Transcript No Slide Title
What do our customers want? - their top 3 needs are
Corporate Banking Institutional Banking
• ‘Balance Sheet’ on reasonable
terms
• Partner & trusted advisor • Smart products / customised
solutions CB to focus on:
• Wall St to Main St • Cross sell products from the
Personal businesses into our customer base:
• Corporate portal to lower cost
to serve
• Industry Knowledge • Creative ideas and solutions • High quality service proposition
IB’s focus will be:
• Leverage the success of
Industry Specialisation to our institutional customers
• Client servicing • Corporate Portal – helps
customers streamline operations
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…supported by world class customer value management systems like MARS
Key Inputs Key Outputs Transaction details Customer profitability Product & pricing details Risk profile M anagement A nalysis R eporting S ystem Product profitability “What if” scenarios Relationship expense Risk based pricing Share of overheads
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Summary
• The pre-eminent domestic
corporate banking franchise
• Our cross sell focus is
embedded in the sales network, driven to growing non-balance sheet product solutions for customers
• Optimising overall customer
value is driving new revenue opportunities
• The business will continue to
build industry specialisation
Goals
• Double digit earnings
growth
• Continue growth and
diversification of customer revenue mix
• Maintain customer
satisfaction ratings
• Performing loans
remain at 99% of total book
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Global Capital Markets
David Hornery Global Head of Capital Markets
Australia and New Zealand Banking Group Limited 20 July 2001
Leveraging capabilities for high growth segments
• What do we do? • Financial performance • Low risk profile • Realising our growth opportunities • Goals for Global Capital Markets Page 5
Capital Markets means different things to different people
• Derivatives trading and sales, interest rate & equity • Credit: – Underwriting – Trading and sales activities – Short and long dated securities – Government and non-government credit derivatives • Primary Markets activities: – Securitisation – Syndication – Origination Page 6
We are delivering strong performance
$m 85 80 75 70 65 60 55 50
Operating Income
68 Mar-00 71 80 Mar-01 18% Growth 190 185 180 180 175 170 165 Mar-00 Sep-00
FTE
183 Sep-00 176 Mar-01 Page 7 % 56 54 52 50 64 62 60 58 $m 30 25 20 15 10 5 0 16
Profit After Tax
24 18 Mar-00 Sep-00 Mar-01
Cost Income
61.8
59.2
53.8
50% Growth Mar-00 Sep-00 Mar-01
…generated from a broad-based mix of products and clients...
Corporate Sales 1996 Portfolio Debt Securities Primary Markets Group Derivatives Corporate Sales 2001 Portfolio Structured Product Debt Securities Derivatives
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Primary Markets Group
…while adopting a low risk profile
US$m 6 5 4 3
Daily Value at Risk Trends
Limit US$5.2m
2 Avg use US$1.9m
1 0 Dec 99 Source: Group Market Risk Mar 01
Market Risk Credit Risk
• Risk managed under global
books
• Market Risk (VaR) limits
and usage unchanged
• Risk limits unchanged • The majority is MTM on
Derivatives books
• Residual is typically Investment
Grade Securities Inventory
• Netting and collateral
management are important initiatives
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We are a leader in Capital Markets
League Tables
• #1 Interest Rate Products in Australia 2001 (Asia Risk) • #2 Bank Australian Equity Derivative Product (Asia Risk) • Runner Up Debt House of the Year (INSTO) • #1 Commercial Paper Australia (Asia Money) • Lead & Arranger Debt Issuer of the Year (INSTO) • Arranger & Lead Mgr Securitisation Deal of the Year (INSTO) • #1 Lead Arranger Australian Syndicated Loans (IFR) • #2 Lead Arranger New Zealand Syndicated Loans (IFR) • Lead Arranger Project Deal of the Year 1999 & 2000 (INSTO) • #1 Issuer Put Warrants, #3 Overall Equity Warrants (ASX
turnover statistics)
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Our future growth lies with complex, high margin products...
Margin & skill game High IP, complex, higher margin fee-based business Strong & sustainable market positions Volume & cost game Sell Exit e-enable Commoditised, cost & volume driven economics
• Securitisation • Credit & Equity Derivatives • Complex Hybrids • Advice & Structured Solutions • Interest Rate Derivatives • Long-Dated Aust & NZ Credit Product • Syndication, Securities, Origination • Cash, Short-Dated Securities, FRAs • AusMarkets.com
• ANZ Futures • ANZ Mees Pierson • Clearing Services Page 11
…such as securitisation...
• Principal finance/structured • investment vehicles • Corporate bonds/loans • CBO/CLO/CLN • Project finance CLO • Margin loans • Commercial loans • Insurance premium loans • Consumer loans • Future flows • Credit cards • Trade receivables • Auto loans & inventory leases • Big ticket leasing (eg aircraft) • Equipment loans/leases • CMBS/credit lease • Sub-prime mortgages • Residential mortgages Page 12 Track Record • Securitisation Deal of
the Year - Kingfisher 2000-1D (Insto Magazine)
• 1st Non-Credit Lease
CMBS
• 1st & Only Term Trade
Receivables Transaction
• 1st & Only Private Label
Credit Card Transaction
• 1st Consumer Loans
Transaction
• 1st & Only IPF Funding
Loans
• Global 1st & Only
Asset-Backed A-3 CP Program (almost 100% market share in A-2 & A-3)
…and equity derivatives
Growth Cycle Full suite of structured/customised High net worth product Corporate Investment & Stock Option Management Structured Investment Investor Services Trading Business Basic Core Competencies (people, risk, systems, reputation)
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Summary
• Our areas of strong & sustainable
competitive advantage are the Australian & New Zealand Credit & Derivative product suite
• Our growth will come from: – e-enabling, selling or exiting
those businesses subject to commoditisation and scale economics
– Growing our core businesses at
10%-15% compound, consolidating our top 3 status
– A clear focus on select, high
growth, high IP businesses, in which we have already built a strong pipeline
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Goals
• 15% +
earnings growth
• Global
leadership in Australian and NZ credit & derivative products
ANZ Corporate is a growth business
• Strongly positioned: – 30%+ of earnings come from outside Australia – The leading corporate bank – top ranked in the eyes of
customers
– Excellent financial performance • Platforms for growth – Each business has strong growth potential – Leading edge intellectual capital to drive fee income • On track to double profit by 2004 Page 15
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 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.
For further information visit
www.anz.com
or contact Philip Gentry Head of Investor Relations ph: (613) 9273 4185 fax: (613) 9273 4091 e-mail: [email protected] Page 16
Copy of presentation available on
www.anz.com
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