Commonwealth Bank Of Australia · ASX:CBA
Commonwealth Bank Of Australia — Investor Presentation (July 2003)
15 slides from Commonwealth Bank Of Australia's investor presentation, Jul 29, 2003
Slide 1: Capital
Capital Marten Touw, Group Treasurer 29 July 2003 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 29 July 2003. 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 in
Slide 3: Speaker's Notes
Speaker’s Notes Speaker's notes for these presentations are attached below each slide. To access them, you may need to save the slides in PowerPoint and view/print in “notes view.” Soreoonwesaltn tes. 3g
Slide 4: Capital requirements must be aligned with business risks
Capital requirements must be aligned with business risks » CBA understands the capital needs of its businesses in the context of the economic risks of those businesses » Other measures of capital reflect proprietary assessment criteria designed to fit a particular decision making framework Ronmeonwe
Slide 5: There are differing perspectives of capital
There are differing perspectives of “capital” « Shareholders » Regulators » Rating Agencies + We manage our capital position having regard to the requirements of shareholders, regulators in the form of APRA, Reserve Bank of New Zealand, Financial Services Authority etc and rating agencies. Each of t
Slide 6: To protect shareholders' interests
Capital to protect shareholders’ interests Economic Equity Internal models show CBA is strongly capitalised Conglomerates - APRA review of internal models Ronmeonwesit iin? ip 6 + As discussed, CBA has modelled its economic equity attribution process using Oliver Wyman, one of the well known consuit
Slide 7: To protect depositors' interests
Capital to protect depositors’ interests ANZ CBA NAB WBC Tier 1: Target ' 70% | 6.5%-7.0%| 7.0%-7.5% | 6.0% -6.5% March 2003 ° 7.75%! | 7.06%? 747% + 6.35% t {astows indicate rnoverent from Sept 2002} 4. Source: NAB / WBC Profit Announcements March 2003; ANZ Resuits Presentation September 2001 2. CB
Slide 8: To protect policyholders' interests
Capital to protect policyholders’ interests 34 DECEMBER 2002 3,000 2.500 } $807m | Asia Qther Tesal Australia (ife insurance) D Capital Required @ Actual Capitat Total excess over capital adequacy: $807m Konmeonweattte iia? 3p 8 + APRA sets capital requirements to protect life insurance policyholder
Slide 9: To protect debtholders' interests
Capital to protect debtholders’ interests CBA’s capital position remains strong as evidenced by our credit ratings: Standard & Poor's AA- “very strong” Stable Moody's Aa3_— “exceptional financial security” Stable Fitch AA “very high credit quality” Stable Serernonneonaattn £02: up g + CBA’s credit r
Slide 10: Proposed changes to the regulatory environment: Conglomerates
Proposed changes to the regulatory environment Conglomerates Basel 2 IAS Capitalised Expenses Sonmeonweatthe iia? 3 10 CONGLOMERATES * As discussed, APRA has designated CBA a “financial conglomerate”. Regulations relating to Financial Conglomerates came into effect on 1 July 2003. + Financial conglo
Slide 11: Proposed changes to the regulatory environment: Basel 2
Proposed changes to the regulatory environment Conglomerates Basel 2 IAS Capitalised Expenses Sonmeonwsaltte ie? 11 BASEL 2 * Under the New Capital Accord, risk weights for credit risk will be based on the credit rating of the counterparty or loss experience on statistically managed portfolios. * CB
Slide 12: Proposed changes to the regulatory environment: IAS
Proposed changes to the regulatory environment Conglomerates Basel 2 IAS Capitalised Expenses Konmeonweattie iia? 3p 12 IAS + From 1 July 2005 Australian companies will adopt International Financial Reporting Standards. « CBA is preparing for these changes now. At 1 July 2005, we will be required to
Slide 13: Proposed changes to the regulatory environment: Capitalised Expenses
Proposed changes to the regulatory environment Conglomerates Basel 2 IAS Capitalised Expenses Sonmeonweatthe iia? 3p 13 CAPITALISED EXPENSES * APRA released guidelines for Capitalised Expenses on the 25th of June 2003. * The guidelines propose that certain capitalised expenses are deducted from Tier
Slide 14: Summary
Summary CBA understands the capital needs of its businesses in the context of the economic risks of those businesses CBA’s capital position reflects the requirements of: » Shareholders » Regulators » Rating Agencies Konmeonweattie iia? 3p 14 « Again, CBA views its capital needs in the context of eco
Slide 15: Marten Touw, Group Treasurer
Capital Marten Touw, Group Treasurer 29 July 2003 www.commbank.com.au 15
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