David Murray Full Year Results - August

Transcription

1 David Murray Full Year Results - August

2 Disclaimer The material that follows is a presentation of general background information about the Bank s activities current at the date of the presentation, 22 August 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 does not take into account the investment objectives, financial situation or needs of any particular investor. These should be considered, with or without professional advice when deciding if an investment is appropriate. 2

3 Speaker s Notes Speaker s notes for this presentation are attached below each slide. To access them, you may need to save the slides in PowerPoint and view/print in notes view. 3

4 Agenda Progress report Strategic focus and implementation Outcome 4

5 Group Goals Strategic Vision To be the best brand in helping customers manage and build wealth Drivers Customer Service Brand Business Mix Competitive Scale Risk Management Management Quality Financial Goal Top Quartil e TSR Business Goals Attract more customers & more revenue per customer Best value service through innovation & on-line leadership Best Team Develop offshore opportunities Global best-practice costs 5

6 The Integration Achievement People Phase Design Phase Specifications Phase Implementation Phase Interim Risk management framework Staff & Customer Communications link Key management roles Corporate entity restructuring Product Decisions Brand Strategies Owned Distribution Third Party Distribution Managerial Functions Rationalisation On-line strategies Product Rationalisation Brand economics analysed Systems changes to support product specification Back office processing specifications Interim process integration Colonial Customers transact in CBA branches Brands rationalised Branch amalgamation Call Centre & Back office integration Third party distribution alignment On line business model Property rationalisation Distribution function specifications Systems integration 6

7 Components of Shareholder Value Year to 30 June 2001 Factor Profile Outcome Credit Growth Match market Below system Funds Under Management Growth Exceed market Retail up 38%, Wholesale up 7% Deposit Growth* Match Market 7% vs 12.8% system Domestic Margin Domestic NIM not less than market for comparable 2.97% Stable. (Down 1bp) business mix Costs Zero real cost increment Up 7% Bad Debt Charge Capital Management Total Shareholder Return Small Up 24% Optimise regulatory capital and maintain rating. Top quartile** Below T1 6.51% Total 9.16% Rating AA- 7

8 Strategic focus and implementation

9 Starting position Potential Product Use INVESTMENT SUPERANNUATION AND INSURANCE 10 million customers BANKING Alignment of products to customer needs 9

10 Customer Needs, Customised Products and Solutions, Customised Service 10 million customers Potential Product Use BANKING INVESTMENT SUPERANNUATION AND INSURANCE BANKING Life Stages Youth Early Career Home Owner Wealth Builder Retirement Planner Retirees Median Age of Australian Population over the next 40 years

11 Plus: Challenging operating environment Uncertain economic outlook Threat of increased regulation Greater competition Declining margins Weakness in the currency 11

12 Focus Strategic Vision To be the best brand in helping customers manage and build wealth Drivers Drivers Customer Service Brand Business Mix Competitive Scale Risk Management Management Quality Financial Goal Top Quartil e TSR Business Goals Provide customised service to grow revenue Develop the Best Team Develop offshore opportunities Achieve global best-practice costs 12

13 Implementation Strategic vision Financial goal Areas of focus To be the best brand in helping customers manage and build wealth Top quartil e TSR Customisation Drivers Business goals Distribution Customer service Provide customised service to grow revenue Wealth Management Third Party Brand Business mix Develop the best team Services aligned to customers needs International Competitive scale Risk management Develop offshore opportunities Technology Management quality Achieve global best-practice costs Productivity Business Process Re-engineering 13

14 Customisation Develop optimum product and channel mix Understand Customer Needs Wealth Management Services aligned to customers needs Productivity Transaction Credit Card Lending Investments ATM Call Centre Internet Advice Information Insurance Branch Ezy Banking Personal Banker Financial Planning Third Parties. with systems that deliver customised service. 14

15 Distribution: Proprietary and Third party 15

16 International Operations in UK, New Zealand, Hong Kong, Singapore and China. Focus on institutional, wholesale and retail markets. Investment in most asset classes. Location of FUM - by source Aus 75% Asia 3% NZ 3% Total FUM - A$ 77bn UK 19% United Kingdom London & Edinburgh 188 staff Asia Presence in Hong Kong, Singapore & Mainland China 84 staff Tactical Global Management 24 staff Domestic & International clients New Zealand 16

17 Technology and Process Re-engineering IPNet and Intranet eprocurement Web enabled HR and Financial information services Image item processing End to end process re-engineering 17

18 Outcome

19 Customers Service Quality Index 5% 25% 39% 19% 19% Jan-01 Jun-01 Initiative Accuracy Presentation Knowledge Response 19

20 People - Best Team Leadership Engagement Service Growth 20

21 Plan to June 2006 Group Business Driver Profile 5 year Plan Growth in Market Share Margins Sources of Income Funds under management Home Loans Credit Cards Life Insurance Credit Products Business Financing Retail Deposits At or above market Comparable for business mix Continuing decline Comparable Financial Institutions Costs Reduction in cost/income Best practice Rebalance toward non-interest income 3%-6% productivity change Capital Management Total Shareholder Return Optimise regulatory capital and maintain rating. Top quartile Rating AA Deliver top quartile TSR. 21

22 David Murray Full Year Results - August