Brian Hartzer (PowerPoint download) by dandanhuanghuang

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									Growing our Personal Portfolio
         Salomon Smith Barney Conference


Australia and New Zealand Banking Group Limited
                                  19 June 2001

                              Brian Hartzer
                      Managing Director - Cards
      Building for the future - a distinctive
      strategy

                  Proposition                  Strategy          Implications

               • Entrepreneurial       • Reconfigure ANZ as   • Specialist
Specialise       specialists create      a portfolio of 16      approach to
                 more value (eg          specialist             customer and
                 Cards &                 businesses             product
                 Mortgages)                                     businesses


               • Corporations          • An e-Bank with a     • Transform the
e-Transform      must embrace            human face             way we do
                 new technologies                               business with IP
                                                                technology


               • Value depends on      • Drive results,       • Meet
Perform Grow     performance,            invest in growth       expectations,
& Break out      growth and              businesses and         fund growth by
                 breaking out            create new             cost reduction,
                                         paradigms              transform

                                      Page 2
Transforming ANZ through Perform,
Grow and Breakout
                       • Focus:         long term ‘destiny’
                       • Benchmark:     global industry/players
                       • Looking for:   transforming moves
   Break               • Horizon:       5-10 years
    out                • Success:       dramatic market cap increase


                       • Focus:         specialisation and out-growing
                                        the market
                       • Benchmark:     competitors in each business
   Grow                • 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
                                        each

                       • Focus:         performance
                       • Benchmark:     market expectations
   Perform             • Looking for:   six monthly delivery
                       • Horizon:       1-2 years
                       • Success:       meet/exceed expectations
                                        consistently


              Page 3
                 Shared systems and controls are in
                 place to protect synergies
             Accountabilities            Personal Financial Services
             PFS 50%
             Group 50%                        Peter Hawkins

              Metro-         Regional-       Wealth                      Small
                                                                                         Mortgages           Cards
             banking          banking      Management                   Business
Theme




                                                                                            Maintain
                   Drive sales                                      Aggressively                           Accelerate
                                           Invest to grow                                   profitable
                  and efficiency                                      rebuild                               growth
                                                                                             growth

                 • Advanced                • Expert advice         • Build profitable   • Maintain       • “Best of
                   marketing/                                        market share         distribution     breed”
                                           • Open
Priorities




                   segmentation                                                           strength         delivery
                                             architecture          • Relationship
                                                                                                           platform
                 • Straight                                          based              • Straight
                                           • “Wrap” facility
                   through                                           proposition          through        • Data mining
                   processing              • Seamless                                     processing
                                                                   • Redesign end to                     • Exploit growth
                                             access
                 • Lower cost to                                     end process                           opportunities
                   serve



                 Systems           CRM      SSP                                     Brand       Risk Management


                                                               Page 4
        Our strategy is delivering results...
   $m                                        $m
450                                        250
              Personal Portfolio   420
                Profit Growth                                                Business Unit
400
                                                      197
                                                                                 NPAT
                             380           200          191
                                                    181

350
                      333
               322                         150
                                                                                                          Mar-00
                                                                                                          Sep-00
300
                                                                                                          Mar-01                            112

                                           100
                                                                                                                                     80
250
        233
                                                                                                                           58   58
                     CAGR - 34%              50                         45 44              48                      45
200                                                                                                           34

                                                                                                15 14
                                                                                                        11

150                                           0       General Banking




                                                                          Small Business



                                                                                                 Management




                                                                                                                   Cards




                                                                                                                                     Mortgages
      Mar-99 Sep-99 Mar-00 Sep-00 Mar-01




                                                                                                   Wealth
                                           Page 5
     We are developing a track record of
     building growth businesses
 %                                                          %
15                                                        30                Share of credit
                 Mortgage market                                             card spend
14                    share
                                                          25
13

12
                                                          20
11

10                                                        15
     95     96       97       98       99   00   01             95   96     97    98    99     00   01
                                                           m
 $m                                              %        4.2
 700                                             16                       Personal customers
 600                      FM inflows                      4.0
                                                                              - Australia
                            (LHS)
 500                                              14
             Deposit
 400                                                      3.8
           market share
 300             (RHS)                            12

 200                                                      3.6

 100                                              10
                                                          3.4
     0
                                                            Mar-98 Sep-98 Mar-99 Sep-99 Mar-00 Sep-00
          Mar-00 Jun-00 Sep-00 Dec-00 Mar-01
-100                                              8

                                                 Page 6
                            Personal business units will continue
                            to be key profit drivers

                                                                                              Cards
                               High
Revenue Growth 01-03 CAGR




                                                                   GFX
                                                                                        GSF
                                                                                                                Wealth
                                                            Asia
                                                         GCM                GTS
                                         Asset Fin                                             ANZ
                                                                                               Investments
                            Nominal                                           Pacific
                                GDP        Small Bus
                                                      Inst Bank
                             Growth
                                                     Metro &                             Mortgages
                                       Cost to
                                      Income         Regional               Corp Bank
                                       falling




                                                                                                             Bubble size in
                               Low                                   Illustrative                            proportion to
                                                                                                              2001 NPAT


                                        Low                                                                        High

                                                         Operating Expense Growth 01-03
                                                                         Page 7
           We are developing a strong CRM
           capability….
            INFRASTRUCTURE                          CAPABILITIES

            • Enterprise Customer Data Mart         • Full account and customer NIACC
              (ECDM)
                                                    • Segmentation markers and
In Place    • Tran$act database                       profiles
            • Customer scoring and decision         • Propensity-to-buy scores
              engine
                                                    • Application/behavioural scores
            • Behavioural credit scoring
                                                    • Multiple campaign management
              systems
            • Campaign Management System
            • Front line screen delivery

            • Call centre, ATM, and SSP             • Attrition scores by customer
In Pilot/     integration                           • Recovery scores
Develop-    • ANZ.com integration                   • Automated, event-based
 ment                                                 campaigns
            • Multi-product decisioning
                                                    • Automated prospect list delivery
                                                      (“My Sales”)
                                                    • “Optimal” strategy selection by
                                                      customer (longer term)

                                           Page 8
    ...which is delivering promising results


%
    Event-based Cross-sell                                Proprietary Card Cross-sell
       (Recent Case Study)     47%                             (Recent Case Study)
                                                  Index
                                                                                167




                                                              100




                  16%




       5%



    Segment A   Segment B    Segment C                    Control Group   Propensity to Buy
     Deposit      Esanda     Mortgages                                         Model
    Customers


                                         Page 9
         Growth opportunities in Personal are
         substantial
                                                                         System Growth
                                                                         • Underlying credit growth ~
Customer #’s
                        Total potential revenue                            8-10% pa
    (m)                     growth - $1.5b
                                                                         Market Share

               Peer Average                                              • Product businesses growing
                                                                           customer numbers and
                                                                           market share
                                                                         • Customer #’s increasing by
                                                                           1.0m - translates to $650m
                                                Increased                  in additional revenue pa
  10                                         wallet on higher
               Potential revenue              share $160m
                    $650m                                                Increase Wallet
 7.3
                                                                         • Customer businesses
   5                                                                       deepening wallet share
   4                                                                     • $650m revenue gain by
                                                       Potential
           Existing revenue                            revenue             matching our peers
                 $2.6b                                  $650m                – Created customer
   0
                                                                               businesses
                                   40%       50%*
                                                                             - Sales programs
                               Share of Customer Wallet                      - CRM

                      * Average share of wallet for CBA, NAB, SGB, WBC
                      - source: Roy Morgan Research
                                                        Page 10
        Personal strategy in action: Cards
               • Structured as a ‘monoline’ cards business
 Specialise    • Line-of–sight focus on Card Issuing, Merchant Acquiring and
                 Unsecured Personal Loans
               • #1 Visa issuer in Australia, 27% of spend
               • Growing share in Merchant acquiring in Australia and New
                 Zealand


               •   Straight-through-processing already delivering benefits
E-Transform    •   “Platform of the future” initiative underway
               •   On-line experience enhancements currently rolling out
               •   Best-in-class risk management initiative underway


Perform Grow
               •   Consistent track record of high profit/EVA growth
 & Breakout    •   Investing in culture and staff recognition
               •   Leveraging CRM capabilities to maximise cross-sell
               •   ENZ acquisition
               •   Asian expansion (e.g. Hong Kong)
               •   E-Card joint venture

                                       Page 11
 The Cards business is performing
 strongly

         FINANCIAL                      58
       PERFORMANCE
           $NPAT (m)             45

                       34

                                                70% annual
                                                growth rate




                   Mar-00     Sep-00   Mar-01   Change

Total revenue     276         304      335      21%
Cost/Income       51%         47%      49%       2%
Ratio




                            Page 12
                          Growing share in all segments of our
                          Cards business...

                                                                                                                                            Market share (Australia)

                                                         Cards Issuing Market Share Index                                                                                                                                        Market Share - % of total value
                                                                                                                                                                                                                                   of credit transactions
115                                                                                                                                                                                                           115

                                                                                                                                                                                                                    22.0%
110                                                                                                                                                                                                           110
                                                                                                                                                                                                                                                                   21.4%
105                                                                                                                                                                                                           105
                                                                                                                                                                                                                    21.0%

100                                                                                                                                                                                                           100


 95                                                                                                                                                                                                           95    20.0%


 90                                                                                                                                                                                                           90
      Fe b - M a r - A p r - M a y - J u n - J u l -9 9 A u g - Se p -   Oc t- Nov- De c - J a n-   Fe b - M a r - A p r - M a y - J u n - J u l -0 0 A u g - Se p - O c t - N o v - D e c - J a n - Fe b -
       99      99      99       99       99              99       99      99    99     99     00     00      00      00      00      00              00       00      00      00      00       01      01
                                                                                                                                                                                                                    19.0%
                                        Issued Accounts                                                                         Gross Outstandings                                                                      Mar-00   Jun-00     Sep-00     Dec-00      Mar-01
                                        Approved Limits                                                                         Cardholder Spend


                                       Card Issuing Australia                                                                                                                                                               Card Acquiring Australia


                                                                                                                                                                                                    Page 13
        ...assisted by selective acquisitions

                      Eftpos NZ Acquisition - 3% + market share
                                  gain in 12 months




            18%
                                                                         16.23%
            16% 15.12%
                            13.5%           14.52%
Market
            14%
share of
acquiring
(NZ only)   12%

            10%
               Apr- May- Jun-   Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr-
                00   00   00     00   00   00   00   00   00   01   01   01   01
                                            Credit transactions




                                         Page 14
…and product innovation which is
recognised internationally


Meet Freddy …




“Best Frequent Traveller Credit or Charge Card (International)”*
      First Place:              Qantas Telstra Visa Card (Australia)
      Second Place:             Qantas Telstra ANZ Visa Card (NZ)
      Third Place:              Amex



 * source: InsideFlyer Magazine, 2001
                                         Page 15
Investment in cultural change is
creating a dynamic environment

                      Cards staff satisfaction levels
                80%

                                                 75%
                75%
Meet Freddy …
                70%
                                     67%

                65%

                60%        59%


                55%


                50%

                45%

                40%
                           1999      2000        2001




                 Page 16
Leveraging distinctive capabilities
into international markets

                           • Launch April 2001
                           • Target: Hong Kong
                             platinum market
                           • Niche product with
                             unique features to
                             attract profitable
                             segment
                           • Proof of concept for
                             marketing and
                             operational
                             capabilities in the
                             region




                Page 17
 Summary



• We are performing well

• We have substantial growth
  opportunities                      We are
                                    on track
• Our new strategy is creating         to
  value and better positioning us   continue
  for growth                        growing
                                    strongly
• We are differentiating
  ourselves through our Breakout
  program




                          Page 18
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     e-mail: gentryp@anz.com




                                        Page 19
Copy of presentation
    available on
  www.anz.com
        Page 20

								
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