Commonwealth Bank Of Australia · ASX:CBA
Commonwealth Bank Of Australia — Morgan Stanley Financials Forum 2012
13 slides from Commonwealth Bank Of Australia's conference presentation, Sep 20, 2012
Slide 1: The Changing Face of Retail Financial Services
For personal use only Morgan Stanley Financials Forum The Changing Face of Retail Financial Services David Lindberg Executive General Manager Credit Cards, Payments and Retail Strategy
Slide 2: Disclaimer
Disclaimer For personal use only The material that follows is a presentation of general background information about the Group’s activities current at the date of the presentation, 20 September 2012. It is information given in summary form and does not purport to be complete. It is not intended to b
Slide 3: RBS year on year
RBS year on year For personal use only Cash Earnings $m Jun 12 vs Jun 11 $m +3% Home Loans 2,892 (0%) Volume Growth 3%; Margin down 3bps PL: Volume Growth 13%; 3 47 54 65 193 Consumer Margin up 65bps 32 1,896 11% CC: Volume Growth 6%; 12 Finance 0% 15% 2% Margin up 24bps 12% 3% (0%) 11% Volu
Slide 4: CBA Retail – a snapshot
CBA Retail – a snapshot Market Share Main Financial Institution Share – Roy Morgan1 For personal use only Market Share - June 2012 Share of MFI Customers - June 2012 30.7% 26.0% 21.7% 20.7% 13.2% 13.4% 10.9% Home Loans Household Deposits Credit Cards - RBA - APRA - RBA CBA WBC ANZ NAB Excludes Bankw
Slide 5: Four industry dynamics impacting retail banking
Four industry dynamics impacting retail banking For personal use only 1 Lower growth environment 2 Australia’s funding position 3 Regulation and community position 4 Acceleration of digital banking and payments 5
Slide 6: Lower growth environment
Lower growth environment Lower credit growth For personal use only RBA Housing Credit Annual Growth % 25% Household and business 20% confidence remains subdued 15% 10 Year Average 10% Household deleveraging continues, subduing demand for 5% Forecast credit 0% Jun-2002 Jun-2004 Jun-2006 Jun-2008
Slide 7: Cost imperatives
Cost imperatives Industry C/I ratio improved over last 10 years For personal use only 55% Group C/I Ratio - Average of Majors % Avg Majors Focus on continuous productivity 50% improvements, rather than one-off cost reduction 45% > Lean culture RBS FY12: 38.1% > Technology enabled productivity 40%
Slide 8: Australia's funding position
Australia’s funding position Industry off-shore liabilities For personal use only Australian Bank Liabilities – July 2012 Industry funding gap narrowed but still an issue, driven by: Due from overseas > Mortgage dominance for operations investments Non-resident 5% > Superannuation liabilities 17%
Slide 9: Regulation and community position
Regulation and community position For personal use only Regulation > Increasing cost of regulation > Unintended consequences - two way dialogue essential > Must build business to adapt Focus on relationship with community > Industry messaging > Investment in community > Attention to notion of ‘f
Slide 10: Acceleration of digital banking and payments
Acceleration of digital banking and payments For personal use only Technology evolving Mobile increasingly dominant: Smartphone – 12 million Australians Mobile banking: ~ 50% of all electronic transactions Already part of purchase process NFC continues to grow: ~150K terminals in Australia
Slide 11: Where will we go next?
Where will we go next? For personal use only New Ecosystem of New functions Competitors? Banks Native mobile payments Scheme networks Wallet arms race Tech marketers Mobile checkout Handset manufacturers Something completely different? 11
Slide 12: For personal use only
For personal use only
Slide 13: Notes
Notes For personal use only Sources for data outlined in this pack 1. Roy Morgan Research. Australians 14+, Proportion of Banking and Finance MFI Customers that nominated each bank as their Main Financial Institution, 12 month rolling data to reporting month. CBA excludes Bankwest, Westpac excludes
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