Personal Financial Services Australia and New Zealand Banking
Personal Financial Services Australia and New Zealand Banking Group Limited 24 August 2001
Agenda 9. 30 – 9. 35 Welcome/Agenda Philip Gentry 9. 35 – 10. 00 Personal Portfolio Overview Peter Hawkins 10. 00 – 10. 25 Mortgages Greg Camm 10. 25 – 10. 45 Metrobanking Elizabeth Proust 10. 45 – 11. 05 Regionalbanking Alison Watkins 11. 05 – 11. 20 Morning Tea 11. 20 – 11. 55 Wealth Management Craig Coleman 11. 55 – 12. 20 Small Business Graham Hodges 12. 20 – 12. 45 Cards 12. 45 – 1. 15 Brian Hartzer Conclusion/Final Questions Lunch Page 2 Peter Hawkins
Personal Financial Services Realising a unique growth opportunity Peter Hawkins Group Managing Director Australia and New Zealand Banking Group Limited 24 August 2001
Greg Camm - Mortgages • Joined ANZ April 1989 • Commenced current position February 1998 Page 4
Elizabeth Proust - Metrobanking • Joined ANZ January 1998 • Commenced current position March 2001 Page 5
Alison Watkins - Regionalbanking • Joined ANZ February 1999 • Commenced current position March 2001 Page 6
Craig Coleman – Wealth Management • Joined ANZ in 1994 • Commenced current position October 2000 Page 7
Graham Hodges – Small to Medium Business • Joined ANZ in 1991 • Commenced current position September 2000 Page 8
Brian Hartzer – Cards & e. Payments • Joined ANZ September 1999 • Commenced current position September 1999 Page 9
Personal Financial Services Greg Camm Mortgages Elizabeth Proust Metrobanking Alison Watkins Regionalbanking Craig Coleman Wealth Management Graham Hodges Small to Medium Business Brian Hartzer Cards & e. Payments Page 10
The Personal Portfolio – today’s themes A Portfolio of specialist Customer and Product Businesses with important interdependencies • Specialisation works • Now applying specialisation to the rest of the Personal portfolio • Significant customer and bottom line benefits Realising a unique growth opportunity Page 11
Considerable momentum developing NPAT Customer Numbers m 15% 39% 23% 50% 46% 27% Personal Corporate Int & Subs *Mar 2001 annualised Page 12
Specialisation has driven the success of our product businesses % Market Share (Card Spend)* % Market Share (Mortgages) Break in series Source: Economics @ ANZ * 3 month moving average Page 13
Drivers of value creation – not just a cost story Revenue CAGR 6. 5% Specialisation • Award winning products $m • Sales capability - driving revenue gains • Dramatic productivity gains Cost Income Substantial value creation Page 14
Our strategy is delivering strong results $m 26% NPAT Increase Personal Portfolio - NPAT CAGR 34% Small Business Wealth Mgmt Regionalbanking Metrobanking Cards Mortgages Page 15
We are now applying the power of this specialisation focus to our core franchise % Metrobanking* % 50% % Wealth^ 49% Regionalbanking* 39% % Small Business# 106% source: * Roy Morgan – share customer spend on traditional banking; ^ Roy Morgan – share of customer spend on financial services #Greenwich – share of small business lending Page 16
The growth opportunities in Personal are substantial Customer #’s (m) Total potential revenue growth - $1. 5 b* Peer Average 10 Increase Market Share • 1 m new customers • Potential revenue - $650 m 7. 3 Increase Wallet Share • Meet peer average • Potential revenue $650 m 5 4 Existing revenue $2. 6 b 0 Increased wallet on higher share $160 m ~40% ~50%** Share of Customer Wallet * Australia only ** Average share of wallet for CBA, NAB, WBC source: Roy Morgan Research Page 17
The specialist business model Personal Financial Services Peter Hawkins Metrobanking E Proust Regionalbanking A Watkins Wealth Management C Coleman Small Business G Hodges Mortgages G Camm Cards & e. Payments B Hartzer Putting the customer first – branch network is a strategic asset Creating the stand-out regional bank Taking a specialist approach to wealth management Revitalizing the business to create significant upside Developing the leading mortgage business Building the leading Cards business in Australasia The glue Systems CRM Culture Brand Page 18 Leadership Risk
“Putting customers first” is critical to the next phase of our specialisation strategy • Four customer businesses created • More accurate and appropriate segmentation of customer base • The branch network as a strategic asset • All customer facing processes being redesigned and automated • Earning the trust of the community • Cultural change program • Technology being implemented: – Integrated front-end across all channels and products – Straight through processing – CRM and behaviour scoring Page 19 CRM Marketing (Recent Case Study demonstrating effectiveness of predictive models)
Our targets • Increase NPAT by 15%+ CAGR to 2005 • Continue above market growth momentum of product businesses • Develop above market growth momentum in customer businesses • Continue to drive productivity to fund growth investments • Grow customers faster than our peers – 1 million new customers by 2005 • Double customer and staff advocacy by 2004 – Publicly report results Page 20
Summary • Personal is performing well – specialisation works – above market growth • We have substantial growth opportunities • Now applying specialist focus to our customer businesses • We are differentiating ourselves through our specialist strategy Page 21 Realising a unique growth opportunity
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