ANZ Wealth

UBS Australian Financial Services ConferenceJohn Van Der Wielen
Managing Director WealthJune 2011

ANZ Wealth• 1H11 NPAT of $186mInsurance• $45b investment FUM

Superannuation & Investments

1• $1.4b$1 4b in-force
i finsurancei
premiumsi• ~2.6m customers1

ANZ Private• 14% of ANZ Australia Division profit• Top 5 position across all segments• Well regarded Private Bank ($15b of funding)• 3,400 staff• 1,720 aligned advisers & 280 branch planners• Offices and people across Australia
Market share position
Individual Life Insurance212%#4Superannuation & Investments2

8%#5Private Bank3

16%

#3

Investment Lending49%#5Online/Direct Broking

22%

#2

1. Excludes MasterTrust Risk Insurance and Group Risk; Figures as at 31 March 2011
2. Plan for Life as at Dec 2010 (includes AMP/AXA merger)
3. APBC benchmark report
4. RBA
1

4 Aligned Dealer Groups
dealer group
2nd largest
network in Australia

Insurance
Scale
4th largest individual life insurer- 12% market share1

Scope#1 Retail sales in IFA channel2

Customers

OOneoff onlyl 2 insurersipresentt iniall segments~1.4m retail customers

Key financials

Products5$1.4b in-force premiums

Individ. Life Insurance – $686m

43% off ANZ Wealth
W lth P
Profitfit4

Business quality

General insurance – $233m
Top quartile rating by Industry
Funds3
Below market average lapse
rate ((13.2%))4

1.
2.
3.
4.
5.

Plan For Life Dec 2010
NMG Consulting, IFA RDM 30 March 2011
Group Risk BQM 2010
As at 30 March 2011
In-force premium as at 30 March 2011

Group Insurance – $462m

2

Superannuation & Investments
Market share
Top 5 provider:

Scope• 8% market share2• $45b in FUM

Customers

Retail superannuation,
tit andd iinvestment
tt
retirement
solutions to customers, advisersand employers

24,000 employer relationships

Key financials1Key products

Cash inflows of $2.4b

Mastertrust – $17b

Net Funds Management Incomeof $195m1

Over 1.1m
1 1m retail customers

Business quality

Employer Super – $13bWrap – $7b

27% of ANZ Wealth Profit#1 rated employer superproduct in Australia

1. For 1HFY11
2. Plan for Life Dec 20103

ANZ Private
Market share
16%6% Private
ate Bankingag Marketa et
25% of Charitable Market

Scope

9% Investment Lending Market2Customers

HNW Client Management

Over 8k HNW Individualslsharehtradingd&Online
leveraging solutions

1.5k Charitable & Trustees
14k Investment Lending clients

Charitable, Trust & Estate
Planning Solutions

5.5k SMSF clients
INVESTMENTLENDING

Scale

Business Quality
Private Bank ranked #1 forcustomer advocacy
E*TRADE highest phone andweb customer satisfaction1

Over $23b in deposits & lending
FUM

E*TRADE
17 - 20k trades per day
22% Online Trading MarketShare~120 k active E*TRADEaccounts

1.
2.

Of main online brokers, Investment Trends 30 March 2011
RBA4

Wealth is well positioned for growthSuper & Investment FUM market sharestable post GFC

Our Life Insurance business has strong
position in a high growth market
Marketin-force
($b)

CAGR
OnePath: 13.3%
Market:12.9%

In-force($b)
1.2

1520.00
Dec-07

Dec-08Dec-09Dec-10

12.1%

12.3%

12.4%

12.5%

12.3%

OnePath In-force

15000MarketShare

Dec-0645030040.3600

3060.6

Retail Market FUM1($b)

451080.9MarketShare

FUM1($b)

Market in-force

Dec-06

Dec-07

Dec-08Dec-09Dec-10

8.0%

8.0%

8.3%

8.4%

8.2%

OnePath FUM

Market FUM

Capturing opportunity in both bear &bull markets

Current penetration of ANZ
customer base
10Investment
Lending
FUM($b)864

Wealthopportunity

28,0006,000

ASX
All Ords

4,00011%2,000

ANZ customers withan ANZ Wealthsolution

0Mar07

1. FUM ex Cash
Source: Plan for Life, ASX
5Mar08

Mar09

Mar10Mar11

Setting the foundations for future growth
Strategic priorities• Embed wealth offerings into ANZ customer propositions and1

Stepp change
g in ANZ
customer basepenetration• Continueou too capture
ap u Superannuation
up a ua o Guaranteeua a(SG)( ) flowso2

Capitaliseponopportunities
presented byregulatory and market
changes• Deliver a fully integrated Wealth business to realise revenue

3

Leverage combined
wealth business toenhance revenue anddecrease costs

4

Enhance corecapabilities for future
growthchannels• Develop simple superannuation and insurance offerings(with potential increase from 9% - 12% for SG)• Enhance “limited scope” advice offering• Leverage our aligned dealer group distribution networkand cost synergies between business units• Invest in increasing automation and online self-service
capabilities to improve efficiency and cost-to-serve• Deliver future wealth platform solution• Deliver compelling investments propositions to customersegments• Build our capabilities to support possible further growth6Experienced Wealth management teamJohn Van Der Wielen
Managing Director
WealthCraig Brackenrig

Gavin Pearce

Catherine McDowell

Paul Barrett

GM Superannuation& Investments

GM Insurance

MD ANZ Private

GM Advice &Distribution7

We have delivered and continue to work on arange of initiatives
What we have done…

What we will do…

9 Brought 3,300 FTEs, 12 brands,
2,000 planners and 2.5m customers
under one umbrella• Develop and distribute branch
ready products• Launch simple super

9 Built a new leadership team ofexperienced Wealth professionals• Expand phone based and simple
advice9 Cost to Income ratio reduced to 56%• Leverage our aligned dealer
groups9 Launched OnePath brand withminimal disruption
9 Launched a Fee For ServiceMasterTrust• Enhance our investmentmanagement & platform
capabilities

9 Launched life insurance on anz.com• Centralise investment research

9 Improved lapse rates half on half

• Invest in online capabilities andstraight through processing

8The material in this presentation is general background information about the Bank’s activities current at thedate of the presentation. It is information given in summary form and does not purport to be complete. It is
not intended to be relied upon as advice to investors or potential investors and does not take into account theinvestment objectives, financial situation or needs of any particular investor. These should be considered,with or without professional advice when deciding if an investment is appropriateThis presentation may contain forward-looking statements including statements regarding our intent, belief
or current expectations with respect to ANZ’s business and operations, market conditions, results ofoperations and financial condition, capital adequacy, specific provisions and risk management practices.
When used in this presentation, the words “estimate”, “project”, “intend”, “anticipate”, “believe”, “expect”,“should” and similar expressions, as they relate to ANZ and its management, are intended to identify
forward-looking statements. Readers are cautioned not to place undue reliance on these forward-lookingstatements, which speak only as of the date hereof. Such statements constitute “forward-looking statements”
for the purposes of the United States Private Securities Litigation Reform Act of 1995. ANZ does noty obligation
gto publicly
py release the result of any
y revisions to these forward-looking
g statements toundertake any
reflect events or circumstances after the date hereof to reflect the occurrence of unanticipated events.
For further information visit

www.anz.com
or contactt t
Jill Craig
Group General Manager Investor Relations
ph: (613) 8654 7749 fax: (613) 8654 9977

e-mail: jill.craig@anz.com