global transaction services

Global Transaction Services

Carole AndersonManaging 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

EuropeNew Zealand

Middle East

five product groups*… …across five geographies*

* Pie charts based on relative earnings

Page 4

148 151

164

120125130135140145150155160165170

Mar-00 Sep-00 Mar-01

Operating Income

46

40

54

3035

404550

5560

Profit After Tax

Mar-00 Sep-00 Mar-01

848826825

780

800

820

840

860

880

900

58.3

50.6

52.0

464850525456586062

The business has shown solid improvement over the last 3 halves...

Mar-00 Sep-00 Mar-01 Mar-00 Sep-00 Mar-01

FTE Cost Income

17% Growth

11% Growth

$m $m

%

Page 5

There is significant room for growth

IndividualProducts

IntegratedSolutions

Pene

tratio

n of

CIB

Cust

omer

Bas

eLo

wHi

gh • 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

Segmentationof functions

Middle Office• Delivery• Relationship

management• Branding• Customisation

Front Office

Outsourced toVenture

• Product pricing• Risk

management• Segment

Management• Syndication

•Doc exam• Payments•Operations• Messaging

• Operational risk

Loans

Settlement

G/LDDA

Bank retained activities

Interfaces withBank back office

Back Office

Page 8

Insourcing from our customers to create new revenue streams...

ReceivePO

ProcessPO

Shipgoods

SellerProcesspayment

Match Close A/RGenerateinvoice

CreateAR

Disputeresolution

Receivables Process

…capturing more of the value chain, embedded in customer processes

Page 9

…and wholesaling relevant parts of our core capabilities...

Transaction Processing

AccountServicing

General Ledger Accounting

Customer Accounts

Transaction CaptureLiquidity

Management

Non-BankFinancial

InstitutionsOtherBanks

Utilities Corporates

…providing scale (new customers and transaction volume) without sales and service costs

Page 10

…which will underpin our futurebusiness growth

ROELow High

Low

High

Mar

ket

Gro

wth

PortfolioServices

TradeFinance

CMTS

InternationalPayments

ClearingServices

PresentFuture

* 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

Page 12

Copy of presentation available on

www.anz.com