What do our customers want? - their top 3 needs are
description
Transcript of What do our customers want? - their top 3 needs are
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What do our customers want? - their top 3 needs are
CB to focus on:
• Wall St to Main St
• Cross sell products from the Personal businesses into our customer base:
• Corporate portal to lower cost to serve
Corporate Banking
• ‘Balance Sheet’ on reasonable terms
• Partner & trusted advisor• Smart products / customised
solutions
Institutional Banking
• Industry Knowledge• Creative ideas and solutions• High quality service proposition
IB’s focus will be:• Leverage the success of
Industry Specialisation to our institutional customers
• Client servicing• Corporate Portal – helps
customers streamline operations
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…supported by world class customer value management systems like MARS
Management Analysis Reporting System
Relationship expense
Transaction details
Product & pricing details
Risk profile
Key Inputs Key Outputs
Customer profitability
“What if” scenarios
Product profitability
Risk based pricing
Share of overheads
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Summary
• The pre-eminent domestic corporate banking franchise
• Our cross sell focus is embedded in the sales network, driven to growing non-balance sheet product solutions for customers
• Optimising overall customer value is driving new revenue opportunities
• The business will continue to build industry specialisation
Goals• Double digit earnings
growth
• Continue growth and
diversification of
customer revenue
mix
• Maintain customer
satisfaction ratings
• Performing loans
remain at 99% of
total book
Global Capital Markets
David HorneryGlobal Head of Capital Markets
Australia and New Zealand Banking Group Limited 20 July 2001
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Leveraging capabilities for high growth segments
• What do we do?
• Financial performance
• Low risk profile
• Realising our growth opportunities
• Goals for Global Capital Markets
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Capital Markets means different things to different people
• Derivatives trading and sales, interest rate & equity
• Credit:
– Underwriting
– Trading and sales activities
– Short and long dated securities
– Government and non-government credit derivatives
• Primary Markets activities:
– Securitisation
– Syndication
– Origination
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6871
80
50
55
60
65
70
75
80
85
Mar-00 Sep-00 Mar-01
Operating Income
1618
24
0
5
10
15
20
25
30Profit After Tax
Mar-00 Sep-00 Mar-01
176
183
180
165
170
175
180
185
190
53.8
59.2
61.8
50
52
54
56
58
60
62
64
We are delivering strong performance
Mar-00 Sep-00 Mar-01 Mar-00 Sep-00 Mar-01
FTE Cost Income
50% Growth
18% Growth
$m $m
%
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Debt Securities
DerivativesPrimary Markets Group
Corporate Sales
Structured Product
…generated from a broad-based mix of products and clients...
Debt Securities
DerivativesPrimary Markets Group
Corporate Sales
1996 Portfolio 2001 Portfolio
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Credit Risk• Risk limits unchanged• The majority is MTM on
Derivatives books• Residual is typically Investment
Grade Securities Inventory• Netting and collateral
management are important initiatives
Market Risk• Risk managed under global
books• Market Risk (VaR) limits and
usage unchanged
…while adopting a low risk profile
Source: Group Market Risk
Limit US$5.2m
Avg use US$1.9m
Daily Value at Risk Trends
0
1
2
3
4
5
6
Daily
VaR
Dec 99 Mar 01
US$m
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We are a leader in Capital Markets
League Tables
• #1 Interest Rate Products in Australia 2001 (Asia Risk)
• #2 Bank Australian Equity Derivative Product (Asia Risk)
• Runner Up Debt House of the Year (INSTO)
• #1 Commercial Paper Australia (Asia Money)
• Lead & Arranger Debt Issuer of the Year (INSTO)
• Arranger & Lead Mgr Securitisation Deal of the Year (INSTO)
• #1 Lead Arranger Australian Syndicated Loans (IFR)
• #2 Lead Arranger New Zealand Syndicated Loans (IFR)
• Lead Arranger Project Deal of the Year 1999 & 2000 (INSTO)
• #1 Issuer Put Warrants, #3 Overall Equity Warrants (ASX turnover statistics)
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Our future growth lies with complex, high margin products...
Strong & sustainable market positions
• Interest Rate Derivatives
• Long-Dated Aust & NZ Credit Product
• Syndication, Securities, Origination
Commoditised, cost & volume-driven economics
• Cash, Short-Dated Securities, FRAs
• AusMarkets.com• ANZ Futures • ANZ Mees Pierson• Clearing Services
• Securitisation • Credit & Equity
Derivatives • Complex Hybrids • Advice & Structured
Solutions
High IP, complex,higher margin fee-based business
Volume & cost game
Margin & skill game
SellExit
e-enable
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…such as securitisation...
• Principal finance/structured• investment vehicles
• Corporate bonds/loans• CBO/CLO/CLN• Project finance CLO• Margin loans• Commercial loans• Insurance premium loans• Consumer loans• Future flows• Credit cards• Trade receivables• Auto loans & inventory leases• Big ticket leasing (eg aircraft)• Equipment loans/leases• CMBS/credit lease• Sub-prime mortgages• Residential mortgages
Incre
asin
g c
om
ple
xity
Track Record
• Securitisation Deal of the Year - Kingfisher 2000-1D (Insto Magazine)
• 1st Non-Credit Lease CMBS
• 1st & Only Term Trade Receivables Transaction
• 1st & Only Private Label Credit Card Transaction
• 1st Consumer Loans Transaction
• 1st & Only IPF Funding Loans
• Global 1st & Only Asset-Backed A-3 CP Program (almost 100% market share in A-2 & A-3)
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…and equity derivatives
Basic Core Competencies(people, risk, systems,
reputation)
Trading Business
Investor Services
Structured Investment
Corporate Investment & Stock Option Management
Full suite of structured/customisedHigh net worth product
Listed equity
warrants
Second
generatio
n
derivativ
es
Full pro
duct
toolbox
Leadership in
stru
cture
d
wealth pro
duct
CREA
TE
DIS
TR
IBU
TE
PROTECT
GrowthCycle
• Higher c
omplexity
• Incre
ased value
• Gre
ater f
ranch
ise le
verage
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Summary
• Our areas of strong & sustainable competitive advantage are the Australian & New Zealand Credit & Derivative product suite
• Our growth will come from:
– e-enabling, selling or exiting those businesses subject to commoditisation and scale economics
– Growing our core businesses at 10%-15% compound, consolidating our top 3 status
– A clear focus on select, high growth, high IP businesses, in which we have already built a strong pipeline
Goals• 15% +
earnings growth
• Global leadership in Australian and NZ credit & derivative products
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ANZ Corporate is a growth business
• Strongly positioned:
– 30%+ of earnings come from outside Australia
– The leading corporate bank – top ranked in the eyes of customers
– Excellent financial performance
• Platforms for growth
– Each business has strong growth potential
– Leading edge intellectual capital to drive fee income
• On track to double profit by 2004
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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 GentryHead of Investor Relations
ph: (613) 9273 4185 fax: (613) 9273 4091 e-mail: [email protected]
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Copy of presentation available on
www.anz.com