Driving Growth Through The Branch Network Wendy Hannam Executive Vice-President, Domestic Branch Banking Agenda Foundation for success Driving growth by expanding our distribution Driving growth with superior execution Summary 57
Bankers Are Able To Spend More of Their Day Selling % of Time Spent on Sales Activities 55% 31% 1998 2005 58 Branches Are Generating Consistent Growth Branch Sales Volume Up 43% Since 2002 +43% Contact Management $41.4B Diagnostics $28.9B Reporting Sales Management Culture 2002 2003 2004 2005 (projected) 59
Customers Are Loyal And Satisfied Scotiabank Loyalty Satisfaction with Relationship Manager 43 45 48 49 47 47 50 51 55% 2002 2003 2004 2005F 2002 2003 2004 2005F 60 Employee Satisfaction Is A Key Growth Driver Domestic Branch Employee Satisfaction at 90% 90% 80% 2001 2002 2003 2004 2005 61
Employee Satisfaction Is A Key Growth Driver Employee satisfaction Recruiting Training Recognition Feedback Core values 62 Employees Are Also Committed Shareholders Domestic Branch Employee Participation in ESOP Domestic Branch Employee Returns in ESOP 93% $580M 86% Total = $47M 2003 2005 $200 per month from 1987 to Today Today 63
Firmly Entrenched Customer Experience Model Delivering the Customer Experience Prepare Relate Discover Needs / Preferences Confirm with Appreciation CUSTOMER Present Solutions Ask for the Business Follow Through Identified $100 Billion in competitor balances 64 Consistent Sales & Service Management Disciplines Structured Processes at All Levels of the Organization Branch Activity Huddle Sales Meeting / Service Meeting Skill Building Sessions One-on-One Coaching Frequency Daily Weekly Weekly Weekly District / Region Activity Group Touchbase One-on-One Touchbase Frequency Weekly Weekly 65
Agenda Foundation for success Driving growth by expanding our distribution Driving growth with superior execution Summary 66 Driving Growth By Expanding Our Distribution Increasing capacity more bankers more branches more mortgage specialists 67
Increasing Sales Force Capacity to Capture Market Share New bankers 200 Additional sales volume $800MM 68 Building Branch Capacity To Serve Customers High potential markets 20-30 new branches New formats Per branch, by year 3: $60MM in new balances 69
Expanding Our Indirect Mortgage Specialist Sales Force Mortgages Originated Indirect 35% 18,400 new customers last year Unique in-branch cross-sell process Branch 65% 70 Agenda Foundation for success Driving growth by expanding our distribution Driving growth with superior execution Summary 71
Driving Growth With Superior Execution 1. Growing investment share 2. Encouraging profitable cross-sell 72 1. Growing Investment Share Borrowing Share of Wallet Investment Share of Wallet 49% 39% 30% 29% Scotiabank Peer Average Scotiabank Peer Average Emerging affluent opportunity = $17 Billion in competitor investment balances 73
1. Growing Investment Share Customer alignment Financial planning tools Training Metrics Market Share 74 1. Growing Investment Share - Customer Alignment Customer Segment Emerging Affluent Mass Market Small Business Sales Force Financial Advisor Senior PBO / PBO Account Manager 27% of customers 74% of investment balances 56% of borrowing balances 75
1. Growing Investment Share - Tools & Training Scotia Blueprint Financial Plan Portfolio Analyzer Investment selection Investment selling skills training Investing in You 76 1. Growing Investment Share - Performance Metrics New Goals: Minimum investment sales Scotia Blueprint financial plans Partner referrals Switches 77
2. Profitable Cross-Sell With The Relationship Bundle Credit Card Helping customers become financially better off Overdraft Protection Day-to-day Borrowing Protection Investing Day-to-Day Banking ican Invest / PAC 78 2. Profitable Cross-Sell With The Relationship Bundle 130% revenue lift Standalone mortgage sale Mortgage + Bundle 1 Bundle per Banker per Week = $17 MM in revenue 79
Agenda Foundation for success Driving growth by expanding our distribution Driving growth with superior execution Summary 80 Branch Network is Well-Positioned To Drive Growth Distribution network expanding More bankers More branches More mortgage specialists Growth with superior execution Growing investment share Encouraging profitable cross-sell 81