NOFOMA 2001 Designing distribution systems for consumer relat
Sales and Distribution - Westpac · Sales and Distribution Jim L’Estrange Chief Executive Officer...
Transcript of Sales and Distribution - Westpac · Sales and Distribution Jim L’Estrange Chief Executive Officer...
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Sales andDistributionJim L’EstrangeChief Executive OfficerAustralian Consumer Banking
13 August 2001
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DisclaimerDisclaimer
The material contained in the following presentation isintended to be general background information on WestpacBanking Corporation and its activities as at 13 August 2001.
The information is supplied in summary form and is thereforenot necessarily complete. Also, it is not intended that it berelied upon as advice to investors or potential investors, whoshould consider seeking independent professional advicedepending upon their specific investment objectives, financialsituation or particular needs.
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We have had a consistentWe have had a consistentstrategy for 3 years…strategy for 3 years…
• Focus on segmentation
• Developing our people
• Developing channels to meet customerneeds
• High performance culture
• Building alternative profitable distribution
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…which has delivered strong…which has delivered strongperformanceperformance
• Increased number of valuable customers
• Improved retention rates (mortgages,investments)
• Improved product penetration (2.24 è 2.51)
• Strong structured product sales - $750million
• Mortgage cross sale up 33%
• Improved planner and adviser productivity
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300
500
700
900
Mar-99 Sep-99 Mar-00 Sep-00 Mar-01
000’sNumber
…and an increase in valuable…and an increase in valuablecustomerscustomers
%
10
15
20
25
Mar-99 Sep-99 Mar-00 Sep-00 Mar-01
Proportion of Customers
Consumer Valuable* Customers
Growth 71%
* Priority or valuable customers are typically those with whom we have a multi-product relationship.
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Customer retention - mortgagesCustomer retention - mortgages& investments& investments
10
15
20
25
1999 2000 2001YTD*
Mortgages
Run
-off
%
10
15
20
25
1999 2000 2001YTD*
Investments
Red
empt
ion
Ret
ail F
UM
%
* Annualised
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Credit Card Outstandings
0
1
2
3
4
5
Mar-99 Jun-99 Sep-99 Dec-99 Mar-00 Jun-00 Sep-00 Dec-00 Mar-0110
12
14
16
18
20
22
Outstandings (LHS) Market share (RHS)
Market shareMarket share
Source: ABA
Home Loans, Investment & Equity Loans
25
30
35
40
45
50
55
60
Mar-99 Jun-99 Sep-99 Dec-99 Mar-00 Jun-00 Sep-00 Dec-00 Mar-010
5
10
15
20
25
Outstandings (LHS) Market share (RHS) 0
20
40
60
80
100
120
140
160
180
200
1997 1998 1999 2000 2001YTD
Wes
tpac
No.
Pol
icie
s S
old
(000
's)
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
Mar
ket
Sha
re
Westpac No. Policies Sold Market share
General Insurance Business
Fixed Rate Personal Loan Market Share
$b$b
$b$b %%
%%
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12
14
16
18
20
22
Oct-99
Dec-9
9Fe
b-00
Apr-00
Jun-0
0Aug
-00
Oct-00
Dec-0
0Fe
b-01
Apr-0
1
%
Source: APRA
Source: ABS
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Growth opportunitiesGrowth opportunities• Grow product penetration through
– better identify customer life stage events, andtherefore financial needs
– continue to invest in CRM, training
• Grow wealth management capability– increase number of planners & advisers– double referrals growth over 3 years– improve wealth creation capability within branches– continue focus on broadening customer
relationships
• Continue to lower cost structures• New referral sources• Leads management program
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Growth of our adviser networkGrowth of our adviser networkis key to our strategyis key to our strategy
0
200
400
600
800
1000
1200
Sep-95 Sep-96 Sep-97 Sep-98 Sep-99 Sep-00 Mar-01 Jun-01 Sep-01 Sep-02 Sep-03
Consumer advisers
Priority advisers & financial planners
Business advisers
Target
Planner/Adviser Numbers
• Strong organicgrowth
• Strong focus onaddressing retention
• Continue externalrecruitment
Direct businessadvisers
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Financial planners & Financial planners & advisorsadvisorsproductivityproductivity
Advised Sales per FTE
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100
200
300
400
500
600
700
800
900
0ct 9
9
Dec-99
Feb-0
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Apr-00
Jun-0
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Aug-00
Oct-00
Dec-00
Feb-0
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Apr-01
Jun-0
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FU
M/F
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/Mo
nth
($0
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Consumer opportunitiesConsumer opportunities
• 40% increase inPriority customers
• 30% improvementin EP of Personalcustomers
• 40% increase in EPper customer forPrivate Bankingclients
302
731
0100200300400500600700800
2000 2003
Economic Profit$m
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AgendaAgenda
• Business and Consumer Banking inAustralia– 3 year history– Strategy– Progress this financial year– Major Opportunities
• New Zealand and Pacific Banking
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New New Zealand Zealand Business &Business &ConsumerConsumer• Largest customer base• Opportunity in revenue
growth, wealth creation• Previously distracted by
merger integration• Staff morale improved• Customer satisfaction
stabilised• Income improving -
particularly BusinessBanking
• NZ Retail ROE 19.7% March2001
0
50
100
150
200
250
300
350
$NZm
1998 1999 2000 1H 2001*
NPAT Economic Profit
0
0.5
1
1.5
$NZb
1998 1999 2000 1H 2001
Funds under management
* annualised
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Pacific BankingPacific Banking
• Performing soundlydespite economicdisruptions
• Increased shareholdings• Solid earnings• PRB ROE 45.9% March
20010
10
20
30
40
50
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$m
1998
1999
2000
1H-2
001*
NPAT Economic Profit
* annualised
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In summary...In summary...
• On track to double the economic profitof ARFS in Australia in 3 years to 2003
• Focusing on broadening anddeepening relationships across ourcustomer base
• Major opportunities in wealthmanagement and business banking
• Delivering both market share andefficiency gains
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