Financial Services & Wealth Management David Clarke Group Executive 13 August 2001 0
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 2001. 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
Current Situation Strategy
High return and high growth wealth management business 29% CAGR* NPAT $m 254 195 148 149 90 101 1997 1998 1999 2000 1H 2001 Embedded value uplift * Excluding accounting impacts Source: Westpac Financial Services Group Statutory Accounts 3
But not top tier in FUM Total Funds Under Management $bn 94.6 CBA (Colonial) 72.4 AMP 47.1 35.9 33.3 NAB (MLC) BT DB 21.6 Westpac Retail Funds Under Management $bn 42.8 CBA (Colonial) 30.5 NAB (MLC) 24.8 AMP 17.2 13.8 1. 2. 3. 4. 5. 8. 1. 2. 3. 4. 5. BT Westpac Source: ASSIRT as at March 2001 4
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
Sound foundations for growth Growth in adviser network Adviser productivity improving Fund performance - No.1 over 1 year 6
Adviser network growth continues 1200 1000 800 600 400 200 0 Planner/Adviser Numbers CAGR = 18% 1995 1996 1997 1998 1999 2000 Mar-01 Jun-01 Sep-01 2002 2003 Actual Target 7
Adviser productivity improving Advised Sales per FTE/Month ($000s) 900 800 700 600 500 400 300 200 0ct 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
Adviser productivity is top tier $m 6 5 4 3 2 1 0 Planner productivity ($m per planner) WBC CBA AMP ANZ NAB AXA Source: Plan For Life & Salomon Smith Barney estimates 9
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
Looking closer... % of Funds Meeting or Exceeding Peer Group Median 1 year 3 years Trend % % Westpac 82 58 First State 68 78 NAB 58 75 MLC 40 38 AMP 33 42 CBA 29 83 ANZ 23 41 BT 12 20 Source Morningstar, Open Funds >$10m, June 2001 11
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
Retail inflows improving strongly $m 600 500 400 300 200 100 0 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
Current Situation Strategy
Acquisitions Not interested in profitless growth Must add shareholder value Watching brief Our strategy is not dependent on acquisitions 15
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
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
Current Westpac distribution Product/Service Distribution Segment Institutional Sales Westpac BFAs Westpac Planners Westpac Advisors Institutions Middle Market Small Business Private Priority Personal 18
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
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
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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