Wealth Management Craig Coleman Managing Director Australia and New Zealand Banking Group Limited 24...

Wealth Management

Craig ColemanManaging Director

Australia and New Zealand Banking Group Limited 24 August 2001

Background and dimensions

• Established 1/10/00• Private Bank, Premier (Personal Banking), Financial Planning• Not the FM business (ANZ Investments)• 522,000 mass affluent customers

– 24% captured mass affluent – 76% touched by ANZ

• 216,000 directly managed• Frontline Staff

– 310 Planning Staff– 108 Specialists– 199 Relationship Staff– 130 NZ

• $34 billion FUA– 24% Managed Investment– 51% Mortgages– 25% Banking Products

A specialist approach to wealth management

• Growth

• earnings growth

• investment

• Different

• business model and focus

• customer offer

• Opportunity large, execution risk low

• $115b in uncaptured balances

24

18

23

0

5

10

15

20

25

30

1H00 2H00 1H01

Profit After Tax

65

68

61

5052545658606264666870

1H00 2H00 1H01

Targeting strong growth from a low base

Cost Income

$m

%

343330

20

25

30

35

40

45

1H00 2H00 1H01

FUA$bn

Targets 2001-2004

• NPAT CAGR 25%

• FUA CAGR 15%

• Cost to Income 59% by 2004

Advice Distr. Admin Manuf.

ProtectionAdvice Distr. Admin Manuf.

BankingProducts

Where we choose to specialise

• Mass Affluent segment

• All financial needs

• Advice and distribution

Advice Distri-bution

Admin AssetMgt

Advice Distr. Admin Manuf.

ManagedInvestments

Mortgages

• Personalised

– Advice-based solutions

– Life event or goal driven

– Choice of involvement

• Holistic

– Relationship knowledge and specialist expertise

– Complete but select product offer

– Multiple channels, consistent experience

• Non-conflicted

– Best of breed product and services

– Optimise for the customer

– FUA dominates incentive structure

Our customer proposition

Large opportunity, execution risk low

Mar-01

Other

ANZ Share 28.3%

1.9m $115b of untappe

d balances

Touch a high numberof affluent customers

Significant untapped customer balances

Proven ability tobuild deep relationships

Total Wallet

AN

Z S

hare

Total market Total Wallet

Trans.

Mortg.

Dep/other.

ManagedInvestment

46%

38%

31%

6%

Product share

AN

Z S

hare

Deep

Transactional

75%

10%

Relationship type

Source: Roy Morgan

$115b of untappe

d balances

Three Strategies to Drive Performance and Growth

FUA

Margin

Strategies

1. Customer Offer

2. Advisor Effectiveness

3. Product and Services

No. OfCustomers

Share Of WalletRevenue

Adviser effectiveness - productivity

$m Net Inflows (excluding cash & risk)

* Includes ANZ, Gateway, third party and trustee sales

0

50

100

150

200

Sep-00 Dec-00 Mar-01 Jun-01

• Performance Management

• CRM System and Lead Management

$m Retail inflow per advisor (excluding cash & risk)

Source: Deutsche, Wealth Management June 2001

1

1

1.2

1.2

1.5

2.3

2.7

8.7

AMP

St George

Westpac

NAB/MLC

CBA/CNL

Suncorp Metway

ANZ

Perpetual

CRM System and Lead Management

Segment

Single View

Leverage CRM for our 216,000

Leverage branch for remainder of 522,000 and new to ANZ

• 100,000 customers ‘mass affluent to ANZ’

• ‘First’ 116,000 ‘mass affluent to industry’

• 8 databases into 1• Analysis and insights

• Library of needs-based queries• 9 programs in Phase 1

• System that works- 1,000 leads per week- 30% conversion

• Improve ability to harness- case size- quality

Adviser effectiveness - capacity

• More planners

– Internal ‘pipeline’ supplemented by external recruitment

• Adviser Workbench

• Channel integration and education

• Practices model

222

193220

310

405

500

Sep-99 Sep-00 Mar-01 Sep-01 Sep-02 Sep-03

Number of planning staff and specialists

Practice Partner

Client Advisors

Financial Advisory

Specialists

Various relationship roles

Lending/Gearing

Super

Investment

Risk

Typical Practice Structure

40 ‘Practices’ throughout Australia/New Zealand

Advisers now structured into professional practices

FROM

• Silos focused on product sales

• Performance management driven by individual sales

• Culture of product distribution

• Multidisciplinary teams to meet all customer needs

• Performance management focused on total FUA including team/practice component

• Professional services ‘franchise’

TO

Product and Services – easy wins

• Extension

• Margin

• Mix

• Gearing

• Integrated wrap

• Private Bank to Mass Affluent

• Market pricing

• Fee for service

• Cash to Managed Funds

• Master Trust

Our Timetable – perform and grow1/10/00 31/3/01 1/4/01 30/9/01 1/10/01 31/3/02 1/4/02 30/9/02

WM Establishe

d

• Market transfer pricing• Practices in place• New performance

management incentives• 90 additional planner roles• Lead management (eg

CRM)• Customer offer (release 1)

• Advisor ‘workbench’• 95 Additional planner roles• Customer offer

(release 2)• Margin & mix initiatives

• Segmentation• Lead management

(branches)• Adviser effectiveness

A specialist approach to wealth management

Targets 2001-2004

• NPAT CAGR 25%

• FUA CAGR 15%

• Cost to Income <60%

• Growth

• earnings growth

• investment

• Different

• business model and focus

• customer offer

• Opportunity large, execution risk low

• $115b in uncaptured balances

Wealth Management Craig Coleman Managing Director Australia and New Zealand Banking Group Limited 24...

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