Case Study

VOLUME AND MARGIN

Managing Volume & Margin: Key Learnings

1. Price led growth strategies in isolation are seldom sustainable

2. Lower funding costs can mean cheaper prices and maintaining margins

3. A customer focus can provide growth without price reductions

Price Lead Campaigns

Valentines Day 2011

National Australia Bank

Launch of “Breakup Campaign”

Bank’s Perspective

2011

Cameron Clyne Former CEO of NAB

Rationale behind the “Break Up” Campaign

Analyst’s Perspective

24 April 2012

Brian Johnson, Jeffries Banking Research Analyst

ABC News on Breakup Campaign

NAB Mortgage Market Share vs. Peers

At no point during the campaign did NAB’s relative ranking vs. peer banks change

NAB 1-Year Share Price Performance

NAB share price outperformed peers for less than 12 months

Big 4 Margins

Westpac and CBA had minimal margin compression and held #1 / #2 market share positions consistently

Peer Bank Market Share Strategies

Former CEO Brian Hartzer

Westpac Banking Corporation

FY19 Full Year Results Presentation

Managing Volume & Margin: Recap

Price led growth strategies in isolation are seldom sustainable