Commonwealth Bank Of Australia · ASX:CBA
Commonwealth Bank Of Australia — H1 2004 Earnings Presentation
22 slides from Commonwealth Bank Of Australia's earnings presentation, Feb 11, 2004
Slide 1: Half Year Results
Half Year Results Presentation to Media David Murray Chief Executive Officer 11 February 2004 www.commbank.com.au
Slide 2: 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 3: Agenda
Agenda e Half Year Results « Which new Bank « Outlook
Slide 4: A good result in line with 2003 outlook
A good result in line with 2003 outlook 31/12/03 31/12/02 change $m $m » Statutory NPAT 1,243 622 100% » Cash NPAT 1,240 1,208 3% » Underlying cash NPAT 4,487 4,274 17%
Slide 5: Highest interim dividend increase in nine years continues record series
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% T T 1993 1995 1997 1999 2001 2003 | B First Half B Second Half ] Which Bank Commonweatthéark
Slide 6: Segment breakdown: Across-the-board progress
Segment breakdown: Across-the-board progress Underlying Net Profit After Tax 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 Banking: strong result driven by continued home lending growth and pick up in growth
Slide 7: Capital ratios remain strong
Capital ratios remain strong 41% 10% 9% 8% 1% 6% 5% 4% 3% 2% 4% 0% Jun 2002 Dec 2002 Jun 2003 Dac 2003 Dec 2003 a Tier 1 Capital Tier 2 Capital Adjusted Common Equity = Target Range * Pro-forma figures represent actual December 2003 capital ratios adjusted for 3750m PERLS lI, an issue and redemption
Slide 8: 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 ca
Slide 9: Which new Bank
Which Bank
Slide 10: Service transformation
Service transformation Through by » Service/Sales (4) ie Performance Culture (1) « Support (1) Effectiveness = Process/product (3) = IT Enablers (2) = IT Efficiency (2) » Distribution Efficiency (3) = Purchasing (2) = Product (2) () = Number of workstreams Which Bank Commonweatthéark 40
Slide 11: Progress report on activities
Progress report on activities Customer Service ¢ S/S Effectiveness « IT Enablers ¢ Distribution Efficiency « Product Engaged People ¢ Performance Culture Simple Processes * Support * Process/Product * IT Efficiency * Purchasing fo 24 11
Slide 12: Performance culture
Performance culture « Cultural diagnostic completed « Program implementation in next half Leading from the front Staff involvement
Slide 13: Staff feedback to CEO
Staff feedback to CEO 50 Emails 45 % Strategy Staff Communication Executive Improving visits service Feedback category Staff performance Personal 13
Slide 14: 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 14
Slide 15: Service and Sales - early results
Service and Sales - early results Product sales per FT! 409 417 118 119 121 Benchmark: 100 Week 1 Week2 Week3 Week4 Week5 Week6 Week7 Week 8 174 Cross-sell ratio 148 144 Benchmark: 100 Week1 Week2 Week3 Week4 Week5 Week6 Week7 Week 8 Which Bank — 77 National benchmark CommonwealthGark
Slide 16: 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 Which Bank ConmonweaithBak “9 46
Slide 17: Strong business momentum
Strong business momentum Better than expected Business Growth Market share pick-up in business banking Margins Consistent with assumptions Productivity Within 4-6% target range Earnings growth Exceeding assumptions Dividend growth Exceeding assumptions Which Bank 47
Slide 18: 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 19: Outlook - Economy
Outlook - Economy Global i 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 Which Ban
Slide 20: Outlook - Bank
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 a
Slide 21: Summary
Summary Good result: underlying profit growth of 17% Another record dividend ie Productivity improvements in all businesses Capital strengthening, buy-back, share purchase plan in place z# Which new Bank underway and meeting expectations Full year outlook positive Confidence in longer term growth ob
Slide 22: Half Year Results
Half Year Results Presentation to Media David Murray Chief Executive Officer 11 February 2004 www.commbank.com.au
Commonwealth Bank of Australia — H1 2004 Earnings Presentation on 6ix