Westpac Banking Corporation · ASX:WBC
Westpac Banking — Investor Presentation (July 2012)
21 slides from Westpac Banking's investor presentation, Jul 11, 2012
Slide 1: BT Financial Group: Strongly positioned for growth in Superannuation and Life Insurance
For personal use only BT Financial Group Strongly positioned for growth in Superannuation and Life Insurance Brad Cooper Chief Executive 11 July 2012
Slide 2: BT strongly positioned
BT strongly positioned For personal use only BT attaining sound returns and delivering on strategic initiatives Favourable long-term macro forces for the wealth sector remain, with regulation, customer preference and technology driving change BT is well positioned across the value chain and co
Slide 3: BT solid earnings growth driven by improving wealth penetration
BT solid earnings growth driven by improving wealth penetration For personal use only BT Cash earnings1 ($m) Around 10% of Group earnings Solid 4 year earnings 649 performance (2008 to 2011) 595 536 despite ASX200 declining 39% 493 over same period3 Wealth penetration of WBC 294 Group customer
Slide 4: Delivering against 2010 key strategic targets
Delivering against 2010 key strategic targets 2010 Targets1 2012 Progress For personal use only Wealth penetration (%)2 WRBB St.George Peers 1, 2 & 3 20.3% 18.4% 1. Alignment of Highest wealth penetration 15.5% in sector with WRBB. 14.0% banking and St.George has the fastest 13.6% wealth distributio
Slide 5: Delivery against 2010 key strategic targets (cont.)
Delivery against 2010 key strategic targets (cont.) 2010 Targets 2012 Progress For personal use only Insurance growth ($m) Mar-10 Mar-12 Mar-10 Mar-12 CAGR 12% 4. Target Significant growth in CAGR 11% insurance General and Life Insurance 540 from stronger sales and 170 424 segments extending distrib
Slide 6: Regulation, customers and technology driving change
Regulation, customers and technology driving change For personal use only → Superannuation guarantee step-up to 12% by 2019/20 will lead to increased competition and consolidation Regulatory → FOFA provisions for scaled and self service advice will drive growth of Change simple, affordable and scala
Slide 7: BT well positioned for change
BT well positioned for change For personal use only • Australian macro wealth industry • Deeper customer relationships with trends very positive improving wealth cross sell • Group has relationships • Re-orientating to larger and with ~11m customers Growth Return growing market profit • Wealth penet
Slide 8: Growth - macro wealth industry trends are very positive
Growth - macro wealth industry trends are very positive For personal use only Australia‟s superannuation growth expected to outpace Expected Australian Wealth industry profit pools ($bn)1 growth in the real economy Australian wealth profit pool expected to increase 43% by 9.7 Potential 20171, dr
Slide 9: Productivity - driven by scale, technology and regulatory reform
Productivity - driven by scale, technology and regulatory reform For personal use only Estimated Australian Superannuation industry profit pool Segmentation of the Superannuation Market (%)1 2011 2017 11 out of 68 Retail Sector Funds players have Total superannuation assets ($tn) 1.2 2.1 75% of the
Slide 10: Return - re-orientating focus to higher profit pools
Return - re-orientating focus to higher profit pools For personal use only Affluent (45+ years) and SME are the Australian financial service profit pools by segment & product 1 ($) highest profit pools for our targeted Lending areas of Superannuation, Life Insurance Increased focus on General Insu
Slide 11: Superannuation remains a priority
Superannuation remains a priority For personal use only Mass Market Advised Market Self Managed Corporate Superannuation Superannuation Funds (SMSF) BT Super for Life 1,030 Planners Strong platforms Growing Corporate Over 10,000 IFA2 Superannuation platform $5bn FUM1 $90bn in FUA $14bn in FUA4 $10bn
Slide 12: Life Insurance a significant opportunity
Life Insurance a significant opportunity For personal use only Australians significantly underinsured Life insurance sales by retail advisers ($m) – Reform amendments support growth 1 IFA Bank Aligned Planners – Insurance within superannuation is an 36 39 attractive proposition 19 21 19 17 BT we
Slide 13: Five measures of success
Five measures of success For personal use only 1. Alignment of banking and wealth distribution 2. Deepening relationships with Prime of Life1 and High Net Worth customers 3. Compelling customer experience 4. Market share of Superannuation and Life Insurance 5. Growing advice capability (scaled, sala
Slide 14: Summary
Summary For personal use only Wealth will increasingly be a strong growth driver supported by changing demographics, regulation and customer preferences BT well positioned across the value chain to capitalise on change Prime of Life and High Net Worth customers, Superannuation and Life Insuran
Slide 15: Appendix
For personal use only BT Financial Group Appendix
Slide 16: BT Select - accelerating growth via planner footprint
BT Select - accelerating growth via planner footprint For personal use only Attractive multi-brand advice offering Aligned dealer groups saw net growth of 34 practices in last 12 months to March 2012, 26 with Securitor and 8 with BT Select (previously Magnitude) Bank financial planning saw net growt
Slide 17: BT Financial Group at a glance
BT Financial Group at a glance For personal use only Advice & Platforms & Product Asset Distribution Administration Management Management OWNED OWNED OWNED OWNED Customer Diversified business % of total BTFG 1H12 revenue 5 19 35 9 ALIGNED 32 Super & Investment Private Bank / Advice / Equities EXTERN
Slide 18: Strong and improving wealth position
Strong and improving wealth position For personal use only High net worth customers (‘000) and those Wealth penetration of banking customers1 (%) Home and Contents cross sell2 (%) with 8+ products (%) 17.7 WRBB St.George High net worth customers ('000) 105 11 Customers with 8+ products (%) 46 17.0 7
Slide 19: 1H12 solid underlying business momentum offset by irregular items and market movements
1H12 solid underlying business momentum offset by irregular items and market movements For personal use only Cash earnings movement half on half ($m) Movement 1H12 – 2H11 49 (20) (49) • Cash earnings down $69m (19%) to 342 (8) 363 $294m (41) • Cash earnings impacted by irregular 21 294 Cash earnin
Slide 20: Solid underlying performance, Cash earnings lower
Solid underlying performance, Cash earnings lower For personal use only Key features of 1H12 underlying performance Key metrics • Platforms saw increased market share in BT Wrap / Asgard Platforms (including corporate Change on superannuation) up 1% to 21% and #1 in net flows at 60% share of annual
Slide 21: Definitions
Definitions: Wealth Penetration metrics. Data based on Roy Morgan Research, Respondents aged 14+. Wealth penetration is defined as the number of Australians who have Managed Investments, Superannuation or Insurance with each group and who also have a Deposit or Transaction Account, Mortgage, Persona