Analyst Meetings

Woolwich PLC
8 December 1999

                          
                          WOOLWICH ANALYST MEETINGS                           
                          

At pre close period meetings with analysts which will commence today the
following information will be provided:

The acceleration of the roll-out of the Open Plan Service pilot to an
anticipated 2 million customers over the next two years has begun with
customer numbers standing at 37,000. The additional revenues per customer
recruited continue to run at the levels identified in the pilot. Work is
currently under way to roll out the enabling technology for more customers and
a wider range of facilities. This computer software technology, which will
underpin the increasing differentiation of Woolwich's future, will be the
subject of a presentation to the analyst community in early 2000.

Open Plan Service is ready for release on the Open interactive television
channel and is currently scheduled to operate a promotional site at the end of
January 2000 followed by an interactive site in June. The joint venture with
Nokia to provide WAP standard phones will move into first phase pilot of 100
users in February 2000. 

In the cash-based savings market there remains continued pressure from new
entrants, many at loss leading rates. Woolwich has competed successfully while
keeping to its policy of not offering loss making products. In the face of
continued pressure on the retention of retail funds the highly competitive
Card Saver product continued to grow its balances. The change in interest rate
expectations towards the end of the first half of the year enabled attractive
fixed rate offerings to customers and Woolwich was one of the first to exploit
this opportunity. Priced at competitive but positive rates, fixed term
products have been successful in attracting new funds and are proving a
fruitful method of customer acquisition for longer term savings products.
Overall Woolwich's liability margins have remained resilient in the face of
downward pressure.

The mortgage market in the second half of the year was characterised by a
decline in the price setting influence of new entrants which was a feature of
the first half. However some traditional lenders have latterly focused on
volume, particularly in the fixed rate market. At the same time the switch
over the year to expectations of higher interest rates has resulted in fixed
rate mortgages becoming less attractively priced relative to variable rate
mortgages. In consequence, Woolwich's policy of optimising profit and market
share resulted in a movement over the year away from fixed towards variable
rate mortgages. Lending volumes continued to grow rapidly in both France and
Italy.

Consumer credit continues to see substantial growth in volume with no
deterioration in excellent asset quality. Lending of Woolwich personal loans
and by FirstPlus is running well above 1998 levels.

In October Woolwich announced a redundancy and restructuring programme
involving 330 posts with a cost of £10m this year and future savings of £13m
per year thereafter.

The conversion of the processing of Woolwich mortgages to GHL (Global Home
Loans), its joint venture with Countrywide Credit Industries, is progressing
to schedule and the first tranche of live accounts has been taken on by GHL.
The management of Woolwich's mortgage processing centres was transferred on 1
October. The conversion target is for completion by the end of the first half
of 2000.

Woolwich has continued its programme of share buybacks during the second half
of the year, acquiring and cancelling to date a total of 32m shares for £118m
over the year, of which 17m shares with a value of £57m have been purchased
during the second half.