Global Transaction Services Carole Anderson Managing Director Australia and New Zealand Banking Group Limited 20 July 2001
Page 2 A portfolio of transaction based growth businesses Financial performance Growth opportunities within existing portfolio Breakout growth options Goals for Global Transaction Services
Page 3 Global Transaction Services brings together… Clearing Services International Services Portfolio Services Cash Management Trade Finance Australia Americas Europe New Zealand Middle East five product groups * ……across five geographies * * Pie charts based on relative earnings
Page 4 Mar-00 Sep-00 Mar-01 Operating IncomeProfit After Tax Mar-00 Sep-00 Mar-01 The business has shown solid improvement over the last 3 halves... Mar-00 Sep-00 Mar-01 Mar-00 Sep-00 Mar-01 FTECost Income 17% Growth 11% Growth $m %
Page 5 There is significant room for growth Individual Products Integrated Solutions Penetration of CIB Customer Base Low High Increase penetration of CFS customer base Sell integrated solutions Continue to improve cost structures and service through e-enablement Performance & growth path
Page 6 Breakout options include new business models like outsourcing which deliver: Lower unit costs (variable not fixed) Sensitive to volume Technology capabilities upgraded without further investment
Page 7 Proponix… Trade processing joint venture which delivers outsource benefits and dividends on the investment Segmentation of functions Middle Office Delivery Relationship management Branding Customisation Front Office Outsourced to Venture Product pricing Risk management Segment Management Syndication Doc exam Payments Operations Messaging Operational risk Loans Settlement G/L DDA Bank retained activities Interfaces with Bank back office Back Office
Page 8 Insourcing from our customers to create new revenue streams... Receive PO Process PO Ship goods Seller Process payment MatchClose A/R Generate invoice Create AR Dispute resolution Receivables Process …capturing more of the value chain, embedded in customer processes
Page 9 …and wholesaling relevant parts of our core capabilities... Transaction Processing Account Servicing General Ledger Accounting Customer Accounts Transaction Capture Liquidity Management Non-Bank Financial Institutions Other Banks Utilities Corporates …providing scale (new customers and transaction volume) without sales and service costs
Page 10 …which will underpin our future business growth ROE LowHigh Low High Market Growth Portfolio Services Trade Finance CMTS International Payments Clearing Services Present Future * Bubbles are indicative of relative earnings contribution
Page 11 Summary GTS is well placed to deliver strong growth Our areas of strong & sustainable competitive advantage are in Trade and Cash Management Growth will come from: –Improving penetration of CFS franchise –e-enablement & product integration –New business models like Wholesaling txn services Proponix Insourcing Goals Double earnings by 2005 Cost Income ratio comfortably in the 40’s
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