Per Grow and Breakout.ppt

1、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 banks. Provider of full range of finan

2、cial services in Australia (since 1835) and New Zealand (since 1840) Leadership in Corporate Banking, Credit Cards and Mortgage origination, a strong eCommerce position and an offshore network in Asia and Pacific. AssetsA$181b (US$ 95b) Market CapA$24.5b (US$ 12.7b) Profit (half year)A$895m (US$ 470

3、m) Staff22,815 Credit RatingsAA-/Aa3,ANZ Headquarters 100 Queen Street Melbourne,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 EPS growth ROE Cost-income ratio Inner Tier 1 Credit rating,2003 Commitment 1

4、0% 20% mid 40s 6% maintain AA category,Achievement 13% 19.1% 49.4% 6.2% maintained,We have also committed to improving customer satisfaction, and will publicly report our progress,Building for the future - a distinctive strategy,Proposition Entrepreneurial specialists create more value Corporations

5、must embrace new technologies Value depends on performance, growth and breaking out,Strategy Reconfigure ANZ as a portfolio of 16 specialist businesses An e-Bank with a human face Drive results, invest in growth businesses and create new paradigms/culture,Specialise,Implications Specialist approach

6、to customer and product businesses Transform the way we do business with IP technology Meet expectations, fund growth by cost reduction, transform,Transforming ANZ through Perform, Grow and Breakout,Break out,Grow,Perform,Focus: long term destiny Benchmark:global industry/players Looking for:transfo

7、rming moves Horizon: 5-10 years Success:dramatic market cap increase,Focus: specialisation and out-growing the market Benchmark:competitors in each business Looking for:breakout moves in key businesses (eg QTV, Origin) Horizon: 3-4 years Success:4-5 moves taking share and worth AUD1bn+ market cap ea

8、ch,Focus: performance Benchmark:market expectations Looking for:six monthly delivery Horizon: 1-2 years Success:meet/exceed expectations consistently,We are performing well - interim results,NPAT from continuing operations $907m - up 18% EPS up 13% to 55.8 cents ROE of 19.1%, up from 17.8% Cost Inco

9、me ratio down to 49.4% Continuing operations revenue up 10%, costs flat Credit quality sound: ELP charge down to 35 bps Total non-accruals down Specific provisions flat - down overseas and up domestically Profit on sale of holding in St George $99m ($65m after tax), offset by write downs in investme

10、nts ($84m) Improved disclosure - financial information provided for each business unit,Building a strong track record,NPAT $m,NPAT/ROE,ROE %,Internet banking users as % of main relationships,Source: JP Morgan & Roy Morgan Research,Non-accrual loans,Cost to Income,$m,%,$m,%,Good profit growth across

11、a diversified portfolioMar 00 v Mar 01,Personal,Corporate,International and subsidiaries,$m,A strong performance culture,EVA focus,Rigorous Risk v Reward discipline Driver based capital allocation Integrated model,Value Aspirations,Strategies,EVA targets,EVA performance,Rewards,Business Unit,Custome

12、r,Cost Control,Part of culture Allocation of a scarce resource Ongoing re-engineering eTransformation Activity Value Analysis (AVA),Leading Cost Income Ratio,We continue to actively manage and reduce risk,Lending Profile by Asset Type*,business,consumer,Exiting higher risk businesses More emphasis o

13、n lower risk businesses Corporate balance sheet deliberately constrained focus on fee income Risk based approach embedded through EVA,* CBA as at 31/12/00, NAB & WBC as at 30/9/00,Total non-accrual loans continue to fall, but increase in Australia,Gross Non-Accrual Loans (LHS),Net Non-Accrual Loans

14、(LHS),$m,Non-Accrual Loans/ Loans & advances (RHS),Historic,Aust,Inter,NZ,Geographic Gross Non-Accrual Loans,$m,Group risk grade profile continues to improve - but some signs of turning domestically,$114.6bn,$141.0bn,$134.9bn,$126.5bn,AAA to BBB+,BBB to BBB-,BB + to BB,BB-, B,ELP (bps),45,43,38,35,7

15、.2%,5.4%,3.9%,3.8%,B = B, B-, CCC & non-accrual,Provisioning in line with expectations,Personal,Corporate,International & Subsidiaries,Actual SP v ELP charge,ELP charge,SP charge,$m,Slowing domestic economy likely to increase specific provisions ELP is a function of volume (on and off balance sheet)

16、, risk grade profile, and level of security Specific Provisions tend to be less volatile in Personal businesses and track more closely to ELP,.but increasing in Australia and New Zealand,Provisioning levels remain strong,1373,241,(181),27,1460,1012,2000,1H 2001,APRA Guidelines,ELP charge,Net SP tran

17、sfer,FX impact,ELP - Economic Loss Provision SP - Specific Provision,$m,Surplus448,GP/Lending Assets*,%,* includes acceptances,represents 3 years expected losses,We are developing a track record for building growth businesses,Mortgage market share,FM inflows (LHS),Deposit market share (RHS),Share of

18、 credit card spend,Personal customers - Australia,%,%,%,m,$m,95,00,96,97,99,98,01,95,00,96,97,99,98,01,Growing FM inflows,Most businesses targeting revenue growth well in excess of expense growth,Plan Operating Expense Growth 01-03 CAGR,Plan Revenue Growth 01-03 cagr,Note: Bubble size approx. in pro

19、portion to 2001 forecast NPAT,Mortgages,GCM,Metro & Reg Banking,Inst. Bank,Private Clients,ANZ Investments,GSF,GFX,GTS,Asia,Pacific,Corporate,Small Bus,Asset Fin,Nominal GDP Growth,Low,High,Low,High,Cost:Income falling,Cards,Corporate,Personal,Int. & Subsidiaries,ILLUSTRATIVE,We are developing a str

20、ong CRM capability,INFRASTRUCTURE,CAPABILITIES,Enterprise Customer Data Mart (ECDM) Tran$act database Customer scoring and decision engine Behavioural credit scoring systems Campaign Management System Interim front line screen delivery,Full account and customer EVA Segmentation markers and profiles

21、Propensity-to-buy scores Application/behavioural scores Multiple campaign management,Call centre, ATM, and SSP integration integration Multi-product decisioning Full front line screen delivery,Attrition scores by customer Recovery scores Automated, event-based campaigns Automated prospect list deliv

22、ery (“My Sales”) “Optimal” strategy selection by customer (longer term),In Pilot/ Develop- ment,In Place,Substantial growth opportunities in Personal,Existing revenue $2.6b,10,0,Customer #s (m),40%,50%*,Peer Average,Share of Customer Wallet,Potential revenue $650m,* Average share of wallet for CBA,

23、NAB, SGB, WBC - source: Roy Morgan Research,System Growth Underlying credit growth 8-10% pa Market Share Product businesses growing customer numbers and market share Customer #s increasing by 1.0m - translates to $650m in additional revenue pa Increase Wallet Customer businesses deepening wallet sha

24、re $650m revenue gain by matching our peers Created customer businesses Sales programs CRM,4,5,Potential revenue $650m,Total potential revenue growth - $1.5b,7.3,Increased wallet on higher share $160m,In Corporate, our main focus is on growing total wallet share,Grow wallet share New high value prod

25、ucts New delivery mechanisms Improved cross-sell Increased sale of 3rd party products,FY 2000 revenue,$1.7b,5,000,0,# Customers,20%*,35%,Share of Customer Wallet,Potential,revenue $1.3b,Focus on deeper,penetration of existing,CFS customer base,Total wallet,of ANZ customer,base $8.5b,* source: intern

26、al estimate,Our breakout approach is differentiating us,Strategy Staff Customers eTransformation Risk,Specialised businesses - open architecture First class execution (no surprises),91% of managers on individual contracts 12% rise in staff satisfaction Breakout cultural change program,Establishment

27、of Customer Charter, Customer Advocate and distinctive customer and community initiatives,Leading cost income ratio Highest internet banking penetration,Leading financial disclosure & transparency EVA embedded in culture,Developing a breakout performance culture,Average,Superior,Distinctive,*Benchma

28、rk - 33 Australasian companies surveyed over 1999-2000,Coordination and control,Distinctive (Top 10%),Superior (Top 25%),Average,Motivation,+,where we are where we want to be,Targets/goals,Consequencemanagement,Mission /aspiration,Organisational approach,BU Performance feedback,Financial,Operational

29、,People,Rewards &recognition,Opport- unities,Values,ANZs aspiration,A high performing company, exceeding expectations Revenue growth Cost leadership Risk mitigation EPS ROE,Positioned in growth markets Actively managed portfolio Annual investment in growth ideas Higher than peer revenue growth,More

30、dynamic than competitors High P/E rating Performance culture Lean and agile The e-bank with a human face A breakout mentality,Grow,Breakout,AND,Perform,Summary,We are performing well Cost management momentum eTransformation has just begun Risk reduction continues Our new strategy is creating value a

31、nd better positioning us for growth We are differentiating ourselves through our Breakout program,We are on track to achieve our goals,The material in this presentation is general background information about the Banks 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