Commonwealth Bank of Australia · ASX:CBA
Commonwealth Bank of Australia — FY2003 Earnings Presentation
15 slides from Commonwealth Bank of Australia's earnings presentation, Aug 20, 2003
Slide 1: Full Year Results – 30 June 2003 Presentation to Media
Full Year Results – 30 June 2003 Presentation to Media David Murray 20 August 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, 20 August 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
Slide 3: Agenda
Agenda Results Group Business Segments Outlook Operating Environment Financial Services Industry Direction Full Year Results 20 August 2003 3
Slide 4: 3% increase in cash profit in line with expectations at last AGM
3% increase in cash profit in line with expectations at last AGM Jun 2003 Jun 2002 Change Statutory Net Profit After Tax $2,012m $2,655m (24%) Net Profit After Tax (cash basis)* $2,579m $2,501m 3% Earnings per Share (cash basis)* 203cps 197cps 3% * excluding goodwill amortisation of $322 million and
Slide 5: Another record dividend
Another record dividend Jun 2003 Jun 2002 Change Dividends per Share 154cps 150cps 3% Dividend Payout Ratio 75.9% 76.2% - 160 150 154 136 82 85 140 130 75 115 72 120 102 104 66 100 90 58 82 57 C e n ts 80 52 46 60 60 68 69 42 36 58 61 40 46 49 22 45 36 38 20 24 20 0 1993 1995 1997 1999 2001 2003 Fir
Slide 6: Banking performance drives a 9% underlying growth
Banking performance drives a 9% underlying growth $m Underlying Growth of 9% 2900 First Time 2800 Expenses 2,687 (181) 2700 Investment Returns Funds 73 2,579 2600 Management (132) 2500 2,468 Banking 2400 Life 334 Insurance 17 2300 2200 Underlying J un-02 Banking L ife Funds Underlying Underlying Fir
Slide 7: Lower results in funds management consistent with tough market conditions
Lower results in funds management consistent with tough market conditions Income to FUM stable at 116 basis points FirstChoice growing rapidly to $3.2bn $bn 7 Net Funds Flow 5 3 1 -1 -3 -5 -7 Retail - On Retail - FirstChoice Wholesale - W holesale - CMTs* Sale Legacy Australia & UK Non-UK^ *Cash
Slide 8: Steady operating margins and improving investment returns for life insurance
Steady operating margins and improving investment returns for life insurance $m 64 122 120 41% increase from underlying business 100 6 (30) 41 80 58 60 41 40 20 0 Underlying Asia NZ Australia Underlying S'holder Cash Profit Profit Jun-02 Profit Jun-03 Invest Jun-03 Returns Full Year Results 20 Augus
Slide 9: Implementation of strategic initiatives
Implementation of strategic initiatives Redesign of our branch telling system Small business and corporate process redesign Home loan process redesign ATM replacement NetBank upgrade Full Year to 30 June 2003 Costs Benefits Net Cost Annual Benefit $m $m $m $m Target 227 84 143 159 Outcome
Slide 10: Outlook
Outlook Operating Environment Australian economy reasonably resilient but remains dependent on US recovery Positive signs emerging Significant potential financial imbalances from US deficits Financial Services Industry Highly competitive Environment of reducing margins Possible slowi
Slide 11: Value Creation Phases
Value Creation Phases Service Transformation Wealth Management Online Service Efficiency Privatisation Full Year Results 20 August 2003 11
Slide 12: Online banking, integral to the way customers transact
Online banking, integral to the way customers transact First major bank to launch internet banking 2.8m customers registered for NetBank 1.3m customers registered for our other internet services including: CommSec First Net and First Net Adviser Over half of all bill payments now being d
Slide 13: Colonial merger, added banking, funds and life insurance to an existing product mix
Colonial merger, added banking, funds and life insurance to an existing product mix $m Increase in appraisal value since acquisition of 27% 9,000 625 (48) (222) 8,546 188 8,500 818 8,000 7,500 449 7,000 6,736 6,500 6,000 Jun-00 Dec-00 Jun-01 Dec-01 Jun-02 Dec-02 Jun-03 Jun-03 Full Year Results 20 Au
Slide 14: Customer service culture, the next transformation
Customer service culture, the next transformation Customer Service through Engaged People supported by Simple Processes Full Year Results 20 August 2003 14
Slide 15: Full Year Results – 30 June 2003 Presentation to Media
Full Year Results – 30 June 2003 Presentation to Media David Murray 20 August 2003 www.commbank.com.au
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