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Global Transaction Services Carole Anderson Managing Director Australia and New Zealand Banking Group Limited 20 July 2001

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Global Transaction Services. Carole Anderson Managing Director Australia and New Zealand Banking Group Limited 20 July 2001. A portfolio of transaction based growth businesses. Financial performance Growth opportunities within existing portfolio Breakout growth options - PowerPoint PPT Presentation

TRANSCRIPT

Page 1: Global Transaction Services

Global Transaction Services

Carole AndersonManaging Director

Australia and New Zealand Banking Group Limited 20 July 2001

Page 2: Global Transaction Services

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

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: Global Transaction Services

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: Global Transaction Services

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: Global Transaction Services

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: Global Transaction Services

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: Global Transaction Services

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: Global Transaction Services

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: Global Transaction Services

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: Global Transaction Services

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: Global Transaction Services

Page 12

Copy of presentation available on

www.anz.com