Financial Services & Wealth Management David Clarke Group Executive 13 August 2001

Transcription

1 Financial Services & Wealth Management David Clarke Group Executive 13 August

2 Disclaimer The material contained in the following presentation is intended to be general background information on Westpac Banking Corporation and its activities as at 13 August The information is supplied in summary form and is therefore not necessarily complete. Also, it is not intended that it be relied upon as advice to investors or potential investors, who should consider seeking independent professional advice depending upon their specific investment objectives, financial situation or particular needs. 1

3 Current Situation Strategy

4 High return and high growth wealth management business 29% CAGR* NPAT $m H 2001 Embedded value uplift * Excluding accounting impacts Source: Westpac Financial Services Group Statutory Accounts 3

5 But not top tier in FUM Total Funds Under Management $bn 94.6 CBA (Colonial) 72.4 AMP NAB (MLC) BT DB 21.6 Westpac Retail Funds Under Management $bn 42.8 CBA (Colonial) 30.5 NAB (MLC) 24.8 AMP BT Westpac Source: ASSIRT as at March

6 Good growth in retail FUM 27,000 25,000 23,000 21,000 19,000 17,000 15,000 13,000 11,000 9,000 7,000 $m ISPT Westpac Property Trust Total Funds Under Management Retail Funds Under Management Jun-99 Sep-99 Dec-99 Mar-00 Jun-00 Sep-00 Dec-00 Mar-01 Jun-01 CAGR - 0.1% +14.0% 5

7 Sound foundations for growth Growth in adviser network Adviser productivity improving Fund performance - No.1 over 1 year 6

8 Adviser network growth continues Planner/Adviser Numbers CAGR = 18% Mar-01 Jun-01 Sep Actual Target 7

9 Adviser productivity improving Advised Sales per FTE/Month ($000s) ct 99 Dec-99 Feb-00 Advised Sales per FTE Apr-00 Jun-00 Aug-00 Oct-00 Dec-00 Feb-01 Apr-01 Jun-01 8

10 Adviser productivity is top tier $m Planner productivity ($m per planner) WBC CBA AMP ANZ NAB AXA Source: Plan For Life & Salomon Smith Barney estimates 9

11 No.1 for retail funds performance % of Funds Meeting or Exceeding Peer Group Median 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Jun-99 Sep-99 Dec-99 Mar-00 Jun-00 Sep-00 Dec-00 Mar-01 Jun-01 82% #1 Source Morningstar, Open Funds >$10m 10

12 Looking closer... % of Funds Meeting or Exceeding Peer Group Median 1 year 3 years Trend % % Westpac First State NAB MLC AMP CBA ANZ BT Source Morningstar, Open Funds >$10m, June

13 Westpac Investment Management Focused on core competencies: Australian shares Australian fixed interest Tactical asset allocation Low cost, scalable operation Delivering investment performance Best of breed product strategy 12

14 Retail inflows improving strongly $m Quarterly Retail Inflow Trend Mar`99 Jun`99 Sep`99 Dec`99 Mar`00 Jun`00 Sep`00 Dec`00 Mar`01 Jun`01 13

15 Current Situation Strategy

16 Acquisitions Not interested in profitless growth Must add shareholder value Watching brief Our strategy is not dependent on acquisitions 15

17 Our wealth management strategy Leveraging our comparative advantage large customer base, warm leads and reduced search costs Expanding distribution size and capability Accessing & integrating best of breed products Balancing growth and profitable returns 16

18 The opportunity is large... 81% of Priority Customers don t hold a Westpac wealth management product 94% of Business Customers have their super with another financial institution 39% of these have their super with another Bank 17

19 Current Westpac distribution Product/Service Distribution Segment Institutional Sales Westpac BFAs Westpac Planners Westpac Advisors Institutions Middle Market Small Business Private Priority Personal 18

20 Distribution opportunities Product/Service Distribution Segment Institutional Sales Westpac BFAs Westpac Planners IFAs Westpac Advisors HP JDV Institutions Middle Market Small Business Private Priority Personal 19

21 Focus on wrapped offerings Product/Service Distribution Segment Custody Pooled Funds Margin Lending Discrete Mandate Business Super Indiv. Mgd Portfolio Master Trust Retail Product Institutional Sales Westpac BFAs Westpac Planners IFAs Westpac Advisors HP JDV Institutions Middle Market Small Business Private Priority Personal 20

22 In summary... High growth and high return business Leveraging our comparative advantages Expanding distribution size and capability Providing best of breed products 21

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