CSFB Draft @ 10.38am Fri 6 Oct - Westpac · PDF fileWestpac NAB CBA ANZ Deutsche Citibank...
Transcript of CSFB Draft @ 10.38am Fri 6 Oct - Westpac · PDF fileWestpac NAB CBA ANZ Deutsche Citibank...
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CSFB ConferenceCSFB Conference
David WillisGroup Executive
6 October 2000
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AgendaAgenda
• Business Snapshot
• Strategic Fit
• Future Growth
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assisting and advising on the management
of cash, funding, capital and market risk
for companies and institutions operating
or investing in Australia and New Zealand.
We describe our business as ...We describe our business as ...
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StructuralView
Asi
an B
usin
ess
Con
sum
er
Ene
rgy
& U
tiliti
es
Gov
ernm
ent
Hea
lth
Indu
stria
ls
New
Eco
nom
y
Pro
pert
y
Res
ourc
es
Ban
ks
Med
ia
NB
FIs
We view our customers strategically &We view our customers strategically &structurally (2800 customers)structurally (2800 customers)
StrategicView Globals Regionals SMEs
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We meet our customers’ financial needsWe meet our customers’ financial needs
Advice Corporate, Resource, Property andRisk Advice
Loans, Bonds, Securitisation,Structured and Project Debt, Leasing,Loan Syndication, Equity
TransactionServices
(Payments & Cash)
FinancialMarkets
Foreign Exchange (Options andDerivatives), Interest Rate DerivativeFixed Interest / Debt Securities,Commodities, Structured Hedging
Domestic and International ClearingInternational Payment & Trade Services
Customer View Product View
Funding(Debt and Equity)
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We have global reach with centralisedWe have global reach with centralisedoperations (1,200 staff)operations (1,200 staff)
New York31 Staff
London70 Staff
Asia80 Staff
Australia776 Staff
NewZealand246 Staff
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We have a well diversified andWe have a well diversified andquality risk profilequality risk profile
40
14
36
14
0
10
20
30
40
50
Australia NorthAmerica
Greater Asia NewZealand
Europe
Country of Ultimate Risk(Committed exposure - March 2000)
$b
0%
20%
40%
60%
80%
100%
AAA, AA A BBB BB & Below
(March 2000)Total Committed Exposure
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With declining impaired assetsWith declining impaired assets
402
314268
0
100
200
300
400
Total Westpac Institutional Bank
31 Mar 99 30 Sept 99 31 Mar 00
$M
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269
374 395
0
100
200
300
400
500
FY 97 FY 98 FY 99
15%
11%
20%
0%
5%
10%
15%
20%
25%
FY 97 FY 98 FY 99
Core Earnings ROE
The business is providing quality,The business is providing quality,growing returnsgrowing returns
$M
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Fit within the Westpac GroupFit within the Westpac Group
• Strategic fit
• Structural fit
• Group contribution
• Leverage across the Group
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We are supporting the Group’s strategicWe are supporting the Group’s strategicimperativesimperatives
• Understanding our strengths
• Being more efficient
• Finding new opportunities
• Getting closer to customers
• Backing our people
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We are aligned to the Group structureWe are aligned to the Group structure
Processing and Technology
Pro
du
ct
Other Bank Product
InstitutionalCustomersC
ust
om
er
BusinessCustomers
ConsumerCustomers
InstitutionalBank
Product
Mike Hawker
David Clarke
David Willis
Jerry Gross
Dav
id M
org
an, C
EO
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87%
13%
75%
25%
Operating Income Economic Profit
We are making a valuable contributionWe are making a valuable contributionto Group earnings to Group earnings ( Year to 30 September 1999)( Year to 30 September 1999)
Institutional Bank Rest of Group
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We are leveraging product expertise &We are leveraging product expertise &distribution across the Groupdistribution across the Group
Consumer &Business
Corporate &InstitutionalCustomers
Products FinancialMarkets
CorporateFinance
TransactionServices
Funds Mgt/Insurance
$82 M $10 M $73 M $250 M
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Positioned for growthPositioned for growth
• Increase share of wallet
• Driving efficiency
• Providing eBusiness platform
• Other growth opportunities
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Our customer franchise providesOur customer franchise providescompetitive advantagecompetitive advantage
Source: East and Partners Corporate BankingReport, April 2000
23.1
13.7
10.1 9.8 9.8
4.6 4.2 4.2 4.4
0
5
10
15
20
25
Wes
tpac
NA
B
CB
A
AN
Z
Deu
tsch
e
Cit
iban
k
Mac
qu
arie
CS
FB
Mer
rill
Lyn
ch
% R
espo
nden
ts
Principal Banker
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Source: East and Partners CorporateBanking Report,April 2000, Top 500
Our product franchise is also anOur product franchise is also anadvantageadvantage
NAB20.7%Deutsche
10.5%
Others29.5%
ANZ16.6%
Westpac22.6%
On Balance Sheet
Transaction Services
CBA13.5%
NAB18.1%
Others25.4%
Westpac19.1%
DMG7.3%
ANZ16.6%
Financial Markets
CBA13.1%
ANZ11.6%
NAB14.1%
Others23.6%
DMG10.4%
Westpac27.2%
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We are leveraging this position toWe are leveraging this position toincrease our share of walletincrease our share of wallet
Each 0.5 products per customer = approx $300 M revenues
Products Per Customer
1.92.0
2.2
1.0
2.0
3.0
Dec-99 Mar-00 Current
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We are driving efficiency in the scaleWe are driving efficiency in the scaleparts of the businessparts of the business
200
300
400
500
600
700
800
96/97 97/98 98/99
Revenue Expenses
$M
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IT E
nab
led
Tra
nsf
orm
atio
n
• e-enable core systems & processes• web site & Intranet.• Supply chain
• Increase business scope• Reconfigure business networks
§ New value networks§ New value propositions§ New business models
Low
High
Potential for new customersand Likelihood of alliances
Create a NewBusiness
Extend theEnterprise
EnhanceBusinessExecution
Low High
We are developing an e-BusinessWe are developing an e-Businessplatform in 3 areasplatform in 3 areas
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u StateStreetu yieldbroker.comu FXallu e-Bondsu On-line FXu On-line Researchu Nostro/AUD on-lineu ImpEx - trade finance on-lineu Internet site redevelopment
Globalportal
Regionalportal
Proprietaryapplication
üüü ü ü ü ü ü ü
Examples of this e-Platform includeExamples of this e-Platform include
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Beyond this we will pursue otherBeyond this we will pursue otheropportunities for growthopportunities for growth
DomesticConsolidation
DomesticConvergence
RegionalConsolidation
• In-marketacquisitions Ø customers Ø distribution Ø in-market synergies Ø scale
• Bancassurance
- Acquisitions/ Alliances Ø products Ø size
• Media/Telco/Technology
- Alliances Ø customers Ø distribution
• Joint Venture/Alliance/Merger
Ø high growth GDP Ø attractive customer segments Ø large population Ø lower competitive intensity Ø stable environment
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• Strategic fit
• Enhance shareholder value
• Not be unduly distracting
These opportunities will be subject toThese opportunities will be subject tostrict criteriastrict criteria
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• The strength of our franchise
• The quality of our book
• Our distribution capability
• Our e-Business platform
• Our share of wallet potential
In summary we are differentiated byIn summary we are differentiated by
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