Harry Lorton, CEO

gabonesedestructionΛογισμικό & κατασκευή λογ/κού

17 Φεβ 2014 (πριν από 3 χρόνια και 4 μήνες)

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Harry Lorton, CEO


Complementarity of TSB & Irish Permanent



Distribution reach & product breadth



Exclusively Ireland & retail focus



Opportunity to offer alternative to BOI/AIB duopoly

Creation of 3rd Banking Force


Mortgages



23%+


Savings




12%


Current Accounts


10%


New Car Finance



20%


Life & Pensions



20%+

Customer Base of over 1 million

A Powerful Competitive Force

Multi
-
Channel Mortgage
Distribution

Branches
43%

Agents
7%

Brokers
45%

Life
Salesforce
5%


Integration of I.T. platform


Pace & extent of HR change agenda


Compatibility of cultures


Customer retention & service

Creating a New Bank
-

Challenges

Business as usual

Implementation Plan
-

Timeline

IP

TSB


Self
-
service
banking



Single view of
customer

PTSB

PTSB

Degree of Change

2001

June 2002


Organisation
changes



Infrastructure to
support
integration
project

2003 and beyond

To Launch




Rebranding



Branch
Amalgamations


Steady State

PTSB

End Game

Dec 2002


Centralisation of
broker business


Centralisation of
mortgage
processing



Piloting self
-
service banking



Back book
conversion to
Unibanks




Single product
set



New Business
conversion to
Unibanks system


IT Integration
-

Timeline

2001
2002
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
Q2
Q3
Q4
TASKS

Branch Technical
infrastructure

Financial ‘Bridge’

Branch Rollout

Lending consolidation
pre launch

Lending consolidation
& conversion

Non lending
consolidation

Training support

Head Office systems
consolidated

Premises transition

Technical Infrastructure

Self Service Banking
Comments
Duration
(mths)
5
5
6
10
6
9
2
8
7
6
18
Branch TI & Financial ’bridge’ now
live
Branch rollout complete
Gap closure more complex than
originally envisaged, TABS
contingency invoked
Delayed start as a result of
additional gap closure issues
June conversion completed
Complete
GL, payroll and internet completed
Phase 1 and 2 completed
Complete
Pilot scheduled this year
Integration Programme
-

Governance

Integration Steering Group



Integration Executive


Programme Management

(Incl. Benefits Tracking & Communications)




Branding

Premises Transition

IT Infrastructure

IT Applications

HR Transition

Products

Sales & Distribution

Customer Services

Risk

Head Office Functions

I.T. Agenda


Single base platform
-

“Unibanks”


real time


customer centric


single customer view



“Layered” applications architecture


independent of platform


add applications / functionality




CRM strategy


single customer databases


work to be done on ‘cleansing’ data


incrementally add cross
-
channel CRM capability

H.R. Transition


Population of new management structures



Comprehensive training programme


products


systems



Reduction of over 500 staff



Harmonisation of T&Cs



Buoyancy of business offsetting “change fatigue”

Bancassurance
-

Structures

CEO Bank

Regional Managers

CEO Life

Branch Managers

Branch Staff

Head of Bancassurance

Bancassurance

Consultants

Bancassurance
-

Implementation


Building branch consultant salesforce


currently


65


target


80



Training of 800 branch staff


competency testing


licensing


co
-
ordinators



Bancassurance
-

Implementation


Integrated technology support


Siebel

-

consultants now



-

branch staff to follow


open diary system for consultants


ePoS to follow


database (IL/ptsb) for marketing campaigns


Bancassurance Performance


Excellent 2001 outcome


sales up 95% in combined / network


despite major disruption & uncertainty



2002 SSIA campaign
-

life product


36% of bank sales (versus 15
-
20% for market)



Target to double (2001) volumes by 2004

Mortgage Lending
-

Market


Strong fundamentals



Rebound from slowdown in H2 2001



Increased competition between

domestic players



Margins stabilised



No deterioration in credit quality

Mortgage Lending


Key product segment


profitable


low risk


cross
-
selling opportunity



Multi
-
channel distribution


branches
-

leverage off Irish Permanent brand


intermediaries
-

centralised/dedicated channel



Targets


business as usual during integration


all branches up to I.P. level of productivity

Other Lending


Consumer Finance


new car sales biggest component


registrations down


adding to distribution



Business / commercial


targeting smaller end of SME sector


selective on commercial lending


increasing capability


Resources / Deposits


Building on strong TSB franchise



Benefit of inertia in low interest rate environment



Targeting increased share of customer accounts



Packaged offering to attract account transfers

Cost Agenda


Deliver merger synergies of

27m by 2003



Target further cost reductions in 2004


additional

10m in savings


keep costs at 2002 level



Continue to drive down costs towards
target 50% ratio

Merger Cost Savings


2002

2003

2004



m


m


m


Staff

9

18

23

Overheads

5

9

9

Depreciation on capital

(4)

(5)

(5)

10

22

27

Banking Cost Ratios



Actual

Estimated

Target



2001

2002

2004



%

%

%

Cost*/Income


Reported

65

65

55


Incl. bancassurance VNB

60

58

49


Costs*/assets

1.3

1.2

1.0

* operating costs

Banking Margins


Residential mortgages
-

competitive



Retail deposits
-

will benefit from increase in rates



Consumer finance
-

steady



Treasury
-

lower contribution going forward

Summary


Tremendous progress on merger of two banks



On target to deliver synergies



Challenging cost agenda



Opportunities in banking and bancassurance



A LOT DONE, MORE TO DO