Anz Group Holdings Limited · ASX:ANZ
Anz — Australia and New Zealand Banking Group — Morgan Stanley Investor Conference 2007
16 slides from Anz's conference presentation, Nov 14, 2007
Slide 1: Morgan Stanley Investor Conference
For personal use only Morgan Stanley Investor Conference Australia and New Zealand Banking Group Limited November 2007 Peter Marriott Chief Financial Officer 1
Slide 2: ANZ - major bank in Australia and New Zealand, expanding rapidly into Asia
ANZ - major bank in Australia and New Zealand, expanding rapidly into Asia • Established 1835 For personal use only • Represented in 31 countries • Market capitalisation ~ $53b + • Largest Australian bank in Asia • Assets of ~ $392b • FY07 profit $4.18b (Cash profit $3.92b) • Cost to income ratio 44
Slide 3: Our 2007 Annual Result
Our 2007 Annual Result Sep 07 v Sep 06 Headline profit - $4,180m 13.3% For personal use only Cash* profit - $3,924m 9.4% Revenue Growth 12.1% (10.1%*) Cash* Profit Before Provisions (PBP) 11.5% Cash* EPS 8.1% Dividend 8.8% Highest growth in revenue and PBP for many years $1b DRP underwrite reinstate
Slide 4: Most businesses delivered excellent results…
Most businesses delivered excellent results… PBP Australia New Zealand Asia/Pac Other Growth For personal use only 12% 7% 26% 15% % of Group PBP 37% 14% 3% 1% 17% Retail PBP 13% Insto Growth 15% 15% 3% -27% 15% 27% Institutional Institutional 4% /Business 11% 6% -13% 1% Corp & Comm 4% Wealth / Asia
Slide 5: ….but bottom line was below peers
….but bottom line was below peers Includes PBP for: Reflects buoyant Personal – 17% equity markets INGA – 28% For personal use only 1.2% 3.1% NZ Businesses – 13% Major focus for management, improved 1.2% performance expected relative to peers Provisioning growth 3.6% 12.1% management Underweight wea
Slide 6: Personal – continues to provide superior performance
Personal – continues to provide superior performance A leader in customer satisfaction And a track record of strong For personal use only (Main Financial Institution: 6 months rolling*) financial performance % 80 NPAT benefiting 22% from lower provisioning charge 75 17% 17% 16% 16% 15% 15% 14% 70 65
Slide 7: Institutional – a good franchise, needing to lift financial performance
Institutional – a good franchise, needing to lift financial performance Institutional No. 1 Relationship Institutional lending growth bank status maintained (Institutional Net Lending Assets) For personal use only Conduit funding – Large Corporate & Institutional 15.8% now in Relationship Banking su
Slide 8: New Zealand – very strong market position
New Zealand – very strong market position Continuing to generate revenue at Mortgage market share now For personal use only almost twice that of major peers growing (Share of Revenue*) (Mortgages market share**) 40% 30% 25% 30% 20% 20% 15% 10% 10% 0% 5% Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Dec-
Slide 9: Asia – key growth business over 3-5 year time horizon
Asia – key growth business over 3-5 year time horizon New Asia Pacific Structure Unrealised gains on Asian For personal use only Personal Asia Pacific Institutional partnerships Division Division Division A$m 4,000 Chinese Institutional - Retail - Asia banks now Asia Significant value created tradin
Slide 10: We'll continue to invest while managing the jaws
We’ll continue to invest while managing the jaws Still investing heavily, directed Maintaining Revenue/Cost jaws For personal use only mainly to frontline Revenue Growth Cost Growth 10.2% Acquisitions and 9.7% Includes 7% disposals impacting Jaws FTE growth expense growth 8.4% 28 (25) 4,953 7.6% 83
Slide 11: Individual Provisions increased in line with expectations
Individual Provisions increased in line with expectations Consumer IPs trending up “New & Increased” commercial IP’s higher as expected… For personal use only with volume growth $m 500 424 400 347 $m 290 400 285 300 255 360 349 200 350 100 0 300 FY03 FY04 FY05 FY06 FY07 255 With more normalised leve
Slide 12: Well positioned with liquidity and funding
Well positioned with liquidity and funding Funding ANZ has progressively reduced reliance • Limited impact on ability to access on short term wholesale funding For personal use only short or long term wholesale funding 40% Ratio of short-dated wholesale funding to net external assets • However cost
Slide 13: Basel II impacts – reduction in RWA expected in 2008
Basel II impacts – reduction in RWA expected in 2008, but how much benefit offset by capital changes? Draft prudential standard impacting capital For personal use only (Tier 1 proposed capital impacts) Plus loss of CP in total transitional relief capital Capital” ded’n 50% of “Total Loss of AIFRS CP
Slide 14: DRP underwrite – reinstates capital ratios for recent acquisitions
DRP underwrite – reinstates capital ratios for recent acquisitions and enhances flexibility at low cost The rationale • $1.5b investments in past 12 ACE Ratio For personal use only months funded internally + Preferred • Stronger than expected growth operating range in RWA towards end of year % 5.00
Slide 15: Summary
Summary For personal use only Digging a little deeper in to where we performed (or not) PBP Australia New Zealand Asia/Pac Other Growth Digging a little 12% deeper in to where7% we performed 26% 15% (or not) Australia % of Group PBP 37% 14% New Zealand 3% Asia/Pac PBP 1% Other Growth 12% 7% 26% 15%
Slide 16: For personal use only
For personal use only 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 p
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