Anz Group Holdings Limited · ASX:ANZ
Anz — Australia and New Zealand Banking Group — Investor Presentation (August 2006)
23 slides from Anz's investor presentation, Aug 10, 2006
Slide 1: Personal Division Discussion Pack
Brian Hartzer Group MD Personal Personal Division Discussion Pack Australia and New Zealand Banking Group Limited July 2006
Slide 2: Personal Division Overview
CEO Personal Division Overview Personal Institutional New Zealand Mortgages Consumer Finance Banking Products Retail Banking Regional, Rural and Small Business Investments & Insurance Pacific Esanda Note: Esanda, Pacific and Small Business effective May 2006 Strong Divisional Revenue growth driving
Slide 3: Success in Personal due to an effective business system
Success in Personal due to an effective business system Strategy Products & Distribution Brand Investment Customers Financial Performance Employees “More Convenient Banking”
Slide 4: Strategy starts with clear segmentation
Un-banked Prime 20% - 30% 70% - 80% Premium ANZ brand for non-price driven segments Use other brands for other segments Defend share via price where necessary Price Driven Service Driven Emerging Prime Sub Prime Strategy starts with clear segmentation
Slide 5: Customer insights led to "More Convenient Banking"
Customer insights led to “More Convenient Banking” Why should customers bank with ANZ (and not somebody else)?? Key Decision Factors for Customers (importance out of 10) People increasingly “time poor” – looking for convenient, simple solutions Important, but not dominant 5.8 6.0 7.9 8.0 8.1 8.2 8.5
Slide 6: Success in Personal due to an effective business system
Success in Personal due to an effective business system Strategy Products & Distribution Brand Investment Customers Financial Performance Employees “More Convenient Banking”
Slide 7: We have invested in our employees and our culture
We have invested in our employees and our culture… Delivering on our commitment to cultural change (% Personal employees completed “Breakout” program) Significant investment in employees, largely frontline 1,124 new employees (up 13%) 33% 53% 1H04 1H06 9,799 8,675 1H04 1H06
Slide 8: …resulting in a highly engaged workforce
…resulting in a highly engaged workforce Dramatic shift in staff satisfaction ( “am I satisfied working at ANZ?”) Branch Manager engagement Shift to “engagement” High levels of engagement across the Personal Division 57% 88% 4% 20% 0% 20% 40% 60% 80% 100% 1999 2000 2001 2002 2003 2004 Positive Respo
Slide 9: Success in Personal due to an effective business system
Success in Personal due to an effective business system Strategy Products & Distribution Brand Investment Customers Financial Performance Employees “More Convenient Banking”
Slide 10: Specialization has delivered product and service excellence
Specialization has delivered product and service excellence Personal Investor Awards Home Lender of the Year Low Doc Money Saver of the Year Premium Banking Package of the Year “People’s Choice” award Money Magazine Awards Money Minder of the year (Savings & Transactions Accounts) Home Lender of the
Slide 11: Expanding distribution to improve convenience
Expanding distribution to improve convenience New Branches and ATMs 11 Branches & 134 ATMs added during 1H06 Target: 80 new branches by 2007 700 720 740 760 780 800 Sep-04 Mar-05 Sep-05 Mar-06 900 1,050 1,200 1,350 1,500 1,650 1,800 Branches (LHS) ATMs (RHS)
Slide 12: Success in Personal due to an effective business system
Success in Personal due to an effective business system Strategy Products & Distribution Brand Investment Customers Financial Performance Employees “More Convenient Banking”
Slide 13: "Proof points" starting to differentiate ANZ brand
“Proof points” starting to differentiate ANZ brand… Call Centres open 24/7 More ATM locations in key areas First major bank to launch Visa Debit card
Slide 14: …which drives future acquisition and retention
…which drives future acquisition and retention Improved “Trial Intention” (Day to Day Transaction Accounts*) *Wallis Consulting Group, 6 month rolling average # Roberts Research Group % Lowest propensity to defect # 5 10 15 20 25 Sep- 04 Dec- 04 Mar- 05 Jun-05 Sep- 05 Dec- 05 Mar- 06 ANZ Major Peer
Slide 15: Success in Personal due to an effective business system
Success in Personal due to an effective business system Strategy Products & Distribution Brand Investment Customers Financial Performance Employees “More Convenient Banking”
Slide 16: Highest customer satisfaction of any major bank
Highest customer satisfaction of any major bank, and closed gap on Regionals… Overall customer satisfaction (Main Financial Institution*) Closest major peer (NAB) % *Source: Roy Morgan Research – Main Financial Institution Satisfaction # % Satisfied (very or fairly satisfied), 6 monthly moving avera
Slide 17: …leading to higher share of wallet and market share
…leading to higher share of wallet and market share Share of wallet (traditional banking products*) 8.1% 49.2% 51.9% Tight peer range 2.4% *Source: Roy Morgan Research – Traditional Banking 12 monthly moving average 3.1% 2.5% 1.1% 4.4% Market Share Gap 40.7% 49.4% 43.9% 50.4% ANZ Peer Ave. Mar-04 Ma
Slide 18: Success in Personal due to an effective business system
Success in Personal due to an effective business system Strategy Products & Distribution Brand Investment Customers Financial Performance Employees “More Convenient Banking”
Slide 19: Non price led strategy delivering attractive growth
Non price led strategy delivering attractive growth… Note - size indicates Net Interest Income contribution of net growth (i.e. growth (A$b) x margin) ANZ FUM Growth* (%) Margin on net FUM *6 months ended 31 Mar 06 Source: Company documents, Roy Morgan, ABA market share, ANZ Banking Products analysi
Slide 20: …resulting in sustainable revenue and profit growth
…resulting in sustainable revenue and profit growth Actively managing the Revenue/Cost “jaws”… *pcp growth 1H06 AIFRS, 1H05 & 2H05 AGAAP …is delivering strong profit momentum (pcp) Jaws 11.5% 10.9% 9.3% 9.0% 7.3% 7.3% 1H05 2H05 1H06 Income Growth Expense Growth 12.4% 12.7% 15.9% 1H05 2H05 1H06
Slide 21: Growth varies significantly by State, and product
Growth varies significantly by State, and product Mortgage Fum Growth Sep-05 to June-06 annualised Retail Deposit Growth Sep-05 to June-06 annualised Small Business Banking* - total FUM 12 months to June 06 Strong growth in Small Business banking reflects: Specialisation focus FTE has grown from 6 t
Slide 22: Summary
Summary No “silver bullet” explains ANZ’s Retail Banking success Our business system is delivering strong, sustainable growth We will continue to invest in “More Convenient Banking” Lots more upside in customer #s, wallet share, and efficiency
Slide 23: The material in this presentation is general background information about the Bank’s activities current
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 (August 2006) on 6ix