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Perform Grow and Breakout Presentation to Deutsche Bank Asia Pacific Financial Institutions Conference London, Perform Grow and Breakout Presentation to Deutsche Bank Asia Pacific Financial Institutions Conference London, 9 -10 July 2001 Peter Marriott Chief Financial Officer Australia and New Zealand Banking Group Limited

ANZ - who we are • • • One of the ‘Big Four” Australian ANZ - who we are • • • One of the ‘Big Four” Australian banks. Provider of full range of financial services in Australia (since 1835) and New Zealand (since 1840) Leadership in Corporate Banking, Credit Cards and Mortgage origination, a strong e. Commerce position and an offshore network in Asia and Pacific. • Assets A$181 b (US$ 95 b) • Market Cap A$24. 5 b (US$ 12. 7 b) • Profit (half year) A$895 m (US$ 470 m) • Staff 22, 815 • Credit Ratings AA-/Aa 3 ANZ Headquarters 100 Queen Street Melbourne Page 2 Note: figures as at 31/3/01, with exception of market cap which is as at 28/6/01

We are on track to deliver on our 3 year commitments Measure 2003 Commitment We are on track to deliver on our 3 year commitments Measure 2003 Commitment EPS growth > 10% 13% ROE > 20% 19. 1% Cost-income ratio mid 40’s 49. 4% Inner Tier 1 6% Credit rating maintain AA category • Achievement 6. 2% maintained We have also committed to improving customer satisfaction, and will publicly report our progress Page 3

Building for the future - a distinctive strategy Proposition Specialise e-Transform Perform Grow & Building for the future - a distinctive strategy Proposition Specialise e-Transform Perform Grow & Break out Strategy • Entrepreneurial specialists create more value • Reconfigure ANZ as a portfolio of 16 specialist businesses • Specialist approach to customer and product businesses • Corporations must embrace new technologies • An e-Bank with a human face • Transform the way we do business with IP technology • Value depends on performance, growth and breaking out • Drive results, invest in growth businesses and create new paradigms/culture • Meet expectations, fund growth by cost reduction, transform Page 4 Implications

Transforming ANZ through Perform, Grow and Breakout • • • Break out Focus: long Transforming ANZ through Perform, Grow and Breakout • • • Break out Focus: long term ‘destiny’ Benchmark: global industry/players Looking for: transforming moves Horizon: 5 -10 years Success: dramatic market cap increase • Focus: • Benchmark: • Looking for: Page 5 3 -4 years • • • Perform competitors in each business • Horizon: • Success: Grow specialisation and out-growing the market Focus: performance Benchmark: market expectations Looking for: six monthly delivery Horizon: 1 -2 years Success: meet/exceed expectations consistently breakout moves in key businesses (eg QTV, Origin) 4 -5 moves taking share and worth ~AUD 1 bn+ market cap each

We are performing well - interim results • NPAT from continuing operations $907 m We are performing well - interim results • NPAT from continuing operations $907 m - up 18% • EPS up 13% to 55. 8 cents • ROE of 19. 1%, up from 17. 8% • Cost Income ratio down to 49. 4% • Continuing operations revenue up 10%, costs flat • Credit quality sound: – ELP charge down to 35 bp’s – Total non-accruals down – Specific provisions flat - down overseas and up domestically • Profit on sale of holding in St George $99 m ($65 m after tax), offset by write downs in investments ($84 m) • Improved disclosure - financial information provided for each business unit Page 6

Building a strong track record NPAT/ROE NPAT $m $m Cost to Income ROE % Building a strong track record NPAT/ROE NPAT $m $m Cost to Income ROE % $m Non-accrual loans % % Internet banking users as % of main relationships Source: JP Morgan & Roy Morgan Research Page 7

$m Good profit growth across a diversified portfolio Mar 00 v Mar 01 Personal $m Good profit growth across a diversified portfolio Mar 00 v Mar 01 Personal Corporate International and subsidiaries Page 8

A strong performance culture EVA focus Cost Control • Rigorous Risk v Reward discipline A strong performance culture EVA focus Cost Control • Rigorous Risk v Reward discipline • Part of culture • Driver based capital allocation • Allocation of a scarce resource • Integrated model • Ongoing re-engineering • e. Transformation • Activity Value Analysis (AVA) Value Aspirations Strategies Leading Cost Income Ratio EVA targets Business Unit EVA performance Customer Rewards Page 9

We continue to actively manage and reduce risk Lending Profile by Asset Type* • We continue to actively manage and reduce risk Lending Profile by Asset Type* • Exiting higher risk businesses • More emphasis on lower risk businesses • Corporate balance sheet deliberately constrained – focus on fee income • Risk based approach embedded through EVA business consumer * CBA as at 31/12/00, NAB & WBC as at 30/9/00 Page 10

Total non-accrual loans continue to fall, but increase in Australia Historic $m Gross Non-Accrual Total non-accrual loans continue to fall, but increase in Australia Historic $m Gross Non-Accrual Loans (LHS) Geographic $m Non-Accrual Loans/ Loans & advances (RHS) Gross Non-Accrual Loans Net Non-Accrual Loans (LHS) Aust Page 11 NZ Inter

Group risk grade profile continues to improve - but some signs of turning domestically Group risk grade profile continues to improve - but some signs of turning domestically $114. 6 bn $126. 5 bn $134. 9 bn $141. 0 bn AAA to BBB+ BBB to BBB- BB + to BB BB>B ELP (bp’s) 5. 4% 3. 9% 7. 2% 45 >B = B, B-, CCC & non-accrual 43 3. 8% 38 Page 12 35

Provisioning in line with expectations …. but increasing in Australia and New Zealand $m Provisioning in line with expectations …. but increasing in Australia and New Zealand $m Actual SP v ELP charge Personal Corporate ELP charge SP charge International & Subsidiaries • Slowing domestic economy likely to increase specific provisions • ELP is a function of volume (on and off balance sheet), risk grade profile, and level of security • Specific Provisions tend to be less volatile in Personal businesses and track more closely to ELP Page 13

Provisioning levels remain strong $m represents 3 years expected losses ELP charge 241 FX Provisioning levels remain strong $m represents 3 years expected losses ELP charge 241 FX impact 27 % GP/Lending Assets* 1460 1373 (181) Net SP transfer Surplus 448 1012 1 H 2001 2000 APRA Guidelines ELP - Economic Loss Provision SP - Specific Provision Page 14 * includes acceptances

We are developing a track record for building growth businesses % % Share of We are developing a track record for building growth businesses % % Share of credit card spend Mortgage market share 95 $m 96 97 98 99 Growing FM inflows 00 % FM inflows Deposit 95 01 (LHS) market share (RHS) Page 15 96 97 98 99 m Personal customers - Australia 00 01

Most businesses’ targeting revenue growth well in excess of expense growth Plan Revenue Growth Most businesses’ targeting revenue growth well in excess of expense growth Plan Revenue Growth 01 -03 cagr Personal High Cards Corporate Int. & Subsidiaries GFX Private Clients Asia Asset Fin Nominal GDP Growth GCM Small Bus Cost: Income falling Inst. Bank Metro & Reg Banking GSF GTS Pacific Corporate Low ANZ Investments Mortgages ILLUSTRATIVE Low Note: Bubble size approx. in proportion to 2001 forecast NPAT High Plan Operating Expense Growth 01 -03 CAGR Page 16

We are developing a strong CRM capability INFRASTRUCTURE • Enterprise Customer Data Mart (ECDM) We are developing a strong CRM capability INFRASTRUCTURE • Enterprise Customer Data Mart (ECDM) In Place CAPABILITIES • Full account and customer EVA • Tran$act database • Customer scoring and decision engine • Behavioural credit scoring systems • Segmentation markers and profiles • Propensity-to-buy scores • Application/behavioural scores • Multiple campaign management • Campaign Management System • Interim front line screen delivery In Pilot/ Development • Call centre, ATM, and SSP integration • Attrition scores by customer • anz. com integration • Automated, event-based campaigns • Recovery scores • Multi-product decisioning • Automated prospect list delivery (“My Sales”) • Full front line screen delivery • “Optimal” strategy selection by customer (longer term) Page 17

Substantial growth opportunities in Personal System Growth Customer #’s (m) Total potential revenue growth Substantial growth opportunities in Personal System Growth Customer #’s (m) Total potential revenue growth - $1. 5 b • Underlying credit growth ~ 8 -10% pa Market Share • Product businesses growing customer numbers and market share Peer Average 10 7. 3 Increased wallet on higher share $160 m Potential revenue $650 m • Customer #’s increasing by 1. 0 m - translates to $650 m in additional revenue pa Increase Wallet • Customer businesses deepening wallet share 5 4 Potential revenue $650 m Existing revenue $2. 6 b 0 40% 50%* Share of Customer Wallet * Average share of wallet for CBA, NAB, SGB, WBC - source: Roy Morgan Research Page 18 • $650 m revenue gain by matching our peers – Created customer businesses - Sales programs - CRM

In Corporate, our main focus is on growing total wallet share # Customers Focus In Corporate, our main focus is on growing total wallet share # Customers Focus on deeper penetration of existing CFS customer base Grow wallet share • • New delivery mechanisms • Potential revenue ~$1. 3 b New high value products Improved cross-sell • Increased sale of 3 rd party products ~5, 000 Total wallet of ANZ customer base ~$8. 5 b FY 2000 revenue $1. 7 b 0 ~20%* ~35% Share of Customer Wallet * source: internal estimate Page 19

Our breakout approach is differentiating us Strategy • Specialised businesses - open architecture • Our breakout approach is differentiating us Strategy • Specialised businesses - open architecture • First class execution (no surprises) Staff • 91% of managers on individual contracts • 12% rise in staff satisfaction • Breakout cultural change program Customers • Establishment of Customer Charter, Customer Advocate and distinctive customer and community initiatives e. Transformation • Leading cost income ratio • Highest internet banking penetration Risk • Leading financial disclosure & transparency • EVA embedded in culture Page 20

Developing a breakout performance culture Mission /aspiration where we are where we want to Developing a breakout performance culture Mission /aspiration where we are where we want to be Distinctive (Top 10%) Targets/goals Superior (Top 25%) Organisational approach Average BU Performance feedback Consequence management People Financial Operational Coordination and control Average + Rewards & recognition Superior Distinctive *Benchmark - 33 Australasian companies surveyed over 1999 -2000 Page 21 Opportunities Motivation Values

ANZ’s aspiration A high performing company, exceeding expectations • Revenue growth • Cost leadership ANZ’s aspiration A high performing company, exceeding expectations • Revenue growth • Cost leadership • Risk mitigation • EPS • ROE Perform Grow AND Breakout More dynamic than competitors • High P/E rating • Performance culture • Lean and agile • The e-bank with a human face • A breakout mentality Page 22 Positioned in growth markets • Actively managed portfolio • Annual investment in growth ideas • Higher than peer revenue growth

Summary • We are performing well • Cost management momentum – e. Transformation has Summary • We are performing well • Cost management momentum – e. Transformation has just begun… • Risk reduction continues • Our new strategy is creating value and better positioning us for growth • We are differentiating ourselves through our Breakout program Page 23 We are on track to achieve our goals

The material in this presentation is general background information about the Bank’s activities current The material in this presentation is general background information about the Bank’s activities current at the date of the presentation. It is information given in summary form and does not purport to be complete. It is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. These should be considered, with or without professional advice when deciding if an investment is appropriate. For further information visit www. anz. com or contact Philip Gentry Head of Investor Relations ph: (613) 9273 4185 fax: (613) 9273 4091 Page 24 e-mail: [email protected] com

Economic outlook - cautiously optimistic % Real GDP Growth incl. and excl. housing and Economic outlook - cautiously optimistic % Real GDP Growth incl. and excl. housing and Olympics (est) Financial conditions in Australia more expansionary than US Contractionary Year ended, excluding dwellings and Olympics Expansionary • Retail sales continue to rebound • Housing recovery continues • But unemployment is still rising • Forecast GDP growth for 2001 calendar year - 2%, rising to 4% in 2002 Page 25 • Unlike the US, Australia did not experience contractionary financial conditions • With domestic growth indicators strengthening, and early signs of rising inflation, the interest rate cycle has likely bottomed

Copy of presentation available on www. anz. com Page 26 Copy of presentation available on www. anz. com Page 26