Commonwealth Bank Of Australia · ASX:CBA
Commonwealth Bank Of Australia — H1 FY2004 Earnings Presentation
117 slides from Commonwealth Bank Of Australia's earnings presentation, Feb 13, 2004
Slide 1: Highlights (cont'd): Financial Performance and Business Review
Underlying measures exclude shareholder investment returns and the cost of initiatives (including Which new Bank) along with their associated tax if relevant. This represents core operating performance, removing the volatility of shareholder earnings and the impact of strategic initiatives. Highligh
Slide 2: Banking Analysis (cont'd)
Banking Analysis (cont’d) Financial Performance and Business Review Banking operations continued to post strong results, with underlying net profit after tax up 14% or $158 million to $1,294 million from $1,136 million for the prior comparative period. On a cash basis, after reflecting incremental e
Slide 3: Banking Analysis (cont'd): Retail
Banking Analysis (cont’d) Retail Lending Assets Australian retail banking lending assets at 31 December 2003 were $111 billion, an increase of 11% or $11 billion over 30 June 2003 and up 18% over the 12 months since 31 December 2002. Lending assets comprise Australian Home Lending and Personal Lendi
Slide 4: Funds Management Analysis
Funds Management Analysis Half Year Ended 31/12/03 31/12/03 30/06/03 31/12/02 -v- 31/12/02 Key Performance Indicators $M $M $M % Profitability (2) Underlying Profit after Income Tax Shareholder investment returns (after tax) large Initiatives including Which new Bank (after tax) (1) (19 ) (27 ) — —
Slide 5: Directors Report
Directors Report The Directors submit their report for the half year ended 31 December 2003. Directors The names of the Directors holding office during the half year ended 31 December 2003 and until the date of this report were: JT Ralph AC Chairman J M Schubert Deputy Chairman D V Murray Chief Exec
Slide 6: Half Year Results Presentation to Media
Half Year Results Presentation to Media David Murray Chief Executive Officer 11 February 2004 www.commbank.com.au
Slide 7: Disclaimer
Disclaimer The material that follows is a presentation of general background information about the Bank's activities current at the date of the presentation, 11 February 2004. It is information given in summary form and does not purport to be complete. It is not intended to be relied upon as advice
Slide 8: Agenda
Agenda Half Year Results Which new Bank Outlook
Slide 9: A good result in line with 2003 outlook
A good result in line with 2003 outlook Statutory NPAT 1,243 622 100% Cash NPAT 1,240 1,208 3% Underlying cash NPAT 1,487 1,274 17% 31/12/03 31/12/02 change $m $m
Slide 10: Highest interim dividend increase in nine years
Highest interim dividend increase in nine years continues record series... 31/12/03 31/12/02 change Dividends per share 79c 69c 14% Payout ratio 82.9% 72.7% 14% 42 60 82 90 102 104 115 130 136 150 154
Slide 11: Segment breakdown: Across-the-board progress
31 Dec 03 30 Jun 03 31 Dec 02 Change YoY% $m $m $m Banking 1294 1240 1136 14% Funds Management 126 108 125 1% Insurance 67 52 13 large Segment breakdown: Across-the-board progress Underlying Net Profit After Tax Banking: strong result driven by continued home lending growth and pick up in growth in
Slide 12: Capital ratios remain strong
Capital ratios remain strong * Pro-forma figures represent actual December 2003 capital ratios adjusted for $750m PERLS II, an issue and redemption of subordinated debt (net $200m increase), a $500m share buy-back, and a $150m Share Purchase Plan. Target Range Adjusted Common Equity Tier 2 Capital T
Slide 13: Off-market share buy-back
Off-market share buy-back Structure Offer to buy back approximately $450 to $550 million (up to 1.7%) of issued capital All shareholders eligible to participate via tender Shareholders can tender any number of their shares within the range $26.00 to $31.25 The buy back price will comprise: Cash capi
Slide 14: Which new Bank
wow Which Bank
Slide 15: To excel in customer service
Simple processes 'To excel in customer service' Customer service via Engaged people Supported by Through Service transformation Service/Sales Effectiveness IT Enablers Distribution Efficiency Product Performance Culture Support Process/product IT Efficiency Purchasing (4) (2) (3) (2) (1) (1) (3) (2)
Slide 16: Progress report on activities
Progress report on activities To do Done To do Done To do Done To do Done Customer Service · S/S Effectiveness · Distribution Efficiency · Product · IT Enablers 9 3 2 2 9 3 2 2 15 11 6 5 11 9 2 2 1 Engaged People · Performance Culture 1 1 5 1 Simple Processes · Support · Process/Product · IT Efficie
Slide 17: Performance culture
Performance culture Cultural diagnostic completed Program implementation in next half Leading from the front Staff involvement
Slide 18: Staff feedback to CEO
Staff feedback to CEO Strategy Improving service Staff Communication Executive visits Staff performance Personal Feedback category % Emails 8 13 6 43 14 16 0 5 10 15 20 25 30 35 40 45 50
Slide 19: Service and Sales management
Service and Sales management Transforming the way we serve customers Realising full potential of customer serving staff Improving service & sales skills and effectiveness Applicable to everyone
Slide 20: Service and Sales - early results
Service and Sales - early results National benchmark Benchmark: 100 Benchmark: 100 99 99 100 109 117 118 119 121 Week 1 Week 2 Week 3 Week 4 Week 6 Product sales per FTE Week 5 Week 7 Week 8 Week 1 Week 2 Week 3 Week 4 Week 6 Cross-sell ratio Week 5 Week 7 Week 8 107 125 133 148 144 156 163 174
Slide 21: CommSee - Service Excellence Everyday
CommSee - Service Excellence Everyday Bank-wide customer management system Provides single view of customer Starting in Tasmania Improving service for 250,000 customers
Slide 22: Strong business momentum
Strong business momentum Business Growth Margins Productivity Earnings growth Dividend growth Better than expected Market share pick-up in business banking Exceeding assumptions Consistent with assumptions Within 4-6% target range Exceeding assumptions
Slide 23: Which new Bank summary
Which new Bank summary Early days, but confident we are on right track Evidence of earnings and productivity impact emerging Bank's leadership is fully committed to successful implementation Early adoption of cultural change by staff Next progress update mid-year
Slide 24: Outlook - Economy
Outlook - Economy Global Continued strong growth short term Medium-term structural issues remain Domestic Influence factors to remain positive on balance for 1H04 Subsequent period open to number of potential influences Credit growth expected to slow down due to home loan contraction
Slide 25: Outlook - Bank Earnings
Outlook - Bank Earnings Economic momentum to support solid growth for full year Growth in cash EPS exceeding 10% CAGR over three years till 30 June 2006 Productivity Productivity improvement of 4-6% CAGR over a three years till 30 June 2006 Dividend Which new Bank initiative expenses added back to d
Slide 26: Summary
Summary Good result: underlying profit growth of 17% Another record dividend Productivity improvements in all businesses Capital strengthening, buy-back, share purchase plan in place Which new Bank underway and meeting expectations Full year outlook positive Confidence in longer term growth objectiv
Slide 27: Half Year Results Presentation to Media
Half Year Results Presentation to Media David Murray Chief Executive Officer 11 February 2004 www.commbank.com.au
Slide 28: Progress Update
Progress Update David Murray Chief Executive Officer 11 February 2004 www.commbank.com.au
Slide 29: Disclaimer
The material that follows is a presentation of general background information about the Bank's activities current at the date of the presentation, 11 February 2004. 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 investor
Slide 30: Speaker's Notes
Speaker's Notes Speaker's notes for this presentation are attached below each slide. To access them, you may need to save the slides in PowerPoint and view/print in "notes view."
Slide 31: Growth through service transformation
Growth through service transformation Strong business mix Extensive distribution footprint Large customer base Leading brand Service transformation Superior EPS growth Competitive superiority
Slide 32: To excel in customer service
Simple processes 'To excel in customer service' Customer service via Engaged people Supported by Through Service transformation Service/Sales Effectiveness IT Enablers Distribution Efficiency Product Performance Culture Support Process/product IT Efficiency Purchasing (4) (2) (3) (2) (1) (1) (3) (2)
Slide 33: Which new Bank milestones
Which new Bank milestones Service & Sales management - 30,000 staff 'One Team' referral process - implement Service & Sales management - 13,000 staff Branch sales effectiveness - 3,000 staff Centre for Adviser Development - launch Service models - align Advice Model - implement CommSee - Launch in T
Slide 34: Progress report on activities
Progress report on activities To do Done To do Done To do Done To do Done Customer Service · S/S Effectiveness · Distribution Efficiency · Product · IT Enablers 9 3 2 2 9 3 2 2 15 11 6 5 11 9 2 2 1 Engaged People · Performance Culture 1 1 5 1 Simple Processes · Support · Process/Product · IT Efficie
Slide 35: Progress highlights
Progress highlights Performance culture Service and sales management 'CommSee' in Tasmania Home Loan End to End Branch refurbishment
Slide 36: Performance culture
Performance culture Cultural diagnostic completed Program implementation next half Leading from the front Staff involvement
Slide 37: Staff feedback to CEO
Staff feedback to CEO Emails % - 43 0 % a % a 16 4% 43 14 8 10 é io fa 0 r r r T T Strategy Staff Executive Improving —Staff_~——Personal Communication visits service performance Feedback category on Which Bank Commonweatthick “yj
Slide 38: Service and Sales management
Service and Sales management Transforming the way we serve customers Realising full potential of customer serving staff Improving service & sales skills and effectiveness Applicable to everyone
Slide 39: Service and Sales - early results
Service and Sales - early results National benchmark Product sales per FTE Cross-sell ratio Benchmark: 100 Benchmark: 100
Slide 40: CommSee - Service Excellence Everyday
CommSee - Service Excellence Everyday Bank-wide customer management system Provides single view of customer Starting in Tasmania Improving service for 250,000 customers
Slide 41: Home Loan End to End
Home Loan End to End Single home loan origination system Processing, turnaround and service improvements Efficiency gains
Slide 42: Conditional home loan approvals on the spot
Conditional home loan approvals on the spot Applications
Slide 43: Branch refurbishment
Branch refurbishment A better experience for our customers
Slide 44: Customer service tracking
Customer service tracking Strength of Relationship Be 3 58 58 & 57 5+ AprJun os Ju-Sep 03 Oct-Dec 03 Time on Which Bank Commonweatthiark “)y 17
Slide 45: Strong market share position
Strong market share position Source: RBA, APRA, East and Partners, AELA, Reserve Bank of NZ 24.1% 23.1%5 19.3%6 14.2% 15.5% 21.6% 17.2% 22.7%4 2003 2003 June 24.2% 22.7% 14.0% 15.1% 20.6% 16.4% 22.8% Notes: (1) - Note sale of Commonwealth Custodial Services during period (2) - Mid-Corporates (turnov
Slide 46: Strong business momentum
Strong business momentum Business Growth Margins Productivity Earnings growth Dividend growth Better than expected Market share pick-up in business banking Exceeding assumptions Consistent with assumptions Within 4-6% target range Exceeding assumptions
Slide 47: Which new Bank summary
Which new Bank summary Early days, but confident we are on right track Evidence of earnings and productivity impact emerging Bank's leadership is fully committed to successful implementation Early adoption of cultural change by staff Next progress update mid-year
Slide 48: Outlook - Economy
Outlook - Economy Global Continued strong growth short term Medium-term structural issues remain Domestic Influence factors to remain positive on balance for 1H04 Subsequent period open to number of potential influences Credit growth expected to slow down due to home loan contraction
Slide 49: Outlook - Bank Earnings
Outlook - Bank Earnings Economic momentum to support solid growth for full year Growth in cash EPS exceeding 10% CAGR over three years till 30 June 2006 Productivity Productivity improvement of 4-6% CAGR over a three years till 30 June 2006 Dividend Which new Bank initiative expenses added back to d
Slide 50: Summary
Summary Good result: underlying profit growth of 17% Another record dividend Productivity improvements in all businesses Capital strengthening, buy-back, share purchase plan in place Which new Bank underway and meeting expectations Full year outlook positive Confidence in longer term growth objectiv
Slide 51: Progress Update
Progress Update David Murray Chief Executive Officer 11 February 2004 www.commbank.com.au
Slide 52: Presentation of Half Year Results for period ended December 2003
Presentation of Half Year Results for period ended 31 December 2003 David Murray Chief Executive Officer Michael Cameron Chief Financial Officer 11 February 2004 www.commbank.com.au
Slide 53: Disclaimer
The material that follows is a presentation of general background information about the Bank's activities current at the date of the presentation, 11 February 2004. 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 investor
Slide 54: Speaker's Notes
Speaker's Notes Speaker's notes for this presentation are attached below each slide. To access them, you may need to save the slides in PowerPoint and view/print in "notes view."
Slide 55: Agenda
Agenda Half Year Results - Michael Cameron (40 mins) Overview Segment Performance and key items Financial Update on Which new Bank Progress of Which new Bank - David Murray (20 mins) Questions
Slide 56: Half Year Results: Overview
Half Year Results: Overview 7 Which Bank ConmonwealthSank > 5
Slide 57: Highlights
Highlights Good result: underlying profit growth of 17% Another record dividend Productivity improvement in all businesses Further improvement in credit quality Continued strengthening of Tier 1 capital Which new Bank meeting early expectations Share Buy-Back announced
Slide 58: A good result: 17% growth in underlying cash profit
A good result: 17% growth in underlying cash profit
Slide 59: Banking and Insurance strong, Funds Management rebound
Banking and Insurance strong, Funds Management rebound Cash Profit Dec-03 1,274 Banking 158 Funds Management 1 Insurance 54 Investment Returns 99 1,240 Underlying Profit Dec -02 Underlying Growth of 17% Incremental Which new Bank (346) Underlying Profit Dec-03 1,487 $m
Slide 60: Key shareholder ratios
Key shareholder ratios 31/12/03 96 cents 12.3% 79 cents 82.9% 31/12/02 95 cents 12.4% 69 cents 72.7% Change 1% 0% 14% 14% Earnings Per Share Return on Equity Dividends Per Share Payout Ratio Shareholder Ratios* * Based on Cash NPAT
Slide 61: Another Record Dividend
Another Record Dividend Interim dividend of 79 cps, up 14% on pcp Payout ratio of 82.9% reflecting Which new Bank expenditure impact in 2004 42 60 82 90 102 104 115 130 136 150 154
Slide 62: Segment Results: Banking
Segment Results: Banking 7 Which Bank ConmonwealthSank > a
Slide 63: Banking Performance driven by growth in home lending
Banking Performance driven by growth in home lending and sound asset quality In summary: 14% underlying profit growth 9% growth in banking income 4.6% annualised productivity improvement since June 2003 9% growth in lending assets since June 2003
Slide 64: 14% underlying profit growth driven by strength in home lending
14% underlying profit growth driven by strength in home lending $m Interest Income 217 Other Bank Income 104 Expenses (106) BDD 1 Taxation (58) 970 1,136 Which new Bank (324) 1,294 14% increase from underlying business Underlying Profit Dec-02 Underlying Profit Dec-03 Cash Profit Dec-03
Slide 65: Underlying Banking Cost to Income ratio has improved
Underlying Banking Cost to Income ratio has improved by over 4% annualised % June 2006 Target:Under 4.6% annualised productivity improvement
Slide 66: 9% growth in lending assets over the last six months
9% growth in lending assets* over the last six months *Lending assets excludes securitised housing loan balances $5.3b (Dec 03), $6.5b (Jun 03) $5.9b (Dec 02) $ million Housing Personal Business & Corporate Bank Acceptances 169,084 175,074 191,272
Slide 67: Home lending growth profile
Home lending growth profile* Source: Loans Funded 1/07/03 - 31/12/03 Proprietary Third Party Product Balances Outstanding Balances by Loan Type Standard Variable Honeymoon Fixed Rate Discount Variable Owner occupied Viridian/ Access Advantage Investment Home Loan * Data relates to the Bank's Austral
Slide 68: Continued improvement in portfolio quality
Continued improvement in portfolio quality Dec 02 Dec 03 Jun 03 64% investment grade A High Quality Portfolio Well Diversified Portfolio by Industry Top 20 Exposures to Corporates (Committed) (Top 20 exposures are 3.5% of total committed exposures of $245 billion) Jun 02 BBB A+ BBB BBB+ A A+ BBB- AA
Slide 69: The Bank's asset quality remains sound
The Bank's asset quality remains sound *Risk Weighted Assets
Slide 70: Segment Results: Funds Management
Segment Results: Funds Management
Slide 71: Funds Management
Funds Management Since June 2003, underlying profit rebound of 17% to December 2002 levels Income to average FUM steady at 119 basis points 9.0% annualised productivity improvement since June 2003 FirstChoice continues to grow rapidly
Slide 72: Underlying profit rebounds to December 2002 levels
Underlying profit rebounds to December 2002 levels 50 100 150 200 50 100 150 200 Dec-02 Jun-03 Dec-03 Underlying Profit Dec-02 $m $m Underlying Profit Dec-03 Cash Profit Dec-03 125 Net Operating Income 9 Operating Expense 2 OEI (1) Tax (9) S'holder Invest Returns 10 Incremental Which new Bank (19) A
Slide 73: Since June, FUM has grown by 7% and productivity improved by 9%
Since June, FUM has grown by 7% and productivity has improved by 9% annualised % $bn Underlying Expenses/Average FUM (%) Average FUM ($bn) Under FY06 Target 9.0% annualised productivity improvement
Slide 74: 7% Growth in Funds under Management
7% Growth in Funds under Management 94 100 6 1 $m (1) 7% underlying growth
Slide 75: FirstChoice continues to grow rapidly
FirstChoice continues to grow rapidly Source Destination Funds under Administration of $5bn at 31 December 2003 61% 39% 50% 50% 3rd party Proprietary CFS External Dec Half Year Growth represented by: ($bn) 2003 2003 Inflows 2.2 1.6 Outflows 0.5 0.3 Net Growth 1.7 1.3 Jun
Slide 76: Segment Results: Insurance
Segment Results: Insurance 7 Which Bank ConmonwealthSank > se
Slide 77: Insurance
Insurance Fourfold increase in underlying net profit after tax to $67m Strong improvement in shareholder investment returns 9.2% annualised productivity improvement since June 2003 Continued growth in annual premiums Positive experience profit for two consecutive halves
Slide 78: Insurance result reflects improved operating margins and strong investment returns
Insurance result reflects improved operating margins and strong investment returns 13 8 11 35 67 89 153 >400% increase from underlying business $m (3)
Slide 79: Since June, productivity has improved by 9.2% annualised
% $m Operating Expenses/ Average Inforce Premiums (%) Average Inforce Premiums ($m) Under FY06 Target Since June, productivity has improved by 9.2% annualised 9.2% annualised productivity improvement
Slide 80: Australian Insurance business growth and distribution
Growth represented by: ($bn) 2003 2003 Sales/New Business 91 83 Lapses 64 58 Net Growth 27 25 Australian Insurance business Distribution by Channel^ Product Sales Lump Sum General Disability Income Network & Direct* Third Party * Network - Internal Bank Channels Direct - Telemarketing & Phone ^ Excl
Slide 81: Investment Earnings
Investment Earnings 7 Which Bank ConmonwealthSank > “i
Slide 82: Investment Mandate Structure
Investment Mandate Structure The Bank has $2.9bn of shareholders funds across its insurance and funds management business, which is invested in:
Slide 83: Wealth Management Valuations
Wealth Management Valuations
Slide 84: Wealth management valuations - movement analysis
Wealth management valuations - movement analysis Directors' Valuation Jun-03 Directors' Valuation Dec-03 Increase in Value 165 Profit 270 Other Capital Movements (376) 8,546 $m Net appraisal value increase of $59m Total Profit 270 Capital (376) Value 165 Net 59 8,605
Slide 85: Capital
Capital ow Which Bank ConmonwealthSank > “i
Slide 86: Capital Management strategy
Capital Management strategy Creating capital flexibility Executed initiatives Tier 1 Hybrid US$550m (A$832m) PERLS II $750m Subordinated debt $500m Proposed initiatives Off-market share buy-back $450m - $550m Share Purchase Plan and Share Sale Facility (executed following the share buy-back)
Slide 87: Capital ratios remain strong
Capital ratios remain strong * Pro-forma figures represent actual December 2003 capital ratios adjusted for $750m PERLS II, an issue and redemption of subordinated debt (net $200m increase), an assumed $500m share buy-back, and an assumed $150m Share Purchase Plan. Target Range Adjusted Common Equit
Slide 88: Generation and use of tier capital
Generation and use of tier 1 capital 6.96 0.79 (0.54) (0.47) 0.66 (0.14) 7.26 0.47 (0.32) 0.10 7.51 2 Principally comprises the issue of $201m of shares to satisfy the DRP in respect to the final dividend for 2002/03 and the issue of USD550m (AUD832m) of hybrid capital in August 2003. Tier 1 June 20
Slide 89: Off-market share buy-back
Off-market share buy-back Structure Offer to buy back approximately $450 to $550 million (up to 1.7%) of issued capital All shareholders eligible to participate via tender Shareholders can tender any number of their shares within the range $26.00 to $31.25 The buy back price will comprise: Cash capi
Slide 90: Which new Bank
Which new Bank 7 Which Bank ConmonwealthSank > “i
Slide 91: Expected financial impact and outcomes of the program
In September 2003, we set out the expected financial impact and outcomes of the program Over the next three years we will: Redirect the normal project spend of $600m Spend an additional $620m Invest a further $260m in our branch network Over the next three years this will result in: Cash EPS growth
Slide 92: Which new Bank Expenditure to Date
Which new Bank Expenditure to Date * *As per Which new Bank announcement, September 2003
Slide 93: Investment spend is in line with expectations
Investment spend is in line with expectations
Slide 94: Benefits are emerging
Benefits are emerging UE eee Customers 58 87 145 Processes 5 50 55 People - - 7 Total 63 137 200 Which Bank Commonwealthiark <)
Slide 95: Highlights
Highlights Good result: underlying profit growth of 17% Another record dividend Productivity improvement in all businesses Further improvement in credit quality Continued strengthening of Tier 1 capital Which new Bank is meeting early expectations Share Buy-Back announced
Slide 96: Presentation of Half Year Results for period ended December 2003
Presentation of Half Year Results for period ended 31 December 2003 David Murray Chief Executive Officer Michael Cameron Chief Financial Officer 11 February 2004 www.commbank.com.au
Slide 97: Supplementary Slides
Supplementary Slides 7 Which Bank ConmonwealthSank > 8
Slide 98: Strong market share position: Banking
Strong market share position Source: RBA, APRA, East and Partners, AELA, Reserve Bank of NZ Banking Market Shares Retail and Business Deposits1 Credit Cards Transaction Services2 Home Loans Business Lending New Zealand Lending New Zealand Deposits1 Asset Finance3 0% 10% 20% 30% 24.1% 23.1%5 19.3%6 1
Slide 99: Strong market share position: Funds Management
Strong market share position Funds Management Market Shares Managed Investments1 0% 10% 20% New Zealand Managed Investments 14.7% 14.7%2 2003 2003 June 14.5% 14.9% Source: Plan for Life, Fund Source Research Notes: (1) Retail Only (2) September Data Dec
Slide 100: Strong market share position: Life Insurance
Strong market share position Life Insurance Market Shares New Zealand1 0% 10% 20% 30% 40% Australia Hong Kong 2003 2003 June 28.3% 15.3% 2.2% Source: ISI Statistics, Plan for Life, HK Insurance Association Notes: (1) In-force Business (2) September Data 28.1%2 15.1%2 2.2%2 Dec
Slide 101: Arrears in consumer book remain at low levels
Arrears in consumer book remain at low levels
Slide 102: Credit ratios are in line with peers
CBA ANZ NAB WBC Credit ratios are in line with peers
Slide 103: Offshore credit risk concentration
Offshore credit risk concentration Other Commercial Government Finance International breakdown by Industry* Australia New Zealand International *Excludes Mortgage and Personal
Slide 104: Consumer Portfolio: secured and unsecured lending
Consumer Portfolio: secured and unsecured lending Net Bad Debt Charge as Annualised % of Secured Lending Balances Owner Occupied Investment $bn Composition of Housing Portfolio Secured Lending $m Net Bad Debt Charge: decline due to improved recoveries Unsecured Lending Net Bad Debt Charge as Annuali
Slide 105: Credit Exposure - Energy Sector
Credit Exposure - Energy Sector 81% 9% 5% 4% Australia (79% investment grade) $4,302 211 580 2,348 1,163 $m 1% New Zealand (100% investment grade) Asia (96% investment grade) Europe (100% investment grade) Americas (33% investment grade) Credit Exposure is measured as the higher of limit or credit e
Slide 106: Credit Exposure - Telcos Sector
Credit Exposure - Telcos Sector 87% 14% Australia (75% investment grade) Europe (100% investment grade) $788 102 107 293 286 $m Credit Exposure is measured as the higher of limit or credit equivalent balance for committed exposures and credit equivalent balance for uncommitted exposures
Slide 107: Credit Exposure - Technology Sector
Credit Exposure - Technology Sector 90% 7% 3% $1,108 276 125 661 45 $m Australia (76% investment grade) North America (100% investment grade) Other (19% investment grade) Credit Exposure is measured as the higher of limit or credit equivalent balance for committed exposures and credit equivalent bal
Slide 108: Credit Exposure - Agriculture Sector
Credit Exposure - Agriculture Sector 74% 26% $9,596 $m Australia (13% investment grade) New Zealand (2% investment grade) 1,551 7,292 430 323 Credit Exposure is measured as the higher of limit or credit equivalent balance for committed exposures and credit equivalent balance for uncommitted exposure
Slide 109: Credit Exposure - Aviation Sector
Credit Exposure - Aviation Sector 83% 9% 6% New Zealand (100% investment grade) Australia (89% investment grade) Europe (14% investment grade) $1,973 47 318 1,434 175 $m Credit Exposure is measured as the higher of limit or credit equivalent balance for committed exposures and credit equivalent bala
Slide 110: Total Excess Over Capital Adequacy of $890m
Total Excess Over Capital Adequacy of $890m represented by: Australia $570m (Life Insurance) New Zealand $81m Asia $115m Other $124m Capital to protect policyholders' interests
Slide 111: Off-market share buy-back: Tender range
Off-market share buy-back Tender range The tender range is $26.00 to $31.25 8 specified prices, set at 75c intervals Tenders can be lodged at any of the specified prices, or as a Final Price Tender Buy-Back Price The buy-back price will be the lowest price in the range that enables the Bank to purch
Slide 112: Off-market share buy-back: Tender rules
Off-market share buy-back Tender rules Only shares tendered at or below the buy-back price will be bought back Tenders at the buy-back price may be subject to scale back All successful tenderers will receive the same buy-back price Shares tendered above the buy-back price will not be bought back Sca
Slide 113: Off-market share buy-back: The 45-day rule
Off-market share buy-back The 45-day rule To qualify for franking credit benefits, shareholders must generally have held their shares at risk for at least 45 days From discussions with the ATO, the Bank understands that a shareholder who acquires shares on or after 12 February 2004 may fail the 45 d
Slide 114: Off-market share buy-back: Tax implications
Off-market share buy-back Tax implications for successful participants Shareholders' cost base is relevant in determining any capital gain or loss Resident individuals and superfunds will generally be deemed to have sold their shares for $11.00 subject to the ATO's view on "market value" Draft Taxat
Slide 115: Off-market share buy-back: Tax consequences for resident individuals
Off-market share buy-back Tax consequences for resident individuals holding shares on capital account Example based on an illustrative Buy-Back Price of $28.25 and Tax Value of $29.16 Full details of the calculation method will be detailed in the Buy-Back Booklet but shareholders should seek their o
Slide 116: Off-market share buy-back: Key dates
Off-market share buy-back Key dates Tenders must be received by the Bank's share registry no later than 7pm Sydney time on Friday, 26 March 2004 Ex-date for buy-back entitlement Monday, 16 February Record date for buy-back Friday, 20 February Dispatch of buy-back booklet to shareholders by Friday, 5
Slide 117: Total income segmentation at December 2003
Total income segmentation at 31 December 2003 (1) (1) (2) (1) Excludes policyholder tax (2) Excludes internal funds management income
Commonwealth Bank of Australia — H1 FY2004 Earnings Presentation on 6ix