Strategy Seminar
Personal Financial Services
Australia and New Zealand Banking Group Limited
24 August 2001
Page 2
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 Brian Hartzer
12.45 – 1.15 Conclusion/Final Questions Peter Hawkins
1.15 Lunch
Personal Financial Services
Realising a unique growth opportunity
Peter HawkinsGroup Managing Director
Australia and New Zealand Banking Group Limited24 August 2001
Page 5
• Joined ANZ January 1998
• Commenced current position March 2001
Elizabeth Proust - Metrobanking
Page 6
• Joined ANZ February 1999
• Commenced current position March 2001
Alison Watkins - Regionalbanking
Page 7
• Joined ANZ in 1994
• Commenced current position October 2000
Craig Coleman – Wealth Management
Page 8
• Joined ANZ in 1991
• Commenced current position September 2000
Graham Hodges – Small to Medium Business
Page 9
• Joined ANZ September 1999
• Commenced current position September 1999
Brian Hartzer – Cards & ePayments
Page 10
Personal Financial Services
Greg CammMortgages
Elizabeth ProustMetrobanking
Alison Watkins Regionalbanking
Craig ColemanWealth Management
Graham Hodges Small to Medium Business
Brian HartzerCards & ePayments
Page 11
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 opportunityRealising a unique growth opportunity
Page 12
Considerable momentum developing
302
840
547
712
251
266
1997 Mar 2001*
Personal
Corporate
Int & Subs
NPAT
3.1
3.2
3.3
3.4
3.5
3.6
3.7
3.8
3.9
4.0
4.1
Mar-98
Sep-98
Mar-99
Sep-99
Mar-00
Sep-00
Customer Numbers
27%
50%
23%
46%
39%
15%
m
*Mar 2001 annualised
Page 13
Specialisation has driven the success of our product businesses
%
Source: Economics @ ANZ
10
11
12
13
14
15
J an-95 Apr-96 J ul-97 Oct-98 J an-00 Apr-01
Market Share (Mortgages)
Break in series
23
24
25
26
27
28
J un-98 May-99 Apr-00 Mar-01
% Market Share (Card Spend)*
* 3 month moving average
Page 14
Drivers of value creation – not just a cost story
Specialisation
• Award winning products
• Sales capability - driving
revenue gains
• Dramatic productivity
gains
Specialisation
• Award winning products
• Sales capability - driving
revenue gains
• Dramatic productivity
gains
800
900
1,000
1,100
1,200
1,300
1,400
1,500
1,600
Mar-99 Sep-99 Mar-00 Sep-00 Mar-01
50%
55%
60%
65%
70%
Mar-99 Sep-99 Mar-00 Sep-00 Mar-01
Substantial value creation
Revenue
Cost Income
$m
CAGR 6.5%
Page 15
233
322333
380
420
150
200
250
300
350
400
450
Mar-99
Sep-99
Mar-00
Sep-00
Mar-01
Our strategy is delivering strong results
Small Business
Wealth Mgmt
Regionalbanking
Metrobanking
Cards
Mortgages
26% NPAT Increase
CAGR - 34%
$m
58
11234
55102
10273
72
24
23
41
53
1H 2000 1H 2001
Personal Portfolio - NPAT
Page 16
12.0
24.7
0
5
10
15
20
25
30
ANZ Peer Average
6.5
9.7
0
2
4
6
8
10
12
ANZ Peer Average
10.2
14.2
02468
10121416
ANZ Peer Average
We are now applying the power of this specialisation focus to our core franchise
9.8
14.7
02468
10121416
ANZ Peer Average
Metrobanking* Regionalbanking*
Wealth^ Small Business#
source: * Roy Morgan – share customer spend on traditional banking; ^ Roy Morgan – share of customer spend on financial services #Greenwich – share of small business lending
50% 39%
49%106%
%
%
%
%
Page 17
Existing revenue $2.6b
The growth opportunities in Personal are substantial
10
0
Customer #’s (m)
~40% ~50%**
Peer Average
Share of Customer Wallet
** Average share of wallet for CBA, NAB, WBC - source: Roy Morgan Research
4
5
Total potential revenue growth - $1.5b*
Increased wallet on higher share
$160m7.3
Increase Market Share•1m new customers•Potential revenue - $650m
Increase Wallet Share•Meet peer average•Potential revenue - $650m
* Australia only
Page 18
Personal Financial ServicesPeter Hawkins
Regional- bankingA Watkins
Wealth Management
C Coleman
Small BusinessG Hodges
MortgagesG Camm
Cards & ePayments
B Hartzer
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
Systems CRM Culture Brand Leadership Risk
Metro-bankingE Proust
The specialist business model
Putting the customer
first – branch network is a
strategic asset
The glueThe glue
Page 19
“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
100
165
191 192
Control Cards Access a/c Mortgages
CRM Marketing(Recent Case Study
demonstrating effectiveness of predictive models)
Page 20
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