Transcript Differentiation Institutional and Business Services Salomon Smith Barney Financial Services Conference Michael Ullmer 4 March 2003

Differentiation
Institutional and Business Services
Salomon Smith Barney Financial Services Conference
Michael Ullmer
4 March 2003
Disclaimer
The material that follows is a presentation of general
background information about the Bank’s activities current
at the date of the presentation, 4 March 2003. 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.
Institutional & Business Services
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Institutional & Business Services
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We have reorganised our business into client and product
groups
Manage Client relationships
Institutional
Banking
Capital and risk
management
solutions for
Institutions and
governments in
the domestic
and
international
market
People
Corporate
Banking
Local
relationship
management
for corporate
clients in
Australia and
the top
institutional /
corporate
clients in New
Zealand
Business
Banking
Global
Markets
Working Capital
Services
Institutional
Banking
Integrated
financial
services for
small, medium
and rural
businesses
throughout
Australia
Financial
markets facing
activities
including debt
capital markets,
foreign
exchange,
derivatives
money market,
and
commodities.
Products to
support
financial and
operational
working capital
needs, such as
transaction
banking,
merchant
acquiring and
asset financing
Product range
embracing the
full capital
structure from
senior debt to
mezzanine to
equity using
project finance,
structured
finance, and
corporate
lending
Risk Management
Institutional & Business Services
Design and manufacture product
Technology
Brand
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The elements of our Competitive Advantage are:
Superior understanding of our client’s needs
Talented People
focused on achieving
flawless execution
Tailored client relationship management, locally
based providing excellent service/effective sales
Integrated product offering with innovative
niches
Excellent understanding of risk & return trade-off
Institutional & Business Services
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Our new client segments better reflect our client base and will
facilitate improvement of segment economics
Segmentation criteria
Segment
Institutional
Top Tier
Corporate
Client
Turnover
($m)
Client
Total
Footings
($m)
>150
Number
Of
Clients
800
>5
10-150
Corporate
Regional
Business Model
Relationship
Managed
9,200
0.85-5
4,300
SME
0.15-0.85
59,000
Small
<0.15
118,000
•Share of wallet
•New Clients
•Share of Wallet
2,200
0.85-5
Segment Focus
Relationship
Managed
•New Clients
•Share of Wallet
•Corporate Focus
•New Clients
•Share of Wallet
•Regional Focus
•Share of wallet
•Cost
Managed
Centrally
•Cost
Source: CBA CRIS Quarter March 2002 annualised; Taylor Nelson Sofres July 2002; ABS 2000-2001; Greenwich & Associates 2000; BRW Top 1000 Companies
Institutional & Business Services
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Top
Tier
Service
Credit
Product
Increased client
satisfaction through
local dedicated
Relationship
Executives with
product support
Streamlined service
team aligned with
RE and service
centre for day-today maintenance to
speed up simple
enquiries
Streamlined
processes for topups, property
secured and existing
relationships to
improve client
service (instead of
mostly full analysis)
Tailored from
standard product
to meet more
complex client
needs
Relationship served
through sales centre
and ‘mobile’
salesforce
Mostly through
service centre with
extended hours
of support
Majority of
applications ‘fast
tracked’ to improve
client service
(instead of mostly
full analysis)
Rationalised
from over 100
products to
standard
packages
making choice
for the client
simple and
reducing costs
Sales
Corporate
Regional
SME
Small
Institutional & Business Services
Centralised Relationship
Management
Business Banking
Corporate Banking
Segment
Local Relationship
Management
Our business models for Corporate and Business Banking
involve changes to a number of areas
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On the product front, we have an integrated offering with
innovative niches...
Working Capital Services
Global Markets
• Transaction Banking
• Local presence
• Corporate Bonds
• Precious metals
Clients
Institutional
Other Divisions
• Environmental initiatives
• Retail Financial Services
• Infrastructure financing
• Premium Financial Services
• Specialised Lease advisory
•Investment and Insurance Services
Institutional & Business Services
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…while maintaining a sound credit profile
Top 20 exposures as a % of Total
Committed Exposure
Commercial Portfolio
100%
80%
4.0%
3.5%
36
39
40
3.0%
60%
40%
2.5%
15
15
20
14
19
17
2.0%
1.5%
1.0%
20%
29
27
Dec 01
Jun 02
29
0%
0.5%
0.0%
AAA/AA*
A
Dec 02
BBB
Institutional & Business Services
Dec
2000
Dec
2001
Dec
2002
Other
-8-
Strong execution skills are crucial to client service
Strategy
Execution
BIZ PLAN
Priorities
Actions
Outcomes
• Developed new strategy
• Set key strategic priorities
Institutional & Business Services
Deliver top
quartile
performance
• Key factor for success
• Underpinned by people
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Flawless Execution
In summary, highlights of differentiation are
Superior understanding of our client’s needs
Locally based client relationship management
Integrated product offering
Deliver
top quartile
performance
over
rolling five
year periods
Excellent understanding of risk & return trade-off
Institutional & Business Services
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client
solutions