Permanent Tsb Group Holdings PLC · EURONEXT:PTSB
Permanent Tsb — Irish Life & Permanent — Davy Irish Equity Conference 2006
29 slides from Permanent Tsb's conference presentation, Jan 6, 2006
Slide 1: Davy Irish Equity conference, New York
Davy Irish Equity conference New York, 6 January 2006 Presentation by Peter Fitzpatrick, Finance Director Irish Life & Permanent
Slide 2: Growth Opportunity
Irish) Life ¢ Permanent ». Growth Opportunity
Slide 3: Ireland 1993-2004: Population growth
Ireland 1993-2004 ‘000 4,000 Population growth of 13% 3,800 3,600 3,400 3,200 3,000 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Source: CSO 3 3
Slide 4: Ireland 1993-2004: Household debt
Ireland 1993-2004 € 100,000 Household debt/GDP now 60% 80,000 60,000 40,000 20,000 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Source: NCB 4 4
Slide 5: Ireland 1993-2004: Life annual premium growth
Ireland 1993-2004 € Life annual premium growth of 240% 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Source: IIF 5 5
Slide 6: Ireland - Projected Population Mix
Ireland - Projected Population Mix ‘000 5,500 35% increase in age 35-64 by 2020 5,000 4,500 4,000 3,500 65 & Over 3,000 50-64 35-49 2,500 20-34 2,000 < 20 1,500 1,000 500 0 1981 1986 1991 1996 2001 2006 2011 2016 2021 2026 Source: CSO 6
Slide 7: A Very Attractive Backdrop
A Very Attractive Backdrop Continued demographic dividend High savings ratio – 14% in 2004 Growth in inherited wealth Public policy support for pensions c. €16 billion in maturing SSIA contracts 7
Slide 8: Life & Banking Markets
Irish) Life ¢ Permanent ». Life & Banking Markets
Slide 9: Life & Pensions Market
Life & Pensions Market Company New Business Share Distribution % Irish Life 27 Bancassurance IFA DSF BoI Life 24 Bancassurance IFA DSF Aviva 10 IFA AIB – Ark Life 8 Bancassurance Zurich 8 IFA Eureko 7 IFA First Active Canada Life 6 IFA DSF Others 10 Irish Life & BOI winners in consolidating market *
Slide 10: Personal Banking Market
Personal Banking Market Company Mortgages Current A/Cs Credit Cards % % % AIB 17 37 34 BOI 20 38 34 PTSB 19 11 5 RBOS 14 10 8 NIB/Danske 2 3 3 HBOS 3 - - Consolidation and new entrants challenging duopoly 10 1 0
Slide 11: Competitive Positioning
Irish) Life ¢ Permanent ». Competitive Positioning lrish Life
Slide 12: Comprehensive Life Distribution
Comprehensive Life Distribution CHANNEL DIRECT BANCASSURANCE IFAs / BROKERS PARTNERSHIPS Size 240 Advisers 102 ptsb branches 1,000 brokers - Credit Institutions 135 Franchises 70 Consultants multi agents & 400 Branch Staff authorised advisers Market Broad middle market ptsb customers Mass affluent B
Slide 13: Retail Life Distribution Mix
Retail Life Distribution Mix 9% 28% 29% 34% Bancassurance Brokers/IFA Direct Partnerships 13
Slide 14: Strong Product Suite
Strong Product Suite 1 Year 3 Year 5 Year Active % % % ILIM Pension Managed Fund 16.5 7.9 2.8 Manager Average 14.5 6.4 0.9 Ranking 2nd 1st 3rd Passive ILIM Pension Consensus Fund 15.9 7.4 1.8 Manager Average 14.5 6.4 0.9 14
Slide 15: Make Customer Satisfaction an Obsession for all Retail staff
Make CUSTOMER SATISFACTION an Obsession for all Retail staff Intouch initiative launched in 2004 Staff Profit Share linked to improvements in customer satisfaction Major annual research exercise to measure customer satisfaction levels Excellent progress to date 15
Slide 16: Competitive Positioning
Irish) Life ¢ Permanent ». Competitive Positioning od permanent tsb
Slide 17: Multi-Channel Distribution
Multi-Channel Distribution Branch Life Telephone Agencies Brokers Network Salesforce & Internet Combined 600 supporting • 240 Irish Life “OPEN 24” Network 55 agencies Mortgage Salesforce & of 102 & Brokers & • 135 OneSource Telephone branches franchises Intermediaries franchises Banking Comprehensiv
Slide 18: Mortgage Distribution Mix
Mortgage Distribution Mix 7% 47% 46% Branch/Agency Brokers Life Salesforce/Electronic 18
Slide 19: New customer acquisition
New customer acquisition Fee free current account Lowest interest rate credit card 60,000 new accounts opened in 2005 Key platform for cross-selling 19
Slide 20: Increasing branch network productivity
Increasing branch network productivity Centralisation of admin. / credit functions Re-allocation of staff to sales & sales support roles New sales linked remuneration packages Enhanced POS technology support for mortgage sales 20
Slide 21: Competitive Mortgage Pricing
Competitive Mortgage Pricing Ptsb AIB BOI Ulster FA New Lending % % % % % 1 year fixed 3.08 2.94 3.09 - 3.10 Variable 2.94 3.50 2.94 3.20 3.78 Existing Book 1 year fixed 3.75 3.84 3.89 - - Std. variable 3.70 3.50 3.75 3.75 3.78 Trackers “Standard” 3.35 3.35 3.35 3.20 3.35 * Effective Jan 2006 21
Slide 22: Costs / Margins / Capital
Irish) Life ¢ Permanent ». Costs / Margins / Capital
Slide 23: Life New Business Margin
Life New Business Margin % 20.0 20 18.6 IFRS Basis 18 15.6 16 14.9 13.8 14 13.0 12 GAAP Basis 10 2001 2002 2003 2004 H1 05 Strong recovery – competition seen off 23
Slide 24: Retail Life Costs
Retail Life Costs €m 140 130 120 110 2002 2003 2004 2005 2002 costs inflated at 5% pa Actual Costs Horizon project delivers 24
Slide 25: Life Capital
Life Capital June 05 €m Statutory Minimum 343 EV “Required Capital” 514 Life net worth 691 All Tier 1 Zero leverage No financial reinsurance or securitisation 25 2 5
Slide 26: Banking Margins
Banking Margins bps 190 190 178 180 170 163 160 150 140 140 134 130 2001 2002 2003 2004 H1 05 Falling interest rates drive down margins 26
Slide 27: Banking Costs
Banking Costs €m 240 233 230 227 227 225 220 209 210 200 2000 2001 2002 2003 2004 Continued tight cost management 27
Slide 28: Banking Capital
Banking Capital June 05 €m Tier 1 2,100 Tier 2 1,117 3,217 EV deduction (1,629) Available capital (all Tier 1) 1,588 RAR: 10.6% Zero prefs or hybrid capital Irish mortgage book not securitised 28 2 8
Slide 29: Summary
Summary Great market Strong position Consistent delivery 29 2 9
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