National Australia Bank Limited · ASX:NAB
National Australia Bank — UBS Financial Services Conference 2014
19 slides from National Australia Bank's conference presentation, Jun 25, 2014
Slide 1: UBS Financial Services Conference
UBS Financial Services Conference 25 June 2014 Gavin Slater Group Executive, Personal Banking National Australia Bank Limited ABN 12 004 044 937
Slide 2: Important note on these presentation slides
Important note on these presentation slides This document is a visual aid accompanying a presentation to analysts by Gavin Slater, Group Executive Personal Banking, on June 25 2014. It is not intended to be read as a stand-alone document. It contains select information, in abbreviated or summary for
Slide 3: Benefits of updated operating model
Benefits of updated operating model Operating model Benefits of integrated model z Improved level of accountability, including introduction of 165 performance units (PUs) with KPIs and financial metrics (25 PUs within Personal Banking) Business Personal NAB Banking z Greater transparency on product
Slide 4: Consumer banking landscape
Consumer banking landscape Australian housing and personal credit growth1 Highly leveraged households2 (%) Household Debt (% of gross disposable household income) Housing 25 180% 20 15 120% 10 5 0 Personal 60% -5 -10 0% Jan 00 Jan 02 Jan 04 Jan 06 Jan 08 Jan 10 Jan 12 Jan 14 Australia Canada UK USA
Slide 5: Good progress to date
Good progress to date Australian housing lending1 and household Personal Banking mortgage outstandings deposit market share2 growth by channel (%) ($bn) 11% 47% 14.8 15.3 15.4 14.7 14.8 14.8 13.6 14.1 94.3 14.0 13.1 88.5 91.6 65.4 69.4 12.8 13.3 85.1 55.6 47.2 Sep Sep Sep Sep Sep Mar Sep Sep Sep Sep
Slide 6: Optimising Retail (store network) performance
Optimising Retail (store network) performance Key areas of focus - Retail Retail mortgage sales z Sales uplift and increased sales effectiveness 24% z Footprint optimisation – target of 25% reduction in floor space z Continued roll-out of in branch self-service machines 1H13 2H13 1H14 Mobile Banker
Slide 7: Unique position in Broker distribution
Unique position in Broker distribution Participate in the broker market in three different, Total mortgage broker market (~12,000 brokers) complementary ways: NAB owned platforms (Advantedge) • Own three aggregation ~3,500 brokers NAB white Other platforms servicing ~29% label partners ~7,500 broker
Slide 8: Capitalise on our unique Broker position
Capitalise on our unique Broker position Key areas of focus – Broker Mortgage outstandings via Broker ($bn) z Rebrand Homeside to NAB 47% z Continue to leverage and grow our Plan, Fast and Choice aggregation platforms 65.4 69.4 z Continue to grow our white label lending volumes 55.6 (PlanLend, FastL
Slide 9: Accelerate Digital and Direct (voice) capability
Accelerate Digital and Direct (voice) capability Key areas of focus – Digital and Direct Continued migration to digital self-service z Enable self-service migration through internet banking (%) % of value transactions via digital channels and mobile internet banking 67 70 64 66 60 61 z Continue to l
Slide 10: Conclusion
Conclusion z Good momentum in Personal Banking z New operating model providing valuable insights z Optimised Retail (store network) to drive improved sales and productivity performance z Unique Broker position a key driver of mortgage market share growth z Digital and Direct capability an opportunit
Slide 11: Questions
%& National Australia Bank
Slide 12: Appendix
%& National Australia Bank
Slide 13: Personal Banking leadership team
Personal Banking leadership team Gavin Slater Vicki Carter Anthony Waldron Adam Bennett Group Executive EGM Retail EGM Growth EGM Digital & Direct Personal Banking Partnerships Banking (Broker/3rd party) 15 years at NAB 15 years at NAB 11 years at NAB 10 years at NAB 28 years in industry 29 years in
Slide 14: 1H14 Australian Banking: Housing lending
1H14 Australian Banking: Housing lending Net interest income Net interest margin ($m) (0.04%) 0.04% (0.01%) (0.01%) 1.38% 1,604 1,610 1.36% 1,510 Sep 13 Lending Funding & Capital benefit Lending Mix Mar 14 Margin Liquidity Mar 13 Sep 13 Mar 14 Costs Housing lending outstanding1 Housing lending multi
Slide 15: 1H14 Australian Banking: Housing lending - Asset Quality
1H14 Australian Banking: Housing lending - Asset Quality Mortgage 90+ DPD and impaired as % to total Mortgage B&DD charge and B&DD as % GLAs mortgage outstandings ($m) ($m) 0.016% 0.016% 0.80% 0.74% 0.64% 0.010% 38 37 1,812 1,743 23 1,534 Mar 13 Sep 13 Mar 14 Mar 13 Sep 13 Mar 14 Mortgage 90+ DPD an
Slide 16: 1H14 Australian Banking: Housing lending - Key metrics
1H14 Australian Banking: Housing lending - Key metrics Australian Mortgages Mar 14 Sep 13 Mar 13 Sep 12 Owner Occupied1 72.1% 72.2% 71.9% 71.4% - of which First Home Buyer 8% 8% 8% 8% Investment1 27.9% 27.8% 28.1% 28.6% Low Documentation 1.7% 1.8% 2.0% 2.2% Low Documentation LVR cap (without LMI) 60
Slide 17: 1H14 Australian Banking: Deposits and transaction accounts
1H14 Australian Banking: Deposits and transaction accounts Net interest income Business deposits and Household deposits1 - market share ($m) 21.1% 20.9% 20.5% 20.6% 20.6% 14.6% 14.7% 14.6% 14.5% 14.8% 838 799 820 Mar Sep Mar Sep Mar 12 12 13 13 14 Business deposits Household deposits Mar 13 Sep 13 M
Slide 18: 1H14 Australian Banking: Other banking products
1H14 Australian Banking: Other banking products Cards volume1 and market share2 Personal lending volume1 and market share3 ($bn) 13.8% 13.7% ($bn) 12.6% 12.3% 13.4% 11.7% 6.19 5.97 6.02 1.94 1.83 1.82 Mar 13 Sep 13 Mar 14 Mar 13 Sep 13 Mar 14 Cards Market share Personal Lending Market share Cards an
Slide 19: For further information visit www.nabgroup.com or contact
For further information visit www.nabgroup.com or contact: Ross Brown Brian Walsh Executive General Manager, Investor Relations General Manager, Corporate Communications Mobile +61 (0) 477 302 010 Mobile +61 (0) 411 227 585 Clare Nickson-Havens Senior Manager, Investor Relations Mobile +61 (0) 477 3
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