 |  | Ian MacDonald
EGM, Financial Services Australia | | About Financial Services Australia
Financial Services Australia provides personal, business and agribusiness financial solutions for the National's customers in Australia. Financial Services Australia invested in its retail network this year to improve customer service and create a better work environment for staff. The business recorded another strong performance with a 6.3% increase in net profit*, which was $1,868 million.
*Net profit excludes the after-tax impact of significant items Financial Services Australia enjoyed a 20.3% increase in home lending as the real estate market continued to grow. The National held 17.9% of the home mortgage market in Australia as at August 2003 (Reserve Bank of Australia/National). Our fleet management business, Custom Fleet, acquired Custom Service Leasing (New Zealand) Limited, creating an even stronger presence in the fleet management industry. The acquisition and integration, including systems conversion, was completed during the year. The acquisition, combined with the synergies achieved, has boosted Custom Fleet's income by 46.8% on last year.  | | John Eales, the former Australian rugby great, launches the Rugby World Cup 2003 National Visa Card in July. | | | Business lending volumes increased by 8.9% and deposits grew by 10.6%. Our cards business also recorded a solid performance with a net profit* 30% higher than last year's. Despite Australia experiencing possibly its most severe drought in 100 years, our Agribusiness segment performed well with specialist Agribusiness Managers able to respond promptly to customer requests for carry-on finance. By combining income growth with the adoption of new technologies and more streamlined processes, we improved our cost to income ratio to 45.7% from 48.2%. Customer Relationship Management - more than technology
We are working towards achieving our goal to be the financial services provider Australians trust to meet their financial needs.  | | Looking for a home of your own? One of the National's new advertisements aimed at first home buyers to promote the Life Events program. | | | With this in mind we continued to build on the strength of our customer relationship management platform. Our approach is about more than just technology. By bringing together people, processes, systems and capabilities, we can work smarter and deliver improved products and outstanding service to customers. The launch of the Transition to Advice program by our personal banking and wealth management teams this year was a practical example of our integrated financial services strategy, helping to ensure customers benefit from our Group's wide range of products, services and experience. After a pilot in South Australia and Queensland this year, our Life Events program was launched nationally. The program allows us to enhance our customer relationship management capabilities and recognise significant customer events, such as saving for a home or retirement. This means we can address our customers' current and future needs proactively. An advertising campaign to promote the program was launched in September 2003. Extending our network
This year we invested in our physical network. New branches at Ocean Keys in Western Australia and Menai in New South Wales were opened. We also refurbished 40 branches and completed merchandising upgrades across 160 locations.  | | Sheree Sanson (Banker) with Julian Barrans (customer) at the Albury Financial Service Centre, one of the 20 new Financial Service Centres to open during the year. | | | Twenty new Financial Service Centres were opened in regional cities including Geelong, Bendigo, Coffs Harbour, Mackay, Darwin, Albury, Cairns and Townsville. We expect to open another 20 next year. By bringing together the range of skills and experience our business has to offer, Financial Service Centres provide a one-stop-shop for our customers' financial advice needs. Our arrangement with Australia Post was extended to offer business transactions at 201 locations; 127 of these are in rural and regional areas. A new Internet banking platform was launched this year. Usage has grown by 27% with more than 125,000 average daily logins. Following a pilot of audio ATMs with the Royal Victorian Institute for the Blind, we now have over 60 audio-enabled ATMs for the visually impaired and are planning to enable 50% of ATMs by the middle of next year.  | | Logistics and transport provided for a donation of 450 tonnes of hay from south-west Victoria to drought-affected areas. | | | Delivering quality service and advice
Regulatory change continues to impact our business and our people, particularly the Financial Services Reform Act, the Privacy Act, the Revised Code of Banking Practice, and the updated Uniform Consumer Credit Code. We are investing to ensure all staff impacted by these changes receive adequate skills and compliance training. Substantial investments have also been made in new technology, improved processes, training programs, and better staff and customer information, to improve the sales and service delivery process through all of our distribution channels. Now all personal and business lending applications are processed through a new technology platform and all branches have access to intranet tools and facilities. We continue to work closely with customers with a particular focus on helping farmers through the drought. Reflecting the National's commitment to the farming sector, this year we recruited our largest Agribusiness graduate intake of 45 young agricultural enthusiasts. Engaging our people
A number of people and culture initiatives were undertaken during the year, including programs to assist leaders and team members with all elements of performance development. We created an intranet-based feedback tool to encourage an open and transparent culture; sponsored Breakthrough programs that support people in turning ideas into business improvements; and established the FSA Leadership Coalition of 150 senior leaders, to promote quality leadership practice. In consultation with employees we also developed a new Performance Incentive Plan, which provides a fair and transparent means of rewarding performance and links remuneration to individual and business performance.  | | Former Melbourne Football Club champion and National AFL Pathway program ambassador, Garry Lyon, with talented young players going through the program. | | | Our role in the community
Our people listen and work closely with communities all over Australia. We have strong partnerships with organisations, such as: the Australian Red Cross; the Australian Football League (AFL) through the National AFL Pathway program; Lions Australia; Rotary Australia through its Corporate Alliance Program; and the Ovarian Cancer Research Foundation. We are also developing new relationships with community organisations to help employees make the most of the two days' community leave available to them each year. Each branch has an allocation of $1,000 to be donated at its discretion, providing our people with an opportunity to connect with individuals and community groups. This has proven to be one of our most successful programs, involving more than 1,000 different community initiatives at a local level across Australia this year. Ways in which we made a difference this year - A donation of $100,000 to the Canberra Bushfire Appeal.
- The National Staff Volunteer Grant Program allocated $96,000 to over 48 community groups.
- The donation of more than $45,000 to 10 charities as part of the employee giving program.
- The 2003 launch of the National Blood Donor Recognition Week attracted more than 1,700 new donors.
- Our participation in the Ovarian Cancer Research Foundation's Silver Ribbon campaign raised $200,000.
- More than 100 not-for-profit and community groups received $375,000 through the 2002 National Community Volunteer Awards.
- Logistics and transport provided for a donation of 450 tonnes of hay from south-west Victoria to drought-affected areas.
- The National AFL Pathway program has provided almost $200,000 in equipment for more than 30 junior football clubs across Australia.
| | | 
|
