65% 0.64% 0.55% 0.30% 0.29% 0.25% 3.6 0.23% 0.23% 2.00 2.8 4.1 3.7 2.6 2.5 2.1 1.6 1.8 JUN 19 DEC 19 JUN 20 DEC 20 JUN 21 Collective Provisions Specific Provisions GRCL COVID-19 Overlay JUN 19 DEC 19 JUN 20 DEC 20 JUN 21 Provisions & GRCL as % of Credit RWA Provisions & GRCL as % of Total Loans > Total provisions and GRCL of $8.9m provides confidence provisions are adequate based on economic outlook scenarios > $1.0m COVID-19 overlay retained in provisions for volatility and economic uncertainty > Non COVID-19 arrears remain at historically low levels INVESTOR PRESENTATION | FY21 Results - 27 August 2021 18#19Net interest margin progression Steady NIM growth FY20 NIM 1.97% Impact of Lower Asset Yields (0.43%) Impact Impact of Lower Wholesale Impact of growth in Interest > NIM of 2.00% continues to rise in a falling interest rate environment > Benefits from reduced funding costs outweighing the impact of highly competitive home loan interest rates Funding rates Bearing of Lower 0.23% Customer Funding rates 0.41% Assets (0.18%) FY21 NIM 2.00% INVESTOR PRESENTATION | FY21 Results - 27 August 2021 19#20Funding mix Strategic focus on funding mix supports margin growth $151m 3.9% $42m = 1.1% > Ongoing strategic focus on expanding customer deposits and tight management of funding costs. > 11.9% growth in customer deposits to reach 75.7% of funding (June 18: 68.4%) > 27.7% growth in lower cost at call savings accounts from $1.13b to $1.44b > Reduced reliance on securitisation (more expensive funding line); 8.6% of funding in June 21 vs 19.7% in June 18 > RBA Term Funding Facility of $151m fully drawn > Maintained dual investment grade ratings from Fitch & Moody's of BBB+ and Baa2 respectively $50m = 1.4% $28m = 0.8% $28m 0.8% $28m = 0.9% $490m = 14.8% $607m 19.7% $119m = 3.6% $311m 9.4% $421m = 12.0% $131m = 3.7% $267m = 7.6% $334m 8.6% $165m 4.2% $252m = 6.5% $81m 2.6% $258m 8.4% $2,108m 68.4% $2,373m=71.4% $2,620m = 74.5% $2,933m = 75.7% JUN 18 JUN 19 JUN 20 JUN 21 Customer Deposits Securitisation NCDs Subordinated debt Senior unsecured FRNs RBA Term Funding Facility INVESTOR PRESENTATION | FY21 Results - 27 August 2021 200#21Dividend and returns Dividend reflects very strong operational performance and prudent capital management TOTAL DIVIDEND (CPS) 34.5 34.0 31.0 27.8 40.0 STATUTORY EPS (CPS) STATUTORY RONTA 56.7 12.1% 37.3 43.8 42.8 40.8 8.9% 9.9% 9.7% 9.1% JUN 17 JUN 18 JUN 19 JUN 20 JUN 21 JUN 17 JUN 18 JUN 19 JUN 20 JUN 21 JUN 17 JUN 18 JUN 19 JUN 20 JUN 21 > Final fully franked dividend of 21.0 cents reflects balance between prudent capital management and providing returns to shareholders > Final dividend payout ratio of 70.9%, within Board target range of 70-80% (FY20: 63.4%) > RONTA of 12.1%, up from 9.7% in FY20 > Ahead of strategic target for RONTA of 10% INVESTOR PRESENTATION | FY21 Results - 27 August 2021 21#22Capital Strong capital position supports above system loan book growth Dividends Paid Movement Tier 2 Capital issued Growth in RWA in Retained ($14.0m (1.31%) (0.78%) Earnings (excl. subordinated debt) Dividend 0.86% Paid) 1.51% Jun 20 CAR 12.95% Other 0.08% Jun 21 CAR 13.31% > Capital remains strong at 13.31% and comfortably meeting APRA's unquestionably strong requirement > CET1 of 10.84% > Capital ratio has increased from 12.95% at 30 June 2020 due to strong operating results, issuance of $12m in Tier 2 capital in August 2020 and further increase by $2m when maturing Tier 2 was reissued in May 21 Efficient capital supply drivers will include Dividend Reinvestment Plan for the final dividend INVESTOR PRESENTATION | FY21 Results - 27 August 2021 22 22#2303. Strategy & Outlook Martin Barrett, Managing Director INVESTOR PRESENTATION | FY21 Results - 27 August 2021 H 23 23#24Positioning Auswide for growth Step change in FY21 profitability reflects range of transformation initiatives 2013-2016 REBUILD > Investment in distribution > Building broker capability > Developing consumer products > Enhancing skills and capabilities > Conversion to bank from building society 2016-2019 ENHANCE & GROW > Credit Union acquisition and SE Qld presence > Structural alignment > Broker capability enhanced > Private Bank commenced > Partnerships Deposit and Lending > Maximise funding efficiency > Qld Maroons partnership 2019-2021 GROW > Broker flows continue to increase > Private Bank achieving record growth > National partnerships delivering growth in deposits and consumer lending > Technology to support growth and customer experience JUNE 2013 LOAN BOOK $2,229m.... JUNE 2021 LOAN BOOK $3,593m INVESTOR PRESENTATION | FY21 Results - 27 August 2021 24 24#253-year Strategic Plan FY19-22 OUR VISION The bank that our customers, staff and partners want their friends, family and colleagues to bank with. BRAND AWARENESS > Building the Auswide Brand through consistent messaging and enhanced customer service > Leverage QRL membership base, increase broker flows and expand community engagement > QLD / SEQ key growth opportunity PARTNERSHIPS > Build partnerships that support retail banking growth across platforms and via member and community-based organisations > Achieve distribution reach beyond Auswide Bank physical and digital offerings > Cost effective channels DIGITAL AND CUSTOMER HUB > Improve the customer experience through capable digital implementation > Support customer transition from branch to digital, drive higher product conversion rates increasing RONTA > ROI discipline extending digital solutions that solve customer and back office challenges EFFICIENCY > Improve efficiencies by automating processes and simplifying products > Improve broker service proposition via faster turnaround times and consistency > Continue to optimise investment to growth opportunities/channels STRENGTH > Strengthen the bank through enhancing staff capabilities, reducing errors and further developing risk audit processes > Enhance cyber risk resilience and fraud detection capability > Continue to mature diversified funding lines and particularly customer deposits improving self-funding ratio > Optimise capital efficiency and strength NON-ORGANIC GROWTH > Reviewing M&A, Fintech and other partnering opportunities to drive scale. INVESTOR PRESENTATION | FY21 Results - 27 August 2021 25 25#26Environmental, Social and Governance (ESG) vision Auswide Bank believes that its ESG responsibilities and business objectives are connected and our goal is to be a healthy and sustainable organisation which generates positive and sustainable economic growth. We want to take care of our community and ensure that the Bank's activities incorporate environmental and social accountability while demonstrating Auswide Bank shareholder value. OUR WAY FORWARD ☑ Corporate ESG Policy ✓ Develop an ESG Management System framework ✓ Establish an ESG Management Committee for ongoing monitoring and oversight Define current activity > What can we measure? > Develop KPI's for measurement Determine initiatives we can implement over the next 12 months Define long term projects greater than 12 months INVESTOR PRESENTATION | FY21 Results - 27 August 2021 26 26#27Environmental, Social, and Governance (ESG) Areas of focus for our business ENVIRONMENT > Energy footprint > Waste management and recycling > Education and community involvement SOCIAL > Supporting businesses > Community partnerships > Volunteering and fundraising > Ethical and sustainable business practices > Our people > Employee engagement > Diversity and inclusion > Pay equality > Wellbeing and safety > Talent development Olmo GOVERNANCE > Responsible lending > Cybersecurity and data protection > Privacy > Fraud and financial crime prevention and protection > Governance and conduct INVESTOR PRESENTATION | FY21 Results - 27 August 2021 27 22#28Strong momentum in private bank > Deliver lending and deposit solutions to high net worth individuals > Quick loan turnaround time differentiates Auswide from its competitors > Leverage customer service capabilities in a high service model > Exciting growth niche with strong pipeline for future growth benefitting from advocacy > Solid referral base built on relationships and quality service proposition Our Mission To provide personalised and bespoke banking solutions for our customers which they can trust and rely on, fostering relationships that will endure across generations. INVESTOR PRESENTATION | FY21 Results - 27 August 2021 28 28#29Driving growth for private bank ENHANCED MEDICO POLICY > Expand Auswide Medico policy in line with industry offerings > Increase maximum exposure and security value > New Home Loan Policy to target Medico First Home Buyers > Rolled out statewide through targeting campaigns at regional hospitals in QLD > Highly responsive/proactive service model NEW PROFESSIONALS PACKAGE > Introduction of Professionals Package for Accounting and Legal Professionals > Increase our market share in a low risk industry > Target partners and senior staff of medium to large legal and accounting firms located in SEQ > Grow Auswide market awareness to high net worth professionals in SEQ > Highly responsive/proactive service model NEW SPORTSPERSONS PACKAGE > Introduction of Policy for Professionals, Sportspersons and Coaches > Align / complement Auswide's sponsorship with QRL > Highly responsive/proactive service model INVESTOR PRESENTATION | FY21 Results - 27 August 2021 29 29#30Our digital strategy What are our aspirations and goals? Four identified digital focus areas > Acquisition through partners > Customer choice > Digital uplift > Automation Where will we play? We will attract a younger generation of customers who are engaged in the home buying journey including First Home Buyers, Investors and Upgraders across the Eastern seaboard AND Continue to grow & retain our heartland customers How will we win? We will amplify existing strengths in partner channels Maintain competitive positioning in our first party channels All underpinned by selling top-quality products What capabilities do we need to succeed? We will invest in a digital framework that: Delivers distinctive digital capabilities across our 4 digital focus areas SUPPORTED BY foundational investments in our digital pillars including modular systems, security, cloud, APIs, data & culture What priorities will we deliver? We will deliver the transformation portfolio of initiatives that bring our strategic choices to life AND begin the thinking that will broaden our digital investments in the future INVESTOR PRESENTATION | FY21 Results - 27 August 2021 30#31Digital integration Transforming our business with technology IMPROVING OUR FOUNDATIONS CUSTOMER OUTCOMES BUILDING DIGITAL EXPERIENCES > Continued improvement of customer experience and supporting transition from branch to digital channel > Growing appeal within younger customer base with fully integrated digital banking > Improved loan processing experience and focus on reducing the cost per loan in a highly competitive market > Investment in technology to solve customer problems and broaden access to products and services > Ensuring consistently strong cyber resilience and strong protections to customer data Internet, mobile app banking truly integrated and responsive to customer touch point AUSWIDE AN MAROONS 10 MAROONS Queenslander!!!) VISA 3 Face ID Debit * Pay G Pay INVESTOR PRESENTATION | FY21 Results - 27 August 2021 31#32Digital integration Transforming our business with technology TECHNOLOGY TO SUPPORT LOAN ORIGINATION INSISTING ON "BAKED-IN-SECURITY"LOAN ORIGINATION BUSINESS OUTCOMES > Leveraging digital to support mortgage broker growth opportunity > Developing more efficient processes that support increased sales volumes > Delivering automation across the organisation to support better customer experiences > Growing ways of working and skill sets to build a digital culture > Elevating our brand across digital platforms including mobile and website 6000 INVESTOR PRESENTATION | FY21 Results - 27 August 2021 32 32#33What are our longer term digital aspirations? 01. Accelerate growth Align digital investments to growth accelerators 02. Expand digital Expand digital investments across the business model 03. Optimise for digital Optimise the bank to take advantage of fully digital capabilities > Invest in 4 identified digital focus areas: ✓ Acquisition through partners Customer choice Automation ✓ Digital uplift > Invest in digital pillars > Invest in digital culture > Plan for larger future digital investments > Broaden digital investments to impact all parts of the organisation, for example: Multi-channel digital capability ✔ Fully digitised operational workflows > Continue investing in digital pillars to improve user experience and customer intimacy > Grow the digital culture to support digital skills and ways of working > Optimise performance with digital systems and digital ways of working > Use digital speed of change and adaptability to take advantage of future opportunity 2021-2024 2024 - 2027 2027 - 2030 33 INVESTOR PRESENTATION | FY21 Results - 27 August 2021 33#34FY22 outlook Continued loan book diversification as younger customers are attracted and diversify outside Queensland. FINANCIAL TARGETS FY19-22 3-year strategic objectives achieved in 18 months Cost to Income ratio of 60% Stable trend in NIM across FY21 Return on Net Tangible Assets of 10% ✓ Above system loan growth LOOKING FORWARD > Continue above system loan growth > Material growth in Private Bank > Digital and data initiatives to position for substantial 2023 growth trajectory. INVESTOR PRESENTATION | FY21 Results - 27 August 2021 34 34#35Disclaimer This Presentation has been prepared for Auswide Bank Ltd ABN 40 087 652 060, Australian Financial Services and Australian Credit License Number 239686, ASX Code ABA. The information is current as at 26 August 2021. FINANCIAL AMOUNTS All dollar values are in Australia dollars (A$) and financial data is presented as at the date stated. Pro-forma financial information and past information provided in this Presentation is for illustrative purposes only and is not represented as being indicative of ABA's views on its future financial condition and/or performance. Past performance, including past trading or share price performance of ABA, cannot be relied upon as an indicator of (and provides no guidance as to) future ABA performance including future trading or share price performance. FUTURE PERFORMANCE This Presentation contains certain "forward-looking statements". Forward-looking statements can generally be identified by the use of forward-looking words such as "anticipate", "believe", "expect", "project", "forecast", "estimate", "likely", "intend", "should", "will", "could", "may", "target", "plan" and other similar expressions within the meaning of securities laws of applicable jurisdictions. The forward-looking statements contained in this Presentation involve known and unknown risks and uncertainties and other factors, many of which are beyond the control of ABA, and may involve significant elements of subjective judgment as to future events which may or may not be correct. There can be no assurance that actual outcomes will not differ materially from these forward-looking statements. INVESTOR PRESENTATION | FY21 Results - 27 August 2021 35 35#36AUSWIDE -BANK-