Global Transaction Services

1
Global Transaction Services

• Carole Anderson
• Managing Director
• Australia and New Zealand Banking Group Limited
  20 July 2001

2
A portfolio of transaction based growth businesses

• Financial performance
• Growth opportunities within existing portfolio
• Breakout growth options
• Goals for Global Transaction Services

3
Global Transaction Services brings together
five product groups
across five geographies
Australia
Trade Finance
Clearing Services
International Services
Middle East
Portfolio Services
Americas
Cash Management
Europe
New Zealand
Pie charts based on relative earnings
4
The business has shown solid improvement over the
last 3 halves...
m
Operating Income
Profit After Tax
m
11 Growth
17 Growth
Mar-01
Sep-00
Mar-01
Mar-00
Mar-00
Sep-00

FTE
Cost Income
Mar-01
Mar-01
Sep-00
Mar-00
Sep-00
Mar-00
5
There is significant room for growth

• Increase penetration of CFS customer base
• Sell integrated solutions
• Continue to improve cost structures and service
  through e-enablement

Performance growth path
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

7
ProponixTrade processing joint venture which
delivers outsource benefits and dividends on the
investment
Bank retained activities
Outsourced to Venture
Interfaces with Bank back office
Middle Office
Front Office
Loans

• Delivery
• Relationship management
• Branding
• Customisation

• Product pricing
• Risk management
• SegmentManagement
• Syndication

Back Office

• Doc exam
• Payments
• Operations
• Messaging
• Operational risk

Segmentation of functions
Settlement
G/L DDA
8
Insourcing from our customers to create new
revenue streams...
Receivables Process
Seller
capturing more of the value chain, embedded in
customer processes
9
and wholesaling relevant parts of our core
capabilities...
Non-Bank Financial Institutions
Other Banks
Utilities
Corporates
providing scale (new customers and transaction
volume) without sales and service costs
10
which will underpin our futurebusiness growth
High
Present
International Payments
Future
CMTS
Market Growth
Portfolio Services
Trade Finance
Clearing Services
Low
Low
High
ROE
Bubbles are indicative of relative earnings
contribution
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 40s

12
Copy of presentation available on www.anz.com