Strategy Seminar Personal Financial Services

1
Strategy SeminarPersonal Financial Services

• Australia and New Zealand Banking Group Limited
  24 August 2001

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

3
Personal Financial ServicesRealising a unique
growth opportunity

• Peter Hawkins
• Group Managing Director
• Australia and New Zealand Banking Group
  Limited24 August 2001

4
Greg Camm - Mortgages

• Joined ANZ April 1989
• Commenced current position February 1998

5
Elizabeth Proust - Metrobanking

• Joined ANZ January 1998
• Commenced current position March 2001

6
Alison Watkins - Regionalbanking

• Joined ANZ February 1999
• Commenced current position March 2001

7
Craig Coleman Wealth Management

• Joined ANZ in 1994
• Commenced current position October 2000

8
Graham Hodges Small to Medium Business

• Joined ANZ in 1991
• Commenced current position September 2000

9
Brian Hartzer Cards ePayments

• Joined ANZ September 1999
• Commenced current position September 1999

10
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 ePayments
11
The Personal Portfolio todays 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
12
Considerable momentum developing
NPAT
Customer Numbers
m
15
39
23
50
46
27
Personal Corporate Int Subs
Mar 2001 annualised
13
Specialisation has driven the success of our
product businesses
Market Share (Mortgages)
Market Share (Card Spend)


Break in series
Source Economics _at_ ANZ
3 month moving average
14
Drivers of value creation not just a cost story
Revenue

• Specialisation
• Award winning products
• Sales capability - driving revenue gains
• Dramatic productivity gains

CAGR 6.5
m
Cost Income
Substantial value creation
15
Our strategy is delivering strong results
26 NPAT Increase
Personal Portfolio - NPAT
m
CAGR - 34
Small Business
Wealth Mgmt
Regionalbanking
Metrobanking
Cards
Mortgages
16
We are now applying the power of this
specialisation focus to our core franchise
Metrobanking
Regionalbanking


50
39


Wealth
Small Business
49
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
17
The growth opportunities in Personal are
substantial
Total potential revenue growth - 1.5b
Customer s (m)

• Increase Market Share
• 1m new customers
• Potential revenue - 650m

Peer Average
10
Increased wallet on higher share 160m
7.3

• Increase Wallet Share
• Meet peer average
• Potential revenue - 650m

5
4
Existing revenue 2.6b
0
40
50
Share of Customer Wallet
Average share of wallet for CBA, NAB, WBC -
source Roy Morgan Research
Australia only
18
The specialist business model
Personal Financial Services Peter Hawkins
Regional- banking A Watkins
Wealth Management C Coleman
Small Business G Hodges
Mortgages G Camm
Cards ePayments B Hartzer
Metro-banking E Proust
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
Putting the customer first branch network is a
strategic asset
The glue
Systems CRM Culture Brand Leadership Risk
19
Putting customers first is critical to the next
phase of our specialisation strategy
CRM Marketing (Recent Case Study demonstrating
effectiveness of predictive models)

• 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

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

21
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

Realising a unique growth opportunity