Anz Group Holdings Limited · ASX:ANZ
Anz — Australia and New Zealand Banking Group — Investor Presentation (November 2012)
31 slides from Anz's investor presentation, Nov 28, 2012
Slide 1: ANZ Wealth Strategy
ANZ Wealth Strategy Delivering performance through growth, innovation and productivity AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED 28 November 2012 Joyce Phillips CEO Global Wealth and Private Banking
Slide 2: Agenda
Agenda Global Wealth and Private Bank Growth segments and markets - the opportunity in wealth Our strategic agenda – innovation and productivity Focus on performance Q&A 1
Slide 3: Renewed focus as a global business
Renewed focus as a global business 2002 2007 2009 2010 2012 May 2002 June 2007 September 2009 Throughout 2010 March 2012 Joint venture with ANZ acquires ANZ moves to full Integration with Renewed focus as a ING Group - funds E*Trade Australia ownership of ING Australia and New separate division – ma
Slide 4: Opportunity and capability to change the game
Opportunity and capability to change the game Growing markets in Australia, New Zealand and Asia An attractive and loyal customer base Leading position in Life Insurance Leading position in KiwiSaver Profitable Private Bank in Australia and New Zealand and presence in high growth Asian cou
Slide 5: Growing wealth markets in Asia and Australasia
Growing wealth markets in Asia and Australasia Forecast Super Forecast Life Risk Global Private Wealth (Australia, FUM $T, (Australia, In-force $B, (2011-16F, $T) CAGR 2011-21F) CAGR 2011-21F) 151 Eastern Europe 23.6 Latin America 3.1 Middle East, Africa Retail Super Direct 10% 123 2% Retail Pension
Slide 6: Attractive opportunity in our existing franchise
Attractive opportunity in our existing franchise Bank customers with a wealth Customer Attrition product from their bank1 -45% 20% Peer 1 Peer 2 18% ANZ customer ANZ customer without wealth with wealth 16% Revenue per Customer Peer 3 +65% 14% 12% Jul 10 Jan 11 Jul 11 Jan 12 Jul 12 Jan 13 ANZ custome
Slide 7: Industry changes support our strategy
Industry changes support our strategy Industry Shifts Our Opportunity Our Objective Regulatory Changes Raise the bar in advice Finding new ways for customers to engage with their wealth and Technology & Digital and direct ANZ Consumer Behaviour channels Attitudes to Advice Self directed customer Com
Slide 8: Our strategic agenda
Our strategic agenda Guiding Principles Productivity Innovation Grow relationships Synergies from the Smart Choice direct with existing ANZ global model super customers ― Leveraging our Advice transformation leading life Drive higher returns Building a distinctive, insurance business and
Slide 9: Productivity - synergies from the global model
Productivity - synergies from the global model ANZ Wealth is contributing to ANZ Group’s productivity agenda Synergies within GW&PB Synergies with the ANZ Group Leveraging product and platform Continuing to leverage ANZ's global capabilities in Australia across the operations hubs region Build
Slide 10: Our leading life insurance capability
Our leading life insurance capability In-force premiums Life Insurance ROE ($m) (indexed) 2,000 4% 200 General 1,500 9% 150 Growing premiums in 1,000 Individual 100 the profitable areas of 183 11% general and individual 500 50 100 risk while maintaining Group 0 (14%) 0 financial discipline in Grou
Slide 11: Increasing planner productivity and capacity
Increasing planner productivity and capacity Total owned & aligned S&I FUM / ANZ adviser Risk production /ANZ adviser advisers (Australia only ($m)) (Australia only ($k)) (# Advisers, Australia & NZ) +13% 1,500 1,439 7 6.4 100 30 NZ 6 80 74 5 +37% 4 60 Australia 1,109 Target 3 capacity 40 2 20 1 300
Slide 12: Investment platforms – simplify and focus
Investment platforms – simplify and focus Launched 2012 Simplification In progress Client Need Complex Making SMSF Self Managed Advice simpler Super Funds E*Trade Wrap Mastertrust Mass Retail Super: Extending Low/No Employer & Direct functionality Solution Advice sophistication Industry FUM Growth1
Slide 13: Innovation - Smart Choice Super
Innovation - Smart Choice Super Visibility Choice & Control Great Value ANZ Smart Choice fees vs other super funds $716 $521 $300 ANZ Average Average Smart Industry Australian Choice Fund Super Super Fund See your super Life stage investments One low investment alongside other Choose how inv
Slide 14: Innovation – raising the bar in advice
Innovation – raising the bar in advice Our customers are demanding greater value in advice Quality Consistency Alignment Valued Advice Well informed Streamlined, Long-term ANZ personalised advice consistent advice Adviser relationships from highly experience across qualified Wealth all channels an
Slide 15: Building a distinctive regional Private Bank
Building a distinctive regional Private Bank In alliance with... Strong domestic A compelling new franchises and affluent Highly regarded Swiss customer base across + Private Bank = Private Banking proposition Australia & New Zealand Robust cross-border Growing distribution World-class investments c
Slide 16: Growth segments: Women and Wealth
Growth segments: Women and Wealth 55% of affluent women feel their Wealth Wealth controlled by women (%) Manager could better meet the specific needs of women in wealth management 33 31 29 Women tend to take a longer-term view 27 of performance and have longer-term goals Women respond differen
Slide 17: New ways to engage with our customers
New ways to engage with our customers Digital Wealth Technology-enabled Wealth Investment Investment Centres advisers Centres 16
Slide 18: Focus on performance
Focus on performance Global Wealth and Private Banking Clear Focus on Returns Operating income Cost to Income Net profit after Tax Deploying capital to products and ($m) Ratio (%) ($m) channels that deliver appropriate returns +3% -3.5% +19% Value of new business significantly 750 exceeds the Gr
Slide 19: What does success look like?
What does success look like? A material contribution to the total profit and market value of ANZ Changing the way our customers engage with their Wealth and with ANZ Using innovation to deliver our strategy – investing $80-$100m per annum Addressing our underweight position in Superannuation
Slide 20: ANZ Wealth Strategy – Appendix
ANZ Wealth Strategy Delivering performance through growth, innovation and productivity AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED 28 November 2012 Appendix
Slide 21: Global Wealth and Private Banking Division
Global Wealth and Private Banking Division Underlying profit growth FY12 v FY11 Global Wealth and Private Banking Division -1% Underlying profit Insurance annual in-force premiums $m $m 1,822 457 451 1,758 1,722 2H11 1H12 2H12 245 206 Cost to income ratio 59.8% 58.0% 57.4% 56.3% FY11 FY12 1H12 2H12
Slide 22: Global Wealth and Private Banking – Financial Performance
Global Wealth and Private Banking – Financial Performance Underlying NPAT movement – FY12 v FY11 $m 457 5 17 451 12 4 12 Down 1% FY11 Net Other Expenses Provisons Tax and FY12 Interest Income OEI Underlying NPAT movement – 2H12 v 1H12 $m 4 13 245 27 206 - 5 Up 19% 1H12 Net Other Expenses Provisons T
Slide 23: Key business drivers: Super and Investments
Key business drivers: Super and Investments Funds Under Management Investment flows from salaried & ($b) aligned planners (Australia $m) +6% 52 49 FuM up 6% YoY 84 41 43 ANZ owned advice -456 channels have improved; open 8 9 market still FY11 FY12 FY11 FY12 in outflow New Zealand Australia Sha
Slide 24: Key business drivers: Private Bank
Key business drivers: Private Bank Continuing to “Up tier” our Private Bank Australian business relatively underweight in customer base, a key driver of our business Investments; significant opportunity for strategy growth Avg. FUM/Client in Private Bank Business Mix in Private Bank (YoY change, %)
Slide 25: Key business drivers: E*Trade
Key business drivers: E*Trade E*Trade Annual Trades (Australia) Volume „000s Online broking and investment 8,000 -27% 50,000 40,000 lending critical to our wealth 6,000 30,000 value proposition 4,000 20,000 2,000 10,000 0 0 Challenged in the past 4 years FY09 FY10 FY11 FY12 1 by market condition
Slide 26: Global Wealth and Private Banking Division (GWPB)
Global Wealth and Private Banking Division (GWPB) • A new division that combines Global Wealth and Private Banking across Australia, New Zealand and the Asia Pacific • Responsible for delivering investment, superannuation, insurance and advice solutions and private banking services to our customers
Slide 27: Global Wealth and Private Banking - Leadership Team
Global Wealth and Private Banking - Leadership Team CEO Global Wealth & Private Banking Joyce Phillips Acting Global Chief Risk Officer Alison Larsson Deputy Managing Director Gavin Pearce MD Global MD Wealth GM Global MD Global Acting MD MD Global GM Strategy Direct New Zealand and MD Wealth Women’
Slide 28: CEO Global Wealth and Private Banking - Joyce Phillips
CEO Global Wealth and Private Banking - Joyce Phillips Joyce Phillips is CEO, Global Wealth and Private Banking and Group Managing Director and Management Board member at ANZ responsible for marketing, innovation and digital. Prior to joining ANZ in 2009, Joyce was President and Chief Operating Offi
Slide 29: Global Wealth and Private Banking - Team
Global Wealth and Private Banking - Team Paul Barrett Paul Barrett has over 17 years experience working in banking and wealth management. MD Global Advice and Prior to joining ANZ Paul was the General Manager of Colonial First State Advice Distribution Business. John has worked for ANZ‟s markets bus
Slide 30: Global Wealth and Private Banking - Team
Global Wealth and Private Banking - Team Graeme Hosking has been with ANZ for six years. Prior to this appointment, Graeme Graeme Hosking spent four years managing Operations, Technology, Project Delivery and Business Chief Operating Officer Execution across the Institutional Division at ANZ, and a
Slide 31: www.anz.com
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
Australia and New Zealand Banking Group — Investor Presentation (November 2012) on 6ix