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 Half Year Results Which new Bank Outlook 3
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 1,487 1,274 17% 4
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% 150 154 160 130 136 140 115 82 85 120 90 102 104 75 82 72 100 66 Cents 57 58 80 42 60 52 60 46 79 68 69 40 36 58 61 22 45 46 49 20 20 24
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 i
Slide 7: Capital ratios remain strong
Capital ratios remain strong 11% 9.80% 9.81% 9.73% 9.46% 9.84% 10% 9% 8% 7% 6% 6.78% 7.06% 6.96% 7.26% 7.51% 5% 4% 4.61% 3% 2% 1% 0% Ju n 2 0 0 2 Dec 2002 Ju n 2 0 0 3 Dec 2003 Dec 2003 Pr o - f o r m a * Tier 1 Capital Tier 2 Capital Adjusted Common Equity Target Range * Pro-forma figures represent
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: C
Slide 9: Which new Bank
new Which Bank ConmonwealthBank y
Slide 10: Service transformation
Service transformation ‘To excel in customer service’ via Supported Customer service Through Engaged people by Simple processes Service/Sales Performance Culture (1) Support (1) (4) Effectiveness Process/product (3) IT Enablers (2) IT Efficiency (2) Distribution Efficiency (3) Purcha
Slide 11: Progress report on activities
Progress report on activities Complete by 31 Dec 03 30 Jun 04 30 Jun 05 30 Jun 06 To do Done To do Done To do Done To do Done Customer Service S/S Effectiveness 9 9 15 2 11 2 IT Enablers 3 3 11 9 8 Distribution Efficiency 2 2 6 2 2 1 Product 2 2 5 2 Engaged People Performance Culture 1 1 5 1 Simple
Slide 12: Performance culture
Performance culture Cultural diagnostic completed Program implementation in next half Leading from the front Staff involvement 12
Slide 13: Staff feedback to CEO
Staff feedback to CEO 50 Emails 45 43 % 40 35 30 25 20 16 15 13 14 10 8 6 5 0 Strategy Staff Executive Improving Staff Personal Communication visits service performance Feedback category 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 FTE 117 118 119 121 109 99 99 100 Benchmark: 100 Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 174 156 163 148 144 Cross-sell ratio 133 125 107 Benchmark: 100 Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 National benchmark 15
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 16
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 17
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 18
Slide 19: 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 1
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 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 g
Slide 22: Half Year Results
Half Year Results Presentation to Media David Murray Chief Executive Officer 11 February 2004 www.commbank.com.au
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